Decentralized Identity Market Expected to Reach $77.8 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Decentralized Identity Market," The decentralized identity market size was valued at $156.80 million in 2021, and is estimated to reach $77.8 billion by 2031, growing at a CAGR of 87.9% from 2022 to 2031.

A way of managing identities and access is called decentralized identity (IAM). It gives consumers the ability to develop and manage their own digital identities independently of a specific service provider. The rise in security breaches and identity-related fraud cases, the demand for non-human digital IDs, the requirement for consumer product security, and the rising number of strategic initiatives by the major companies are some significant drivers driving the global market demand. The use of a decentralized identity system provides organizations to prevent malicious financial activities, which ultimately leads to reducing the overall risk and enhancing operational workflows. Biometrics and non-biometrics are two types of decentralized identity solutions and the majority of the business enterprises are increasingly moving toward biometric-based identity authentication due to offering various advantages for specific verification processes. Verification using biometric identities including fingerprint or finger access control systems, voice recognition, and facial recognition can be made unique for every user or individual.

Furthermore, rise in security breaches and increasing numbers of identity fraud and security breaches is boosting the growth of the global decentralized identity market. In addition, rise in applications of blockchain identity solutions in banks is positively impacts growth of the decentralized identity market. However, lack of technical expertise, and fluctuating regulatory status and a lack of rules is hampering the decentralized identity decentralized identity market growth. On the contrary, numerous uses for blockchain identity solutions, and increase in adoption of mobile device applications and platforms is expected to offer remunerative opportunities for expansion during the decentralized identity market forecast.                  

Depending on end-user, the enterprises segment is dominating the Decentralized Identity Market Share and is expected to do so in the forecast period. In today's interconnected world almost everything about the enterprises is present digitally on the web. Whether that be personal information like the name and date of incorporation or your financial history. Almost all the information about you is stored somewhere digitally and this digital data about you creates a digital identity. Decentralized identity is very important for all the enterprises as it differentiate one from the other. But since these digital identities and their identity data are controlled by various service providers, enterprises readily experiences misuse of personal data and data breaches that can affect your social, financial, and professional reputation of the company.

Depending on the region, North America dominated the decentralized identity market in 2021. In North America region, businesses are investing in their emerging technologies in order to improve their work efficiency. The rapidly evolving digital world requires efforts and advancements to keep up with subsequent increases in fraud and privacy concerns. A different simplified approach is needed, which understands the security model in order to keep data safe. Increasing identity thefts in government and public sectors may boost the adoption of protection services. Because of these factors the countries such as the United States, Canada, decentralized identity have seen widespread acceptance in the North America region. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to growing economies such as India and China and cloud native countries like Japan.     

The current estimation of 2031 is projected to be higher than pre-COVID-19 estimates. The COVID-19 crisis had accelerated the market expansion owing to the rising rate of digital transformation among business enterprises to ensure a robust online platform for business operations. Decentralized identity solutions were extensively adopted to strengthen the verification process of users’ identities and provide a secured platform for storing identity data associated with online services. Decentralized identity technology has experienced remarkable gains due to the confluence of COVID-19. Since the outbreak of COVID-19, many businesses started providing online services. Which increased the concerns of identity security of online users. Decentralized identity plays a significant role in verifying user identities and storing it securely. In addition, organizations around the world have stepped up measures to adopt decentralized identity technologies. This is anticipated to boost the demand for Decentralized Identity Industryacross the world. 

KEY FINDINGS OF THE STUDY

• By type, the biometrics segment dominated the decentralized identity market in 2021. However, the non-biometrics segment is expected to exhibit significant growth during the forecast period.
• On the basis of end-user, the enterprises segment dominated the decentralized identity market in 2021.However, the individual segment is expected to witness the highest growth rate during the forecast period.
• Region-wise, the decentralized identity market was dominated by North America in 2021. However, Asia-Pacific is expected to witness significant growth in the coming years.

This report gives an in-depth profile of some key market players in the decentralized identity market analysis include 1Kosmos, Accenture, Avast, Civic Technologies, DragonChain, Finema, Hu-manity.co, Microsoft Corporation, Nuggets, NuID, Persistent Ltd., Ping Identity, R3, SecureKey Technologies, Serto, ValidatedID, and Wipro. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which propel growth of the decentralized identity industry globally.