The research finds that the digital identity solutions industry is focused on improving the end-to-end customer experience, because it is becoming increasingly important, particularly for larger enterprises, to know the identity of individuals before providing access to them at the earliest consideration. As a result, businesses with multiple establishments are compelled to use digital identity solutions to validate the identity of personnel accessing their data.

Digital governance

The growing demand for good digital governance is expected to drive the market for digital identity solutions. Many regions of the world are seeing an increase in the importance of digital management. Many nations are enhancing their digital infrastructure so that people can benefit from various government initiatives and activities. Utilising digital IDs speeds up the delivery of the scheme to the intended recipient and helps with identification verification.

For instance, in October 2021, Socure, a global supplier of digital identity verification and fraud solutions, announced the launch of its public sector division. The company intends to improve access to government digital services while also eliminating digital fraud.

Change in corporate values

Organisations must adapt and evolve their approach to identity and access management processes due to a change in corporate values and recognise its importance. Digital identification solutions that assist enterprises in preventing identity theft and identifying fraudsters have been developed in response to this requirement.

For instance, in July 2022, to enhance digital identity efforts, Mastercard announced the acquisition of Ekata, a supplier of global identity verification solutions. Through AI-powered identity verification and a commitment to strong data management principles, new capabilities strengthen trust in every interaction.

In terms of application, it is the on-premises segment that the analysts found to lead the market in 2022 with a valuation of USD 16,894 million. The need to secure confidential and private data within the organisation drives the demand. The services segment is expected to grow at the fastest CAGR of 19.0% during the forecast period. Despite the faster growth rate, the solutions are expected to hold the larger share of total revenues.

Geographically speaking, North America is expected to grow at a significant CAGR of 15.4% during the forecast period, owing to the factors such as the rise in identity and authentication frauds and the presence of key vendors in the region.

Key players

Some of the most prominent vendors in the sector include NEC, Thales, GB Group, Telus, Tessi, Daon, Idemia, Forgerock, Imageware and Jumio.