Digital Identity Market Size
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 64.44 Billion |
| Market Size (2030) | USD 145.80 Billion |
| CAGR (2025 - 2030) | 17.74% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Digital Identity Market Analysis
The Digital Identity Market size is estimated at USD 64.44 billion in 2025, and is expected to reach USD 145.80 billion by 2030, at a CAGR of 17.74% during the forecast period (2025-2030).
- One of the biggest hazards of the internet age is losing control of personal data to cybercriminals, which can lead to calamitous outcomes. Artificial Intelligence (AI) and biometric verification methods represent a dynamic partnership in the realm of digital security, working in unison to enhance precision and fortify data protection.
- As technology evolves, so do the threats that accompany it. The Verizon Data Breach Investigation Report 2023 highlights approximately 30,458 security incidents from November 1, 2022, to October 31, 2023, with a primary focus on the 2023 data. From this pool, Verizon spotlighted an unprecedented 10,626 confirmed data breaches, affecting victims across 94 countries.
- The surge in identity theft cases has raised alarms globally, prompting governments to urge both public and private sectors to adopt secure identity verification tools. In 2023, the Federal Trade Commission recorded over 1.1 million identity theft cases. Such a significant uptick in identity theft has directly fueled the growth of the market under study. In July 2023, HCA Healthcare disclosed a data breach affecting approximately 11 million patients, compromising names, birth dates, emails, and phone numbers. Similarly, an August 2023 breach at Tesla impacted around 75,000 employees, revealing their Social Security numbers.
- Technological advancements have led to a surge in connected devices in China. In December 2023, China's national blockchain initiative, the Blockchain-based Service Network (BSN), unveiled plans to harness blockchain for real-name identity verification of its 1.4 billion citizens. The RealDID initiative, backed by the Ministry of Public Security, aims to utilize decentralized ID addresses and private keys for anonymous website registration and access. However, this move has raised concerns among data protection advocates.
- As industries increasingly value robust identity verification, the associated financial burden poses a challenge, especially for smaller enterprises. Jumio Corporation estimates the annual total cost of ownership for online identity verification at approximately USD 853,750, underscoring a significant market challenge.
- The pandemic underscored the necessity of cybersecurity solutions, shielding businesses and nations from escalating cyber threats amid rising digitalization. As services transitioned online, the demand for secure and user-friendly digital identity systems surged. In the post-pandemic landscape, there's a pronounced focus on crafting human-centric digital identity systems. These systems prioritize user control over personal data, ensuring privacy and security, while fostering trust and avoiding surveillance.
Digital Identity Market Trends
Biometric to Drive Significant Market Growth
- As businesses increasingly invest in next-generation verification solutions that incorporate AI and biometric technology, the demand for advanced identity verification is surging. Solutions based on biometric identity verification are set to experience substantial growth. Numerous players are rolling out biometric solutions for ID verification, catering to this rising market demand.
- In July 2023, Inverid teamed up with Veriff to bolster its identity verification capabilities. Inverid’s ReadID solution authenticates identities using government-issued documents equipped with contactless NFC chips, in tandem with NFC-enabled smartphones. With this partnership, Inverid can now access and authenticate users even without biometric documents or NFC-enabled phones, broadening its user base.
- Recognizing the importance of interoperability and standardized methods, businesses are increasingly collaborating with technology providers and government entities. For example, in November 2023, CrewBlast, an app-based aircrew staffing firm, enhanced its platform by embedding cutting-edge identity verification technology. The company, in collaboration with IdRamp and Clear, aims to set new benchmarks for efficiency and security. Clear's biometric technology goes beyond traditional background checks, confirming identities through unique markers like fingerprints, irises, and facial recognition.
- Technologies such as fingerprint and facial recognition, iris scanning, and voice recognition provide a secure, user-friendly alternative to traditional methods. By utilizing unique physical or behavioral traits, biometrics offer heightened assurance and diminish the risks associated with easily compromised passwords. Consequently, biometric authentication has seen widespread adoption, especially in mobile devices and access control systems.
- For instance, in December 2023, Worldcoin, an iris biometric cryptocurrency initiative, expanded its digital identity framework to include facial biometric authentication, aligning with several popular online platforms. The revamped digital ID features three tiers: the "World ID device level" offers basic assurance through mobile verification; "World ID Orb" combines iris biometric security with custom scanners for high-assurance applications; and "World ID Orb+" elevates validation by adding facial authentication through selfies.
- Moreover, the shift towards passwordless authentication is accelerating. Given the vulnerabilities of traditional password systems, the industry is actively seeking alternatives. In December 2023, Dashlane, a password management firm, unveiled a biometric passwordless login. The company asserts this innovation bolsters security, curbs phishing, and streamlines account recovery. Users can securely set up their Dashlane account using a device-specific PIN and biometric authentication, either through facial recognition or fingerprints. Overall, the market is poised for growth in the coming years.
North America is Expected to Hold a Major Share of the Market
- In North America, the surging demand for digital identity solutions mirrors a swiftly changing digital environment and a heightened awareness of the need to safeguard personal data. With technological advancements and the increasing frequency of online transactions, the significance of digital identity solutions has surged.
- Furthermore, ID theft statistics reveal that 33% of the U.S. population has fallen victim to identity theft at some point, a rate three times that of Germany and France, and double the global average. U.S. users, being more active on social media than their global counterparts, inadvertently expose themselves to cyber threats. For example, a report from the Federal Trade Commission (FTC) highlighted that in the first half of 2023 alone, Americans reported nearly 560,000 identity theft cases, projecting to surpass 1 million by year's end, a figure significantly higher than any pre-pandemic record.
- By end-user industry, the government sector in North America is witnessing a consistent uptick in demand for identity verification. The North American government is grappling with a rising tide of identity theft, where perpetrators exploit personal data for financial gain. Consequently, fraud related to government benefits has emerged as the most prevalent issue, with the region documenting over 800,000 cases solely tied to benefits-related identity theft.
- In light of this escalating demand, tech firms are rolling out cutting-edge identity verification solutions. Biometric methods, including fingerprint and facial recognition, as well as voice verification, are gaining popularity due to their efficiency and user-friendliness. For instance, in November 2023, Vouched unveiled its latest offering, VouchedAuto, aimed at optimizing the customer verification journey. This AI-driven solution not only automates the identity verification (IDV) process but also enhances efficiency, boosts customer service, realizes cost savings, curbs fraud, and ensures adherence to regulatory standards.
Digital Identity Industry Overview
The Digital 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 IDEMIA Group, Experian PLC, Thales S.A., and others.
Digital identity is a critical component of increasingly online lives, influencing everything from access control to personalization in user experiences. As technology evolves, so will the methods for managing and securing digital identities. Organizations must prioritize robust security measures while navigating the complexities of privacy regulations to protect users effectively in this digital landscape.
Digital Identity Market Leaders
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IDEMIA Group
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Experian PLC
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Thales S.A.
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Daon, Inc.
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NEC Corporation
- *Disclaimer: Major Players sorted in no particular order
Digital Identity Market News
- August 2024: Holonym Foundation secured USD 5.5 million seed funding to enhance digital identity security. This funding will enable Holonym Foundation to accelerate the deployment of its technologies, such as the Mishti Network, Silk, and Zeronym, which together create a comprehensive framework for users to generate, manage, and prove their digital identities securely and privately.
- June 2024: Incode announced its acquisition of Metamap to strengthen its digital identity verification market position. This merger aims to improve security and trust in digital interactions while expanding into new markets across Latin America, Africa, and North America.
Digital Identity Industry Segmentation
A digital identity is data stored on computer systems relating to an individual, organization, application, or device. It can also contain other information such as address, or biometric information, like a fingerprint or face scan.
The digital identity market is segmented by offerings (solution, services), by deployment (cloud, on-premises), by enterprises (SMEs, large enterprises), end-user verticals (BFSI, IT and telecom, manufacturing, government, retail, other end-user verticals), 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 Offerings | Solution |
| Services | |
| By Deployment | Cloud |
| On-Premise | |
| By Enterprise | SMEs |
| Large Enterprises | |
| By End-user Vertical | BFSI |
| IT and Telecom | |
| Manufacturing | |
| Government | |
| Retail and E-commerce | |
| Other End-user Verticals | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
Digital Identity Market Research FAQs
How big is the Digital Identity Market?
The Digital Identity Market size is expected to reach USD 64.44 billion in 2025 and grow at a CAGR of 17.74% to reach USD 145.80 billion by 2030.
What is the current Digital Identity Market size?
In 2025, the Digital Identity Market size is expected to reach USD 64.44 billion.
Who are the key players in Digital Identity Market?
IDEMIA Group, Experian PLC, Thales S.A., Daon, Inc. and NEC Corporation are the major companies operating in the Digital Identity Market.
Which is the fastest growing region in Digital 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 Digital Identity Market?
In 2025, the North America accounts for the largest market share in Digital Identity Market.
What years does this Digital Identity Market cover, and what was the market size in 2024?
In 2024, the Digital Identity Market size was estimated at USD 53.01 billion. The report covers the Digital Identity Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Digital Identity Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Digital Identity Industry Report
Statistics for the 2025 Digital Identity market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Digital 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.
