Global Decentralized Identity Markets, 2022-2028

Dublin, Sept. 08, 2022 (GLOBE NEWSWIRE) — The “Global Decentralized Identity Market Size, Share & Industry Trends Analysis Report 2022-2028” report has been added ResearchAndMarkets.com’s Offering.

The global decentralized identity market size is expected to reach USD 8.9 billion by 2028, increasing at a market growth rate of 78.5% CAGR during the forecast period.

Data breaches and unauthorized access to personal data have destroyed trust in the absence of an identity layer. A decentralized identification method based on distributed ledger technologies (DLT) is gaining ground, supported by companies such as IBM and Microsoft and standardized by the W3C and the Decentralized Identity Foundation (DIF). The distributed ledger system that supports it can be used to allow the exchange of assets.

Numerous experts believe that password-based logins are insecure, and that multi-factor solutions add friction to online interactions, reducing user adoption and productivity. Providing reliable identification of a person’s identity while complying with new privacy rules and regulations is a costly and inefficient maze of security and customer experience challenges. Several businesses have discovered that two-factor authentication is a band-aid solution.

Passwords have long been viewed as inadequate by security experts, but blockchain technology finally provides some possible alternative authentication techniques that businesses can explore to keep their data safe. Using identification devices to interact with the world is part of everyday life, but today’s digital representations of identities are far from secure. However, the realm of self-sovereign identification today allows people to live a digital existence that is safer, easier and more intuitive.

Companies are working on decentralized identities that will comply with “know your customer” and anti-money laundering requirements in general. Decentralized identifiers are therefore the right solution at the right time. Businesses are addressing fundamental issues that the technology press has covered for years.

The story continues

Decentralized financial assets and cryptocurrencies, for example, are often referred to as serving the unbanked or underbanked, or people who have struggled with existing centralized banking systems and the maintenance of conventional checking and savings accounts.

COVID-19 impact analysis

The digital ecosystem has become increasingly important around the world. COVID-19 has resulted in significant advances in decentralized identity technologies. Many firms have started offering online services since the outbreak of COVID-19. As a result, online consumers’ fear of identity security has increased, which has created a demand for various digital safeguards for data as well as people in the market.

Decentralized identity is important for verifying user identities and securely storing them. Furthermore, companies worldwide have increased their efforts to implement decentralized identification systems. This is expected to increase the overall demand for decentralized identity technology.

Market growth factors

Increasing cases of security breaches and fraud

As the globe continues its digitization journey, data posted online is becoming increasingly vulnerable to dangers. Personal information about each customer is stored on hundreds of servers around the world, increasing the risk of identity theft.

According to the Federal Trade Commission (FTC), identity fraud incidents worldwide increased by around 45 percent in 2020, resulting in huge economic losses. The increase in cyber attacks is credited to technologies such as machine learning (ML), which allow attackers to create several different variants of malicious code every day.

Increase in the use of blockchain identity solutions in banks

Blockchain identity management technology offers a lot of potential in sectors such as banking, cyber security and the Internet of Things. This technology has the potential to change the world by overcoming the myriad problems of traditional banking and ensuring that banking services are available at all times.

Low transaction fees and shorter transaction times are expected to increase the efficiency and security of commercial transactions. The data is less likely to be hacked or changed without consent because blockchain technology is built on distributed ledger technology and the blocks are encrypted using strong encryption.

Market limiting factors

Change in regulatory status and absence of a uniform set of guidelines

Regulatory agencies have a hard time keeping up with technological advances. Regulatory agencies need to consider what gaps exist in current legislation and how they might affect overall technology applications as technology advances. Within the decentralized identity market, regulatory uncertainty continues to be a source of concern.

The lack of regulations and the related uncertainty is now one of the most serious obstacles to the widespread implementation of blockchain technology across industries. Financial companies from around the world are working together to establish a number of standards for blockchain technology.

Identity type Outlook

Based on identity type, the market is segmented into non-biometrics and biometrics. The biometrics segment gained a significant revenue share in the decentralized identity market in 2021. Biometric identification is primarily combined with other types of data, computer systems and communication technologies such as metadata, smartphones and social media, and then the main security features on smartphones and by extension, social media accounts, online identity and profiles.

Vertical Outlook

Based on Vertical, the market is segmented into BFSI, Telecom & IT, Real Estate, Retail & E-Commerce, Government & Public Sector, Health & Life Sciences, Media & Entertainment, Transport & Logistics, Travel & Hospitality and Others. The retail and e-commerce segment registered a significant revenue share in the decentralized identity market in 2021. Decentralized identity offers a number of benefits apart from the greater identity autonomy it delivers to customers. In addition, decentralized identity is expected to enable customers to engage in the same activities and transactions without actually transferring data. Due to this, growth in the segment is expected to witness an increase over the forecast period.

Organization Size Outlook

Based on organizational size, the market is segmented into large enterprises and small and medium-sized enterprises. The SMB segment acquired a significant revenue share in the decentralized identity market in 2021. This is due to the various benefits offered by decentralized identity solutions for small businesses. Since small and medium-sized businesses have limited budgets, they adopt low-cost and multi-benefit solutions to secure their data. In addition, the rapid technological advancement is expected to increase growth in the segment during the forecast period.

End user Outlook

Based on end user, the market is segmented into companies and individuals. The enterprise segment received the highest revenue share in the decentralized identity market in 2021. A decentralized identity framework helps enterprises maintain their own identities, without being influenced by the issuer. In addition, companies benefit from the decentralized identity to collect and store data on-site.

Challenging landscape

The most important strategies followed by the market players are partnerships. Based on the analysis presented in the cardinal matrix; Microsoft Corporation is the forerunner in the decentralized identity market. Companies like Accenture PLC, Wipro Limited, Civic Technologies, Inc. are some of the key innovators in the market.

Important market players

Scope of the study

Market segments covered in the report:

By identity type

• Non-biometric

• Biometrics

Off Vertical

By organization size

By end user

By country

• Germany

• Great Britain

• France

• Russia

• Spain

• Italy

• The rest of Europe

• North America

• US

• Canada

• Mexico

• The rest of North America

• Europe

• Germany

• Great Britain

• France

• Russia

• Spain

• Italy

• The rest of Europe

• Asia Pacific

• China

• Japan

• India

• South Korea

• Singapore

• Malaysia

• Rest of Asia Pacific

• LAMEA

• Brazil

• Argentina

• UAE

• Saudi Arabia

• South Africa

• Nigeria

• The rest of LAMEA

For more information on this report, visit https://www.researchandmarkets.com/r/aqyt7s

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