The global decentralized identity market size is expected to reach USD 102.0 billion by 2030, expanding at a CAGR of 88.2% from 2022 to 2030, according to a new study conducted by Grand View Research, Inc. The ineffectiveness of conventional identity management practices and rising incidences of security breaches have fueled the demand for decentralized identity platforms. The increasing adoption of such decentralized identity platforms by businesses and individuals is further expected to drive the market over the forecast period.

Key Industry Insights & Findings from the report:

  • The biometric segment is anticipated to register the fastest growth rate over the forecast period. The increasing launch of biometric identification platforms by some of the major firms, including, Innovatrics and IDEMIA, is expected to drive the segment.
  • The individual segment is projected to register the fastest growth rate over the forecast period. Decentralized identity is used by individuals owing to benefits such as privacy and security concerns, which is a major factor expected to propel the segment growth.
  • The small and medium enterprises segment is anticipated to emerge as the fastest growing segment over the forecast period. The growth of the segment can be attributed to the growing digitalization across all SMEs worldwide.
  • The BFSI segment dominated the market in 2021. The banking firms adopting decentralized identity solutions to reduce identity fraud is one of the major factors propelling the segment growth.
  • Asia Pacific is projected to register the fastest growth rate over the forecast period. The increasing demand for decentralized identity solutions across the region is anticipated to play a vital role in driving the regional market.

Decentralized Identity Market Growth & Trends:

Additionally, several regulatory bodies and monetary organizations have launched guidelines to enable users to leverage digital identity platforms. For instance, in April 2020, the Arab Monetary Fund (AMF) published the latest guidelines for Electronic Know Your Customer (e-KYC) to enable the onboarding of new banking customers remotely through non-face-to-face authorization. Hence, initiatives aiming at utilizing digital identity platforms are expected to create new growth opportunities for the market over the forecast period.

Decentralized identification is an emerging concept that restores consumers’ control over their identities by enabling them to acquire verifiable information from certified issuers through an identity wallet, such as the Government. Users can effectively control their online identity and privacy by restricting what data is conveyed from the wallet to a third person. Furthermore, decentralized IDs would assist individuals who have been the targets of a security breach due to the negligence of a third person.

The COVID-19 pandemic is expected to play a significant role in driving the market over the forecast period. With the growing digitalization owing to the pandemic outbreak globally, there is an increasing need to protect online users’ identities. Verifying user identities and securely storing them depend greatly on decentralized identity.

Furthermore published by Grand View Research:

  • Identity Verification Market – The global identity verification market size is expected to reach USD 33.92 billion by 2030, according to a new report by Grand View Research, Inc. The market is anticipated to expand at a CAGR of 16.7% from 2022 to 2030. Identity verification is a security solution that allows businesses to safeguard, protect, and confirm the accuracy of user and customer information. Technologies involved in the identity verification process include Artificial Intelligence (AI), Machine Learning (ML), and face-based biometrics. These services and solutions are used by industries such as healthcare & life science, e-commerce and retail, government & defense, BFSI, energy and utilities, and others to ensure that the information provided by online consumers and users is linked with the identity of a real person.
  • PIAM Market – The global physical identity and access management (PIAM) market size is expected to reach USD 1.1 billion by 2025, expanding at a CAGR of 14.6% from 2019 to 2025, according to a new study conducted by Grand View Research, Inc. The growing demand for corporate asset security and unified risk management, especially in large enterprises, is anticipated to drive the growth of PIAM market over the forecast period. With the increasing globalization and associated complexity of operations, organizations face a tumultuous task of assessing and managing risks within the company’s assets, which are often spread across different geographies. In addition, organizational silos created by the security and Information Technology (IT) departments of companies have generated a drastic demand for a holistic management solution, which can be addressed by the physical identity and access management software.
  • Blockchain Technology Market – The global blockchain technology market size is expected to reach USD 1,431.54 billion by 2030, growing at a CAGR of 85.9% from 2022 to 2030, according to a new report by Grand View Research, Inc. The market growth can be attributed to the increasing digitalization across the BFSI sector. Furthermore, the growing use of contactless blockchain digital ticketing at various events is expected to drive the market. The growing use of cryptocurrency worldwide is also anticipated to drive market growth. This is because cryptocurrencies, such as Ethereum and bitcoin, operate on blockchain technology. The demand for cryptocurrency is increasing due to benefits, such as easy transactions, inflation hedge, and enhanced security.

Source: PRNewswire WallstreetOnline