Blockchain Identity Management Market Trends

Blockchain Identity Management Market Overview

Blockchain Identity Management Market Size was valued at USD 0.11 Billion in 2022. The Blockchain Identity Management market is projected to grow from USD 0.19 Billion in 2023 to USD 6.5 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 65.6% during the forecast period (2024 - 2032). Increasing focus on better security, and better data management of customers with secure identity primarily driving the market growth.

Figure 1: Blockchain Identity Management Market Growth, 2023-2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Blockchain Identity Management Market Trends

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.

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, MRFR 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, MRFR 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

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  Microsoft

  
  


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  IBM

  
  


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  Civic

  
  


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  uPort

  
  


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  Blockstack

  
  


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  Evernym

  
  


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  Sovrin Foundation

  
  


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  ShoCard

  
  


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  Jolocom

  
  


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  SelfKey

  
  


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  Unum ID

  
  


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  SpringRole

  
  


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  Veres One

  
  


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  Factom

  
  


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  Blockpass

  
  


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  ChainGuardian

  
  


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  NuID

  
  


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  Netki

  
  


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  Oraclize

  
  


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  REMME

  
  

Blockchain Identity Management Industry Developments

2023 will see Ant Group Digital Technologies unveiled a new brand, ZAN, during this year's INCLUSION · Conference on the Bund. ZAN offers a full range of blockchain application development solutions and services for both institutional and individual Web3 developers. ZAN offers institutional clients a way to issue and manage real world assets (RWAs) while adhering to regional regulatory standards. With the software and hardware co-design technologies of Ant Group Digital Technologies and its experience over the last few years in securely transferring tens of millions of RWAs onto blockchains, ZAN RWA solution can effectively contribute to the introduction of new assets into the Web3, increasing the number of Web3 applications and use cases and improving the synergy between the real world and Web3-powered.

The newest addition to IBM's Storage for Data and AI portfolio, the IBM Storage Scale System 6000 is a cloud-scale, worldwide data platform that was created in 2023 to satisfy the demands of today's data-intensive and AI workloads. Businesses must concentrate on the data – their present capacity and growth projections, where the data lives, how it's secured and accessed, and how to maximize future data storage investments – in order to fully capitalize on the economic benefit of both foundation and classic AI models.

March 2023: - ​​XCMG Construction Machinery Co., Ltd., a major construction machinery manufacturer, had done collaboration with Zen Spark Technology Pte Ltd, a Singapore-based blockchain and fintech company and Conflux, a leading public blockchain network, The partnership between Conflux, XCMG, and Zen Spark Technology Pte Ltd helps them to leverage the strengths together in order to explore new scenarios for blockchain and Web3 technology applications in the market.

July 2022 - Unum ID, a blockchain based identity platform, raised a $2M strategic round led by 1414 Ventures and Outliers, with participation from TappanHill Ventures, Draper Associates, and others. This round of funding helps Unum ID's position as the leader in reusable identity, supercharging growth from thousands to millions of verified digital ID cards to crack the cold start problem of reusable identity.

Blockchain Identity Management Market Segmentation

Blockchain Identity Management Market by Component Type Outlook

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  Software

  
  


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  Solution

  
  

Blockchain Identity Management Market by Provider Outlook

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  Application

  
  


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  Middleware

  
  


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  Infrastructure

  
  

Blockchain Identity Management Market by Organization Size Type Outlook

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  Large Enterprises

  
  


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  SMEs

  
  

Blockchain Identity Management Market by Vertical Type Outlook

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  BFSI

  
  


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  Telecom & IT

  
  

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  Government

  
  

Blockchain Identity Management Regional Outlook