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    Digital Identity in Government Sector Market

    ID: MRFR/ICT/10625-HCR
    128 Pages
    Shubham Munde
    October 2025

    Digital Identity in Government Sector Market Research Report: Information By Offering (Solutions and Services), By Solution Type (Identity Verification, Authentication, Identity Lifecycle Management, and Other Solution Types), By Identity Type (Biometric and Non-biometric), By Organization Size (Large Organization and SMEs), and By Region (North America, Europe, Asia-Pacific, and Rest Of The World) – Market Forecast Till 2035.

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    Digital Identity in Government Sector Market Summary

    As per Market Research Future Analysis, the Digital Identity in Government Sector Market is projected to grow from USD 3.79 billion in 2025 to USD 16.56 billion by 2035, with a CAGR of 18.32% during the forecast period. The market was valued at USD 2.60 billion in 2024. Key drivers include enhanced accessibility and inclusion through digital ID systems, which facilitate easier access to essential services and improve operational efficiency in government organizations.

    Key Market Trends & Highlights

    The market is witnessing significant trends driven by the need for efficient digital identity solutions.

    • Market Size in 2024: USD 2.60 billion; projected to reach USD 16.56 billion by 2035.
    • Authentication segment dominated the market in 2022, driven by cloud scalability.
    • Biometric identity systems led the market in 2022, offering enhanced security over traditional methods.
    • North America held 45.80% market share in 2022, with the U.S. being the largest market.

    Market Size & Forecast

    2024 Market Size USD 2.60 billion
    2035 Market Size USD 16.56 billion
    CAGR 18.32%

    Major Players

    Key players include NEC, Samsung SDS, Thales, Telus, IDEMIA, GBG, Tessi, Daon, ForgeRock, ImageWare, Jumio, iProov, ID R&D, Refinitiv, OneSpan, Smartmatic, Freja EID Group, Vintegris, AU10TIX, Signicat, Duo Security, Syntizen, Hashcash Consultant Good Digital Identity.

    Digital Identity in Government Sector Market Trends

    Rising accessibility and inclusion is driving the market growth

    It is challenging to register for classes, access social services, cross borders, claim pensions and social welfare benefits, open a bank account, get a cell phone, provide identification for jobs and occupations, access healthcare services, participate in elections, or register a business without a recognized form of identification. All of these services that depend on personal identity can be implemented more easily and effectively thanks to digital ID systems, increasing their accessibility for more people.

    In comparison to more conventional means of maintaining identity, a digital ID makes it easier for people to prove who they are, guaranteeing that their identity can be confirmed more rapidly to access public and social services and used in a manner that is more secure against mistakes and inadvertent disclosures. The availability of services, opportunities for individuals, and chances for service innovation increase as more people are able to prove their identities. As a result, a digital ID system can be a potent equalizer, enabling underprivileged communities to engage in social, economic, and political life to a greater extent.

    As more nations and governments come to understand the advantages of digital identification, they are already moving forward with the development of their digital ID systems. The following chapters will aid in strategically tackling the implementation issues related to digital ID systems by drawing on the opinions of experts and case studies. A digital ID system enhances communication between business and public organisations and individual citizens. It is an essential component in the design and development of more innovative, agile, and responsive services.

    In particular, it aids in lowering operational expenses, enhancing customer satisfaction, reducing turnaround times, speeding up deliveries, and improving security. In the public sector, where digital ID systems can enhance transparency, efficiency, effectiveness, innovation, and the dynamic delivery of public services and programs, this impact on institutional efficiency is particularly crucial (World Bank, 2019b). According to estimates, streamlined systems based on universal digital ID could spare governments 110 billion hours of labor and the corresponding cost savings.

    For government organizations, digital ID solutions can significantly cut administrative expenses while minimizing fraud and mistakes. In turn, this lowers costs in interactions between government agencies and with citizens when cross-agency cooperation is required. For instance, by using a single digital ID system, two agencies can swiftly and easily exchange requests for information about a single person. Thus, driving the Digital Identity in Government Sector market revenue.

    The increasing emphasis on secure digital identity solutions in the government sector reflects a broader commitment to enhancing citizen trust and streamlining public services.

    U.S. Department of Homeland Security

    Digital Identity in Government Sector Market Drivers

    Market Growth Projections

    Growing Focus on Citizen-Centric Services

    The shift towards citizen-centric services is a significant driver for the Global Digital Identity in Government Sector Market Industry. Governments are increasingly prioritizing the needs and preferences of citizens in service delivery. This approach is evident in initiatives that leverage digital identity to provide personalized services, such as tailored healthcare and social welfare programs. Countries like Canada are implementing digital identity solutions to enhance the accessibility and efficiency of public services. This focus on improving citizen experience is likely to propel market growth, as governments seek to foster trust and engagement through digital identity initiatives.

    Global Trends Towards Digital Transformation

    The ongoing global trends towards digital transformation are influencing the Global Digital Identity in Government Sector Market Industry. Governments worldwide are recognizing the importance of digitizing their operations to improve efficiency and transparency. Initiatives such as digital government strategies and smart city projects are driving the adoption of digital identity solutions. For example, Singapore's Smart Nation initiative aims to integrate digital identity into various aspects of public life. This trend is expected to accelerate market growth, with the industry poised for substantial expansion as governments embrace digital transformation.

    Increased Demand for Secure Digital Services

    The Global Digital Identity in Government Sector Market Industry is witnessing a surge in demand for secure digital services. Governments are increasingly adopting digital identity solutions to enhance citizen engagement and streamline service delivery. For instance, countries like Estonia have implemented e-identity systems that allow citizens to access various government services online securely. This trend is expected to contribute to the market's growth, with projections indicating a market value of 3.19 USD Billion in 2024. The emphasis on security and efficiency in public services is likely to drive further investments in digital identity technologies.

    Regulatory Frameworks Supporting Digital Identity

    The establishment of robust regulatory frameworks is a key driver for the Global Digital Identity in Government Sector Market Industry. Governments are recognizing the necessity of creating legal and policy structures that support digital identity initiatives. For example, the European Union's eIDAS regulation aims to create a unified framework for electronic identification and trust services across member states. Such regulations not only enhance trust in digital identity systems but also encourage cross-border interoperability. This regulatory support is anticipated to facilitate market growth, potentially leading to a market size of 16.6 USD Billion by 2035.

    Technological Advancements in Identity Verification

    Technological advancements play a crucial role in shaping the Global Digital Identity in Government Sector Market Industry. Innovations such as biometrics, blockchain, and artificial intelligence are enhancing the accuracy and security of identity verification processes. For instance, biometric systems are being integrated into national ID programs, allowing for more secure and efficient identification of citizens. These advancements are likely to attract government investments, contributing to a projected compound annual growth rate (CAGR) of 16.15% from 2025 to 2035. The continuous evolution of technology is expected to drive the adoption of digital identity solutions across various government sectors.

    Market Segment Insights

    Digital Identity in Government Sector Offering Insights

    The Digital Identity in Government Sector Market segmentation, based on offering, includes solutions and services. Solutions segment dominated the global market in 2022. By removing barriers brought on by close proximity or device limitations, solution accessibility enhances user experience and productivity, which is what is fueling this market's revenue growth.

    Digital Identity in Government Sector Solution Type Insights

    The Digital Identity in Government Sector Market segmentation, based on solution type, includes identity verification, authentication, identity lifecycle management, and other solution types. Authentication segment dominated the Digital Identity in Government Sector Market in 2022. Thanks to the scalability and flexibility that cloud solutions provide, businesses can easily adapt and enhance their digital identification systems as necessary. To ensure that identity infrastructure can handle changing user loads without significant up-front costs or infrastructure upgrades, cloud platforms offer the ability to scale resources up or down based on demand. This scalability enables organizations to adjust swiftly and affordably as demands change.

    Cloud-based identification solutions make it possible to access identity services from any location at any time.

    Digital Identity in Government Sector Identity Type Insights

    The Digital Identity in Government Sector Market segmentation, based on identity type, includes biometric and non-biometric. Biometric segment dominated the Digital Identity in Government Sector Market in 2022. Biometric digital identity systems offer a number of benefits over traditional identification methods. Each individual has distinctive biometric characteristics, such as fingerprints, iris patterns, or facial features. Digital identification using biometrics offers a higher level of security than more traditional methods like passwords or Personal Identification Numbers (PINs), which are subject to hacking.

    Digital Identity in Government Sector Organization Size Insights

    The Digital Identity in Government Sector Market segmentation, based on organization size, includes large organization and SMEs. Large organization segment dominated the global market in 2022. An on-premises digital identification solution gives large enterprises complete control over their data and the ability to adopt security measures that are tailored to their needs. With this much latitude, businesses can create security policies, encryption methods, and access limitations that suit their risk tolerance and legal needs. These technologies may boost consumer confidence in the protection of sensitive personal information, boosting the expansion of this market.

    Figure 1: Digital Identity in Government Sector Market, by Organization Size, 2022 & 2032 (USD Billion)

    Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

    Get more detailed insights about Digital Identity in Government Sector Market Research Report – Forecast till 2034

    Regional Insights

    By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Digital Identity in Government Sector Market dominated this market in 2022 (45.80%). This is linked to rising market activity by significant companies in the region's nations. For instance, Microsoft unveiled Entra, a new product family of identity and access management solutions, on May 31, 2022. Along with well-known solutions like Azure AD, the family now includes two new product categories, Cloud Infrastructure Entitlement Management (CIEM), and decentralized identity.

    Security teams can locate and manage rights in multicloud environments with the Entra product family, which gives them complete control over the protection of digital identities for users' access to any app or resource. Further, the U.S. Digital Identity in Government Sector market held the largest market share, and the Canada Digital Identity in Government Sector market was the fastest growing market in the North America region.

    Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

    Figure 2: DIGITAL IDENTITY IN GOVERNMENT SECTOR MARKET SHARE BY REGION 2022 (USD Billion)

    DIGITAL IDENTITY IN GOVERNMENT SECTOR MARKET SHARE BY REGION

    Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

    Europe Digital Identity in Government Sector market accounted for the healthy market share in 2022. This is a result of rising market participants' activity in the nations in this region. For instance, on November 25, 2022, Giesecke+Devrient (G+D) raised approximately USD 135.3 million through a promissory note loan to support operational expansion in digital identification, payments, connectivity, and security. The G+D product line includes biometrics for several of the aforementioned categories.

    Further, the German Digital Identity in Government Sector market held the largest market share, and the U.K Digital Identity in Government Sector market was the fastest growing market in the European region.

    The Asia Pacific Digital Identity in Government Sector market is expected to register significant growth from 2023 to 2032. This is linked to rising market activity by significant companies in the region's nations. One well-known international provider of communication platforms as a service, Route Mobile Ltd., debuted a new line of services for digital identity protection and security on February 27, 2023, for instance. The TruSense package, which aids in the security of digital transactions, provides businesses with a reliable method to confirm end users.

    Moreover, China’s Digital Identity in Government Sector market held the largest market share, and the Indian Digital Identity in Government Sector market was the fastest growing market in the Asia-Pacific region.

    Key Players and Competitive Insights

    Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Digital Identity in Government Sector 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, Digital Identity in Government Sector 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 Digital Identity in Government Sector Industry to benefit clients and increase the market Solution Type. In recent years, the Digital Identity in Government Sector Industry has offered some of the most significant advantages to medicine.

    Major players in the Digital Identity in Government Sector market, including NEC, Samsung SDS, Thales, Telus, IDEMIA, GBG, Tessi, Daon, ForgeRock, ImageWare, Jumio, iProov, ID R&D, Refinitiv, OneSpan, Smartmatic, Freja EID Group, Vintegris, AU10TIX, Signicat, Duo Security, Syntizen, and Hashcash Consultant Good Digital Identity, are attempting to increase market demand by investing in research and development operations.

    A cloud identity company of the next generation is ForgeRock Inc. Identity Governance, Access Management, Identity Management, and AI-powered Autonomous Identity are some of its products. The company refers to the recurring revenue from term licenses, SaaS, maintenance, and support as subscription revenue. From the Americas, EMEA, and APAC, it makes money.

    To advance imaging, ImageWare Systems Inc. was established. The business created a web-based booking system. ImageWare has developed into a multimodal biometrics provider, managing more than a million IDs every day. By providing affordable, defense-grade identification and authentication solutions to the general public, it is democratizing biometrics. The company provides access to people's critical data by identifying the person, not a device, and never releasing Personally Identifiable Information (PII).

    Key Companies in the Digital Identity in Government Sector Market market include

    Industry Developments

    February 2023: Route Mobile announced the launch of TruSense, a digital identity and security suite critical to protecting digital transactions that enables businesses to frictionlessly identify the end user.

    Future Outlook

    Digital Identity in Government Sector Market Future Outlook

    The Digital Identity in Government Sector Market is projected to grow at a 18.32% CAGR from 2025 to 2035, driven by technological advancements, regulatory support, and increasing demand for secure identity solutions.

    New opportunities lie in:

    • Develop AI-driven identity verification systems to enhance security and efficiency.
    • Implement blockchain technology for secure and transparent identity management.
    • Create user-friendly mobile applications for citizens to access government services seamlessly.

    By 2035, the market is expected to be robust, reflecting substantial advancements in digital identity solutions.

    Market Segmentation

    Digital Identity in Government Sector Offering Outlook

    • Solutions
    • Services

    Digital Identity in Government Sector Regional Outlook

    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Rest of Asia-Pacific
    • Middle East
    • Africa
    • Latin America

    Digital Identity in Government Sector Identity Type Outlook

    • Biometric
    • Non-biometric

    Digital Identity in Government Sector Solution Type Outlook

    • Identity Verification
    • Authentication
    • Identity Lifecycle Management
    • Other Solution Types

    Digital Identity in Government Sector Organization Size Outlook

    • Large Organization
    • SMEs

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024 2.60 (USD Billion)
    Market Size 2025 3.79 (USD Billion)
    Market Size 2035 16.56 (USD Billion)
    Compound Annual Growth Rate (CAGR) 18.32% (2025 - 2035)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2023
    Market Forecast Units USD Billion
    Segments Covered Offering, Solution Type, Identity Type, Organization Size, and Region
    Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
    Countries Covered The U.S., Canada, German, France, U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
    Key Companies Profiled NEC, Samsung SDS, Thales, Telus, IDEMIA, GBG, Tessi, Daon, ForgeRock, ImageWare, Jumio, iProov, ID R&D, Refinitiv, OneSpan, Smartmatic, Freja EID Group, Vintegris, AU10TIX, Signicat, Duo Security, Syntizen, and Hashcash Consultant Good Digital Identity
    Key Market Opportunities Digital ID providing reliable authentication and enabling delivery of a range of services via web or mobile applications
    Key Market Dynamics Digital ID systems allow for a simpler and more efficient implementation, accessibility and inclusion, and transparency, innovation, and agility

    Market Highlights

    Author
    Shubham Munde
    Research Analyst Level II

    With a technical background in information technology & semiconductors, Shubham has 4.5+ years of experience in market research and analytics with the tasks of data mining, analysis, and project execution. He is the POC for our clients, for their consulting projects running under the ICT/Semiconductor domain. Shubham holds a Bachelor’s in Information and Technology and a Master of Business Administration (MBA). Shubham has executed over 150 research projects for our clients under the brand name Market Research Future in the last 2 years. His core skill is building the research respondent relation for gathering the primary information from industry and market estimation for niche markets. He is having expertise in conducting secondary & primary research, market estimations, market projections, competitive analysis, analysing current market trends and market dynamics, deep-dive analysis on market scenarios, consumer behaviour, technological impact analysis, consulting, analytics, etc. He has worked on fortune 500 companies' syndicate and consulting projects along with several government projects. He has worked on the projects of top tech brands such as IBM, Google, Microsoft, AWS, Meta, Oracle, Cisco Systems, Samsung, Accenture, VMware, Schneider Electric, Dell, HP, Ericsson, and so many others. He has worked on Metaverse, Web 3.0, Zero-Trust security, cyber-security, blockchain, quantum computing, robotics, 5G technology, High-Performance computing, data centers, AI, automation, IT equipment, sensors, semiconductors, consumer electronics and so many tech domain projects.

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    FAQs

    How much is the Digital Identity in Government Sector market?

    The global Digital Identity in Government Sector market size was valued at USD 2.60 Billion in 2024.

    What is the growth rate of the Digital Identity in Government Sector market?

    The global market is projected to grow at a CAGR of 18.32% during the forecast period, 2025-2034.

    Which region held the largest market share in the Digital Identity in Government Sector market?

    North America had the largest share in the global market

    Who are the key players in the Digital Identity in Government Sector market?

    The key players in the market are NEC, Samsung SDS, Thales, Telus, IDEMIA, GBG, Tessi, Daon, ForgeRock, ImageWare, Jumio, iProov, ID R&D, Refinitiv, OneSpan, Smartmatic, Freja EID Group, Vintegris, AU10TIX, Signicat, Duo Security, Syntizen, and Hashcash Consultant Good Digital Identity

    Which Offering led the Digital Identity in Government Sector market?

    The Solution Offering dominated the market in 2022.

    Which Solution Type had the largest market share in the Digital Identity in Government Sector market?

    The Authentication Solution Type had the largest share in the global market.

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