Meanwhile, the proliferation of ID wallet solutions is creating rich opportunity streams, as governments and private-sector entities enable citizens and customers to store and use digital credentials via mobile apps and wallets, simplifying transactions and identity verification in public and commercial contexts. These combined trends are creating fertile ground for vendors, integrators, and service providers to deliver end-to-end solutions that support identity lifecycle management, credential issuance, and digital wallet ecosystems.

Single-sign-on authentication growing fastest

The single sign-on (SSO) segment is experiencing the fastest growth in the digital identity solutions market, due to its ability to simplify user authentication while enhancing security and operational efficiency. Organisations are adopting SSO to reduce password fatigue, streamline access management, and minimize the risks associated with credential theft. The rapid expansion of cloud-based applications and remote work environments has further accelerated the demand for centralised authentication mechanisms. SSO also aligns with zero-trust architecture frameworks, ensuring secure and seamless access across multiple platforms. Enterprises across banking, healthcare, and education are leveraging SSO solutions to improve user experience, optimise IT administration, and strengthen compliance with stringent identity and data protection regulations.

Machine to machine identity offers great opportunities 

The non-human identity segment is growing at the fastest rate in the digital identity solutions market due to the rapid proliferation of connected devices, APIs, and automated systems across enterprise ecosystems. As organisations embrace digital transformation, securing machine-to-machine communication and automated workflows has become a critical priority. Non-human identities, including IoT devices, service accounts, and bots, outnumber human users in many networks, demanding robust authentication and lifecycle management solutions. The increasing adoption of cloud-native infrastructure and Devops practices further amplifies the need for scalable identity governance. Enterprises are investing in technologies that ensure visibility, control, and compliance for these digital entities, driving accelerated growth within the digital identity landscape segment.

Key players

Thales, NEC, Idemia, Samsung, Telus, HID Global, Crowdstrike, DXC Technology, IBM, Cyberark, and HCL Tech are some of the key players in this sector and named by Marketsandmarkets within the report.