Decentralized Identity Market Research Report By Technology (Blockchain, Self-Sovereign Identity, Public Key Infrastructure, Zero-Knowledge Proofs), By Application (Identity Verification, Access Control, Data Privacy Management, Credential Management), By End User (Government, Financial Services, Healthcare, Telecommunications, Education), By Deployment Model (Cloud-Based, On-Premises) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

Decentralized Identity Market Summary

As per MRFR analysis, the Decentralized Identity Market Size was estimated at 2.26 (USD Billion) in 2023. The Decentralized Identity Market Industry is expected to grow from 2.64 (USD Billion) in 2024 to 15 (USD Billion) by 2035. The Decentralized Identity Market CAGR (growth rate) is expected to be around 17.11% during the forecast period (2025 - 2035). The market is driven by increasing concerns over data privacy, the rise in data breaches, and the growing adoption of blockchain technology for secure identity management. Key sectors such as banking, healthcare, and education are increasingly implementing decentralized identity solutions to enhance security and streamline operations.

Key Market Trends & Highlights

The Decentralized Identity Market is witnessing transformative trends driven by technological advancements and regulatory support.

• Market size in 2024: 2.64 USD Billion; projected to reach 15 USD Billion by 2035.
• Blockchain technology expected to grow from 1.06 USD Billion in 2024 to 5.85 USD Billion by 2035.
• Government initiatives like the UN's Digital Identification Program emphasize the need for secure digital identities.

Market Size & Forecast

2023 Market Size: USD 2.26 Billion

2024 Market Size: USD 2.64 Billion

2035 Market Size: USD 15 Billion

CAGR from 2025 to 2035: 17.11%

Largest Regional Market Share in 2024: North America.

Major Players

Key players include uPort, IBM, Civic, SelfKey, TrustKey, Accenture, Microsoft, and Evernym.

Key Decentralized Identity Market Trends Highlighted

The Decentralized Identity Market is undergoing substantial growth as a result of the growing demand for privacy-preserving solutions and the necessity for improved security in digital interactions. Organizations and individuals are acknowledging the significance of managing their identity information, which is resulting in a transition away from conventional centralized identity systems. This change is being driven by the increasing apprehension regarding data breaches, identity theft, and privacy violations, which is prompting entities to investigate decentralized solutions that offer individual ownership and self-sovereignty over digital identities. The adoption of blockchain technology as a foundational layer for decentralized identity systems has been on the rise in this market in recent years.

This technology facilitates the creation of digital identities that are both secure and verifiable, without the need for a central authority. Furthermore, there is a trend toward the integration of verifiable credentials and decentralized identifiers (DIDs) in a variety of sectors, which will simplify the process of identity verification and authentication. Government initiatives and support for digital transformation initiatives are improving the credibility and implementation of these systems on a global scale. On the opportunity front, there is potential for innovation in the development of user-friendly platforms that can seamlessly incorporate decentralized identities into existing services.

The potential for partnerships among private sector companies, municipalities, and non-profit organizations offers a means to improve user experiences while simultaneously adhering to regulatory standards. Additionally, the demand for decentralized identity solutions is a significant opportunity for market participants to provide compelling offerings that meet a wide variety of user requirements, as remote work and online services continue to expand. In general, the global landscape for decentralized identity is on the brink of a transformative shift as stakeholders acknowledge the importance and necessity of utilizing innovative identity management solutions.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Decentralized Identity Market Drivers

Growing Demand for Enhanced Security Solutions

A rising demand for enhanced security solutions across various sectors primarily drives the Decentralized Identity Market Industry. Financial services, healthcare, and government institutions are increasingly adopting decentralized identity systems to mitigate risks associated with data breaches and identity theft. A report from the World Economic Forum indicates that cybercrime is expected to cost the global economy approximately 10.5 trillion USD annually by 2025.

As organizations like Microsoft and IBM invest heavily in decentralized identity technologies, this fear of financial loss is prompting businesses to implement these advanced systems, thus driving the market. The global emphasis on individual data privacy and the push for stronger security frameworks in identity verification processes is creating significant opportunities in the decentralized identity space despite the initial challenges many organizations face in transitioning to these models.

Rising Government Initiatives and Support

Government initiatives and support play a crucial role in the growth of the Decentralized Identity Market Industry. Several governments worldwide are formulating regulations and policies to promote secure digital identities for their citizens. For instance, the European Union's Digital Identity initiative, which aims to provide a secure method for identity verification across member states, reflects the increasing importance of decentralized identity solutions.

According to data from a European Commission report, as many as 80% of EU citizens would prefer to securely access services using a digital ID. Such government backing not only legitimizes decentralized solutions but also enhances their adoption across both public and private sectors, thus significantly impacting market growth.

Increased Focus on Data Privacy and Consumer Protection

The increasing focus on data privacy and consumer protection is a significant driver for the Decentralized Identity Market. In light of strict regulations such as the General Data Protection Regulation (GDPR) in the European Union, companies are altering their data handling processes. The International Association of Privacy Professionals (IAPP) found that compliance with these laws has led to a surge in organizations seeking decentralized identity solutions, which inherently promote user control over personal information.

With growing concerns over identity theft, organizations adopting decentralized identity frameworks can demonstrate enhanced data protection, leveraging consumer trust and leading to accelerated market growth in the long term.

Decentralized Identity Market Segment Insights

Decentralized Identity Market Technology Insights

The Decentralized Identity Market within the Technology segment is rapidly evolving, showcasing robust growth fueled by the increasing need for secure and user-centric identity verification systems. By 2024, the total market is anticipated to be valued at 2.64 USD billion, reflecting significant investment and innovation in technologies that support decentralized identity solutions. Among the various technologies driving this sector, Blockchain stands as a prominent player, expected to grow from a valuation of 1.05 USD billion in 2024 to 5.8 USD billion by 2035, showcasing a majority holding in the market.

The ability of Blockchain technology to create immutable and transparent identity records is vital, as it enhances security while reducing fraud, thereby addressing the increasing cybersecurity concerns globally. Similarly, the Self-Sovereign Identity segment, valued at 0.85 USD billion in 2024 and projected to reach 4.5 USD billion by 2035, emphasizes individual control over personal data, responding to rising awareness about privacy and data ownership. Meanwhile, Public Key Infrastructure, important for secure key management, is expected to grow from 0.74 USD billion in 2024 to 3.8 USD billion in 2035, indicating its essential role in the digital identity verification landscape.

Furthermore, Zero-Knowledge Proofs, while currently valued at zero in 2024, are projected to reach 1.9 USD billion by 2035, signifying their potential impact in enhancing privacy and enabling secure transactions without revealing personal data. The combination of these technologies points toward a transformative shift in how identity is managed and verified globally. The continuous advancements in these segments cater to the demand for privacy-focused solutions that align with regulatory requirements and growing consumer expectations. The emerging trends in the Decentralized Identity Market statistics signify a collective move towards a more secure, efficient, and user-centric approach to identity management, bolstered by technological innovation and comprehensive governance frameworks that foster trust in digital identities.

As organizations and individuals strive for a balance between convenience and security, the growing adoption of these technologies will play a crucial role in shaping the future landscape of identity verification on a global scale.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Decentralized Identity Market Application Insights

The Decentralized Identity Market is projected to reach a valuation of 2.64 billion USD by 2024 and is expected to expand further as the emphasis on digital identities is increasing globally. The Application segment of this market comprises critical areas like Identity Verification, Access Control, Data Privacy Management, and Credential Management. Identity Verification plays a pivotal role in enhancing security across various online platforms, reducing identity fraud significantly. Access Control technologies are integral for managing permissions in diverse sectors, guaranteeing that only authorized individuals can access sensitive information.

Data Privacy Management remains central as organizations strive to comply with stringent regulations governing personal information. Furthermore, Credential Management is vital in ensuring that digital identities are securely maintained and updated, thus fostering trust among users. The growing trend of digitization and rising concerns about privacy breaches and online security are key growth drivers for this market, presenting invaluable opportunities for technology providers. The market statistics highlight the increasing reliance on decentralized identity solutions to address these challenges, making this segment highly significant in the evolving landscape of digital identity management.

Decentralized Identity Market End User Insights

The Decentralized Identity Market is witnessing significant growth across various end-user sectors, with a projected value of 2.64 billion USD by 2024. This market is characterized by its diverse applications in sectors such as Government, Financial Services, Healthcare, Telecommunications, and Education. Each of these sectors finds unique value in decentralized identity solutions, enhancing security, privacy, and efficiency. Governments globally are increasingly adopting these solutions for identity verification and citizen services, which ultimately streamline operations and reduce fraud.

The Financial Services sector is also embracing these technologies to improve customer onboarding and comply with regulatory requirements while ensuring user security. In Healthcare, decentralized identity aids in safeguarding patient data and streamlining access to health information, significantly enhancing patient care. Telecommunications firms are leveraging these solutions to authenticate users more effectively, while the Education sector utilizes decentralized identities to manage student records securely. The diverse application in these critical sectors illustrates the growing relevance and necessity of the Decentralized Identity Market, highlighting its potential to address modernization challenges and enhance security frameworks globally.

Decentralized Identity Market Deployment Model Insights

The Decentralized Identity Market, with a strong valuation reaching 2.64 USD Billion in 2024, shows notable growth potential driven by its Deployment Model segment. This segment is primarily composed of two distinct models: Cloud-Based and On-Premises. The Cloud-Based model is gaining traction due to its scalability, cost-effectiveness, and ease of access, making it a preferred choice for businesses aiming to streamline identity management processes. Conversely, the On-Premises model is significant in sectors requiring high data security and compliance, as it allows firms to maintain control over sensitive information within their infrastructure.

The market is characterized by increasing demand for enhanced data privacy, driven by government regulations focused on protecting individual identity. Emerging technologies and growing digital transformation initiatives are also key growth drivers, further propelled by the increasing acceptance of decentralized identity solutions across various industries such as banking, healthcare, and technology. The Decentralized Identity Market revenue is expected to see substantial growth, driven by these deployment models adapting to the evolving needs of businesses and consumers alike.

Overall, the market presents numerous opportunities for innovation and investment as organizations look to enhance their identity management strategies.

Decentralized Identity Market Regional Insights

The Decentralized Identity Market is set to experience substantial growth across different regions. In 2024, North America holds a significant market value of 0.798 USD billion, which rises to 4.398 USD billion by 2035, reflecting its dominance in the industry. This region benefits from high adoption rates of advanced technologies and strong investment in digital identity solutions. Europe follows closely with a valuation of 0.58 USD Billion in 2024 and a forecasted growth to 3.205 USD Billion by 2035, showcasing its robust regulatory frameworks supporting decentralized identities, which helps in driving market trends.

Asia Pacific is valued at 0.653 USD Billion in 2024 and is anticipated to reach 3.614 USD Billion by 2035, indicating the increasing acceptance of innovative identity solutions in developing economies. South America, although having a smaller market share with a value of 0.218 USD billion in 2024, is projected to grow to 1.227 USD billion by 2035, highlighting emerging opportunities. The Middle East and Africa are recorded at 0.392 USD Billion in 2024 and are expected to expand to 2.557 USD Billion by 2035, driven by the need for secure digital identities.

Each region contributes uniquely to the Decentralized Identity Market revenue, influenced by technological advancements and local demands.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Decentralized Identity Market Key Players and Competitive Insights

The Decentralized Identity Market has been gaining traction as businesses and consumers increasingly seek control over their data in a digital world. This market facilitates a shift from traditional identity management systems to more secure and user-centric solutions, where individuals can verify their identity seamlessly across various platforms without relying on central authorities. The competitive landscape of this market illustrates a diverse array of players striving to offer innovative technology that enhances privacy, security, and user experience. As a result, various companies are investing heavily in developing solutions that leverage blockchain technology, biometrics, and cryptographic protocols to build robust decentralized identity frameworks. The dynamic nature of market demand is further driving competition as more organizations recognize the importance of secure identities in sectors ranging from finance to healthcare.

Veres One stands out in the Decentralized Identity Market due to its unique approach to identity verification that prioritizes user privacy and autonomy. The company promotes a public, open-source standard for decentralized identifiers and focuses on enabling anyone to create, own, and manage their own identities on the internet. This strategic positioning allows Veres One to tap into the growing demand for decentralized solutions while ensuring adherence to privacy and security principles, which are pivotal in gaining consumer trust. Furthermore, the strength of Veres One lies in its commitment to collaboration, as it actively engages with multiple stakeholders, including governmental organizations, enterprises, and developer communities, to foster an inclusive ecosystem for decentralized identity.

Civic Technologies offers an innovative suite of products and services within the Decentralized Identity Market, specializing in secure digital identity verification solutions. The company is well-regarded for its Civic Wallet, which allows users to easily manage their identities while maintaining stringent privacy protocols. Civic Technologies boasts a significant presence in the global market, benefiting from partnerships with leading companies across various sectors such as finance and e-commerce. This widespread collaboration enriches its product offerings and enhances its visibility in the market. Civic Technologies has also engaged in strategic mergers and acquisitions to bolster its capabilities and expand its reach, continuously innovating in the space of identity verification. With a focus on the integration of blockchain technology to improve security, Civic Technologies is positioned to maintain its influence and competitiveness within the evolving landscape of decentralized identity solutions.

Key Companies in the Decentralized Identity Market Include

• Veres One


• Civic Technologies


• Blockstack


• Microsoft


• Ping Identity


• com


• Sovrin Foundation


• IBM


• Orange


• uPort


• Consensys


• SelfKey


• Evernym

Decentralized Identity Market Industry Developments

The Decentralized Identity Market has witnessed significant developments recently, driven by a surge in demand for secure digital identities. Notably, Veres One is advancing its efforts in self-sovereign identity solutions, while Civic Technologies has enhanced its verification services, gaining traction with organizations prioritizing user privacy. Simultaneously, companies such as Blockstack and uPort are focusing on creating user-friendly interfaces that facilitate easier access to decentralized solutions.

During the Solana Accelerate event in New York in June 2025, it introduced its reusable digital identity solution on the Solana blockchain. The system allowed users to validate their credentials once and use them across dApps, demonstrating real-time onboarding with Roam and emphasizing privacy-preserving, regulation-compliant identity verification in Web3.

Identity.com introduced a decentralized identity application on the Apple App Store and Google Play Store in January 2025. The mobile platform facilitated the management of verifiable credentials by users and provided businesses with a simplified KYC process through the use of self-sovereign identity (SSI). This approach prioritized user data control and privacy-preserving identity verification.

Decentralized Identity Market Segmentation Insights

Decentralized Identity Market Technology Outlook

• Blockchain


• Self-Sovereign Identity


• Public Key Infrastructure


• Zero-Knowledge Proofs

Decentralized Identity Market Application Outlook

• Identity Verification


• Access Control


• Data Privacy Management


• Credential Management

 

Decentralized Identity Market End User Outlook

• Government


• Financial Services


• Healthcare


• Telecommunications


• Education

Decentralized Identity Market Deployment Model Outlook

• Cloud-Based


• On-Premises

Decentralized Identity Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa

Report Attribute/Metric	Details
Market Size 2023	2.26(USD Billion)
Market Size 2024	2.64(USD Billion)
Market Size 2035	15.0(USD Billion)
Compound Annual Growth Rate (CAGR)	17.11% (2025 - 2035)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Base Year	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Veres One, Civic Technologies, Blockstack, Microsoft, Ping Identity, Identity.com, Sovrin Foundation, IBM, Orange, uPort, Consensys, SelfKey, Evernym
Segments Covered	Technology, Application, End User, Deployment Model, Regional
Key Market Opportunities	Improved data security solutions, Streamlined digital onboarding processes, Enhanced user privacy controls, Regulation compliance opportunities, Blockchain integration advancements
Key Market Dynamics	Regulatory compliance requirements, Increased data privacy concerns, rising cyber threats, Demand for user control, and Adoption of blockchain technology
Countries Covered	North America, Europe, APAC, South America, MEA