Global Decentralized Identity Market Research Report By Technology (Blockchain, Self-Sovereign Identity, Public Key Infrastructure, Zero-Knowledge Proofs), By Application (Identity Verification, Access Control, Data Privacy Management, Credential Management), By End User (Government, Financial Services, Healthcare, Telecommunications, Education), By Deployment Model (Cloud-Based, On-Premises) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa)-Forecast to 2035

Decentralized Identity Market Overview

As per MRFR analysis, the Decentralized Identity Market Size was estimated at 2.26 (USD Billion) in 2023.The Decentralized Identity Market Industry is expected to grow from 2.64(USD Billion) in 2024 to 15 (USD Billion) by 2035. The Decentralized Identity Market CAGR (growth rate) is expected to be around 17.1% during the forecast period (2025-2035).

Key Decentralized Identity Market Trends Highlighted

Growing worries about data privacy and security are driving notable developments in the Global Decentralized Identity Market. Governments and companies worldwide are realizing the need for digital identity management and implementing rules encouraging user control over personal data. The increasing use of blockchain technology, which improves security and transparency while empowering people with greater control over their identities, is a major factor in this sector. The need for smooth customer experiences across many online channels is also driving companies to use distributed identity systems.

As more companies and organizations investigate the inclusion of distributed identification systems into their operations, possibilities are arising. Particularly in industries like banking, healthcare, and education, where safe identity verification is absolutely vital, this change is very noticeable. Decentralized identification solutions provide a means to maximize operations while following rigorous regulatory standards, as companies want to simplify procedures and build consumer confidence. Moreover, the continual digital revolution in many sectors offers a chance for creative ideas in identity verification systems. Latest trends show increasing cooperation between industry players and technology vendors to define distributed identification standards.

Such partnerships seek to build compatible solutions that improve user acceptability and adoption. From regional governments supporting digital identification systems to businesses using distributed identity for safe payments, there is a clear drive toward a unified identity ecosystem worldwide. All players in the Global Decentralized Identity Market will need to stay up with technology developments and legislative changes as the scene changes.

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

Decentralized Identity Market Drivers

Increasing Demand for Data Security

The Global Decentralized Identity Market is being driven by growing concern for personal data protection and data breaches. Global studies show that in the last five years, data breaches have risen by more than 40%, impacting billions of records worldwide. To improve data security, major companies like IBM and Accenture are funding decentralized identification systems. Emphasizing the requirement for strong identification solutions, IBM has been creating blockchain technology to enable safe data transfers.

The increased support from regulatory organizations worldwide, including the European Union's General Data Protection Regulation (GDPR), underlines the need to safeguard users' personal data and supports the usage of decentralized identification systems. Given the worldwide cybersecurity industry, which is projected to hit USD 345.4 billion by 2026, there is a significant drive toward using creative identity management solutions to protect data.

Rising Internet Penetration

The expansion of the Global Decentralized Identity Market Industry is being greatly driven by the Internet's growing worldwide availability and accessibility. Reports from the International Telecommunication Union (ITU) indicate that global Internet users have grown from 2.5 billion in 2014 to over 4.9 billion in 2023. More individuals using digital services drives unprecedented expansion, which calls for more secure and trustworthy ways of online identity and verification.

Promoting safe digital identities, technological behemoths like Microsoft are concentrating on including decentralized identity protocols to simplify login procedures for their platforms. Widespread Internet access encourages a developing ecosystem for decentralized identification solutions as more people want to safeguard their online identities.

Growing Regulatory Support for Digital Identity Solutions

Governments and regulatory agencies worldwide are beginning to see the value of decentralized identification systems in fostering safe access to services and improving user privacy. Projects such as the Digital Identification Program of the United Nations underline the dedication to providing safe identification systems for vulnerable communities worldwide. World Bank studies indicate that more than one billion individuals lack official identification, which raises a pressing need for trustworthy digital identity solutions to provide access to necessary services.

Supporting legislative initiatives, established companies like Gemalto and Mastercard have been spearheading many initiatives meant to create decentralized digital identification systems. Innovation and investment in the Global Decentralized Identification Market Industry are significantly driven by the United Nations' goal of attaining universal legal identification by 2030.

Decentralized Identity Market Segment Insights

Decentralized Identity Market Technology Insights

The Global Decentralized Identity Market, with a focus on the Technology segment, is witnessing substantial growth and innovation as it transitions towards more secure and user-centric identity solutions. By 2024, the market is set to reach a valuation of 2.64 USD Billion, with expectations for significant expansion over the following years. The Blockchain technology will play a crucial role in this upward trajectory, valued at 1.06 USD Billion in 2024 and projected to grow to 5.85 USD Billion by 2035, effectively dominating the decentralized identity landscape due to its capacity for providing immutable and verifiable identity records.Meanwhile, the Self-Sovereign Identity, valued at 0.9 USD Billion in 2024, is anticipated to rise to 5.0 USD Billion in 2035, emphasizing the emerging trend of individuals owning and controlling their digital identities.

This is a significant opportunity for enhancing privacy and reducing reliance on centralized authorities. The Public Key Infrastructure, with a valuation of 0.68 USD Billion in 2024, is poised to ascend to 3.7 USD Billion by 2035. Its importance lies in enabling secure communications and transactions, which is essential as organizations increasingly adopt decentralized identity frameworks.Although currently valued at 0.0 USD Billion in 2024, Zero-Knowledge Proofs are projected to contribute 0.45 USD Billion to the market by 2035; this technology garners attention for its promise of allowing users to prove their identity without revealing the underlying information.

The Global Decentralized Identity Market data highlights these segmented insights, with a substantial expected CAGR of 17.1 from 2025 to 2035 driven by increasing concerns over data privacy, the need for seamless digital experiences, and advancements in blockchain technology.The integration of these technologies not only addresses pressing security challenges but also offers unique opportunities for businesses and users globally, reshaping the identity management landscape significantly.

The market growth is further fueled by the increasing adoption of digital identities in various sectors such as finance, healthcare, and government services, which necessitate swift, reliable, and secure methods of identity verification. Overall, the importance of each of these technological advancements in the Global Decentralized Identity Market indicates a transformative shift towards more decentralized, secure, and user-controlled digital identity systems.

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

Decentralized Identity Market Application Insights

The Global Decentralized Identity Market is expected to witness significant growth in the Application segment, with a market value reaching 2.64 USD Billion by 2024 and projected to escalate to 15.0 USD Billion by 2035. This segment plays a crucial role in enhancing security and privacy across various sectors. Identity Verification is essential for ensuring trust and authenticity in online transactions, while Access Control is vital for safeguarding sensitive information and systems. Data Privacy Management emphasizes user rights and protection, addressing the increasing concerns over data breaches and misuse.Credential Management systems provide secure storage and sharing of credentials, streamlining processes in different industries.

The extensive demand for these functionalities drives innovation and adoption, making these applications significant in real-world scenarios. The Global Decentralized Identity Market revenue is driven by rising cybersecurity threats, regulatory requirements, and the growing need for efficient identity management solutions. With a forecasted CAGR of 17.1 from 2025 to 2035, the market is poised for substantial advancements that can reshape how identities are managed globally.

Decentralized Identity Market End User Insights

The Global Decentralized Identity Market is projected to reach a value of 2.64 billion USD by 2024, showcasing substantial growth driven by the increasing demand for secure digital identities across various End User sectors. The Government segment is of significant importance as it underpins identity verification processes, enhancing public service efficiency and security. In the Financial Services industry, decentralized identity systems help in combating fraud and streamlining customer onboarding processes. The Healthcare sector benefits from secure patient data sharing and identity verification, which is crucial for protecting sensitive health information.

Telecommunications companies utilize decentralized identity to improve customer security and enhance user experience through seamless access to services. Lastly, the Education sector is harnessing decentralized identity to verify qualifications and enhance student data privacy. The market exhibits robust potential driven by trends emphasizing privacy, security, and the growing need for digital solutions across these vital sectors, making the Global Decentralized Identity Market a noteworthy area of focus for research and development.

Decentralized Identity Market Deployment Model Insights

The Global Decentralized Identity Market is experiencing notable advancements in its Deployment Model segment, which is primarily divided into Cloud-Based and On-Premises. As of 2024, the market stands at a valuation of 2.64 billion USD, underscoring its rapid evolution. The Cloud-Based model is gaining traction due to its scalability and ease of access, facilitating seamless integration into existing infrastructures, making it a popular choice among organizations seeking flexible solutions. In contrast, the On-Premises model remains significant as it offers enhanced security and control, appealing to sectors with stringent data privacy requirements

Both models play crucial roles in the market's overall growth, which is fueled by increasing demand for secure identity verification processes worldwide. The decentralized identity approach is increasingly seen as a solution to data breaches and identity fraud, which continue to pose challenges in the digital landscape. The Global Decentralized Identity Market segmentation reflects this growing concern, with each deployment model bringing distinct advantages that cater to diverse organizational needs and compliance standards. As new technologies emerge, the market is poised for sustained growth as businesses integrate these models into their operations.

Decentralized Identity Market Regional Insights

The Global Decentralized Identity Market is showing significant growth across various regions, with North America leading the way. In 2024, North America is valued at 1.06 USD Billion and anticipated to grow to 6.42 USD Billion by 2035, showcasing its dominance and commitment to digital security measures. Europe follows with a value of 0.8 USD Billion in 2024, expanding to 4.8 USD Billion in 2035, reflecting the region's proactive approach to data privacy and digital identity solutions. Meanwhile, the APAC region, valued at 0.56 USD Billion in 2024, is set to grow to 3.36 USD Billion, driven by increasing digital transformations and a youthful population embracing technology.

South America and the Middle East and Africa (MEA) represent smaller but essential markets, valued at 0.12 USD Billion and 0.1 USD Billion in 2024, respectively, with growth potential reaching 0.72 USD Billion and 0.7 USD Billion by 2035. Each region's emphasis on securing digital identities highlights the importance and relevance of the Global Decentralized Identity Market. The market trends indicate that as the need for secure online identities increases, these regional markets will become crucial players in shaping future identity management systems.The increasing sophistication of cyber threats and regulatory requirements further fuel the urgency for robust decentralized identity solutions across the globe.

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

Decentralized Identity Market Key Players and Competitive Insights

The Global Decentralized Identity Market is experiencing rapid expansion and innovation, fueled by increasing demand for secure, user-controlled identity solutions across various sectors. This market is characterized by its diverse array of stakeholders, including technology providers, blockchain companies, and enterprises focused on enhancing digital identity management. Competition in this space is intense as organizations strive to differentiate their offerings by emphasizing privacy, security, and user ownership of personal data. As awareness around data breaches and identity theft becomes more prevalent, businesses are investing significantly in decentralized identity solutions, which leverage blockchain technology to provide a more trustworthy framework for digital identity management.

Thus, players in this market are continuously evolving their strategies to capture market share while adhering to regulatory standards and addressing consumer concerns regarding data privacy and security.uPort is a prominent player within the Global Decentralized Identity Market, showcasing a strong position due to its innovative approach in providing self-sovereign identity solutions. The platform empowers users to control their personal information and manage their digital identities using blockchain technology.

One of uPort's key strengths lies in its user-friendly interface, which promotes ease of adoption among individuals and organizations alike. By prioritizing user privacy and data security, uPort has successfully built a reputation for reliability and trustworthiness in decentralized identity ecosystems. Additionally, uPort's commitment to open standards and collaboration with other industry players further enhances its market presence, allowing it to expand its reach and foster partnerships that promote seamless integration of decentralized identity solutions within various applications.IBM has established itself as a formidable competitor in the Global Decentralized Identity Market, leveraging its significant technological expertise and resources to develop comprehensive identity management solutions.

IBM's key products include IBM Verify Credentials and its Blockchain Identity services, which enable enterprises to issue, manage, and verify digital identities securely. This company is recognized for its strength in integrating blockchain technology with robust identity systems to enhance trust and streamline processes. IBM's broad market presence is underscored by collaborations with various entities and governments worldwide, cementing its role as a leader in identity solutions. Furthermore, IBM is actively engaged in strategic mergers and acquisitions, allowing it to enhance its capabilities and broaden its product offerings in the decentralized identity domain. The company's strong focus on innovation, commitment to industry standards, and extensive partnerships position it favorably in the landscape of global decentralized identity solutions.

Key Companies in the Decentralized Identity Market Include

• uPort


• IBM


• Civic


• SelfKey


• TrustKey


• Accenture


• Sovereign


• Gnosis


• OmiseGO


• Microsoft


• Consensys


• Blockstack


• Evernym


• Chainlink

Decentralized Identity Market Industry Developments

The Global Decentralized Identity Market is witnessing significant advancements and ongoing developments, particularly with companies like Microsoft, IBM, and Evernym at the forefront. Recently, uPort has announced enhancements to its identity management solutions, focusing on user privacy and security, while Civic has rolled out new features aimed at streamlining the verification process for users. Companies like Accenture and IBM are collaborating on identity solutions that leverage blockchain technology to provide more secure and efficient identity verification processes. Additionally, in September 2023, a notable acquisition took place when Microsoft acquired a blockchain identity startup, consolidating its position within the decentralized identity ecosystem.

Over the last couple of years, the market has seen increasing recognition of decentralized identity's potential, resulting in a valuation growth that is expected to significantly impact both consumer behavior and enterprise adoption. As of July 2023, reports indicate a boosted investment landscape, with major industry stakeholders closely monitoring regulatory developments affecting decentralized identity protocols. This growing interest reflects a broader trend toward enhancing digital identities' security, scalability, and user control across various sectors globally.

Decentralized Identity Market Segmentation Insights

Decentralized Identity Market Technology Outlook

• Blockchain


• Self-Sovereign Identity


• Public Key Infrastructure


• Zero-Knowledge Proofs

Decentralized Identity Market Application Outlook

• Identity Verification


• Access Control


• Data Privacy Management


• Credential Management

Decentralized Identity Market End User Outlook

• Government


• Financial Services


• Healthcare


• Telecommunications


• Education

Decentralized Identity Market Deployment Model Outlook

• Cloud-Based


• On-Premises

Decentralized Identity Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	2.26(USD Billion)
MARKET SIZE 2024	2.64(USD Billion)
MARKET SIZE 2035	15.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	17.1% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	uPort, IBM, Civic, SelfKey, TrustKey, Accenture, Sovereign, Gnosis, OmiseGO, Microsoft, Consensys, Blockstack, Evernym, Chainlink
SEGMENTS COVERED	Technology, Application, End User, Deployment Model, Regional
KEY MARKET OPPORTUNITIES	Increased demand for privacy solutions, Regulatory compliance and identity verification, Growth in IoT and connected devices, Rise of blockchain technology applications, Enhanced security for digital transactions
KEY MARKET DYNAMICS	Rising concern for data privacy, Increased fraud prevention measures, Growing adoption of blockchain technology, Need for identity verification solutions, Expanding regulatory frameworks
COUNTRIES COVERED	North America, Europe, APAC, South America, MEA