Digital Identity Market Size

Rising cybersecurity threats is driving the market growth

The market for digital identities has experienced impressive growth in recent years, and one of the most compelling forces behind this development is the constantly evolving cybersecurity threat landscape. Individuals, companies, and governments are becoming increasingly aware of the crucial significance of strong digital identity solutions to safeguard their online activities and sensitive data as cyber threats increase in sophistication and frequency.

Numerous criminal actions, such as identity theft, data breaches, phishing scams, and financial fraud, are included in the broad category of cybersecurity risks. These attacks take use of flaws in conventional authentication techniques like usernames and passwords, which are frequently insufficiently secure and readily hacked. Due to this reality, there is a pressing need for more secure and trustworthy methods of digital identity verification, which is fueling the market for advanced digital identification solutions.

Stronger authentication procedures are required as a result of growing cybersecurity risks, which is one of the main factors driving the market for digital identities. Passwords used in traditional methods are vulnerable to brute force assaults, credential stuffing, and social engineering techniques, which can result in illegal access to individual or corporate accounts. Businesses and individuals are increasingly using multi-factor authentication (MFA) systems to fend off these threats.

MFA increases security by requesting various means of identification from users, such as a password, a smartphone, or a token, as well as biometric information like fingerprints or face recognition. This multi-layered strategy is essential to digital identity solutions since it considerably lowers the danger of illegal access. MFA use is anticipated to rise as cyber threats change, thus boosting the market for digital identities. Furthermore, attackers frequently target personal and financial information for monetary gain or other nefarious motives, making data breaches a common and expensive problem.

These violations damage reputations and destroy trust in addition to causing financial damages. In response, businesses are spending money on identity and access management (IAM) systems as part of digital identity solutions. I AM systems assist in managing user identities and restricting access to private information, ensuring that only vetted users have access to crucial data or systems.

The requirement to implement stringent access controls and keep track of user behavior, which lowers the risk of data breaches and unlawful access, drives the use of IAM solutions. Another element that significantly contributes to the expansion of the digital identification business is the assistance provided by these systems in complying with regulatory requirements. Thus, driving the Digital Identity market revenue.

The Global Digital Identity Market Industry is on a trajectory of remarkable growth, with projections indicating a substantial increase in market size. In 2024, the market is expected to reach 84.7 USD Billion, and by 2035, it could soar to 998.5 USD Billion. This growth reflects the increasing importance of secure digital identity solutions across various sectors. The compound annual growth rate of 25.14% from 2025 to 2035 underscores the potential for innovation and investment in this space. As organizations continue to prioritize security and user experience, the digital identity market is likely to evolve rapidly, presenting numerous opportunities for stakeholders.

The increasing frequency and sophistication of cyberattacks has heightened the demand for robust digital identity solutions. Organizations across various sectors are prioritizing the protection of sensitive data, which is driving growth in the Global Digital Identity Market Industry. In 2024, the market is projected to reach 84.7 USD Billion, as businesses recognize the necessity of implementing secure identity verification processes. This trend is particularly evident in sectors such as finance and healthcare, where data breaches can have severe consequences. As a result, investments in advanced authentication technologies are expected to surge, contributing to the overall expansion of the market.

As competition intensifies in the digital landscape, businesses are placing a greater emphasis on user experience. The Global Digital Identity Market Industry is benefiting from this trend, as organizations recognize that seamless identity verification processes can enhance customer satisfaction. Companies are increasingly adopting solutions that not only ensure security but also provide a frictionless experience for users. This focus on user experience is likely to drive market growth, as businesses strive to differentiate themselves in a crowded marketplace. By investing in advanced digital identity solutions, organizations can improve customer retention and loyalty, further contributing to the industry's expansion.

The rapid shift towards digital services across various industries is a key driver of the Global Digital Identity Market Industry. As more businesses transition to online platforms, the need for secure and efficient identity verification processes becomes paramount. This trend is particularly evident in e-commerce, where customer trust is essential for success. The market is expected to grow substantially, with a projected compound annual growth rate of 25.14% from 2025 to 2035. Companies are increasingly investing in digital identity solutions to enhance user experience and streamline operations, further fueling market expansion.

Governments worldwide are increasingly recognizing the importance of digital identity systems for enhancing security and improving service delivery. Initiatives aimed at establishing national digital identity frameworks are becoming more prevalent, which is likely to propel the Global Digital Identity Market Industry. For instance, several countries are implementing regulations that mandate secure identity verification for online transactions. This regulatory landscape not only fosters trust among consumers but also encourages businesses to adopt digital identity solutions. As a result, the market is anticipated to experience significant growth, with projections indicating a rise to 998.5 USD Billion by 2035.

Innovations in technology, such as biometrics and artificial intelligence, are transforming the landscape of identity verification. These advancements are enabling more secure and efficient methods of authentication, which are crucial for the Global Digital Identity Market Industry. For instance, biometric solutions like facial recognition and fingerprint scanning are becoming mainstream, offering enhanced security for users. As organizations seek to leverage these technologies, the market is poised for significant growth. The integration of AI in identity verification processes is expected to further streamline operations and improve accuracy, thereby attracting more businesses to invest in digital identity solutions.

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

Major players in the Digital Identity market, including NEC (Japan), Samsung SDS (South Korea), Thales (France), Telus (Canada), IDEMIA (France), GBG (UK), Tessi (France), Daon (US), ForgeRock (US), ImageWare (US), Jumio (US), iProov (UK), ID R&D (US), Refinitiv (UK), OneSpan (US), Smartmatic (UK), Freja EID Group (Sweden), Vintegris (Spain), AU10TIX (Israel), Signicat (Norway), Duo Security (US), Syntizen (India), Hashcash Consultant (US), Good Digital Identity (Czech Republic) and others, are attempting to increase market demand by investing in research and development operations.

NEC Corp (NEC) is a company that offers network and information technology solutions. Software, supercomputers, personal computers, tablet terminals, aerospace systems, servers, equipment, and network systems for telecommunication carriers are among the company's product offerings. It also comprises software, automated teller machines, transmitting video systems, storage devices, and these. Additionally, it offers the sale of electrical accessories and products such LCD screens, lithium-ion batteries, and lighting fixtures. NEC offers system integration, maintenance, and outsourcing services. The aerospace, healthcare, retail, agriculture, broadcasting, logistics, finance, government, hospitality, manufacturing, transportation, and telecommunications industries are among the industries it serves.

The company now conducts business in the Americas, Europe, the Middle East, and Africa in addition to Asia-Pacific. NEC's corporate headquarters are in Tokyo, Japan's Minato-ku district.

Thales SA (Thales), which also provides smart technologies, electronic systems, software, ground transportation, services, and equipment, serves the aerospace, defense, and security markets. It provides training solutions, flight avionics, electrical systems, electric systems, and air traffic management systems for the aircraft sector. The company also provides radio communications products, network and infrastructure systems, vital information systems, weapon systems, protection systems, and cybersecurity solutions for the ground, marine, and air defense industries. Thales additionally offers maintenance, repair, and training services. The company operates in the Americas, Europe, the Middle East, Africa, and Asia-Pacific.

Paris, Ile-de-France, France, is home to Thales' main office.