Decentralized Identity Market Overview
Decentralized Identity Market Size was valued at USD 0.28 Billion in 2022. The Decentralized Identity market industry is projected to grow from USD 0.53 Billion in 2023 to USD 91.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 90.20% during the forecast period (2023 - 2032). Increased use of blockchain technology and the rising digitalization of several industries are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Decentralized Identity Market Trends
Growing use of blockchain technology is driving the market growth
Market CAGR for decentralized identity is driven by the rising use of blockchain technology. The emergence of blockchain technology has opened the door for decentralized identity management systems. Blockchain technology offers an unchangeable, transparent record for safely storing and authenticating identity data. It lowers costs and boosts efficiency by doing away with the need for intermediaries and establishing a trustless environment where identity verification may be completed directly between parties.
Additionally, the global acceptability of decentralized ID is being emphasized by the growing desire for seamless and frictionless user experiences. Conventional identity verification procedures, which require numerous usernames, passwords, and authentication techniques, can be laborious. Simplifying the user experience through decentralized techniques can be laborious. Decentralized identity solutions provide a single, portable digital identity that can be quickly validated across many platforms and services. Moreover, it is anticipated that companies will be forced to implement decentralized identity systems due to compliance standards and regulatory obligations. Policies like the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States mandate that companies manage personal data appropriately and allow customers more control over it. Because decentralized identification systems provide people ownership and control over their data, they comply with these requirements. Demand for decentralized identification is rising as more sectors of the economy, including finance, healthcare, and e-commerce, become more digitally integrated. Robust identity verification procedures are necessary in these industries to guarantee safe transactions and safeguard private information. Decentralized identification systems provide a trustworthy and impenetrable means of identity verification. It reduces the dangers of fraud and identity theft. As a result, it is anticipated that throughout the projection period, demand for decentralized identity will increase due to the rising use of blockchain technology and the danger of fraud. Thus, driving the Decentralized Identity market revenue.
Decentralized Identity Market Segment Insights
Decentralized Identity Identity Type Insights
The global Decentralized Identity market segmentation, based on Identity type, includes non-biometrics and biometrics. The biometrics segment dominated the market, accounting for the maximum of market revenue due to rising fraudulent activities. When it comes to confirming someone's identity, biometrics identifiers like voice recognition, iris scans, fingerprints, and facial recognition offer a high degree of security and accuracy. This kind of identity verification is very dependable for building trust in digital interactions since it provides a high degree of verification and is challenging to counterfeit or duplicate. Users can also benefit from the convenience and usability of biometric identity.
Decentralized Identity End User Insights
The global Decentralized Identity market segmentation, based on end users, includes enterprises and individuals. The enterprises category generated the most income due to growing concern about lowering corporate risk. Additionally, businesses can manage users' identities without relying on the identity issuer when using a decentralized identity framework. Moreover, the original requirement for organizations to collect and retain personal data is removed by a decentralized identity.
Decentralized Identity Organization Size Insights
The global Decentralized Identity market segmentation, based on organization size, includes large size and SMEs. The SMEs category generated the most income due to improved customer experience and digitized their offerings. Furthermore, a common way to ensure the security of personal data as well as enhance responsibility and confidence amongst parties is to implement identity management based on blockchain technology.
Figure 1: Global Decentralized Identity Market, by Organization Size, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Decentralized Identity Verticals Insights
The global Decentralized Identity segmentation, based on verticals include, BFSI, government, healthcare and life sciences, telecom and IT, retail and e-commerce, transport and logistics, real estate, media and entertainment, travel and hospitality, and other verticals. The BFSI segment generated the most income due to KYC checks are necessary for banks to verify the identification of their clients and make sure they are not engaged in any illicit activities, such as money laundering or bribery. The United States also spends USD 25 billion on compliance with anti-money laundering (AML) laws.
Decentralized Identity Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Decentralized Identity market area will dominate this market, owing to the requirement for secure and productive identity authentication, user verification, and data sharing. In addition, the growing tech-savvy population will also boost market growth in this region.
Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: GLOBAL DECENTRALIZED IDENTITY MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Decentralized Identity market accounts for the second-largest market share due to pension and social security agencies and government support. Further, the German Decentralized Identity market held the largest market share, and the UK Decentralized Identity market was the fastest-growing market in the European region.
The Asia-Pacific Decentralized Identity Market is expected to grow at the fastest CAGR from 2023 to 2032 due to rising awareness of cyber security. Moreover, China's Decentralized Identity market held the largest market share, and the Indian Decentralized Identity market was the fastest-growing market in the Asia-Pacific region.
Decentralized Identity Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Decentralized Identity market grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Decentralized Identity industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Decentralized Identity industry to benefit clients and increase the market sector. In recent years, the Decentralized Identity industry has offered some of the most significant advantages to medicine. Major players in the Decentralized Identity market, including Microsoft (US), Accenture (Ireland), Persistent (India), Wipro (India), SecureKey Technologies (Canada), R3 (US), Avast (Czech Republic), Validated ID (Spain), Serto (US), Ping Identity (US), NuID (US), Dragonchain (US), Nuggets (UK), Finema (Thailand), Datarella (Germany), Civic Technologies (US), 1Kosmos (US), Affinidy (Singapore), Hu-manity (US), SelfKey (Mauritius), and others, are attempting to increase market demand by investing in research and development operations.
Microsoft Corporation is a multinational technology company based in Redmond, Washington. The Microsoft 365 suite of productivity apps, the Edge web browser, and the Windows operating system family are among the company's best-known software offerings. The Microsoft Surface line of touchscreen personal computers and Xbox game consoles are the company's main hardware offerings. Along with Apple, Amazon, Apple's parent firm Alphabet, and Meta, it is regarded as one of the Big Five American IT businesses. On April 4, 1975, Bill Gates and Paul Allen established Microsoft with the goal of creating and marketing BASIC interpreters for the Altair 8800. After Windows, it ascended to the top of the personal computer operating systems market in the mid-19809s with MS-DOS. In May 2022, Microsoft Corporation stated that its identification and access products, grouped under the Entra Verified ID product line, would be relaunching.
The Polkadot ecosystem is connected to the Litentry mainnet. In order to keep the para chain intact, it uses a separate economic model where collators stake. The code that has been tested on Rococo and Litmus will be sent to Litentry. The Litentry protocol's front-end interface is the IdentityHub. It allows users to link their identities in an "Identity Graph" to demonstrate who owns which Web2 and Web3 accounts. Only the root user may see these private, sensitive interactions between these root accounts, which are kept incorruptible in hardware known as a Trusted Execution Environment (TEE). It guarantees the security and privacy of the user's data. Through engagement in IdentityHub advantages, users can establish and enhance their reputation, trust, and participation ratings. These ratings are calculated privately within the Trusted Execution Environment (TEE) in conjunction with identification information and truth declarations. After confirming the facts, the TEE signs the verifiable credentials with its private key. It distributes them on its parachains without disclosing the root accounts. In August 2022, the multi-chain identity system Litentry and the blockchain infrastructure solution vendor Node Real established a cooperation. Litentry will be able to use Node Real's MegaNode, which provides robust historical and real-time data indexing on the Ethereum and Binance Chain networks, as a result of the cooperation.
Key Companies in the Decentralized Identity market include
Decentralized Identity Industry Developments
January 2022: A cooperation has been announced between Liquid Meta Capital Holdings Ltd., a leading provider of technology and infrastructure for decentralized finance, and Civic Technologies, Inc., a pioneer in the development of blockchain-powered digital identification solutions.
March 2022: Avast announced that it will be acquiring SecureKey Technologies in order to broaden its range of decentralized digital IDs.
May 2022: Collab. Land, a community management system centered on cryptocurrency, is collaborating with Nuggets, a self-governing digital identity and payment platform, to enable users to control and transfer their identities across web3 and the metaverse via biometrics.
Decentralized Identity Market Segmentation
Decentralized Identity Type Outlook
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Non-Biometrics
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Biometrics
Decentralized Identity End User Outlook
Decentralized Identity Organization Size Outlook
Decentralized Identity Verticals Outlook
Decentralized Identity Regional Outlook
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
| Report Attribute/Metric |
Details |
| Market Size 2022 |
USD 0.28 Billion |
| Market Size 2023 |
USD 0.53 Billion |
| Market Size 2032 |
USD 91.5 Billion |
| Compound Annual Growth Rate (CAGR) |
90.20% (2023-2032) |
| Base Year |
2022 |
| Market Forecast Period |
2023-2032 |
| Historical Data |
2018- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Identity Type, End User, Organization Size, Verticals, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Microsoft (US), Accenture (Ireland), Persistent (India), Wipro (India), SecureKey Technologies (Canada), R3 (US), Avast (Czech Republic), Validated ID (Spain), Serto (US), Ping Identity (US), NuID (US), Dragonchain (US), Nuggets (UK), Finema (Thailand), Datarella (Germany), Ciovic Technologies (US), 1Kosmos (US), Affinidy (Singapore), Hu-manity (US), SelfKey (Mauritius) |
| Key Market Opportunities |
Rising applications of blockchain identity solutions in cybersecurity and IoT |
| Key Market Dynamics |
Increase the use of blockchain technologyRising digitalization |
Frequently Asked Questions (FAQ) :
The global Decentralized Identity market size was valued at USD 0.28 Billion in 2022.
The global market is projected to grow at a CAGR of 90.20% during the forecast period, 2023-2032.
North America had the largest share of the global market
The key players in the market are Microsoft (US), Accenture (Ireland), Persistent (India), Wipro (India), SecureKey Technologies (Canada), R3 (US), Avast (Czech Republic), Validated ID (Spain), Serto (US), Ping Identity (US), NuID (US), Dragonchain (US), Nuggets (UK), Finema (Thailand), Datarella (Germany), Civic Technologies (US), 1Kosmos (US), Affinidy (Singapore), Hu-manity ()US(, SelfKey (Mauritius).
The enterprises category dominated the market in 2022.
The BFSI had the largest share in the global market.
