Digital Identity And Security Market size is set to grow by USD 64.4 billion from 2024-2028, Increase in digitalization with electronic ID cards (EID) and smart infrastructure initiatives to boost the market growth, Technavio

NEW YORK, July 25, 2024 /PRNewswire/ -- The global digital identity and security market size is estimated to grow by USD 64.4 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  21.23% during the forecast period. Increase in digitalization with electronic ID cards (EID) and smart infrastructure initiatives is driving market growth, with a trend towards integration of AI, ML, and blockchain technologies to enhance digital identities. However, high costs involved in deploying digital identity and security solutions  poses a challenge. Key market players include Atos SE, Au10tix Ltd., Daon Inc., Euronovate S.A., Freja eID Group AB, GB Group plc, IDEMIA France SAS, iProov Ltd., Jumio Corp., London Stock Exchange Group plc, NEC Corp., OneSpan Inc., Ping Identity Corp., Samsung Electronics Co. Ltd., SECURE IC S.A.S, Smartmatic International Corp., TECH5 Group, TELUS Corp., TESSI, and Thales Group.

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Key Market Trends Fueling Growth

The digital identity and security market is experiencing significant advancements through the integration of blockchain, machine learning (ML), and Artificial Intelligence (AI) technologies. These innovations enable computers to discover hidden insights without explicit programming and automate the construction of analytical models, reducing the need for human labor and potential risks. ML-based analytics allows for the analysis of large volumes of identity-related data and access activities by digital identity and security vendors. This data aids in precisely measuring and reporting on user, account, application, department, and organizational risk posture, revealing anomalous access, and implementing risk-based access certifications. Industries such as government, BFSI, and auto have begun utilizing these technologies, creating new market opportunities. Blockchain technology, specifically self-sovereign identity, is another major driver. It provides decentralized identity solutions using self-owned, independent, verifiable credentials and digital identifiers. The combination of AI, ML, and blockchain technologies is anticipated to open up numerous growth opportunities for digital identity and security solution providers. 

In today's digital world, banking and eBanking applications have become the norm. However, with increased reliance on computerized systems, compromised user privacy and insecure endpoints have emerged as significant concerns. Cyberattacks are on the rise, putting data security at risk. Businesses need hidden insights into their identity attack surface using ML-based analytics. Pilot programs for digital verifiable credentials offer customized solutions to mitigate IT issues. Servers, storage systems, networking equipment, security appliances, custom interfaces, APIs, connectors, and legacy systems all form part of the identity management landscape. Biographical and biometric data are essential components of digital identity platforms. Regulations like identity management regulations require robust security measures. Biometric technologies, such as passwords, biometric authentication techniques like face recognition, and biometric solutions, offer enhanced security. However, IT issues and security risks persist, especially with third-party applications, printers, and security cameras. CPG companies must address these challenges with managed authentication services and secure supply chain complexities. Ultimately, a customized, comprehensive approach to digital identity and security is crucial. 

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Market Challenges

• Organizations across various industries prioritize cybersecurity due to the increasing threat of identity-related fraud and cyberattacks. Digital identity solutions offer a viable response, but their implementation comes with substantial upfront costs. Small and medium enterprises (SMEs) often overlook security until after a breach, owing to budget constraints. These businesses typically focus on securing critical servers while neglecting database security, making them more susceptible to cyber threats. The significant investment required for digital identity and security solutions poses a significant challenge to the expansion of the global market during the forecast period.
• In today's digital world, businesses face numerous challenges in maintaining digital identity and security. Artificial intelligence (AI) and cyber threats pose significant risks, leading to data breaches and account takeovers. Unique identities must be managed across networks and access privileges, especially with the Bring-Your-Own-Device policy. E-commerce and mobile computing increase vulnerabilities, making proactive security measures essential. SMEs and commercial businesses grapple with identity verification processes, from conventional keys and password systems to biometric authentication like fingerprint, facial recognition, handprint, and voice recognition. Decentralized identity systems using blockchain technology offer a solution, but planning, designing, and consulting are crucial. Identity verification services are vital for industries like banking, retail, and e-commerce, preventing bank fraud and ensuring secure transactions. Law enforcement officers and health professionals also rely on these services for critical data access. ID wallet solutions and secure mobile apps provide convenient and secure ways to store and manage digital identities, from driver's licenses and vehicle card registrations to healthcare credentials. A robust identity management system is essential in the era of digital transformation.

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Segment Overview 

This digital identity and security market report extensively covers market segmentation by

1. Component 
• 1.1 Solutions
• 1.2 Services
2. Deployment 
• 2.1 On-premise
• 2.2 Cloud
3. Geography 
• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Solutions-  The digital identity and security market primarily revolves around software solutions that analyze biometric data for authentication and perform various tasks such as data encryption. Biometric identification and verification are facilitated by these software solutions. The software processes and securely stores the data obtained through hardware. Advanced data mining techniques are employed in large databases for swift data processing. Vendors like IDEMIA France SAS, Tessi, GB Group plc, and NEC Corp. Provide customized Software Development Kits (SDKs) based on client requirements. For instance, NEC Corp.'s NC7000-3A server software solution offers FIDO2-compliant biometric authentication to secure access to websites and mobile applications. The increasing adoption of digital identity and security solutions is projected to fuel the growth of the solution segment in the global digital identity and security market.

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Learn and explore more about Technavio's in-depth research reports

The global Identity Verification Market is projected to grow significantly, driven by rising security concerns and regulatory compliance needs. Similarly, the global Blockchain Technology in Transportation and Logistics Industry Market is expanding, leveraging blockchain for enhanced transparency and efficiency in supply chains. Meanwhile, the global Identity and Access Management Market is experiencing robust growth, fueled by increasing cyber threats and the need for secure access solutions across organizations. Together, these markets are shaping the future of digital security and operational efficiency.

Research Analysis

The Digital Identity and Security market is experiencing significant growth due to the increasing importance of secure and convenient digital identity management. Biometrics integration, such as fingerprint or facial recognition, is becoming more common in smartphones for digital identity-based authentication. Multi-factor authentication, including one-time passcodes (OTPs), adds an extra layer of security for commercial businesses. Omnichannel authentication enables seamless authentication across desktops, phones, call centers, and more. Passwordless login and ID wallet solutions offer a more convenient and secure way to manage digital identities. Proactive security measures, such as secure mobile apps, protect against data breaches and identity theft. Digital identity platforms utilize biographical and biometric data for electronic transactions and digital identification solutions. Biometric technologies, like driver's license and vehicle card registration, healthcare credentials, and secure sources, provide a more secure and efficient way to verify identity. Personal characteristics, such as voice recognition and iris scans, are also being explored for future identity management capabilities.

Market Research Overview

The Digital Identity and Security market is a dynamic and evolving landscape focused on safeguarding unique identities in the digital world. Biometrics integration through smartphones and multi-factor authentication are key trends, with omnichannel authentication and passwordless login gaining popularity. Digital identity solutions encompass various technologies like face-based biometrics, machine learning (ML), and artificial intelligence (AI), ensuring secure access across desktops, phones, call centers, and more. Identity governance and access privileges are crucial components, with Bring-Your-Own-Device policies adding complexity. Cyber threats, data breaches, and account takeovers are significant challenges, necessitating proactive security measures and decentralized identity systems. E-commerce, SMEs, and commercial businesses are major sectors adopting digital identity solutions for ID wallet solutions, secure mobile apps, and identity verification services. Planning, designing, and consulting services are essential for implementing effective identity management capabilities and combating cyberattacks, data breaches, and compromised user privacy. Hidden insights from ML-based analytics help mitigate the identity attack surface, with pilot programs exploring digital verifiable credentials and secure source technologies like blockchain and servers, storage systems, networking equipment, and security appliances. User awareness and data security are paramount, with custom interfaces, APIs, and connectors ensuring seamless integration.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Component
• Solutions
• Services
• Deployment
• On-premise
• Cloud
• Geography
• North America
• APAC
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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