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The Digital Identity Industry’s growth and its involvement in cybersecurity, authentication and other online related issues are at the center of the stream. Companies are now deploying strategic initiatives to secure and rupture their market share in this industry. One of the critical aspects that comes into play when talking about market share positioning is this: the integration of continuous technological innovation. Digital Identity originators outlay considerable resources in which they develop new technologies to improve the security, appeal and adapting nature of their technologies. Through leading cutting-edge tech development, these providers seek to stand out on the market, supplying clients with powerful and innovative capabilities to be independent.
The formation of consortiums and partnerships along with collaboration and joint ventures are the key drivers for getting the desired market position. A major focus for companies is in the selection of strategic business alliances with key endorsement from industry players of regulations, technology, and finance. Collaboratively, firms use the conjunctive outputs from these strategic partners for a comprehensive and integrated solutions have to offer. Such partnerships are significant because they not only bring about the expansion of Digital Identity solution's wider reach but also help at developing a robust security system that encompasses all the aspects needed. Integrated solutions that unite different platforms, and at the same time deliver the promised values, expand the focus of the customer, many more large or small businesses.
The end-users digital security is the first good of priority and only customer-centric strategy can be the fundament of market here. The services and products by Digital Identity providers cover simple interfaces, standardized authentication methods, and privacy puts them on the top of the list. Advising clients on the importance of digital identity security and giving users the way to secure the access to online services through tools are considered to be the core constituents of a customer centricity. Those providers putting a great deal of attention on customer experience and place utmost importance on security, often get reputational gain from clientele and build a genuine competitive edge.
Price scenarios bear great significance in determining the extent a market place in Digital Identity will be swing towards competitors or reach its extent of leadership. Providers more often end up to have the variety of rate models such as subscription-based plans, tiered options or pay-per-usage fee basis. The balance between affordability and the revenue-generating prospects have to be kept in consideration but the products which is aligned rightly with the level of security and usability can draw the attention of all potential clients.
There is a close correlation between territorial expansion as an element of marketing positioning and market share within the Digital Identity market. They focus on offering fresh and game-changing alternatives that could stand the test of time, both in relation to the local markets and those abroad, in response to the global need for trustworthy and effortless digital verification solutions. Identifying the regional ordinances, cultural likes, and customers' motley taste is a must for the company to achieve or even be in the clear. Digital Identity solution providers create global footprint when they not only diversify their customer base, but essentially put themselves in a position to own leadership of the world market scape.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Opportunities | Digital Wallets and Payment Systems. |
| Market Dynamics | Increased Awareness of Privacy. |
Digital Identity Market Highlights:
Digital Identity Market Overview
Digital Identity Market Size was valued at USD 51.3 Billion in 2022. The Digital Identity market industry is projected to grow from USD 63.5 Billion in 2023 to USD 428.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 23.6% during the forecast period (2024 - 2032).
Rising cybersecurity threats, remote work and digital transformation, e-commerce and online services, mobile and biometric technologies, blockchain technology, IoT (Internet of Things) expansion, consumer demand for seamless experiences, are the key market drivers enhancing the market growth.
Figure 1: Digital Identity Market Size, 2022-2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Digital Identity Market Trends
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Rising cybersecurity threats is driving the market growth
The market for digital identities has experienced impressive growth in recent years, and one of the most compelling forces behind this development is the constantly evolving cybersecurity threat landscape. Individuals, companies, and governments are becoming increasingly aware of the crucial significance of strong digital identity solutions to safeguard their online activities and sensitive data as cyber threats increase in sophistication and frequency.
Numerous criminal actions, such as identity theft, data breaches, phishing scams, and financial fraud, are included in the broad category of cybersecurity risks. These attacks take use of flaws in conventional authentication techniques like usernames and passwords, which are frequently insufficiently secure and readily hacked. Due to this reality, there is a pressing need for more secure and trustworthy methods of digital identity verification, which is fueling the market for advanced digital identification solutions.
Stronger authentication procedures are required as a result of growing cybersecurity risks, which is one of the main factors driving the market for digital identities. Passwords used in traditional methods are vulnerable to brute force assaults, credential stuffing, and social engineering techniques, which can result in illegal access to individual or corporate accounts. Businesses and individuals are increasingly using multi-factor authentication (MFA) systems to fend off these threats.
MFA increases security by requesting various means of identification from users, such as a password, a smartphone, or a token, as well as biometric information like fingerprints or face recognition. This multi-layered strategy is essential to digital identity solutions since it considerably lowers the danger of illegal access. MFA use is anticipated to rise as cyber threats change, thus boosting the market for digital identities. Furthermore, attackers frequently target personal and financial information for monetary gain or other nefarious motives, making data breaches a common and expensive problem. These violations damage reputations and destroy trust in addition to causing financial damages. In response, businesses are spending money on identity and access management (IAM) systems as part of digital identity solutions. IAM systems assist in managing user identities and restricting access to private information, ensuring that only vetted users have access to crucial data or systems.
The requirement to implement stringent access controls and keep track of user behavior, which lowers the risk of data breaches and unlawful access, drives the use of IAM solutions. Another element that significantly contributes to the expansion of the digital identification business is the assistance provided by these systems in complying with regulatory requirements. Thus, driving the Digital Identity market revenue.
Digital Identity Market Segment Insights
Digital Identity Offerings Insights
The Digital Identity Market segmentation, based on offerings, includes Solutions and Services. The solutions segment dominated the market in 2022. Cyber threats are more widespread and advanced than ever before. Hackers target private information, take advantage of flaws in established authentication procedures, and continually adapt their strategies. Strong digital identity solutions are required as the first line of security in light of the increase in cyberattacks. These systems offer improved data protection, threat detection, and authentication techniques.
Digital Identity Solution Type Insights
The Digital Identity Market segmentation, based on Solution Type, includes Identity Verification, Authentication, Identity Lifecycle Management and Other Solution Types. The identity verification segment dominated the market in 2022. Regulatory compliance is a key driver for identity verification systems. Strict data privacy rules have been adopted by governments all over the world, including the GDPR in Europe and KYC (Know Your Customer) standards in the finance sector. These requirements mandate the deployment of reliable identity verification systems in order to prevent fraud, money laundering, and unauthorized access to sensitive information. Therefore, businesses must implement trustworthy identity verification systems in order to abide with these rules, avoid paying steep fines, and escape legal repercussions.
Digital Identity Identity Type Insights
The Digital Identity Market segmentation, based on Identity Type, includes Biometric and Non- biometric. The biometric segment dominated the market in 2022. Concerns about sanitation and the security of shared touch surfaces have increased as a result of the COVID-19 epidemic. In response, methods of biometric verification have become more popular because they do not require direct physical touch. Touchless technologies that offer both improved security and cleanliness, such facial recognition and iris scanning, have seen significant acceptance in applications ranging from smartphone unlocking to airport security.
Figure 2: Digital Identity Market, by Identity Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Digital Identity organization size Insights
The Digital Identity Market segmentation, based on organization size, includes Large Organization and SMEs. The SMEs segment dominated the market in 2022. SMEs are increasingly vulnerable to cybersecurity threats, as they may lack the resources and expertise to implement robust security measures. Digital identity solutions help SMEs protect their sensitive data, financial information, and customer information from cyberattacks and data breaches.
Digital Identity Vertical Insights
The Digital Identity Market segmentation, based on Vertical, includes BFSI, Retail and eCommerce, Government and Defence, Healthcare, IT and ITeS, Telecommunications, Energy and Utilities and Other Verticals. The retail and ecommerce category generated the most income in 2022. Retail and eCommerce businesses face an ongoing battle against various forms of fraud. Account takeover, fraudulent payment transactions, and fake product reviews are just a few of the threats they grapple with. Digital identity solutions play a pivotal role in verifying the legitimacy of users and customers. By implementing robust authentication and identity verification mechanisms, these solutions effectively reduce fraudulent activities, ultimately resulting in fewer chargebacks and losses for businesses.
Digital Identity Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Digital Identity Market dominated this market in 2022 (45.80%). Strict data protection rules like the California Consumer Privacy Act (CCPA) and the General Data Protection Regulation (GDPR) have been adopted throughout North America, particularly in the United States and Canada. The adoption of identity and access management (IAM) systems, biometric authentication, and other identity verification methods has been sparked by the legislation' requirement that enterprises establish strong digital identity solutions to safeguard data privacy and security. Further, the U.S. Digital Identity market held the largest market share, and the Canada Digital Identity market was the fastest growing market in the North America region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: DIGITAL IDENTITY MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Digital Identity market accounts for the second-largest market share. The European Union's GDPR has had a profound impact on the digital identity landscape in Europe. Organizations across industries have had to invest in digital identity solutions to comply with GDPR's stringent data protection requirements, particularly regarding consent and data subject rights. Further, the German Digital Identity market held the largest market share, and the UK Digital Identity market was the fastest growing market in the European region.
The Asia-Pacific Digital Identity Market is expected to grow at the fastest CAGR from 2023 to 2032. Across many industries, the Asia-Pacific region is undergoing a rapid digital transition. Digital identification solutions are essential to this shift because they enable safe and easy online interactions for both enterprises and people. Moreover, China’s Digital Identity market held the largest market share, and the Indian Digital Identity market was the fastest growing market in the Asia-Pacific region.
Digital Identity Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Digital Identity market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Digital Identity industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Digital Identity industry to benefit clients and increase the market sector. In recent years, the Digital Identity industry has offered some of the most significant advantages to medicine. Major players in the Digital Identity market, including NEC (Japan), Samsung SDS (South Korea), Thales (France), Telus (Canada), IDEMIA (France), GBG (UK), Tessi (France), Daon (US), ForgeRock (US), ImageWare (US), Jumio (US), iProov (UK), ID R&D (US), Refinitiv (UK), OneSpan (US), Smartmatic (UK), Freja EID Group (Sweden), Vintegris (Spain), AU10TIX (Israel), Signicat (Norway), Duo Security (US), Syntizen (India), Hashcash Consultant (US), Good Digital Identity (Czech Republic) and others, are attempting to increase market demand by investing in research and development operations.
NEC Corp (NEC) is a company that offers network and information technology solutions. Software, supercomputers, personal computers, tablet terminals, aerospace systems, servers, equipment, and network systems for telecommunication carriers are among the company's product offerings. It also comprises software, automated teller machines, transmitting video systems, storage devices, and these. Additionally, it offers the sale of electrical accessories and products such LCD screens, lithium-ion batteries, and lighting fixtures. NEC offers system integration, maintenance, and outsourcing services. The aerospace, healthcare, retail, agriculture, broadcasting, logistics, finance, government, hospitality, manufacturing, transportation, and telecommunications industries are among the industries it serves. The company now conducts business in the Americas, Europe, the Middle East, and Africa in addition to Asia-Pacific. NEC's corporate headquarters are in Tokyo, Japan's Minato-ku district.
Thales SA (Thales), which also provides smart technologies, electronic systems, software, ground transportation, services, and equipment, serves the aerospace, defense, and security markets. It provides training solutions, flight avionics, electrical systems, electric systems, and air traffic management systems for the aircraft sector. The company also provides radio communications products, network and infrastructure systems, vital information systems, weapon systems, protection systems, and cybersecurity solutions for the ground, marine, and air defense industries. Thales additionally offers maintenance, repair, and training services. The company operates in the Americas, Europe, the Middle East, Africa, and Asia-Pacific. Paris, Ile-de-France, France, is home to Thales' main office.
Key Companies in the Digital Identity market include
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NEC (Japan)
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Samsung SDS (South Korea)
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Thales (France)
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ForgeRock (US)
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Jumio (US)
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Telus (Canada)
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IDEMIA (France)
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GBG (UK)
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Tessi (France)
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Daon (US)
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ImageWare (US)
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iProov (UK)
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ID R&D (US)
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Refinitiv (UK)
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OneSpan (US)
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Smartmatic (UK)
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Freja EID Group (Sweden)
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Vintegris (Spain)
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AU10TIX (Israel)
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Signicat (Norway)
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Duo Security (US)
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Syntizen (India)
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Hashcash Consultant (US)
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Good Digital Identity (Czech Republic)
Digital Identity Industry Developments
May 2023: As a part of its range of digital banking solutions, iProov collaborated with Wultra to offer the biometric solutions suite.
March 2023: A partnership between Thales and the Finnish police was announced. The Finnish National Police Board intends to issue new digital ID and biometric travel credentials.
November 2022: A cloud-native digital identity governance solution was introduced by ForgeRock. By integrating its digital identity and access management platforms, the new ForgeRock Identity Governance improves organizational productivity.
Digital Identity Market Segmentation
Digital Identity Offerings Outlook
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Solutions
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Services
Digital Identity Solution Type Outlook
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Identity Verification
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Authentication
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Identity Lifecycle Management
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Other Solution Types
Digital Identity Identity Type Outlook
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Biometric
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Non- biometric
Digital Identity Organization Size Outlook
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Large Organization
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SMEs
Digital Identity Vertical Outlook
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BFSI
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Retail and eCommerce
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Government and Defence
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Healthcare
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IT and ITeS
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Telecommunications
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Energy and Utilities
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Other Verticals
Digital Identity Regional Outlook
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North America
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U.S.
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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