GITNUX MARKETDATA REPORT 2024

Digital Identity Industry Statistics

The digital identity industry is expected to grow rapidly, with predictions forecasting a market size of over $33 billion by 2025.

Highlights: Digital Identity Industry Statistics

  • By 2024, the worldwide Global Digital Identity market is expected to reach $37.86 billion, growing at a CAGR of 17.3% from 2021 to 2024.
  • By 2025, the Digital Identity Solutions market in the Asia Pacific region is expected to grow at the highest CAGR of 19.1%.
  • According to the global self-sovereign identity market research report, Europe covers about 34% of the total global market.
  • As of 2021, 45% of organizations are investing in solutions allowing for digital identity verification.
  • By 2027, the digital identity solutions market worldwide is projected to reach USD 49.5 billion, expanding at a CAGR of 16.2% from 2020 to 2027.
  • As per Thales Digital Identity and Security, more than 480 million mobile facial recognition checks will be completed by 2020.
  • 63% of businesses see AI and biometrics playing a huge part in solving fraud related issues within the digital identity sector.
  • By 2024, global IoT identity access management market is expected to reach $8.9 billion, growing at a CAGR of 17.3% between 2020 and 2024.
  • The demand for digital identity solutions in the finance sector, which was worth USD 663.6 million in 2019, is expected to continue expanding at a compound annual growth rate (CAGR) of 15.6% from 2020 to 2027.
  • By 2026, the digital identity verification market is projected to reach USD 12.46 billion, growing at a CAGR of 13.4% between 2019 and 2026.
  • In 2019, digital identity market leaders invested over 6 billion dollars in developing advanced authentication and identification systems.
  • Blockchain technology-based digital identity solutions are expected to grow at a CAGR of 84.6% from 2019 to 2025.
  • Digital identity verification costs businesses an average of $1 per transaction.
  • 61% surveyed banks say it would take 2-3 years (as of 2017) to replace traditional passwords with biometrics.
  • By 2023, 6 billion people are expected to have a digital ID, which will become the core method of identification.
  • The public sector will account for nearly 40% of the digital identity solutions market revenue by 2027.
  • Approximately 60% of banking customers would be ready to switch banks if the other bank provided a better digital customer experience.
  • 73% of businesses feel that the complexity of their current solutions is impeding their ability to do fraud prevention.

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The Latest Digital Identity Industry Statistics Explained

By 2024, the worldwide Global Digital Identity market is expected to reach $37.86 billion, growing at a CAGR of 17.3% from 2021 to 2024.

This statistic indicates that the Global Digital Identity market is projected to experience substantial growth, reaching a value of $37.86 billion by 2024. The compound annual growth rate (CAGR) of 17.3% from 2021 to 2024 suggests a strong and steady increase in market size over the forecasted period. This growth is likely driven by increasing adoption of digital identity solutions, as organizations and individuals seek more secure and convenient ways to verify identities online. The projected market value reflects significant opportunities for businesses operating in the digital identity space, as well as the importance of addressing evolving security and regulatory requirements related to online identity verification.

By 2025, the Digital Identity Solutions market in the Asia Pacific region is expected to grow at the highest CAGR of 19.1%.

The statistic indicates that the Digital Identity Solutions market in the Asia Pacific region is projected to experience substantial growth by 2025, with a compounded annual growth rate (CAGR) of 19.1%. This suggests that there is significant momentum and demand for digital identity solutions in the region, driven by various factors such as increasing adoption of digital technologies, rising cybersecurity concerns, and the need for efficient identity verification processes. The high CAGR indicates a positive outlook for the market, with businesses and consumers increasingly recognizing the importance and benefits of digital identity solutions, leading to strong growth potential in the coming years.

According to the global self-sovereign identity market research report, Europe covers about 34% of the total global market.

The statistic “According to the global self-sovereign identity market research report, Europe covers about 34% of the total global market” indicates that Europe accounts for a significant portion of the global self-sovereign identity market. This means that a substantial share of the industry’s activities, such as development, adoption, and use of self-sovereign identity solutions, is concentrated in Europe compared to other regions around the world. The statistic suggests that Europe plays a key role in shaping the evolution and growth of self-sovereign identity technologies and services on a global scale, emphasizing the region’s importance and influence in this market sector.

As of 2021, 45% of organizations are investing in solutions allowing for digital identity verification.

The statistic ‘As of 2021, 45% of organizations are investing in solutions allowing for digital identity verification’ indicates that a significant portion of businesses are recognizing the importance of utilizing technology to verify the digital identities of individuals. This trend suggests that organizations are increasingly prioritizing security and efficiency in their operations by adopting digital solutions for identity verification. By investing in such technologies, businesses can enhance their abilities to authenticate the identities of customers, employees, and other stakeholders in a more convenient and scalable manner. This statistic reflects a growing awareness of the importance of digital identity verification in today’s interconnected and technologically-driven world, showcasing a shift towards leveraging innovation to address security challenges and streamline processes.

By 2027, the digital identity solutions market worldwide is projected to reach USD 49.5 billion, expanding at a CAGR of 16.2% from 2020 to 2027.

This statistic highlights the projected growth of the global digital identity solutions market, which is expected to reach USD 49.5 billion by 2027. The Compound Annual Growth Rate (CAGR) of 16.2% from 2020 to 2027 indicates a strong and steady expansion in the market. This growth is driven by increasing adoption of digital technologies, rising concerns about cybersecurity, and the growing importance of verifying and managing online identities securely. The significant projected market value and consistent growth rate suggest a favorable outlook for companies operating in the digital identity solutions sector, with ample opportunities for innovation and market expansion in the coming years.

As per Thales Digital Identity and Security, more than 480 million mobile facial recognition checks will be completed by 2020.

The statistic from Thales Digital Identity and Security stating that more than 480 million mobile facial recognition checks will be completed by 2020 underscores the increasing prevalence and adoption of facial recognition technology in the realm of digital security. This rapid growth in the utilization of facial recognition for mobile authentication and verification purposes reflects the continued emphasis on enhancing security measures and streamlining user identification processes. The significant scale of these facial recognition checks emphasizes the critical role this technology plays in ensuring secure and efficient digital interactions across various industries.

63% of businesses see AI and biometrics playing a huge part in solving fraud related issues within the digital identity sector.

The statistic that 63% of businesses see AI and biometrics playing a significant role in addressing fraud issues within the digital identity sector indicates a growing recognition of the potential benefits of advanced technologies in combating fraudulent activities. AI systems can analyze large amounts of data in real time to detect patterns indicative of fraudulent behavior, while biometric authentication methods offer secure and user-friendly ways to verify identity. By leveraging these technologies, businesses believe they can improve security measures, reduce instances of fraud, and enhance overall trust in digital transactions and identity verification processes.

By 2024, global IoT identity access management market is expected to reach $8.9 billion, growing at a CAGR of 17.3% between 2020 and 2024.

This statistic indicates that the global market for Internet of Things (IoT) identity access management is projected to experience significant growth, with an estimated value of $8.9 billion by the year 2024. This represents a compound annual growth rate (CAGR) of 17.3% from 2020 to 2024. The increasing adoption of IoT devices across various industries, coupled with the growing emphasis on cybersecurity and identity protection, is likely to drive the demand for IoT identity access management solutions. The projected growth suggests a rising awareness of the importance of securing access to IoT devices and data, leading to substantial market expansion over the forecast period.

The demand for digital identity solutions in the finance sector, which was worth USD 663.6 million in 2019, is expected to continue expanding at a compound annual growth rate (CAGR) of 15.6% from 2020 to 2027.

The statistic indicates that the demand for digital identity solutions within the finance sector was valued at USD 663.6 million in 2019 and is projected to increase steadily over the period from 2020 to 2027. The compound annual growth rate (CAGR) of 15.6% suggests that the market value for digital identity solutions in the finance sector is expected to experience a consistent annual growth rate over the specified period. This growth can be attributed to various factors such as increasing digitization trends, regulatory requirements for enhanced security measures, and the evolving needs of customers for convenient and secure digital transactions. The forecasted expansion signifies a strong market potential for digital identity solutions in the financial industry, making it an area of opportunity for businesses and investors operating in this sector.

By 2026, the digital identity verification market is projected to reach USD 12.46 billion, growing at a CAGR of 13.4% between 2019 and 2026.

The statistic indicates a projection for the digital identity verification market to grow substantially, reaching USD 12.46 billion by 2026. The Compound Annual Growth Rate (CAGR) of 13.4% between 2019 and 2026 suggests a steady and robust expansion of the market over the forecasted period. This growth can be attributed to factors such as increasing digitization of services, rising concerns around identity theft and fraud, and the ongoing shift towards more secure and seamless online transactions. The projected growth in the digital identity verification market highlights the importance of digital identity solutions in addressing security and trust issues in today’s digital world.

In 2019, digital identity market leaders invested over 6 billion dollars in developing advanced authentication and identification systems.

In 2019, the digital identity market witnessed significant investments totaling over 6 billion dollars from industry leaders aimed at the development of advanced authentication and identification systems. This statistic highlights the growing importance and emphasis on enhancing security and privacy measures in the digital world, as organizations strive to combat cyber threats and effectively manage access to sensitive information. The substantial financial commitment made by these market leaders indicates a strong recognition of the need to continuously innovate and improve digital identity verification methods to better protect individuals and organizations from data breaches and unauthorized access. This investment also reflects the increasing demand for secure and reliable digital identity solutions in a rapidly evolving technological landscape.

Blockchain technology-based digital identity solutions are expected to grow at a CAGR of 84.6% from 2019 to 2025.

This statistic indicates the expected compound annual growth rate (CAGR) of blockchain technology-based digital identity solutions between 2019 and 2025. A CAGR of 84.6% suggests a rapid and substantial increase in the adoption and implementation of these solutions over the specified time period. This growth rate signifies a strong market demand for secure and decentralized digital identity solutions that leverage blockchain technology. The projection implies that these solutions are anticipated to see significant expansion and play a crucial role in shaping the landscape of digital identity management in various sectors, such as finance, healthcare, supply chain, and more, in the coming years.

Digital identity verification costs businesses an average of $1 per transaction.

The statistic indicates that businesses spend an average of $1 per transaction on digital identity verification processes. This cost likely includes expenses related to software, technology infrastructure, personnel, and potentially external verification services. Digital identity verification is crucial for businesses to prevent fraud, maintain compliance with regulatory requirements, and build trust with customers. The $1 average cost per transaction signifies the financial investment required for businesses to ensure the security and integrity of their transactions, ultimately contributing to a safer and more reliable online environment.

61% surveyed banks say it would take 2-3 years (as of 2017) to replace traditional passwords with biometrics.

The statistic ‘61% of surveyed banks say it would take 2-3 years (as of 2017) to replace traditional passwords with biometrics’ indicates that a significant majority of banks are projecting that it will take 2-3 years to fully implement biometric authentication technology in place of traditional password systems. This suggests that while there is recognition of the potential benefits of biometrics for improved security and user experience, there are also challenges and complexities involved in transitioning to this new technology within the banking sector. The statistic provides insight into the timeline and readiness of banks to adopt biometric authentication solutions as a means of enhancing security measures for their customers’ accounts.

By 2023, 6 billion people are expected to have a digital ID, which will become the core method of identification.

The statistic ‘By 2023, 6 billion people are expected to have a digital ID, which will become the core method of identification,’ indicates a significant global shift towards digital identification systems. This projection suggests a widespread adoption of digital identification technologies, potentially leading to a more efficient and streamlined method of verifying individuals’ identities. With digital IDs becoming the cornerstone of identification, the traditional methods such as physical identification cards or documents may gradually become obsolete in favor of more secure and technologically advanced solutions. This trend highlights the increasing digitalization of society and the growing reliance on technology for personal identification purposes.

The public sector will account for nearly 40% of the digital identity solutions market revenue by 2027.

This statistic suggests that the public sector, which includes government agencies and public services, is projected to have a substantial presence in the digital identity solutions market by generating approximately 40% of the market revenue by the year 2027. This indicates the increasing adoption of digital identity solutions by government entities to enhance security, streamline processes, and provide better services to citizens. The significant market share held by the public sector reflects a growing trend towards digital transformation and the recognition of the importance of secure and efficient digital identity verification systems in various government operations.

Approximately 60% of banking customers would be ready to switch banks if the other bank provided a better digital customer experience.

The statistic indicating that approximately 60% of banking customers would be willing to switch banks if offered a better digital customer experience suggests a significant opportunity for banks to differentiate themselves and retain or attract customers in an increasingly competitive market. This high percentage underscores the importance of providing a seamless and user-friendly digital experience to meet customer expectations and enhance satisfaction. Banks that prioritize investments in digital technology and customer experience enhancements stand to gain a competitive advantage and increase customer loyalty in an era where convenience and technology play a crucial role in shaping consumer preferences and choices.

73% of businesses feel that the complexity of their current solutions is impeding their ability to do fraud prevention.

The statistic that 73% of businesses feel that the complexity of their current solutions is impeding their ability to do fraud prevention suggests that a significant majority of businesses perceive the intricacy of their existing systems as a barrier to effectively combatting fraudulent activities. This finding implies that many organizations are grappling with technological or operational challenges that hinder their fraud prevention efforts, potentially leaving them vulnerable to financial losses or reputational damage. The prevalence of this sentiment underscores the importance for businesses to reassess and streamline their fraud prevention strategies to enhance efficiency and efficacy in safeguarding their operations.

References

0. – https://www.www.thalesgroup.com

1. – https://www.www.experian.com

2. – https://www.www.gemalto.com

3. – https://www.fortunebusinessinsights.com

4. – https://www.www.ibmbigdatahub.com

5. – https://www.oneworldidentity.com

6. – https://www.www.adroitmarketresearch.com

7. – https://www.www.jumio.com

8. – https://www.www.globenewswire.com

9. – https://www.www.marketinsightsreports.com

10. – https://www.www.grandviewresearch.com

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

See our Editorial Process.

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