Digital identity solutions to be worth $70.7 billion by 2027

Northbrook, Il (USA)

The global digital identity solutions market size is expected to grow from an estimated value of USD 27.9 billion in 2022 to USD 70.7 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 20.4% from 2022 to 2027. Various government initiatives and regulations supporting the digital ID transformation and rise in ID wallet solutions are cited by analysts at research company, Marketsandmarkets, as being key drivers for the growth.

Benefits drive demand for cloud services

In the cloud-based deployment mode, instead of implementing the software solution on the local hardware, businesses subscribe to the solution hosted on a third-party remotely located server. The cloud segment is the fastest-growing segment which is availing many digital identity solutions market opportunity. Organisations can avoid certain costs, such as maintenance of infrastructure, and costs related to technical staff, by using cloud-based digital identity solutions. Cloud-based platforms are beneficial for organisations that have strict budgets for security investments. SMEs deploy their digital identity solutions on the cloud, as it enables them to focus on their core competencies rather than invest their capital in the security infrastructure.

North America at the forefront

As strong strong regions in terms of economies, the US and Canada are the top contributing countries in North America in digital identity solutions market growth. The growing economies of the US and Canada enable them to invest in these new technologies in huge amounts. Identity theft growth is driving the adoption of these digital identity solutions. According to the Identity Theft Resource Center (ITRC), in 2021, there was a 68% jump in number of data compromised in the United States. The number was 23% higher than the previous all-time high. Based on public-private partnerships, a range of digital ID initiatives have sprung up in North America. The rules and requirements of these initiatives vary immensely between different federal, state, provincial, and local entities within the region. New technologies such as big data and analytics, mobile, cloud computing and biometrics are changing the way citizens identify themselves online within the region in various sectors from financial services, to travel, to healthcare. but still digital identity is not viewed as a necessity and as a result there is a huge scope for development. Open access to information across verification and authentication systems and collaboration between public and private sector stakeholders will be critical to enabling more coordinated progress in North America.

Key Players

Major vendors named in the research as being active in the global Digital Identity Solutions market include NEC Samsung, Thales, GBG, Telus, Tessi, Daon, Idemia, Forgerock, Imageware, Jumio, Iproov, ID R&D, Refinity, Onespan, Smartmatic, Fraja Eid Group, Vintegris, Au10tix, Significat, Raulwalter, Duo Security, Syntizen, Hashcash Consultant, and Good Digital Identity. 


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