Digital Identity Solutions Market By Component (Solutions, and Services), By Solution Type (Biometrics, and Non-Biometrics), By Authentication Type (Single-factor Authentication, and Multi-factor Authentication), By Mode of Deployment Type (Cloud, and On-Premises), By Organization Size (Large Enterprise, and SMEs), By Verticals (BFSI, Retail and eCommerce, Government and Defense, Healthcare, IT and ITeS, Telecommunications, Energy and Utilities, and Other Verticals), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East and America – Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data and Forecasts 2022 – 2030

Digital Identity Solutions Market Overview

Information on an entity used by a computer system to represent an external agent is known as digital identity. Accessing computers and offering services to clients is possible with digital identity systems. The compliance of information about an individual that exists in a digital form, which encompasses all data from the individual's date of birth to all behaviors on social media platforms, is known as a digital identity solution. The solutions have various advantages, including high accuracy and compliance, minimal operational costs, improved client experience, and enhanced security. Moreover, the number of smartphone users worldwide has surged as a result of rapid technology breakthroughs, and the world is becoming more linked than ever before. The traditional password key approach was once the only secure method of authentication. These password security measures are becoming easier to exploit as technology advances. Passwords are not as secure as digital identity-based security, which includes biometric technology and multi-factor authentication. Most smartphones on the market include a camera as well as identification features such as fingerprint and face recognition. More smartphone manufacturers are incorporating fingerprint and facial recognition technologies into their devices.

However, organizations across all industries are concerned about the growing threat of cyber attacksand identity-related frauds and thefts. To address these security concerns, organizations have begun to employ digital identity solutions for identification and authentication; however, the high cost of implementing such solutions is one of the factors impeding the market's growth. Implementing digital identity systems requires significant upfront expenditures and costs. Because of their limited resources, SMEs usually only pay attention to security after a breach has happened. Enterprises place a high priority on the security of only important servers, ignoring the data held in databases, which becomes vulnerable to cyber-attacks.

Market Size

According to Business Intelligence Insights “ Digital Identity Solutions Market is expected to grow from USD 23.10 billion in 2021 to USD 55.99 billion by 2030, at a CAGR of 15.90% during the forecast period 2022-2030

Covid -19 Impact Analysis

Various governments and regulatory agencies have mandated both public and commercial enterprises to embrace new strategies for working remotely and keeping social distance in the wake of the COVID-19 pandemic. Since then, digital business practices have become the new Business Continuity Plan (BCP) for many companies. Individuals are increasingly attracted to adopt digital technologies such as cloud solutions as a result of the widespread usage of BYOD devices, the WFH trend, and internet penetration across the globe, boosting the need for cyber security measures to protect against cyber-attacks. In the wake of the Covid-19 outbreak, there is a growing demand for endpoint and virtual private network (VPN) security measures, as well as for cyber hygiene activities to maintain robust security policies and practices.

Market Dynamics

• Drivers
  • Integration of biometrics in smartphones
  • Rising Focus on Enhanced End-To-End Customer Experience
  • Increase in Identity and Authentication Frauds          
• Restraints
  • Higher cost involved in deploying digital identity solutions
  • Lack of Information Security of Consumer Data

Segmentation Insights

By Mode of Deployment Type:

On-premises dominated the market with more than 50% of the market share

In 2021, in the global market, the cloud sector accounted for the largest share due to their benefits, such as ease of use, lower installation and maintenance costs, cloud-based identifying keys are becoming increasingly popular. Furthermore, cloud-based identification solutions are more secure than on-premises systems, which keep data secure and identify when sharing it. As a result, cloud-based digital identity solutions are mostly used by large corporations and small businesses, which is predicted to lead to significant segmental growth. The on-premises digital identity solution segment, on the other hand, accounts for a significant portion of the overall market. This can be attributed to factors such as greater flexibility and control when compared to cloud systems, which may fuel segment expansion in the future.

By Verticals:

BFSI category dominated the market with more than 15% of the market share

In 2021, the BFSI segment had the biggest market share, which is projected to continue during the projection period. In a digital environment, there is a growth in data volume, velocity, and client access to financial services across many platforms, which acts as a catalyst for segment demand globally. Furthermore, it enables banks to choose scalable, flexible, and simple-to-integrate identification capabilities, with unique identity solutions available "as-a-Service" and delivered on-demand via private or public cloud infrastructures. As a result, the proliferation of data security in the BFSI sector enhanced segment demand and opened the road for industry expansion.

By Component

• Solutions
• Services

By Solution Type

• Biometrics
• Non-Biometrics

By Authentication Type

• Single-factor Authentication
• Multi-factor Authentication

By Mode of Deployment Type

• Cloud
• On-Premises

By Organization Size

• Large Enterprise
• SMEs

By Verticals

• BFSI
• Retail and eCommerce
• Government and Defense
• Healthcare
• IT and ITeS
• Telecommunications
• Energy and Utilities
• Other Verticals

By Region

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East and Africa
• • UAE
  • South Africa

• Rest of Middle East and Africa (MEA)

Key Players

• NEC (Japan)
• Samsung SDS (South Korea)
• Thales Group (France)
• GBG (UK)
• TELUS (Canada)
• Tessi (France)
• Daon (US)
• IDEMIA (France)
• ForgeRock (US)
• Jumio (US)
• iProov (UK)
• ID R&D (US)
• Refinitiv (UK)
• ImageWare Systems (US)
• OneSpan (US)
• Smartmatic (UK)
• Verisec (Sweden)
• Vintegris (Spain)
• AU10TIX (Cyprus)
• Signicat (Norway)
• RaulWalter (Estonia)
• Duo Security (US)
• Syntizen(India)
• HashCash Consultants (US)
• Good Digital Identity (Czech Republic)

Regional Insights

North America dominated the market with more than 30% of the market share

Due to the early adoption of digital identity solutions across organizations and industry verticals for managing tasks effectively and securely, North America accounted for the biggest share of the worldwide industry in 2021 and is projected to dominate the industry in the future years. Furthermore, enterprises and sectors in this region are progressively using digital identity solutions to allow business continuity by enabling data protection and ensuring data security and confidentiality. In addition, the region has a large pool of market suppliers with diverse operations and consumer bases, resulting in increased availability of such solutions.

However, Digital identity systems have already been deployed in well-known Asian countries such as China, India, Singapore, and Japan. Increased public awareness regarding identity authentication, significant government investments in securing individuals' identities, and the adoption of new technologies like machine learning, artificial intelligence, or blockchain would all likely aid market growth in the region.The Indian government has implemented measures such as eKYC to aid in the detection of identity fraud.

Table

Report Attributes	Details
Market Size Value in 2021	USD 23.10 billion
Market Size Value in 2030	USD 55.99 billion
Growth Rate	+ 15.90%
Base Year	2021
Forecast Period	2022-2030
Historical Data	2018-2020
Forecast Units	(USD Billion)
Countries Covered	North America: U.S and Canada Europe: Germany, France, Italy, U.K, Spain, Russia, Rest of Europe APAC: China, Japan, South Korea, India, Australia, South East Asia, Rest of Asia Pacific Latin America: Brazil, Mexico Middle East And Africa: Saudi Arab, South Africa, UAE
Segments Covered	By Component, By Solution Type, By Authentication Type, By Mode of Deployment Type, By Organization Size, By Verticals, By Region
Competitive landscape	Leading companies, Competitive strategies and Consumer engagement scope
Customization is available	If our report does not contain the information you require, you can contact our experts to have segments created for you. Please contact us at sales@businessintelligence-insights.com if you have any questions

 

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