PUBLISHER: The Business Research Company | PRODUCT CODE: 2087359
PUBLISHER: The Business Research Company | PRODUCT CODE: 2087359
Digital identity refers to the collection of electronically stored credentials and attributes that uniquely describe and authenticate an individual, organization, or device within digital environments. It is used by individuals, enterprises, and governments to verify identities, enable secure access to systems, and facilitate digital transactions.
The digital identity market consists of revenues generated by entities (organizations, sole traders, and partnerships) that provide digital identity solutions and services used to create, manage, authenticate, and secure digital identities across various applications and industries. The market includes platforms and tools that enable identity verification, authentication, access control, and identity lifecycle management. These solutions are widely adopted across sectors to enhance security, improve user experience, comply with regulations, and enable digital transformation initiatives.
The global digital identity market was valued at $13,632.8 million in 2020 which grew till 2025 at a compound annual growth rate (CAGR) of more than 19.00%.
Growing Emphasis On Seamless And Frictionless Customer Experiences
During the historic period, the digital identity market was significantly driven by the growing emphasis on seamless and frictionless customer experiences. As the shift toward digital platforms accelerated, organizations prioritized fast, secure, and user-friendly identity verification processes to reduce onboarding time and improve engagement. Digital identity solutions enabled passwordless authentication, single sign-on (SSO), and biometric verification, minimizing user friction while enhancing security. This was particularly critical in sectors such as banking, e-commerce, and telecommunications, where customer retention depends on smooth digital interactions. Businesses also leveraged identity platforms to deliver personalized services while maintaining compliance with data protection regulations. The demand for convenient yet secure access further encouraged investments in advanced authentication technologies. For example, in April 2024, Prove Identity, a US-based digital identity company, announced Pre-Fill(R) solution saved consumers a total of 30 million minutes of human time by streamlining secure digital onboarding and identity verification processes, significantly reducing friction in customer journeys. Nearly 47 million new accounts were opened using the platform, and Prove generated approximately USD 2 billion in net new revenue for its enterprise customers, highlighting the business value of frictionless experiences. Up to 79 % faster onboarding was achieved compared to traditional methods, demonstrating strong demand for seamless digital interactions across sectors. Therefore, the digital identity market was significantly driven by the growing emphasis on seamless and frictionless customer experiences during the historic period.
Artificial Intelligence And Autonomous Intelligence
Major companies in the digital identity market are increasingly prioritizing artificial intelligence and advanced authentication technologies to enhance enterprise security, enable data-driven identity lifecycle management, and improve frictionless user access while reducing reliance on passwords, shared credentials, and fragmented identity systems. These initiatives leverage biometric-bound credentials, AI-driven automation, and interoperable identity protocols. For instance, in July 2025, authID, a US-based provider of biometric identity verification solutions, launched its Identity Exchange (IDX) platform in strategic partnership with NEC Networks System Integration Corporation (NESIC), a Japan-based provider of system integration solutions and related support services, illustrating how AI and intelligent automation are reshaping digital identity solutions around password less authentication, privacy-first credentials, and unified enterprise identity management.
The global digital identity market is fairly concentrated, with large players operating in the market. The top 10 competitors in the market made up 26.02% of the total market in 2024.
Digital Identity Global Market Opportunities And Strategies To 2035 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global digital identity market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for digital identity? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The digital identity market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider digital identity market; and compares it with other markets.