Decentralized Identity Market Size
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 4.89 Billion |
| Market Size (2030) | USD 41.73 Billion |
| CAGR (2025 - 2030) | 53.48% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Decentralized Identity Market Analysis
The Decentralized Identity Market size is estimated at USD 4.89 billion in 2025, and is expected to reach USD 41.73 billion by 2030, at a CAGR of 53.48% during the forecast period (2025-2030).
Decentralized identity offers a revolutionary way to handle digital identities, empowering individuals to manage their personal data without the need for centralized authorities. This approach tackles major challenges of traditional identity systems, including data breaches, disjointed online experiences, and digital exclusion.
- As more businesses embrace decentralized identity solutions, the market is poised for significant growth. Industry experts predict that by 2024, around 45% of global enterprises will adopt some form of decentralized identity solution, signaling a pronounced shift towards user-focused identity management.
- The surge in identity theft and data breaches is a primary catalyst for the growing adoption of decentralized identity solutions. Highlighting the urgency, Surfshark B.V. reported that in Q3 2024, data breaches compromised over 422 million records globally.
- Self-Sovereign Identity (SSI) frameworks are becoming increasingly popular, enabling users to control their identification data without centralized oversight. This shift is largely fueled by heightened concerns over data privacy and security. Moreover, the establishment of standardized protocols is vital for the seamless operation of decentralized identity solutions across diverse platforms, with organizations like the World Wide Web Consortium (W3C) spearheading these efforts.
- Blockchain technology plays a pivotal role in decentralized identity solutions, offering a secure, transparent, and unchangeable ledger for identity data storage. By removing intermediaries, blockchain cultivates a trustless environment for verifying identities.
- For decentralized identity systems to flourish, broad user acceptance is crucial. Yet, many potential users remain unaware of the advantages and intricacies of these systems, underscoring the need for continuous educational initiatives to foster trust and understanding. This knowledge gap could pose challenges to market expansion.
Decentralized Identity Market Trends
BFSI to Hold Significant Market Growth
- Decentralized identity (DCI) is reshaping digital identity management, especially in the Banking, Financial Services, and Insurance (BFSI) sector. This cutting-edge approach hands control of personal data from centralized entities to individuals, bolstering privacy and security and tackling the weaknesses of traditional identity management systems.
- In 2024, the global average cost of a data breach in the financial sector reached 6.08 million U.S. dollars, a rise from 5.90 million in 2023 (source: IBM Corporation). This underscores the escalating demand for decentralized identity solutions. Financial institutions face mounting pressure to adhere to strict Know Your Customer (KYC) regulations. Decentralized identities simplify this compliance, offering secure and verifiable identities without the need for centralized storage of sensitive data.
- Mastercard is championing decentralized identity solutions to bolster identity verification in financial services. Their partnership with Idemia and Samsung is set to produce biometric payment cards, infused with decentralized identity features, empowering users to manage their identity securely during transactions.
- HSBC is delving into decentralized identity technologies to refine its customer onboarding. By adopting DCI solutions, HSBC seeks to minimize redundant identity verification steps, boosting both user experience and security, all while meeting regulatory standards.
- In conclusion, decentralized identity heralds a transformative era in personal data management and security within the BFSI sector. By placing power in the hands of individuals and harnessing cutting-edge technologies like blockchain, DCI not only rectifies current vulnerabilities but also charts a course for safer and more efficient digital engagements.
North America is Expected to Hold a Major Share of the Market
- Decentralized identity (DID) is rapidly gaining traction in North America, driven by technological advancements and a growing emphasis on data privacy. This market is characterized by a shift towards user-centric identity management, where individuals have greater control over their digital identities.
- A notable increase in identity theft cases has been reported, with around 42 million Americans targeted by digital identity fraud in 2023 (as per IBM Corporation). This represents a significant rise in new-account fraud and account takeovers, particularly during the pandemic. The decentralized identity model offers individuals greater control over their personal information, allowing them to share only necessary data with third parties while enhancing privacy and security.
- North American governments are recognizing the importance of digital identity frameworks. For instance, the U.S. has implemented guidelines through NIST, while Canada is advancing its Pan-Canadian Trust Framework, reflecting a commitment to secure digital identities.
- As per ATB Ventures, in Canada, about 70% of citizens favor collaboration between governments and the private sector to develop a unified digital identity framework. Approximately 80% of Canadians support the adoption of digital IDs, highlighting a significant societal shift towards embracing decentralized identity solutions.
- Overall, the decentralized identity market in North America is set for robust growth, with projections indicating that the region will continue to lead globally due to its combination of technological innovation, supportive government policies, and increasing consumer awareness regarding data privacy issues.
Decentralized Identity Industry Overview
The Decentralized Identity Market is highly competitive and fragmented, primarily driven by the presence of major players. These key players employ strategies such as mergers, acquisitions, and product innovations to maintain a competitive edge and broaden their global footprint. Key player include Microsoft Corporation, Accenture plc, Wipro Limited, and others.
In conclusion, decentralized identity offers a promising alternative to conventional identity management systems by enhancing security, user control, and inclusivity. As technology evolves and regulatory frameworks adapt, DCI could play a pivotal role in shaping the future of digital identity management.
Decentralized Identity Market Leaders
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Microsoft Corporation
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Accenture plc
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Wipro Limited
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SecureKey Technologies Inc.
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Persistent Systems Limited
- *Disclaimer: Major Players sorted in no particular order
Decentralized Identity Market News
- December 2024: Dentity announced the acquisition of Trinsic’s decentralized identity assets, setting the stage for a dramatic expansion of Web3 identity solutions. These assets represents advanced decentralized identity infrastructure in the world, having enabled thousands of developers to build user-controlled identity features into their applications.
- May 2024: MicroStrategy (MSTR), the largest corporate holder of bitcoin, unveiled plans to develop a decentralized identity service using Ordinals inscriptions. The goal of MicroStrategy Orange is to provide ‘trustless, tamper-proof and long-lived’ decentralized identities using the Bitcoin blockchain.
Decentralized Identity Industry Segmentation
Decentralized identity is a type of identity management that allows people to control their own digital identity without depending on a specific service provider. A digital identity is the body of information about an individual, organization, or electronic device that exists online.
The decentralized identity market is segmented by type (non-biometrics, biometrics), by enterprise size (SMEs, large enterprises), by end-user (BFSI, IT and telecom, retail & e-commerce, healthcare, media & entertainment, other end-users), by geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | Non-biometrics |
| Biometrics | |
| By Enterprise Size | SMEs |
| Large Enterprises | |
| By End-user | BFSI |
| IT and Telecom | |
| Retail & E-commerce | |
| Healthcare | |
| Media & Entertainment | |
| Other End-users | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Decentralized Identity Market Research FAQs
How big is the Decentralized Identity Market?
The Decentralized Identity Market size is expected to reach USD 4.89 billion in 2025 and grow at a CAGR of 53.48% to reach USD 41.73 billion by 2030.
What is the current Decentralized Identity Market size?
In 2025, the Decentralized Identity Market size is expected to reach USD 4.89 billion.
Who are the key players in Decentralized Identity Market?
Microsoft Corporation, Accenture plc, Wipro Limited, SecureKey Technologies Inc. and Persistent Systems Limited are the major companies operating in the Decentralized Identity Market.
Which is the fastest growing region in Decentralized Identity Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Decentralized Identity Market?
In 2025, the North America accounts for the largest market share in Decentralized Identity Market.
What years does this Decentralized Identity Market cover, and what was the market size in 2024?
In 2024, the Decentralized Identity Market size was estimated at USD 2.27 billion. The report covers the Decentralized Identity Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Decentralized Identity Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Decentralized Identity Industry Report
Statistics for the 2025 Decentralized Identity market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Decentralized Identity analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
