Digital Identity Solution Market Size, Share & Growth [2031]

Report Description

The global digital identity solution market size is anticipated to expand at a high CAGR during the forecast period, between 2021 and 2028. Biometric authentication, which comprises facial recognition, fingerprint, handprint, retina or eye scan, and voice recognition, is included in digital identification systems. Every individual's biometric features or digital identities is unique. It uses lock-and-capture mechanisms to authenticate the user and grant them access to a limited selection of services.

Traditional identity verification methods, which rely on static certifications, are less secure than digital identity solutions. Traditionally, identity verification has been accomplished by direct human interaction and physical examination of government-issued documents. The expansion of the digital identification solution market is fueled by numerous benefits provided by digital identity solutions, such as quick processing times, high accuracy, improved security, less operational costs, and improved customer experience.

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The market is divided into solutions and services based on components. The solutions segment is further divided as biometric and non-biometric solutions. The market is segmented into cloud and on-premise deployment models. Single-factor authentication and multi-factor authentication are two types of authentication.

Small, medium, and large businesses are divided into two categories based on their size. BFSI, healthcare, travel & hospitality, government & defense, IT & communications, retail & e-commerce, education, and others are the industry verticals. The digital identification solution market is divided into four regions: North America, Europe, Asia-Pacific, and Latin America, and the Caribbean.

This study provides an in-depth look at some of the most important participants in the digital identity solution market. NEC, CAGR, ForgeRock, GBG, IDEMIA, Jumio, Refinitiv, Samsung SDS, Telus, Tessi, Thales Group are among the industry's leading companies.

Market Trends, Drivers, Restraints, and Opportunities

• Organizations across all industries are concerned about the growing threat of cyberattacks and identity-related frauds and thefts. To address these security concerns, organizations began to install digital identity solutions for identification and authentication; however, the high cost of implementing such solutions is one of the factors impeding the growth of the digital identity solutions market.
• Previously, only a few businesses, such as banking and finance and aviation, had access to identity and verification. Identification and authentication were time-consuming processes that required a lot of paperwork. Although technical innovation and digitization made identification and authentication processes easier, there are certain issues, such as data security and privacy breaches.
• The most significant challenge that businesses confront today is a shortage of competent security people, making it impossible for them to meet their mandated and evolving cybersecurity obligations. Several companies pay people to discover and assess potential cyber threats; however, these people lack the requisite qualifications.

Scope of Digital Identity Solution Market Report

The report on the global digital identity solution market includes an assessment of the market, size, share, trends, segments, and regional markets. The study includes an overview as well as dynamics.

Digital Identity Solution Market Segment Insights

The biometric segment is anticipated to hold a significant market share in 2020

Based on components, the market is divided into solutions and services. The solutions segment is further divided into biometrics and non-biometrics. In every organization, these solutions are critical. Most firms are migrating to digitalization and cloud-based infrastructure, which is estimated to help them grow their operations and improve customer interactions. In the digital identity solutions market, the biometric segment is expected to constitute a substantial market share.

The cloud segment is projected to rise at a substantial rate

In terms of deployment modes, the digital identity solution market is segmented into cloud and on-premise modes. Cloud-based digital identity systems are expected to gain popularity as a result of benefits such as ease of use and decreased installation and maintenance costs. Large organizations have the requisite infrastructure to deploy their solutions on-premises, hence the on-premise deployment mode is expected to constitute a substantial market size throughout the forecast period. High levels of flexibility and control are ensured with on-premise deployment. A cloud-based deployment allows for the extension of the number of end-users as needed.

High adoption of multi-factor authentication by people to drive the market

In terms of authentication types, the market is divided into single factor authentication and multi-factor authentication. Earlier, the password key system was the only secure way of authentication. With improvements in technology, these security systems became easy to hack. Digital identity-based security, such as biometric technology and multi-factor authentication, is a secure way of authentication than passwords.

Most smartphones available in the market have a camera and authentication options, such as fingerprint recognition and facial recognition. Companies are moving towards implementing fingerprint and facial recognition technology in smartphones, due to high usage of smartphones and high adoption of these authentication processes by customers.

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Large enterprises to drive the market

On the basis of enterprise sizes, the market is divided into small & medium enterprises and large enterprises. The large businesses segment constitutes a large proportion of the global digital identity solutions market. To safeguard important assets from diverse cyber-attacks, large companies are redesigning their security policies and architecture to embrace digital identity solutions. Large organizations were early adopters of digital identification solutions, as they have a large workforce and associated networking equipment that are vulnerable to identity-related risk.

North America holds a significant share of the market

In terms of regions, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Several companies operate in North America, providing modern solutions to all of the industry verticals in the region. Strategic investments, partnerships, and major R&D operations, in addition to geographical presence, are all contributing to the widespread adoption of digital identification systems. North America is recognized as a mature market in terms of implementing digital identity solutions, owing to factors such as rising identity and authentication frauds and the presence of key suppliers in the region.

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