Boom times for digital id market
Updated: Apr 1, 2022
The digital identity market is set to explode.
Revenue for digital identity vendors is likely to rocket to over $53bn by 2026, up from $26bn in 2021.
The backdrop is the growing importance of verification in the modern world. And due to the pandemic, the demand for digital onboarding frameworks will further drive the uptake of digital identity services.
Digital identity revenue includes third-party and civic identity apps, centralised identity schemes and digital identity verification. In addition, the research predicts that the increased demand for digital onboarding frameworks in the face of the ongoing pandemic will accelerate the uptake of digital identity services.
The research, from Juniper, also identified verified digital identity, where identities are confirmed as genuine using verifiable credentials, as being vital for improving fraud mitigation.
The research maintains that this represents the next evolutionary step for digital identity - moving from establishing infrastructure to utilising and verifying identity in practical applications. This means increasing data partnerships between vendors to provide comprehensive, data diverse identity systems.
The new research, Digital Identity: Key Opportunities, Regulatory Landscape & Market Forecasts 2022-2026, found that verification spend will exceed $16 billion in 2026, from $9 billion in 2021. This growth reflects that, as users migrate to digital channels, the need to verify identity digitally also grows. As fraudsters exploit opportunities, verification capabilities will proliferate to wider industries and use cases than ever before.
Research co-author Damla Sat explained: “Digital identity verification tools have become more critical across a broader range of industries than ever, from banking and financial services to eGovernment, healthcare and others. Developing effective user experiences for different verification scenarios will be important for realising digital identity’s potential.”