Global Decentralized Identity Market Size Projected to Reach US$6,822 million by 2027

Chicago – Decentralized Identity Market size is projected to grow from USD 285 million in 2022 to USD 6,822 million by 2027, at a Compound Annual Growth Rate (CAGR) of 88.7% during the forecast period, according to a new report by MarketsandMarkets™. The major driving factors contributing to the high growth rate of Decentralized Identity Market include rising instances of security breaches and identity related fraud, inefficiency of existing identity management practices and end user advantage of retaining full control over use of identities.

Scope of the Report:

This report’s scope covers the Decentralized Identity Market by identity type, end user, organization size, verticals and regions. Moreover, this study analyzes the Decentralized Identity Market based on contemporary trends and developments, and its potential growth from 2022 to 2027. It provides detailed trends, vendors’ shares, size, forecast, and analysis of key players in the market.

Based on end user, Enterprises are expected grow at higher CAGR. A decentralized approach to identity and authentication is also expected to benefit enterprises. With the rising use of the internet and increased digitalization practices, businesses are already dealing with incredible complexity in managing customer data. They face the growing risk of data breaches. A decentralized identity framework is expected to help reduce this risk, as it removes the need to collect and store Personally Identifiable Information (PII). The required information is simply presented by the individual and verified by a trusted source. Instead of actual PII, the business can institute various self-owned and independent identities without having to ever store an individual’s PII. The COVID-19 pandemic has been the catalyst for early implementation of blockchain-based decentralized identity management systems across various enterprises. Several governments have already begun to develop distributed digital identities to support their citizens.

Based on organization size, the Decentralized Identity Market is segmented into SMEs (small and medium enterprises) and large enterprises. SMEs are expected to dominate the Decentralized Identity Market in terms of market size during the forecast period. The integration of the technology has helped SMEs build various automated processes to streamline non-financial transactions, including bank-to-bank and business-to-business transactions that involve stock market shares and other assets; facilitating an immutable national ledger of drug trials; securely sharing patients’ health records in medical facilities; and enabling distributed source code management. However, technology constraints, the lack of proven solutions, and shortage of infrastructure, such as data centers and maintenance, have proven to be costly, thereby limiting the adoption of the technology. Various companies are still experimenting and exploring this technology. SMEs are investing heavily in R&D activities to define how blockchain can help their business achieve good results. While blockchain technology is a major milestone in the process of digitalization for SMEs, adoption of the technology is still limited. Since manual and traditional processes of verification are time-consuming, SMEs are expected to adopt decentralized identity solutions and services to satisfy compliance obligations and risks related to identity fraud. Governments of various countries are also taking initiatives to promote the adoption of decentralized identity solutions and services in SMEs.

Market Players

Key and innovative vendors in Decentralized Identity Market include Microsoft (US), Accenture (Ireland), Persistent (India), Wipro (India), SecureKey Technologies (Canada), R3 (US), Avast (Czech Republic), Validated ID (Spain), Serto (US), Ping Identity (US), NuID (US), Dragonchain (US), Nuggets (UK), Finema (Thailand), Datarella (Germany), Civic Technologies (US), 1Kosmos (US), Affinidy (Singapore), Hu-manity (US), SelfKey (Mauritius).

Source: MarketsandMarkets Research Pvt. Ltd.