Digital Identity Management Solutions Market by Type, Offering, Application, Identity Type, Authentication Type, Organization Size, Deployment Mode, Sector (BFSI, Retail & E-Commerce, Government & Defense, Healthcare, and Other Sectors) - Global Forecast to 2030
Impact of COVID-19 on the Digita...
The COVID-19 pandemic adversely impacted the global economy. Nationwide lockdowns and social distancing norms were imposed across several countries, negatively affecting multiple industries, including the digital identity management solutions industry. Uncertainty regarding the lockdowns made it difficult for the key market players to anticipate the recovery of the Digital Identity Management Solutions Market.
The COVID-19 pandemic moderately impacted the digital identity management industry due to delayed and postponed orders for various digital identity management solutions, including identity verification & authentication solutions, digital KYC & onboarding solutions, zero trust security solutions, and digital ID wallet solutions; however, the industry started recovering rapidly from the last quarter of 2020.
Leading digital identity management solution providers are focused on offering products with enhanced capabilities to capture larger market shares. For instance:
- In November 2022, NEC Corporation (Japan) launched a multimodal biometric authentication solution, which enables high-speed, high-precision authentication with a false acceptance rate of less than one in 10 billion just by having an individual direct their face toward an authentication device.
- In November 2022, ForgeRock, Inc. (U.S.) launched its new ForgeRock Identity Governance solution, a comprehensive cloud-native governance offering designed to help solve security and compliance challenges for large enterprises at scale.
Digital identity management solution providers plan to move forward and capitalize on the lucrative growth opportunities that have resulted from the COVID-19 pandemic. The Digital Identity Management Solutions Marketis projected to transform drastically over the coming years.
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Government Initiatives Encouraging the Adoption of Digital Identity Management Solutions to Fuel the Market Growth
Legislation on digital identity management is evolving as governments seek to mitigate concerns such as security, incorrect data capture, digital identity fraud, and intentional evasion. Governments around the globe are undertaking initiatives to encourage the adoption of digital identity management solutions & services, driving the growth of the global digital identity management solutions market.
Some of the recent key developments in this space are as follows:
- In March 2022, China announced plans to launch a digital national ID card by the end of the year to allow citizens to access certain services remotely without the need to return to their home province to do so.
- In March 2022, NEC Corporation (Japan) and NEC Asia Pacific Pte Ltd (NEC Corporation’s headquarters in Southeast Asia) announced completing the modernization of Vietnam’s national ID system as a part of the government’s Digital Transformation Plan. The Ministry of Public Security (MOPS), a public agency under the Government of Vietnam, selected NEC’s Automated Biometric Identification System (ABIS) to upgrade Vietnam’s existing national ID system with the latest biometric technologies.
- In April 2021, the UAE government announced employing biometric face recognition (facial ID) to register customers in the UAE Pass application as part of its plan to launch the first safe digital national ID for citizens and residents.
Many standards, regulations, and initiatives are being introduced to enhance identity verification & authentication through digital identity management solutions. Regulatory frameworks for digital identity management are becoming progressively stringent as governments have experienced the need for digital identification to offer citizens cost-effective, efficient, and safe services. Thus, government initiatives encouraging the adoption of digital identity management solutions are driving the growth of this market.
Key Findings in the Global Digital Identity Management Solutions Market Study:
Based on Identity Type, the Biometric Solutions Segment is Projected to Register the Highest CAGR During the Forecast Period
Based on identity type, in 2023, the biometric solutions segment is projected to register the highest CAGR during the forecast period. The high growth of this segment is attributed to the growing adoption of biometric solutions in the BFSI sector and increasing advancements in biometric solutions designed for authentication and identification applications. Furthermore, growing security requirements in the BFSI sector, rising government initiatives encouraging the adoption of biometric technologies, and integrating biometric capabilities into mobile devices are also improving the demand for biometric solutions.
Based on Application, the Workforce Identity Management Segment is Projected to Register the Highest CAGR During the Forecast Period
Based on application, in 2023, the workforce identity management segment is projected to register the highest CAGR during the forecast period. The high growth of this segment is attributed to the rising demand for remote, safe, and easy workforce access to industrial assets, the growing demand for solutions to monitor privileged users, and the increasing need to build centralized and highly scalable platforms for workforce identity management.
In 2023, the
IT & Telecommunications Segment is Expected to Dominate the Digital Identity Management Solutions Market
Based on sector, the global digital identity solutions market is segmented into BFSI, retail & e-commerce, government & defense, healthcare, IT & telecommunications, energy & utility, tourism & hospitality, education, manufacturing, and sectors. In 2023, the IT & telecommunications segment is expected to account for the largest share of the global Digital Identity Management Solutions Market. The large market share of this segment is attributed to the increasing adoption of biometrics solutions for fraud prevention, the rising need to implement digital identity solutions to strengthen authentication & access control, and the growing need for accurate identity-based IT solutions.
Asia-Pacific: The Fastest-growing Regional Market
In 2023, Asia-Pacific is expected to register the highest CAGR during the forecast period. The rapid growth of this region is mainly driven by factors such as increasing demand for digital identities for authenticating citizens, the rising demand for digital identity management solutions for accessing government services and identification, and the increasing efforts by leading market players to launch digital identity management solutions. Furthermore, increasing implementation of digital identity management solutions, rising demand for mobile wallet & digital authentication solutions, increasing use of biometric technologies for authentication & identification applications, and growing investments in developing digital identity management solutions are improving this regional market.
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