The decentralized identity market will grow because of the growing identity theft many service providers are now opting for cloud deployment as it holds a higher potential for growth. Online fraud incidents and cybercrimes are two key factors driving the market.
Covid-19 Impact & Market Status
Since 2019, when the COVID-19 pandemic started, it has played an important role in impacting the whole global market, trade, and economy as well as the health conditions of millions of people across the world. It is not strange to say that the global decentralized identity market has also been affected due to the pandemic. Nations have tried their best to protect their citizens from the worst conditions and had also limited the entry of other Nation citizens to enter their Nation so that the spread of the virus could be controlled. There were constant lockdowns worldwide which increased contactless activities and demand for online-based purchasing. Only people who had legitimate reasons to cross the border and who already had vaccination done were allowed to do so. After the pandemic subsidized and was under control only then there was a bit of ease seen in the use of technology in people’s lives. Although the global decentralized identity market saw growth during the pandemic the circumstances weren’t good enough and the reason for the expansion of the security market wasn’t something that could have been cherished.
The pandemic has played a significant role in expanding the decentralized identity market growth. There has been an increase observed in the demand for digitalization in approximately every sector of the market across the globe during the pandemic. The pandemic situation has been beneficial for decentralized identification technology in bringing great changes in processing digital identity verifications. Companies are now taking many steps to provide a safer environment to the customers like removing middleware entities in order to reduce identity fraud. Which will lead to the growth of the market across the globe.
The Decentralized identity market report is divided into identity type, vertical outlook, enterprise size, End-user industry, and region. The industry is segmented into the following categories on the basis of types: biometric & non-biometric. The market is segmented On the basis of vertical outlook: BFSI, Government, Health care & life sciences, Telecom & IT, Retail & E-commerce, Transport & Logistics, Real estate, Media & Entertainment, Travel & Hospitality, and Others. On the basis of enterprise size: large-scale enterprises, small-size enterprises, and medium-sized enterprises. Though, there are many end-users of the global decentralized identity service present in the market few mentioned in the report are individuals, enterprises, and others. The consulting services market is spread globally. North America, Europe, Asia-pacific, South America, The Middle East & South Africa are the regions where the consulting services market is widely spread.
There has been a constant increase seen in cyber attacks lately which has made it essential to protect businesses from such threats and losses. The growing demand for digitization is a major factor that will lead to the growth of the global Decentralized identity market.
The growing desire for digitalization is the primary driver of the global decentralised identity industry. Digitization is now becoming an inseparable part of everyday life, it is used in many industries such as Healthcare, manufacturing, banking, online shopping, retail and others. These are also those sectors that are more sensitive to identity theft and cyber-attacks. Thus, the decentralized identity system is becoming a necessity to keep user’s personal information safe and prevent it from being tampered or misused.
Technology has not become an inseparable part of our life. Almost every person across the world uses Technology in their day-to-day life to purchase something, interact with their close ones, carry out business, and perform many more tasks. It’s important to know that whenever we carry out any tasks online that require for us to fill in our personal information, the data gets stored and sometimes saved on the server. While online shopping is considered convenient and hassle-free, it’s observed worldwide that it isn’t entirely safe. A lot of risks come with storing data when users use weak passwords it becomes easier for hackers to fetch the information and perform theft and fraud.
The main reason for the popularity of blockchain Technology is the safety they provide and also the resilience they hold against hackers and attackers who try to take away personal information without consent. Each bank carries out a procedure known as KYC (know your customer) which is compulsory for every individual to follow before performing any activity through their bank accounts. This procedure helps in avoiding duplicity. Nowadays, banks carry out KYC through the internet, contactless KYC is much safer and cost-efficient than the traditional ways. In 2022, the size of the global Decentralized Identity market was USD 378.67 million. The market is anticipated to develop at a compound annual growth rate (CAGR) of 88.2% between 2022 and 2029, based on the existing situation. According to the research done, it was seen that the misuse of personal information has increased by 40% in 2020. Fraud and thefts can be controlled with the help of decentralized identity technology.
To tackle with the crucial issue of identity theft, companies now use “decentralized identity “to protect their customers' privacy. It gives the customers control over their personal information and provides businesses with accurate data about the person they are interacting with, hence reducing fraud. There has been a significant rise in the applications based on blockchain identity across the globe, thus adding another factor that will contribute to the growth of the global decentralized identity market during the forecast period. Blockchains are being used in many industries because of the strong security they offer.
The main hindrance to the growth of the market is the lack of understanding of blockchain technology among developing nations. Also, the lack of regulation, standardization, and interoperability in blockchain technology, is expected to slow down the industry's growth. Moreover, blockchain technology is being used by several service providers to build a network structure of IoT devices which will remove the need for a centralized location to manage device communication. Such applications are anticipated to create new growth opportunities for the market in the near future.
Latest innovations in the Global Decentralized identity market
The Global decentralized identity market will face high competition due to the presence of more experienced players in the market. The companies will need to follow new strategies and ideas to improve their offerings and market position. Other alternative options that might help in attracting more customers are, investing in the latest product launches and in product expansion activities. The companies will need to provide a safe and secure way to the users for sending/receiving digital currency and identity worldwide.
The collaboration among many industries will help in improving and developing the decentralized identity technologies and profit as well. Collaborations will further reduce the competition in the global decentralized identity market. Such new ideas by decentralized identity firms most likely will drive the demand for digital identity, contributing to the growth of the market during the forecast period.
Decentralized Identity Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2029||USD 378.67 million.|
|Growth Rate||CAGR of 88.2% during 2021-2029|
|Segment Covered||Identity Type, End-user, Vertical, Enterprises size, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||CKD, PISCO, KOGANEI, SMC, Convum, ORION, FUJIKIN, AYUMI, VENN, YOSHITAKE, TACO, Prius, & among others.|
Key Segments of the Global Decentralized identity Market
Identity Type Overview, 2019-2029 (USD Million)
End-user Overview, 2019-2029 (USD Million)
Vertical outlook Overview, 2019-2029 (USD Million)
- Health care & life sciences
- Telecom & IT
- Retail & E-commerce
- Transport & Logistics
- Real estate
- Media & Entertainment
- Travel & Hospitality
Enterprises size overview, 2019-2029 (USD Million)
- Large enterprises
- Small size enterprises
- Medium sized enterprises
Regional Overview, 2019-2029 (USD Million)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
The Middle East and South Africa