Digital Identity Solutions Market
Digital Identity Solutions Market Forecasts to 2032 - Global Analysis By Type (Biometric and Non-Biometric), Authentication Type, Component, Organization Size, Application, End User and By Geography
|
Years Covered |
2024-2032 |
|
Estimated Year Value (2025) |
US $43.6 BN |
|
Projected Year Value (2030) |
US $164.7 BN |
|
CAGR (2025- 2032) |
20.9% |
|
Regions Covered |
North America, Europe, Asia Pacific, South America, and Middle East & Africa |
|
Countries Covered |
US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa |
|
Largest Market |
North America |
|
Highest Growing Market |
Asia Pacific |
According to Stratistics MRC, the Global Digital Identity Solutions Market is accounted for $43.6 billion in 2025 and is expected to reach $164.7 billion by 2032 growing at a CAGR of 20.9% during the forecast period. Digital identity solutions are advanced systems designed to verify, authenticate, and manage individuals' online identities using technologies such as biometrics, cryptographic security, and artificial intelligence. These solutions enhance cybersecurity by protecting personal data, ensuring secure access to digital services, and preventing identity fraud. By integrating encryption, multi-factor authentication, and blockchain technology, digital identity solutions streamline verification across industries like banking, healthcare, and government services. As digital interactions increase, businesses and individuals rely on these systems to safeguard sensitive information while enabling seamless transactions.
According to data from Spiceworks in 2021, the authentication market experienced significant growth, particularly as online transactions surged. They also stated that businesses mitigated breaches by implementing layered authentication approaches to authorize user accounts for access to applications and devices.
Market Dynamics:
Driver:
Surge in cybercrime, data breaches, and identity theft
As businesses and individuals rely more on digital transactions, the need for secure authentication methods has intensified. Organizations across industries, including banking, healthcare, and government, are implementing advanced identity verification technologies to mitigate security risks. The rise of sophisticated hacking techniques has further accelerated the adoption of multi-factor authentication, biometric security, and AI-driven fraud detection.
Restraint:
Lack of universal standards and interoperability
Different regions and industries have varying regulations and authentication protocols, making seamless integration difficult. Businesses often struggle with compatibility issues when deploying identity verification systems across multiple platforms. Additionally, fragmented identity ecosystems hinder cross-border transactions and digital interactions, limiting scalability.
Opportunity:
Emergence of decentralized identity (DID) and blockchain-based ID
Unlike traditional centralized identity systems, DID enables users to control their personal data without relying on third-party intermediaries. Blockchain technology enhances security by providing tamper-proof identity records, reducing the risk of fraud and unauthorized access. As privacy concerns grow, decentralized identity frameworks offer a transparent and user-centric approach to authentication.
Threat:
Public distrust toward centralized identity systems
Users are increasingly skeptical about sharing personal information with centralized databases due to risks of data breaches and misuse. High-profile security incidents have eroded trust in traditional identity verification methods, prompting demand for more transparent and user-controlled authentication solutions. Additionally, regulatory scrutiny surrounding data collection and storage practices has intensified, compelling organizations to enhance security measures.
Covid-19 Impact:
The COVID-19 pandemic accelerated the adoption of digital identity solutions as remote work, online transactions, and virtual interactions surged. Businesses and governments prioritized secure authentication methods to facilitate digital services while minimizing fraud risks. The pandemic highlighted vulnerabilities in traditional identity verification processes, prompting investments in AI-driven authentication and biometric security. However, supply chain disruptions and economic uncertainties temporarily slowed market expansion.
The non-biometric segment is expected to be the largest during the forecast period
The non-biometric segment is expected to account for the largest market share during the forecast period due to its widespread adoption across industries. Password-based authentication, multi-factor authentication (MFA), and cryptographic security methods remain essential for identity verification. Businesses prefer non-biometric solutions for their flexibility, cost-effectiveness, and ease of integration with existing systems.
The e-KYC (know your customer) segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the e-KYC (know your customer) segment is predicted to witness the highest growth rate driven by regulatory mandates and digital banking expansion. Financial institutions and fintech companies are leveraging e-KYC solutions to streamline customer onboarding and enhance fraud prevention. AI-powered identity verification and document authentication technologies are improving efficiency and accuracy in KYC processes.
Region with largest share:
During the forecast period, the North America region is expected to hold the largest market share driven by strong regulatory frameworks and high adoption of digital identity solutions. The region’s advanced cybersecurity infrastructure and stringent data protection laws contribute to market growth. Financial institutions, healthcare providers, and government agencies are prioritizing identity verification technologies to combat fraud and enhance security.
Region with highest CAGR:
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR fueled by rapid digital transformation and increasing cybersecurity concerns. Countries like China, India, and Japan are investing in digital identity solutions to support e-governance, financial inclusion, and secure online transactions. The expansion of mobile banking and e-commerce platforms is driving demand for advanced authentication technologies.
Key players in the market
Some of the key players in Digital Identity Solutions Market include Daon, Inc., ForgeRock, Inc., GB Group plc (‘GBG’), Good Digital Identity, HashCash Consultants, IBM Corporation, IDEMIA, ImageWare Systems, iProov, Jumio, NEC Corporation, SailPoint Technologies, Inc., Samsung SDS, Saviynt Inc., Smartmatic, Syntizen Technologies Private Ltd, TELUS, Tessi and Thales.
Key Developments:
In March 2025, SailPoint expanded its Managed Service Provider (MSP) offering, making the SailPoint Identity Security Cloud accessible to smaller enterprises, thereby broadening the adoption of identity security solutions.
In January 2025, Jumio announced its latest digital identity and risk signals offerings tailored for the global gaming market, providing an exceptional player experience without compromising trust and safety.
In October 2024, IDEMIA enabled the ability to add Iowa driver's licenses and state IDs to Apple Wallet, enhancing the convenience and security of digital identity management.
Types Covered:
• Biometric
• Non-Biometric
Authentication Types Covered:
• Single-Factor Authentication
• Multi-Factor Authentication
• Risk-Based Authentication
Organization Sizes Covered:
• Large Enterprises
• Small & Medium Enterprises (SMEs)
Applications Covered:
• Access Control & Management
• e-KYC (Know Your Customer)
• Authentication & Verification
• Fraud Detection & Prevention
• Compliance Management
• Other Applications
End Users Covered:
• Banking, Financial Services & Insurance (BFSI)
• Retail & E-commerce
• Government & Public Sector
• Healthcare
• Travel & Hospitality
• Telecommunication
• IT & ITeS
• Education
• Energy & Utilities
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Digital Identity Solutions Market, By Type
5.1 Introduction
5.2 Biometric
5.2.1 Fingerprint Recognition
5.2.2 Facial Recognition
5.2.3 Iris Recognition
5.2.4 Voice Recognition
5.2.5 Palm/Vein Recognition
5.3 Non-Biometric
5.3.1 Passwords & PINs
5.3.2 Knowledge-Based Authentication
5.3.3 Security Tokens
5.3.4 Smart Cards
6 Global Digital Identity Solutions Market, By Authentication Type
6.1 Introduction
6.2 Single-Factor Authentication
6.3 Multi-Factor Authentication
6.4 Risk-Based Authentication
7 Global Digital Identity Solutions Market, By Component
7.1 Introduction
7.2 Software
7.2.1 Identity Verification Software
7.2.2 Digital ID Wallets
7.2.3 Identity Authentication Software
7.3 Services
7.3.1 Managed Services
7.3.2 Professional Services
8 Global Digital Identity Solutions Market, By Organization Size
8.1 Introduction
8.2 Large Enterprises
8.3 Small & Medium Enterprises (SMEs)
9 Global Digital Identity Solutions Market, By Application
9.1 Introduction
9.2 Access Control & Management
9.3 e-KYC (Know Your Customer)
9.4 Authentication & Verification
9.5 Fraud Detection & Prevention
9.6 Compliance Management
9.7 Other Applications
10 Global Digital Identity Solutions Market, By End User
10.1 Introduction
10.2 Banking, Financial Services & Insurance (BFSI)
10.3 Retail & E-commerce
10.4 Government & Public Sector
10.5 Healthcare
10.6 Travel & Hospitality
10.7 Telecommunication
10.8 IT & ITeS
10.9 Education
10.10 Energy & Utilities
10.11 Other End Users
11 Global Digital Identity Solutions Market, By Geography
11.1 Introduction
11.2 North America
11.2.1 US
11.2.2 Canada
11.2.3 Mexico
11.3 Europe
11.3.1 Germany
11.3.2 UK
11.3.3 Italy
11.3.4 France
11.3.5 Spain
11.3.6 Rest of Europe
11.4 Asia Pacific
11.4.1 Japan
11.4.2 China
11.4.3 India
11.4.4 Australia
11.4.5 New Zealand
11.4.6 South Korea
11.4.7 Rest of Asia Pacific
11.5 South America
11.5.1 Argentina
11.5.2 Brazil
11.5.3 Chile
11.5.4 Rest of South America
11.6 Middle East & Africa
11.6.1 Saudi Arabia
11.6.2 UAE
11.6.3 Qatar
11.6.4 South Africa
11.6.5 Rest of Middle East & Africa
12 Key Developments
12.1 Agreements, Partnerships, Collaborations and Joint Ventures
12.2 Acquisitions & Mergers
12.3 New Product Launch
12.4 Expansions
12.5 Other Key Strategies
13 Company Profiling
13.1 Daon, Inc.
13.2 ForgeRock, Inc.
13.3 GB Group plc (‘GBG’)
13.4 Good Digital Identity
13.5 HashCash Consultants
13.6 IBM Corporation
13.7 IDEMIA
13.8 ImageWare Systems
13.9 iProov
13.10 Jumio
13.11 NEC Corporation
13.12 SailPoint Technologies, Inc.
13.13 Samsung SDS
13.14 Saviynt Inc.
13.15 Smartmatic
13.16 Syntizen technologies privet. Ltd
13.17 TELUS
13.18 Tessi
13.19 Thales
List of Tables
1 Global Digital Identity Solutions Market Outlook, By Region (2024-2032) ($MN)
2 Global Digital Identity Solutions Market Outlook, By Type (2024-2032) ($MN)
3 Global Digital Identity Solutions Market Outlook, By Biometric (2024-2032) ($MN)
4 Global Digital Identity Solutions Market Outlook, By Fingerprint Recognition (2024-2032) ($MN)
5 Global Digital Identity Solutions Market Outlook, By Facial Recognition (2024-2032) ($MN)
6 Global Digital Identity Solutions Market Outlook, By Iris Recognition (2024-2032) ($MN)
7 Global Digital Identity Solutions Market Outlook, By Voice Recognition (2024-2032) ($MN)
8 Global Digital Identity Solutions Market Outlook, By Palm/Vein Recognition (2024-2032) ($MN)
9 Global Digital Identity Solutions Market Outlook, By Non-Biometric (2024-2032) ($MN)
10 Global Digital Identity Solutions Market Outlook, By Passwords & PINs (2024-2032) ($MN)
11 Global Digital Identity Solutions Market Outlook, By Knowledge-Based Authentication (2024-2032) ($MN)
12 Global Digital Identity Solutions Market Outlook, By Security Tokens (2024-2032) ($MN)
13 Global Digital Identity Solutions Market Outlook, By Smart Cards (2024-2032) ($MN)
14 Global Digital Identity Solutions Market Outlook, By Authentication Type (2024-2032) ($MN)
15 Global Digital Identity Solutions Market Outlook, By Single-Factor Authentication (2024-2032) ($MN)
16 Global Digital Identity Solutions Market Outlook, By Multi-Factor Authentication (2024-2032) ($MN)
17 Global Digital Identity Solutions Market Outlook, By Risk-Based Authentication (2024-2032) ($MN)
18 Global Digital Identity Solutions Market Outlook, By Component (2024-2032) ($MN)
19 Global Digital Identity Solutions Market Outlook, By Software (2024-2032) ($MN)
20 Global Digital Identity Solutions Market Outlook, By Identity Verification Software (2024-2032) ($MN)
21 Global Digital Identity Solutions Market Outlook, By Digital ID Wallets (2024-2032) ($MN)
22 Global Digital Identity Solutions Market Outlook, By Identity Authentication Software (2024-2032) ($MN)
23 Global Digital Identity Solutions Market Outlook, By Services (2024-2032) ($MN)
24 Global Digital Identity Solutions Market Outlook, By Managed Services (2024-2032) ($MN)
25 Global Digital Identity Solutions Market Outlook, By Professional Services (2024-2032) ($MN)
26 Global Digital Identity Solutions Market Outlook, By Organization Size (2024-2032) ($MN)
27 Global Digital Identity Solutions Market Outlook, By Large Enterprises (2024-2032) ($MN)
28 Global Digital Identity Solutions Market Outlook, By Small & Medium Enterprises (SMEs) (2024-2032) ($MN)
29 Global Digital Identity Solutions Market Outlook, By Application (2024-2032) ($MN)
30 Global Digital Identity Solutions Market Outlook, By Access Control & Management (2024-2032) ($MN)
31 Global Digital Identity Solutions Market Outlook, By e-KYC (Know Your Customer) (2024-2032) ($MN)
32 Global Digital Identity Solutions Market Outlook, By Authentication & Verification (2024-2032) ($MN)
33 Global Digital Identity Solutions Market Outlook, By Fraud Detection & Prevention (2024-2032) ($MN)
34 Global Digital Identity Solutions Market Outlook, By Compliance Management (2024-2032) ($MN)
35 Global Digital Identity Solutions Market Outlook, By Other Applications (2024-2032) ($MN)
36 Global Digital Identity Solutions Market Outlook, By End User (2024-2032) ($MN)
37 Global Digital Identity Solutions Market Outlook, By Banking, Financial Services & Insurance (BFSI) (2024-2032) ($MN)
38 Global Digital Identity Solutions Market Outlook, By Retail & E-commerce (2024-2032) ($MN)
39 Global Digital Identity Solutions Market Outlook, By Government & Public Sector (2024-2032) ($MN)
40 Global Digital Identity Solutions Market Outlook, By Healthcare (2024-2032) ($MN)
41 Global Digital Identity Solutions Market Outlook, By Travel & Hospitality (2024-2032) ($MN)
42 Global Digital Identity Solutions Market Outlook, By Telecommunication (2024-2032) ($MN)
43 Global Digital Identity Solutions Market Outlook, By IT & ITeS (2024-2032) ($MN)
44 Global Digital Identity Solutions Market Outlook, By Education (2024-2032) ($MN)
45 Global Digital Identity Solutions Market Outlook, By Energy & Utilities (2024-2032) ($MN)
46 Global Digital Identity Solutions Market Outlook, By Other End Users (2024-2032) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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