Bharat Book Bureau Provides the Trending Market Research Report on “Digital Identity Solutions Market by Offering, Software, Solution Type, Authentication Type, Identity Type, Organization Size, Vertical and Region – Global Forecast to 2028”under Services Market Research Report Category. The report offers a collection of superior Market research, Market analysis, competitive intelligence and Market reports.
The global Digital Identity Solutions Market size is projected to grow from USD 34.5 billion in 2023 to USD 83.2 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 19.3% during the forecast period. The DIS market is propelled by key factors shaping its growth trajectory. These include increased government initiatives supporting digital ID transportation and a rise in identity and authentication fraud. Furthermore, the high cost of deploying digital identity solutions may hinder market growth.
By vertical, the BFSI segment holds the largest market size.
The value and advancements of technologies are increasingly getting acknowledged by financial institutions to improve the customer experience and protect themselves and their customers against the consequences of a breach in security. These institutions also deeply understand how digital identity solutions could be used to combat the threats posed by fraud and identity theft.
Anytime, anywhere banking is in demand by customers due to which BFSI organizations are deploying various services, such as internet banking, mobile banking, and stock trading through web and mobile applications. Furthermore, increasing instances of identity theft and fraud drive the demand for robust digital identity solutions in the BFSI (Banking, Financial Services, and Insurance) sector.
Regulatory compliance requirements, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, push financial institutions to adopt advanced digital identity solutions for secure customer onboarding and transaction verification.
By offering, services registered the highest CAGR during the forecast period.
Digital identity service is the assistance offered by type vendors to help customers efficiently use and maintain digital identity solutions. Hence, various vendors focus on providing managed services in the digital identity solutions market, whereas other vendors outsource these services. Services in the digital identity solutions market become critical as they support the proper functioning of software-based solutions. Digital identity services comprise technical support services that require effective integration of digital identity solutions.
Moreover, technical expertise is needed to maintain and update digital identity software. The demand for these services is directly related to the adoption level of digital identity solutions. The adoption of digital identity solutions is increasing due to an increasing need to secure business-sensitive applications from unauthorized access. Managed services are used to decrease the operational overhead and risk and help manage the complex network infrastructure of organizations.
By organization size, SMEs registered the highest CAGR during the forecast period.
The need for efficient customer data protection, sales generation, new hires, cost-cutting, enhancing customer experience, and business development are the factors expected to drive the digital identity solutions market in the future. Digital identity solutions are becoming necessary for SMEs, as they are often at high-security risk and do not follow formal identity management policies.
The increasing demand for security, authentication, and verification from SMEs for improving their productivity and pooling of knowledge base has triggered vendors to provide a solution at a low cost. The cloud deployment mode offers a feasible solution for the adoption of technology. The cloud-based solution is developed keeping in mind the limited budget of SMEs. In the coming years, the low cost of digital identity solutions is expected to help SMEs worldwide deploy the solution. SMEs' adoption and acceptance of digital identity solutions will help expand the customer base and enhance business efficiency. Governments are also taking initiatives to protect SMEs in their respective countries.
By region, North America holds the largest market size.
Mandatory identity management policies, investments from various industries, including BFSI and retail, and developing technologies, including smart infrastructure, smart cities, ePassport, and evisa, are anticipated to fuel the growth of the North American market for digital identity solutions. As an illustration, Gemalto has created an ID verification solution for banks that helps simplify the onboarding process. ePassports for onboarding that employ digital IDs based on facial and fingerprint identification are also being developed in North America. These activities are anticipated to propel the North American market for digital identification solutions as a whole.
The development of government initiatives, such as smart infrastructure, smart cities, digital identity-based driver’s licenses, and the use of digital identity by the US police, to track criminals suspected of major and minor crimes, as well as to find out missing persons, are also driving the need of digital identity across North America.
By region, Asia Pacific registered the highest CAGR during the forecast period.
Technology for digital identification solutions has evolved beyond the BFSI and healthcare sectors to the government, defense, airport, and border control. Banks in the Asia-Pacific region are implementing methods for furthering the development of digital identification solutions, such as new product innovations and collaborations. Asia Pacific banks and businesses are creating digital identification solutions using cutting-edge technology like blockchain, AI, and cloud. The market for digital identification solutions in the Asia Pacific is driven by these activities by governments and businesses in various nations.
The region is expected to invest more in deploying digital identity technology due to the increasing threat of identity and access breaches, resulting in financial and reputational losses. These initiatives are boosting the market growth.
Breakdown of primaries
The study contains various industry experts’ insights, from component suppliers to Tier 1 companies and OEMs.
The break-up of the primaries is as follows:
•By Company Type: Tier 1 – 25%, Tier 2 – 40%, and Tier 3 – 35%
•By Designation: C-level – 30%, Directors- 35%, and other– 35%
•By Region: North America – 15%, Europe – 25%, Asia Pacific – 30%, Middle East & Africa- 20, Latin America – 10%
Major vendors in the global DIS market include 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).
The study includes an in-depth competitive analysis of the key players in the DIS market, their company profiles, recent developments, and key market strategies.
The report segments the DIS market and forecasts its size by Offering (Solution and Services), by Solution Type (Identity Verification, Authentication, Identity Lifecycle Management, and Other solutions), by Identity type ( Biometric and Non-biometric), by organization size (Large enterprises and SME), by Vertical (BFSI, Retail and eCommerce, Government and Defense, Hospitality, IT & ITeS, Telecommunication, energy, and utilities and other verticals), and region (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America).
The study also includes an in-depth competitive analysis of the market's key players, their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key Benefits of Buying the Report
The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall DIS market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.
The report provides insights on the following pointers:
•Analysis of key drivers (Government initiatives and regulations supporting digital ID transformation, Rise in ID wallet solutions, Boost in the usage of online services offered by commercial businesses in recent years, Rise in identity and authentication fraud), restraints (Lack of information security of consumer data), opportunities (Increased integration of AI, ML, and blockchain technologies to enhance digital identities, Adopting biometric devices in digital identity solutions, Adopting advanced authentication techniques across verticals) and challenges (Threat of privacy and data breach, High cost associated with deployment of digital identity solutions)
•Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the DIS market.
•Market Development: Comprehensive information about lucrative markets – the report analyses the DIS market across varied regions.
•Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the DIS market.
•Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like NEC (Japan), Samsung SDS (South Korea), Thales (France), Telus (Canada), IDEMIA (France), GBG (UK), Tessi (France), Daon (US), ForgeRock (US) and among others in the DIS market strategies.
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