PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887114
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887114
The global blockchain identity management market is undergoing rapid transformation as businesses and governments shift toward decentralized, privacy-centric digital identity frameworks. According to the latest report, the market size reached USD 1.10 billion in 2024, reflecting strong adoption across BFSI, government, telecom, and healthcare sectors. The momentum is expected to increase significantly, pushing the market to USD 1.57 billion by 2025. By 2032, the industry is projected to reach an impressive USD 118.96 billion, growing at an exceptionally high CAGR of 85.60% during 2025-2032. This exponential rise underscores the growing demand for secure, tamper-proof, and user-centric identity systems worldwide.
In 2024, North America emerged as the dominant region, capturing 42.73% of the global share, driven by early adoption of blockchain technology, strong regulatory frameworks, and significant government-backed initiatives aimed at improving citizen identity and cybersecurity.
Key Market Insights
Blockchain identity management leverages decentralized ledger technology to secure, verify, and manage digital identities without central authorities. Each identity is tied to unique cryptographic keys, enabling users to control access to their personal data while ensuring that no unauthorized modifications can occur. This decentralized approach eliminates the vulnerability associated with traditional centralized databases and provides enhanced transparency and tamper-proof verification.
Leading industry players-including Bitfury, DockLabs, Microsoft, IBM, and Oracle-are investing in technologically advanced and secure identity platforms to strengthen market positioning in this fast-growing ecosystem.Impact of Recent Tariff Rates
The 104% U.S. tariff on Chinese imports introduced in April 2025 is expected to influence market growth by restricting Chinese blockchain and AI companies' penetration in global markets. These tariffs increase uncertainty, elevate operational expenses, and potentially limit investments in blockchain identity startups. As a result, countries such as India and Israel may leverage opportunities to fill market gaps in Asia and the MENA region.
Market Trends
A key market trend is the rising use of NFTs (Non-Fungible Tokens) for identity representation. NFTs can store encrypted identifiers, certification details, membership credentials, and reputation scores. In June 2024, Fiat24 partnered with ONTO Wallet to launch NFT-powered digital banking, signaling the increasing role of decentralized identity (DID) integration in financial services. Soulbound Tokens (SBTs)-non-transferable NFTs-are also emerging as powerful tools for preventing identity trading, ensuring authenticity, and building trust.
Market Dynamics
Drivers - Rising Global Identity Theft Cases
Increasing identity fraud and cyberattacks have pushed organizations and governments to adopt tamper-proof identity systems. Centralized databases often serve as single-point failure systems, while blockchain distributes identity data across multiple nodes, reducing breach risks significantly. This surge in cyber threats is a major driver accelerating blockchain identity adoption.
Restraints - Public Perception Barriers
Blockchain identity adoption faces challenges due to general public skepticism and association of blockchain with volatile cryptocurrencies. Regulatory concerns and failures of crypto companies have elevated mistrust. For example, the U.K. Treasury Committee reported that 85% of crypto companies applying for FCA approval in 2023 failed compliance requirements, intensifying consumer hesitation.
Opportunities - Government Digital Identity Programs
Governments are investing heavily in digital ID systems based on blockchain. In January 2025, Malaysia launched the MyDigital ID Superapp, advancing nationwide secure digital identity transformation. Such initiatives create large-scale opportunities for vendors offering blockchain-based identity solutions.
North America
North America recorded USD 0.35 billion in 2023 and is projected to reach USD 0.47 billion in 2025, driven by DHS-backed blockchain programs and strong VC funding ecosystems. The U.S. alone is expected to hit USD 0.46 billion in 2025.
Europe
Europe is forecast to reach USD 0.33 billion in 2025, supported by national digital identity rollouts such as Italy's EUDI Wallet and robust adoption across banking and healthcare.
Asia Pacific
Asia Pacific is projected to reach USD 0.31 billion in 2025 and record the highest CAGR through 2032, driven by major digital economies like China (USD 0.14 billion in 2025), India (USD 0.07 billion), and Japan (USD 0.04 billion).
Conclusion
With a projected leap from USD 1.10 billion in 2024 to nearly USD 118.96 billion by 2032, the blockchain identity management market is entering a hyper-growth phase. Growing cyber threats, government digital identity initiatives, decentralized frameworks, and innovative use of NFTs and SSI technologies will continue shaping the future of secure digital identity worldwide.
Segmentation By Component
By Network Insights
By Provider Type
By Enterprise Type
By Vertical
By Region
Companies Profiled in the Report Bitfury (U.K.), Dock Labs AG (U.S.), Humanity Protocol (Hong Kong), Validated ID (Spain), Peer Ledger Inc. (Canada), Tradle (U.S.), IBM Corporation (U.S.), AWS (U.S.), Oracle (U.S.), Microsoft (U.S.) and LeewayHertz (U.S.)