Dublin, Jan. 25, 2024 (GLOBE NEWSWIRE) -- The "Decentralized Identity Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2023 to 2031" report has been added to ResearchAndMarkets.com's offering.
The decentralized identity market is expected to grow at a CAGR of 87.5% during the forecast period of 2023 to 2031, decentralized identity market is poised for remarkable growth, revolutionizing the way individuals and enterprises manage digital identities. The decentralised identity market is on a trajectory of rapid growth, driven by enhanced security through biometrics, a rising demand for privacy and data control, and advancements in blockchain technology. Despite challenges related to interoperability, the market is poised for expansion in both the biometrics and non-biometrics segments. Individual and enterprise adoption, coupled with geographic trends, indicate a promising future for decentralized identity solutions. Leading players continue to innovate and collaborate, ensuring the market's growth from 2023 to 2031.
Enhanced Security through Biometrics
One of the primary drivers of the decentralised identity market is the adoption of biometrics for digital identity verification. Biometric authentication methods, such as fingerprint recognition, facial recognition, and iris scanning, offer unparalleled security and accuracy, reducing the risk of identity theft and fraud. The increasing integration of biometric authentication in smartphones, laptops, and other devices underscores its popularity and effectiveness. Biometrics-based decentralized identity solutions provide users with a secure and convenient means of authentication.
Rising Demand for Privacy and Data Control
The growing concern about data privacy and control has fueled the demand for decentralized identity solutions. Individuals and enterprises seek to regain control over their personal data and limit the access that third parties have to their sensitive information. High-profile data breaches and privacy scandals have heightened awareness about the risks associated with centralized identity systems. Decentralized identity solutions, built on blockchain technology, empower users to manage their data more securely.
Advancements in Blockchain Technology
Blockchain technology is a fundamental driver of the decentralised identity market. The immutability, transparency, and security inherent in blockchain make it an ideal platform for decentralized identity solutions. As blockchain technology evolves, so does the potential of decentralized identity. Blockchain-based identity projects, such as SelfKey and uPort, have gained significant traction and investment. These platforms offer users the ability to create and manage their digital identities on a secure and transparent blockchain.
Interoperability Challenges
A notable restraint in the decentralised identity market is the challenge of interoperability among various decentralized identity platforms and standards. As the market grows, the lack of a unified standard could hinder widespread adoption and collaboration. Discussions within the decentralized identity community often center on the need for standardized protocols and interoperability. Without a common framework, users may find it challenging to navigate between different decentralized identity providers seamlessly.
Market Segmentation by Identity Type: Biometrics segment Dominates the Market
The decentralised identity market can be segmented by identity type into Biometrics and Non-biometrics.
Biometrics
In 2022, the Biometrics segment accounted for the highest revenue share in the decentralised identity market. This trend is expected to continue, with biometrics projected to maintain the highest CAGR during the forecast period from 2023 to 2031. The increasing adoption of biometric authentication in various sectors, including mobile devices, financial services, and healthcare, highlights its market dominance. Biometrics offers a highly secure and user-friendly method of identity verification.
Non-biometrics
Non-biometrics, encompassing traditional username-password combinations and other non-biometric authentication methods, also contribute significantly to the decentralised identity market. However, this segment is expected to exhibit a lower CAGR compared to biometrics. While non-biometric methods are still prevalent, their vulnerability to security breaches and phishing attacks has prompted a shift towards more secure authentication mechanisms, such as biometrics.
End-user Segmentation: Individual segment Dominates the Market
The decentralised identity market can be further segmented by end-users into Individual and Enterprises segments.
Individual Segment
In 2022, the Individual segment accounted for a significant portion of the decentralised identity market's revenue. During the forecast period from 2023 to 2031, this segment is also expected to exhibit the highest CAGR. Individuals are increasingly recognizing the importance of managing their digital identities securely, especially in the context of online services, social media, and financial transactions. Decentralized identity solutions empower individuals to control their digital presence.
Enterprises Segment
The Enterprises segment, which includes businesses of all sizes and industries, contributes substantially to the decentralised identity market's revenue. Enterprises are expected to continue adopting decentralized identity solutions during the forecast period. Enterprises benefit from decentralized identity solutions by reducing the risk of data breaches, improving customer trust, and streamlining user authentication processes. These advantages drive their adoption of decentralized identity technologies.
APAC to Promise Significant Opportunities during the Forecast Period
The decentralised identity market exhibits notable geographic trends, with specific regions showing higher growth rates and revenue percentages. North America and Europe led in terms of revenue in the decentralised identity market in 2022, driven by strong regulatory frameworks and high awareness of data privacy. However, the Asia-Pacific region is anticipated to register the highest CAGR during the forecast period, reflecting the region's increasing digitalization and economic growth.
Market Competition to Intensify during the Forecast Period
Key companies in this market include Microsoft, IBM, uPort (by ConsenSys), Sovrin Foundation, SelfKey, Civic, Evernym, Accenture plc, Wipro Limited, SecureKey Technologies Inc., Persistent Systems Limited, Avast Software s.r.o., R3, Validated ID, SL, Dragonchain, Nuggets,1Kosmos Inc and others. Top players in the decentralised identity market have adopted various strategies to maintain their positions and drive growth. These strategies include partnerships, open-source development, and the expansion of blockchain ecosystems. The top companies have formed strategic alliances with organizations, governments, and technology providers to promote decentralized identity solutions. They have also contributed to open-source identity projects, fostering collaboration within the industry.
Historical & Forecast Period
This study report represents analysis of each segment from 2021 to 2031 considering 2022 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2023 to 2031.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Market Segmentation
Identity
- Biometrics
- Non-biometrics
End-User
- Individual
- Enterprises
Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
Vertical
- BFSI
- Government
- Healthcare & Life Sciences
- Telecom & IT
- Retail & E-commerce
- Transport & Logistics
- Real Estate
- Media & Entertainment
- Travel & Hospitality
- Others
Region Segment (2021 - 2031; US$ Million)
- North America
- UK and European Union
- Asia Pacific
- Latin America
- Middle East and Africa
Companies Mentioned
- Microsoft
- IBM
- uPort (by ConsenSys)
- Sovrin Foundation
- SelfKey
- Civic
- Evernym
- Accenture plc
- Wipro Limited
- SecureKey Technologies Inc.
- Persistent Systems Limited
- Avast Software s.r.o.
- R3
- Validated ID, SL
- Dragonchain
- Nuggets
- 1Kosmos Inc.
Key questions answered in this report:
- What are the key micro and macro environmental factors that are impacting the growth of Decentralized Identity market?
- What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
- Estimated forecast and market projections up to 2031.
- Which segment accounts for the fastest CAGR during the forecast period?
- Which market segment holds a larger market share and why?
- Are low and middle-income economies investing in the Decentralized Identity market?
- Which is the largest regional market for Decentralized Identity market?
- What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
- Which are the key trends driving Decentralized Identity market growth?
- Who are the key competitors and what are their key strategies to enhance their market presence in the Decentralized Identity market worldwide?
For more information about this report visit https://www.researchandmarkets.com/r/597iwe
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