Blockchain Identity Management Market

Increasing focus on better security drives market growth

The demand for blockchain-based identity management solutions has increased due to its better security features. Traditional identity management systems have been susceptible to data breaches and cyber-attacks, which can compromise sensitive personal information.

Blockchain technology addresses these security concerns by using cryptography to secure data, decentralization to prevent a single point of failure, and immutability to ensure that the data cannot be tampered with or altered. These features make blockchain-based identity management systems more secure than traditional systems.

As the number and severity of data breaches and cyber-attacks continue to rise, businesses and individuals are increasingly looking for better ways to secure their sensitive data, including their personal identity information. This has led to an increase in demand for blockchain-based identity management solutions that offer stronger security measures and protect against these threats.

Moreover, governments and regulatory bodies are also recognizing the importance of secure identity management systems to protect citizens' data and privacy. They are exploring blockchain-based solutions to improve the security and privacy of identity management systems, further driving the demand for these solutions.

Figure 1: Block Chain Market, 2019-2030 

 Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Blockchain market has shown a tremendous growth during COVID. It had grown by more than 108% from 2019 to 2020. Blockchain identity management is a new concept and is expected to penetrate the market by 2026 globally. Certain barriers such as government regulations, standardizations and its proof of better alternative is still pushing its market behind.

Blockchain Identity Management Market Segment Insight

Blockchain Identity Management by Application Type Insights

Based on vertical type, the Blockchain Identity Management market segmentation includes BFSI, Telecom & IT, and Government. BFSI holds the largest market revenue generation for blockchain identity management industry. The market of Blockchain Identity Management for BFSI sector was valued at USD 55.3 Million in 2022 and is expected to grow at a CAGR of more than 64% through the forecast period. Blockchain Identity Management is becoming increasingly important in the BFSI sector, helping companies to improve efficiency, reduce risk, and enhance the customer experience.

As technology continues to evolve, we can expect to see even more Blockchain Identity Management solutions being developed and adopted in this sector.

Figure 2: Blockchain Identity Management Market, by Application Type, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Telecom and IT sector is expected to grow at the fastest rate with a CAGR of 69% through the forecast period. The market for blockchain identity management in healthcare sector is expected to grow at a CAGR of more than 22% through the forecast period. Blockchain technology can be used for identity management in the telecom and IT industries to provide a secure, decentralized and tamper-proof system for managing user identities and access control. A permissioned blockchain can be used to create a secure and private identity management system for telecom and IT.

Access to the blockchain can be restricted to authorized parties only, which reduces the risk of data breaches.

Blockchain can be used to enable self-sovereign identity, which means that users can control their own identity and personal data without relying on a central authority. This can be particularly useful in situations where users are accessing services from multiple providers. Blockchain identity management can make the overall systems more secure and help them to avoid threats.

October 2022: - Thoma Bravo acquired ForgeRock for USD 2.3 Billion. ForgeRock, Inc. is a multinational access and identity management software company based on blockchain technology, headquartered in San Francisco, U.S. with offices in Bristol, London, Grenoble, Vancouver, Oslo, Munich, Paris, Sydney, and Singapore.

March 2023 - ABO Digital, the private digital asset investment arm of Alpha Blue Ocean, formed a partnership with AllianceBlock, a provider of blockchain infrastructure that bridges traditional finance and decentralized finance. The partnership was formed to offer tokenized structured products for institutions and crypto projects and institutions seeking alternative forms of financing.  

Blockchain Identity Management, Component Type Insights

Based on component type, the Blockchain Identity Management market is segmented into software and solutions. Software held the largest market share 2021 and is expected to grow at the CAGR of more than 67% through the forecast period. The growth of blockchain identity management software has been significant in recent years, as more companies recognize the benefits of using blockchain technology for identity management. The need for interoperability between different identity management systems is driving the adoption of blockchain-based solutions that can facilitate cross-platform identity verification. Some of the companies providing software or platforms are uPort, Civic, Sovrin and others.

Blockchain Identity Management Regional Insights

By region, this market has been segmented into North America, Europe, Asia-Pacific, and the rest of the world. The North American region dominates this market with a significant share of 50.01% in 2023 and is also estimated to witness commendable growth with a CAGR of 63.3% during the forecast period. North America has a strong presence of blockchain technology providers, which is driving the development of blockchain identity management software and solutions.

North America has some of the most stringent data protection and privacy regulations, such as the California Consumer Privacy Act (CCPA) and the Health Insurance Portability and Accountability Act (HIPAA), which are driving the adoption of secure and transparent identity management solutions. These regulations are expected to help Block Chain Identity management companies to cater more aggressively in U.S. market.

On the other side, in Asia-Pacific, China is the front runner and is accepting blockchain identity management as one of the key tools to secure data. Blockchain identity management is also gaining traction in China, as the government and private sector recognize the benefits of using blockchain technology for identity verification and authentication. China has been actively exploring the use of blockchain technology for various applications, including identity management.

The Chinese government has been promoting the use of blockchain technology as part of its digital transformation efforts, and blockchain identity management has been identified as a key application area. In 2020, the Cyberspace Administration of China released a new set of regulations on blockchain information services, which included provisions on identity verification and authentication.

The private sector in China has also been exploring the use of blockchain identity management solutions. For example, Ant Financial, a subsidiary of Alibaba, has developed a blockchain-based identity verification platform called Ant Blockchain Open Alliance. The platform allows users to verify their identity using facial recognition and other biometric data, and the information is stored on a distributed ledger for added security and transparency.

Figure 3: Blockchain Identity Management Market, by Region Type, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Other companies in China, such as Tencent and Baidu, have also been exploring the use of blockchain technology for identity management and authentication. In addition, there are a number of blockchain startups in China that are developing blockchain identity management solutions for various industries, including finance, healthcare, and logistics.

Overall, the adoption of blockchain identity management solutions in China is still in the early stages, but there is growing interest and investment in this area. As the Chinese government and private sector continue to invest in blockchain technology and digital transformation, it is expected that the adoption of blockchain identity management solutions will continue to grow in the coming years.

Blockchain Identity Management Key Market Players & Competitive Insights

Major players in the Blockchain Identity Management market, include, Microsoft, IBM, Civic, uPort, Blockstack, Evernym, Sovrin Foundation, ShoCard, Jolocom, SelfKey, Unum ID, SpringRole, Veres One, Factom, Blockpass, ChainGuardian, NuID, Netki, Oraclize and, REMME.

The market's growth is predicted to be accelerated by the rising adoption of AI and ML for various functions, as well as various strategic alliances and investments among regional businesses. Due primarily to the participation of many solution providers, the United States controls most of the market in the region and generates a sizeable portion of overall income.  

Key Companies in the Blockchain Identity Management market includes

• Microsoft
• IBM
• Civic
• uPort
• Blockstack
• Evernym
• Sovrin Foundation
• ShoCard
• Jolocom
• SelfKey
• Unum ID
• SpringRole
• Veres One
• Factom
• Blockpass
• ChainGuardian
• NuID
• Netki
• Oraclize
• REMME

Blockchain Identity Management Industry Developments

• Q2 2024: Spruce raises $34M Series B to expand decentralized identity solutions Spruce, a startup focused on blockchain-based identity management, secured $34 million in Series B funding to accelerate the development and adoption of its decentralized identity products.
• Q2 2024: Microsoft and ConsenSys announce partnership to advance decentralized identity standards Microsoft and ConsenSys entered a strategic partnership to collaborate on open standards and infrastructure for decentralized identity, aiming to improve interoperability and security for enterprise and government clients.
• Q2 2024: Dock Launches Mainnet Upgrade to Support Verifiable Credentials for Enterprises Dock Labs announced a major upgrade to its blockchain mainnet, enabling enterprises to issue and manage verifiable credentials for digital identity use cases.
• Q3 2024: IBM launches new blockchain-based digital identity platform for healthcare sector IBM unveiled a blockchain-powered digital identity platform designed specifically for healthcare providers and patients, aiming to streamline secure access to medical records and services.
• Q3 2024: Civic Technologies partners with Onfido to enhance biometric verification in blockchain identity solutions Civic Technologies announced a partnership with Onfido to integrate advanced biometric verification into its blockchain-based identity management platform.
• Q3 2024: ID2020 Alliance welcomes Mastercard as new member to drive digital identity innovation Mastercard joined the ID2020 Alliance, a public-private partnership focused on advancing digital identity solutions using blockchain and other emerging technologies.
• Q4 2024: Serto launches decentralized identity wallet for enterprise clients Serto introduced a new decentralized identity wallet aimed at enterprise customers, enabling secure management and verification of digital credentials.
• Q4 2024: EU approves pilot program for blockchain-based digital identity in public services The European Union approved a pilot initiative to test blockchain-based digital identity systems in select public sector services across member states.
• Q1 2025: Polygon ID launches zero-knowledge proof identity toolkit for developers Polygon ID released a new toolkit leveraging zero-knowledge proofs to help developers build privacy-preserving digital identity solutions on blockchain.
• Q1 2025: Verida secures $15M Series A to scale decentralized identity data network Verida, a decentralized identity and data management startup, raised $15 million in Series A funding to expand its network and accelerate enterprise adoption.
• Q2 2025: Bloom announces partnership with TransUnion to offer blockchain-based credit identity verification Bloom partnered with credit bureau TransUnion to provide blockchain-powered identity verification and credit scoring services.
• Q2 2025: UK government launches digital identity framework using blockchain for public sector logins The UK government rolled out a new digital identity framework leveraging blockchain technology to enhance security and privacy for citizens accessing public sector services.

Blockchain Identity Management Market Segmentation

Blockchain Identity Management Market by Component Type Outlook

• Software
• Solution

Blockchain Identity Management Market by Provider Outlook

• Application
• Middleware
• Infrastructure

Blockchain Identity Management Market by Organization Size Type Outlook

• Large Enterprises
• SMEs

Blockchain Identity Management Market by Vertical Type Outlook

• BFSI
• Telecom & IT
• Government

Blockchain Identity Management Regional Outlook

• North America

  • US

  • Canada

• Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • Australia

  • Rest of Asia-Pacific

• Rest of the World

  • Middle East

  • Africa

  • Latin America

Security remains a critical concern in the Global Blockchain Identity Management Market Industry. Blockchain technology offers enhanced security features that traditional identity management systems often lack. By utilizing cryptographic techniques, blockchain ensures that identity data is immutable and tamper-proof. This is particularly relevant in sectors that handle sensitive information, such as government and financial services. The decentralized nature of blockchain reduces the risk of data breaches, which have become increasingly prevalent. As organizations prioritize data security, the adoption of blockchain-based identity management solutions is likely to accelerate, further driving market growth.

The Global Blockchain Identity Management Market Industry is significantly influenced by the evolving landscape of regulatory compliance and standards. Governments worldwide are increasingly recognizing the importance of secure identity management systems to protect citizens' data. Regulations such as the General Data Protection Regulation (GDPR) in Europe and various data protection laws in other regions are prompting organizations to adopt blockchain solutions. Compliance with these regulations not only mitigates legal risks but also enhances consumer trust. As regulatory frameworks continue to develop, the demand for blockchain identity management solutions is expected to rise, contributing to the market's expansion.

Emerging markets are becoming increasingly important in the Global Blockchain Identity Management Market Industry. Countries in regions such as Asia-Pacific and Latin America are witnessing a rapid digital transformation, leading to a heightened need for secure identity management solutions. The adoption of blockchain technology in these markets is driven by the necessity to address issues related to identity fraud and lack of access to services. As governments and private sectors collaborate to implement blockchain-based identity solutions, the market is likely to experience substantial growth. This trend indicates a shift towards more inclusive digital economies, further propelling the industry's expansion.

The integration of blockchain identity management with Internet of Things (IoT) and Artificial Intelligence (AI) technologies is poised to reshape the Global Blockchain Identity Management Market Industry. As IoT devices proliferate, the need for secure identity verification becomes increasingly critical. Blockchain can provide a decentralized framework for managing identities across various devices, enhancing security and interoperability. Additionally, AI can analyze identity data to detect anomalies and prevent fraud. This convergence of technologies not only improves operational efficiency but also fosters innovation in identity management solutions. The potential for such integrations suggests a dynamic future for the market.

The Global Blockchain Identity Management Market Industry is experiencing a surge in demand for digital identity solutions. As organizations increasingly transition to digital platforms, the need for secure and efficient identity management systems becomes paramount. In 2024, the market is valued at 0.29 USD Billion, reflecting the growing recognition of blockchain technology's potential to enhance identity verification processes. This demand is driven by the need for improved security, reduced fraud, and streamlined operations, particularly in sectors such as finance and healthcare. The anticipated growth trajectory suggests that by 2035, the market could reach 80.9 USD Billion, indicating a robust CAGR of 66.86% from 2025 to 2035.

By region, this market has been segmented into North America, Europe, Asia-Pacific, and the rest of the world. The North American region dominates this market with a significant share of 50.01% in 2023 and is also estimated to witness commendable growth with a CAGR of 63.3% during the forecast period. North America has a strong presence of blockchain technology providers, which is driving the development of blockchain identity management software and solutions.

North America has some of the most stringent data protection and privacy regulations, such as the California Consumer Privacy Act (CCPA) and the Health Insurance Portability and Accountability Act (HIPAA), which are driving the adoption of secure and transparent identity management solutions. These regulations are expected to help Block Chain Identity management companies to cater more aggressively in U.S. market.

On the other side, in Asia-Pacific, China is the front runner and is accepting blockchain identity management as one of the key tools to secure data. Blockchain identity management is also gaining traction in China, as the government and private sector recognize the benefits of using blockchain technology for identity verification and authentication. China has been actively exploring the use of blockchain technology for various applications, including identity management.

The Chinese government has been promoting the use of blockchain technology as part of its digital transformation efforts, and blockchain identity management has been identified as a key application area. In 2020, the Cyberspace Administration of China released a new set of regulations on blockchain information services, which included provisions on identity verification and authentication.

The private sector in China has also been exploring the use of blockchain identity management solutions. For example, Ant Financial, a subsidiary of Alibaba, has developed a blockchain-based identity verification platform called Ant Blockchain Open Alliance. The platform allows users to verify their identity using facial recognition and other biometric data, and the information is stored on a distributed ledger for added security and transparency.

Figure 3: Blockchain Identity Management Market, by Region Type, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Other companies in China, such as Tencent and Baidu, have also been exploring the use of blockchain technology for identity management and authentication. In addition, there are a number of blockchain startups in China that are developing blockchain identity management solutions for various industries, including finance, healthcare, and logistics.

Overall, the adoption of blockchain identity management solutions in China is still in the early stages, but there is growing interest and investment in this area. As the Chinese government and private sector continue to invest in blockchain technology and digital transformation, it is expected that the adoption of blockchain identity management solutions will continue to grow in the coming years.

Major players in the Blockchain Identity Management market, include, Microsoft, IBM, Civic, uPort, Blockstack, Evernym, Sovrin Foundation, ShoCard, Jolocom, SelfKey, Unum ID, SpringRole, Veres One, Factom, Blockpass, ChainGuardian, NuID, Netki, Oraclize and, REMME.

The market's growth is predicted to be accelerated by the rising adoption of AI and ML for various functions, as well as various strategic alliances and investments among regional businesses. Due primarily to the participation of many solution providers, the United States controls most of the market in the region and generates a sizeable portion of overall income.