Global Digital Identity Solutions (Solutions, Services) Market Analysis Report 2023-2028: Increased Integration of AI, ML, and Blockchain Technologies to Further Expansion

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Sep 14, 2023, 06:30 ET

DUBLIN, Sept. 14, 2023 /PRNewswire/ -- The "Digital Identity Solutions Market by Offering (Solutions, Services), Software, Solution Type (Identity Verification, Authentication), Authentication Type, Identity Type, Organization Size, Vertical and Region - Global Forecast to 2028" report has been added to ResearchAndMarkets.com's offering.

The global DIS market size is projected to grow from USD 34.5 billion in 2023 to USD 83.2 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 19.3%

The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall DIS market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.

The DIS market is propelled by key factors shaping its growth trajectory. These include increased government initiatives supporting digital ID transportation and a rise in identity and authentication fraud. Furthermore, the high cost of deploying digital identity solutions may hinder market growth.

Digital identity solutions enable organizations to quickly verify the individuals and help the system determine what products, services, and information they can access. As the internet permeates our economy, digital identity will evolve, and more service providers shall rely on verifying the identity to render their services. With the growing digitalization, the computational power of processors, and the number of connected devices, the instances of cyberattacks have increased considerably in recent times.

Account takeover has resulted in financial losses of billions of dollars. Increased data breaches and account takeovers have boosted the adoption of digital identity solutions and services. These solutions use the latest technologies, such as blockchain, Machine Learning (ML), face-based biometrics, and AI, to ensure whether an individual is who they claim to be. Digital identity solutions are the next-generation identity governance and administration solutions that deliver significantly higher assurance and establish a trusted identity.

In-depth assessment of market shares, growth strategies, and service offerings of leading players like NEC (Japan), Samsung SDS (South Korea), Thales (France), Telus (Canada), IDEMIA (France), GBG (UK), Tessi (France), Daon (US), ForgeRock (US) and among others in the DIS market strategies.

By vertical, the BFSI segment holds the largest market size.

The value and advancements of technologies are increasingly getting acknowledged by financial institutions to improve the customer experience and protect themselves and their customers against the consequences of a breach in security. These institutions also deeply understand how digital identity solutions could be used to combat the threats posed by fraud and identity theft.

Anytime, anywhere banking is in demand by customers due to which BFSI organizations are deploying various services, such as internet banking, mobile banking, and stock trading through web and mobile applications. Furthermore, increasing instances of identity theft and fraud drive the demand for robust digital identity solutions in the BFSI (Banking, Financial Services, and Insurance) sector.

Regulatory compliance requirements, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, push financial institutions to adopt advanced digital identity solutions for secure customer onboarding and transaction verification.

By offering, services registered the highest CAGR during the forecast period.

Digital identity service is the assistance offered by type vendors to help customers efficiently use and maintain digital identity solutions. Hence, various vendors focus on providing managed services in the digital identity solutions market, whereas other vendors outsource these services.

Services in the digital identity solutions market become critical as they support the proper functioning of software-based solutions. Digital identity services comprise technical support services that require effective integration of digital identity solutions. Moreover, technical expertise is needed to maintain and update digital identity software.

The demand for these services is directly related to the adoption level of digital identity solutions. The adoption of digital identity solutions is increasing due to an increasing need to secure business-sensitive applications from unauthorized access. Managed services are used to decrease the operational overhead and risk and help manage the complex network infrastructure of organizations.

By organization size, SMEs registered the highest CAGR during the forecast period.

The need for efficient customer data protection, sales generation, new hires, cost-cutting, enhancing customer experience, and business development are the factors expected to drive the digital identity solutions market in the future. Digital identity solutions are becoming necessary for SMEs, as they are often at high-security risk and do not follow formal identity management policies.

The increasing demand for security, authentication, and verification from SMEs for improving their productivity and pooling of knowledge base has triggered vendors to provide a solution at a low cost. The cloud deployment mode offers a feasible solution for the adoption of technology. The cloud-based solution is developed keeping in mind the limited budget of SMEs.

In the coming years, the low cost of digital identity solutions is expected to help SMEs worldwide deploy the solution. SMEs' adoption and acceptance of digital identity solutions will help expand the customer base and enhance business efficiency. Governments are also taking initiatives to protect SMEs in their respective countries.

By region, North America holds the largest market size.

Mandatory identity management policies, investments from various industries, including BFSI and retail, and developing technologies, including smart infrastructure, smart cities, ePassport, and evisa, are anticipated to fuel the growth of the North American market for digital identity solutions.

As an illustration, Gemalto has created an ID verification solution for banks that helps simplify the onboarding process. ePassports for onboarding that employ digital IDs based on facial and fingerprint identification are also being developed in North America. These activities are anticipated to propel the North American market for digital identification solutions as a whole.

The development of government initiatives, such as smart infrastructure, smart cities, digital identity-based driver's licenses, and the use of digital identity by the US police, to track criminals suspected of major and minor crimes, as well as to find out missing persons, are also driving the need of digital identity across North America.

Technology for digital identification solutions has evolved beyond the BFSI and healthcare sectors to the government, defense, airport, and border control. Banks in the Asia-Pacific region are implementing methods for furthering the development of digital identification solutions, such as new product innovations and collaborations.

Asia Pacific banks and businesses are creating digital identification solutions using cutting-edge technology like blockchain, AI, and cloud. The market for digital identification solutions in the Asia Pacific is driven by these activities by governments and businesses in various nations.

The region is expected to invest more in deploying digital identity technology due to the increasing threat of identity and access breaches, resulting in financial and reputational losses. These initiatives are boosting the market growth.

Premium Insights

Government Initiatives and Regulations Supporting Digital Id Transformation to Drive Growth of Dis Market
Solution Segment to Account for Largest Share in 2023
Hardware Segment to Account for Largest Share in 2023
Authentication Segment to Account for Largest Share in 2023
Single-Factor Authentication Segment to Account for Largest Share in 2023
Biometric Segment to Account for Largest Share in 2023
Large Enterprises to Account for Largest Share in 2023
BFSI Vertical and North America to Account for Largest Shares in 2023
Asia-Pacific to Emerge as Best Market for Investments in the Next Five Years

Market Overview and Industry Trends

Drivers

Government Initiatives and Regulations Supporting Digital Id Transformation
Rise in Id Wallet Solutions
Boost in Usage of Online Services Offered by Commercial Businesses in Recent Years
Rise in Identity and Authentication Fraud

Restraints

Lack of Information Security of Consumer Data

Opportunities

Increased Integration of AI, ML, and Blockchain Technologies to Enhance Digital Identities
Adopting Biometric Devices in Digital Identity Solutions
Adopting Advanced Authentication Techniques Across Verticals

Challenges

Threat of Privacy and Data Breach
High Cost Associated with Deployment of Digital Identity Solutions

Indicative Pricing Analysis

Indicative Pricing/Pricing Models of Key Players
Microsoft Software Price
IBM Security Verify Software Price
Onespan Digital Identity Solution Price
Duo Security Price

Technology Analysis

Blockchain
Biometrics and Blockchain
Authentication
Out-Of-Band Authentication
Baked-In Authentication
Facial Liveness
AI/ML

Regulatory Landscape

General Data Protection Regulation
Electronic Identification, Authentication, and Trust Services
Federal Information Processing Standards
Essb 6280
Personal Information Protection and Electronic Documents Act
Criminal Justice Information System Security Policy
Ffiec Authentication in Internet Banking Environment Guidance
Know Your Customer
Anti-Money Laundering
Fair and Accurate Credit Transaction Act
Identity Theft Red Flags
Regulatory Bodies, Government Agencies, and Other Organizations

Company Profiles

Key Players

Nec
Samsung Sds
Thales
Telus
Idemia
Gbg
Tessi
Daon
Forgerock
Imageware
Jumio
Iproov
Id R&D
Refinitiv

Other Players

Onespan
Smartmatic
Freja Eid Group
Vintegris
Au10Tix
Signicat
Duo Security
Syntizen
Hashcash Consultant
Good Digital Identity

For more information about this report visit https://www.researchandmarkets.com/r/jlgq64

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