The global digital identity solutions market revenue is expected to reach USD 117,416.1 million by 2030, exhibiting a CAGR of 19.6% during 2024–2030.
This growth is due to an increase in the incidence of cybercrime and fraudulent activities in the healthcare and banking sectors. There has also been a noteworthy development in ID wallet solutions, which give miscreants more sources of information to attack and steal. Hence, measures are being taken to integrate artificial intelligence, machine learning, and blockchain into digital identity solutions, in order to strengthen user security.
In the organization size segment, the SMEs category accounts for a significant share, of more than 35%, and it will grow at the higher CAGR in the years to come.
SMEs have limited financial resources; as a result, they opt for cloud-based digital identity solutions extensively. They face many IT issues and are increasingly encountering cyberattacks due to the less-robust security measures in place compared to large enterprises. DISs can aid SMEs in saving themselves from these mishaps by offering a more-secure way to confirm the identities of customers and employees. There is an increasing pressure on the key players to come up with solutions that are cost-effective, so that SMEs can achieve efficiency and optimum performance.
These solutions are also becoming easier to use, thus witnessing extensive adoption by SMEs. These enterprises are also subjected to the compliance requirements implemented by the Payment Card Industry Data Security Standard and other regulations, which can be met by digital user authentication solutions.
Under the vertical segment, the retail and e-commerce category is expected to grow the fastest over this decade, ascribed to the surging number of cyberthreats and increasing volume of online transactions. The growing popularity of online shopping and the widespread availability of the internet are leading to more people paying online. This, in turn, leads to the need for trusted sources for secure and reliable payments and to verify users’ identities. DIS also aids in improving customer experience and lowering running costs and resource expenses. As the number of individuals using online platforms for shopping is increasing, the demand for safe and secure monetary transactions via VISA and Mastercard is surging as well.
Moreover, retail is one of the most-prone sectors to frauds and identity thefts. It is also using authentication services because of the increasing supply chain complexities and a growing count of employees and consumers. E-commerce platforms such as Amazon and Myntra use third-party applications to maintain their websites, external vendors, and employee access points, which demands identity verification to a great extent. Thus, these organizations need stronger and speedier authentication technologies for an uninterrupted workflow.
Further, digital identity solutions can help the sector in improving the customer experience by making payments fast and reducing potential payouts Moreover, these solutions help prevent frauds by verifying users before a purchase is okayed.
The top companies providing digital identity solutions are ImageWare Systems Inc., ForgeRock Inc., Daon Inc., Tessi, Jumio, iProov, Samsung SDS, Thales Group, Vintegris S.L.U., Refinitiv Limited and Refinitiv US LLC, and NEC Corporation.