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The digital identity and security market size is estimated to grow by USD 42.07 billion at a CAGR of 17.51% between 2022 and 2027. The market's growth hinges on several factors, notably the rise in digitization through initiatives like electronic ID cards (eID) and smart infrastructure, increased instances of global data theft, and the integration of biometrics into smartphones. The push towards digital IDs and smart infrastructure underscores a broader trend toward digital transformation. Simultaneously, the proliferation of data breaches emphasizes the critical need for robust cybersecurity measures. Integration of biometrics into smartphones reflects a shift towards more secure and convenient authentication methods. These factors collectively drive the market forward, highlighting the increasing reliance on these technologies and the need for enhanced security measures in an increasingly interconnected world.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This market report extensively covers market segmentation by component (solutions and services), deployment (on-premise and cloud), and geography (North America, APAC, Europe, South America, and Middle East and Africa).
The market share growth by the solution segment will be significant during the forecast period. Factor such as, the growing adoption of these solutions is expected to drive the growth of the solution segment in the market during the forecast period.
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The solutions segment was valued at USD 10.21 billion in 2017. The core of the market is made up of software solutions, which aid in the evaluation of biometric data for authentication and carry out other necessary tasks such as data encryption. Both biometric identification and verification are supported by biometric software. A software solution properly processes and stores the data retrieved from the hardware. The data will be further investigated to achieve the desired results. Data mining techniques are used to quickly process data in large databases. Biometric data security is achieved using software tools. Such factors will increase segment growth during the forecast period.
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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America consists of developed countries with cutting-edge technology and advanced infrastructure. The US and Canada are the largest contributors to these solutions revenue in North America due to their strong economies. Technology is advancing every day, and the expansion of the US and Canadian economies allows the US to invest heavily in new and advanced technologies. Real-time identity verification, end-to-end security, and activation capabilities that enable a seamless and secure customer experience are priorities for both public and private organizations in the region. Such factors will propel the market growth in this region during the forecast period.
The market is rapidly evolving, with biometrics integration and multi-factor authentication becoming essential. Omnichannel authentication ensures seamless user experience across devices like desktops and phones. As data breaches become more common, businesses are adopting proactive security measures. These platforms offer secure solutions for managing various credentials, including driver's licenses and healthcare credentials. National digital identification programs are leveraging biometric technologies to enhance security and streamline electronic transactions. Passwordless login and ID wallet solutions are emerging as key trends for secure and convenient authentication. The market is rapidly evolving, driven by the need for secure mobile apps and robust identity management capabilities. Technologies like one-time passcodes (OTPs) are being used in call centers and commercial businesses to enhance security. Biographical data and personal characteristics are key components in verifying identities and ensuring secure source authentication. Driver’s licenses and vehicle card registrations are increasingly digitized for enhanced security measures. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
An increase in digitization with electronic ID cards (eID) and smart infrastructure initiatives is the key factor driving the growth of the market. Digital identification or eID can be authenticated unambiguously through a digital channel that enables unlocking access to banking, government benefits, education, and many other services. A digital ID can be authenticated remotely over digital channels. When well-designed, digital ID enables civic and social empowerment. Moreover, secure identity verification has become a critical part of online security in these areas due to initiatives such as eID, smart border control that uses facial recognition for identity verification and authentication, and smart cities and smart airports that use video analytics and liveness detection for ID verification. These initiatives highlight the importance of biometric technologies, digital identification solutions, secure sources, multi-factor authentication, and digital identity-based authentication in enhancing security and privacy in online transactions and interactions.
For instance, in August 2021, over USD 1.3 billion in Aadhaar electronic IDs (99% of adults) were created. Based on biometric and demographic information, this can be obtained. The official app for mAadhaar is accessible in 13 languages on iOS and Android (2019). It essentially serves as a digital ID card. Germany announced in February 2021 that its citizens would be able to store a copy of their national ID card on their phone and use it as a digital ID (with a PIN for authentication). Thus, all these initiatives by governments worldwide are expected to propel the growth of the market during the forecast period.
Growing government initiatives encouraging the adoption of digital identity and security solutions is the primary trend in the market. Governments are working to address issues such as security, inaccurate data collection, digital identity fraud, and targeted evasion as legislation on managing digital identities is enacted. The global market is growing due to initiatives taken by governments around the world to encourage the use of these solutions and services. For instance, the European Commission expressly recommended the creation of a digital ID wallet in its proposal in June 2021. The main asset for futureproofing, according to the report (June 2021), is digital identity based on digital wallets stored safely on mobile devices.
Moreover, the 450 million citizens of the EU will be able to access both public and private services with this new form of identification. 60% of EU citizens currently have access to trusted ID schemes. A minimum of 80% of people must use a digital ID by 2030 under this new framework for digital identity. Thus, growing government initiatives encouraging the adoption of digital identity and security solutions is one of the growing trends that is expected to drive the growth of the market during the forecast period.
The lack of skilled security professionals is a major challenge to the growth of the market. Governments are working to address issues such as security, inaccurate data collection, digital identity fraud, and targeted evasion as legislation on managing digital identities is enacted. The market is growing due to initiatives taken by governments around the world to encourage the use of these solutions and services.
This necessitates the need for appropriate and enhanced security professional training, which will close this skill gap and produce the necessary expertise for recognizing and analyzing identity-related attacks. Thus, a lack of skilled security professionals can become a major challenge to the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Au10tix Ltd.: The company offers digital identity and security solutions such as AU10TIX Instinct. Also, through this segment, the company provides critical, modular solutions to verify and link physical and digital identities.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
The market is expanding rapidly, driven by the need for robust identity governance and secure authentication methods. Technologies like machine learning and artificial intelligence are enhancing security measures against cyber threats and account takeovers. Biometric authentication techniques such as face recognition and fingerprint scanning are gaining popularity for their accuracy. Blockchain technology is revolutionizing identity verification processes by providing a secure and decentralized system. However, challenges remain, including data breach risks and ensuring compromised user privacy. As regulations evolve, businesses are adopting cloud-based digital identification solutions to comply with identity management regulations and protect personally identifiable information (PII).
The market is witnessing significant growth, driven by the increasing adoption of machine learning (ML) and artificial intelligence (AI) for enhancing security measures. Technologies like face-based biometrics and voice recognition are becoming more prevalent for secure authentication. Businesses are implementing unique identities and access privileges to protect against cyberattacks and bank fraud. The rise of e-commerce and mobile computing has necessitated robust identity verification services and secure mobile apps. Blockchain identity management systems are emerging as a secure solution for managing digital identities, especially in online identity theft scenarios. Overall, the market is evolving to meet the increasing security risks in the digital economy.
Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 17.51% |
Market growth 2023-2027 |
USD 42.07 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
17.28 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 38% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Atos SE, Au10tix Ltd., Daon Inc., Euronovate S.A., ForgeRock Inc., Freja eID Group AB, GB Group plc, IDEMIA France SAS, Imageware Systems Inc., iProov Ltd., Jumio Corp., London Stock Exchange Group plc, OneSpan Inc., Samsung Electronics Co. Ltd., SECURE IC S.A.S, Smartmatic International Corp., TELUS Corp., TESSI, Thales Group, and NEC Corp. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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