Dublin, Feb. 25, 2026 (GLOBE NEWSWIRE) -- The "Digital Identity Solutions Market by Hardware, Solution type, Identity Type - Global Forecast to 2031" has been added to ResearchAndMarkets.com's offering.
The global digital identity solutions market size is projected to grow from USD 44.20 billion in 2025 to USD 132.14 billion by 2031, at a compound annual growth rate (CAGR) of 20.0%
This report will help market leaders and new entrants understand the competitive landscape, gain valuable insights, and position their businesses effectively. It provides information on market drivers, challenges, and opportunities, enabling stakeholders to plan suitable go-to-market strategies.
The increasing integration of artificial intelligence (AI), machine learning (ML), and blockchain technologies is transforming digital identity frameworks by enabling real-time authentication and decentralized identity management. AI-driven liveness detection and behavioral biometrics are helping reduce identity takeover incidents by over 90%, enhancing user trust and security.
Simultaneously, the adoption of biometric devices, such as fingerprint and facial recognition systems, is strengthening identity verification processes, facilitating secure onboarding, and driving broader digital transformation across various sectors. However, privacy concerns regarding continuous data monitoring and biometric storage are restraining market growth. The lack of clear regulations and limited user awareness further constrain large-scale deployment.
Major vendors include Thales (France), NEC (Japan), IDEMIA (France), Samsung SDS (South Korea), and IBM (US), among others. The report provides an in-depth competitive analysis of these key players.
By vertical, the retail & eCommerce segment is expected to grow at the highest CAGR during the forecast period
The retail and eCommerce sector is capturing the fastest growth within the digital identity solutions market. Online commerce experienced an authorized fraud rate of 1.62% in 2024, more than eighteen times the global average. Fake account creation and identity takeover attacks are on the rise, prompting retailers to adopt digital identity verification across checkout and loyalty processes. Consumers expect fast, secure onboarding and one-click payments, encouraging investment in biometric authentication and AI-powered identity verification.
By deployment, the cloud segment is expected to grow at the highest CAGR during the forecast period
The global digital identity solutions market's cloud deployment mode is expanding rapidly as organizations prioritize agility, cost efficiency, and security. Cloud identity services offer scalable infrastructure, allowing enterprises to manage identities globally. As reported by Avatier, 85% of enterprises experienced improved security efficiency with cloud-based identity and access solutions. Cloud-native platforms accelerate modern authentication protocols like single sign-on (SSO) and multi-factor authentication (MFA), integrating seamlessly with multi-cloud environments.
North America will have the largest market share in 2025, while Asia Pacific is expected to grow at the fastest rate during the forecast period
North America is estimated to hold the largest market share in the digital identity solutions market by 2025, supported by a regulatory foundation and early adoption of advanced authentication frameworks. Initiatives such as NIST standards evolution aid trust and fraud mitigation across public services. Meanwhile, the Asia Pacific region is poised for the fastest growth due to national digital identity mandates and accelerated public service modernization programs. Countries like China, Japan, India, and Singapore are progressing in biometric authentication and decentralized identity models.
Key Benefits of Buying the Report
- Analysis of key drivers, restraints, opportunities, and challenges in the digital identity solutions market.
- Product Development/Innovation: Insights into upcoming technologies and product launches.
- Market Development: Information about lucrative markets and market analysis across regions.
- Market Diversification: Exhaustive information about new products, untapped geographies, and recent developments.
- Competitive Assessment: Detailed assessment of market shares, growth strategies, and services offered by key players.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 493 |
| Forecast Period | 2025 - 2031 |
| Estimated Market Value (USD) in 2025 | $44.2 Billion |
| Forecasted Market Value (USD) by 2031 | $132.14 Billion |
| Compound Annual Growth Rate | 20.0% |
| Regions Covered | Global |
Market Dynamics
Drivers
- Expansion of Digital Transformation and Remote Work
- Rise in Id Wallet Solutions
- Boost in Usage of Online Services Offered by Commercial Businesses in Recent Years
- Rise in Identity and Authentication Fraud
Challenges
- High Costs Associated with Deployment of Digital Identity Solutions
- Difficulties in Addressing Complexities of Advanced Threats
Opportunities
- Expansion of Digital Id Wallets and Cross-Border Identity Solutions
- Increased Integration of AI, ML, and Blockchain Technologies to Enhance Digital Identities
- Adoption of Biometric Devices in Digital Identity Solutions
- Adoption of Advanced Authentication Techniques Across Verticals
Case Studies
- Thales Helped Telecom Operator Provide Seamless and Convenient Digital Enrolment Journeys to Customers
- Iproov's Genuine Presence Assurance Technology Enabled Users to Verify Their Identity Securely
- Veridas' Access Management Platform Helped Club Tennis Sabadell Increase Its Security Level
- Jumio Identity Verification Improved Global66's Onboarding Process
- Integration of Jumio's Automated Document Scanning and Authentication Solution, Netverify, into Mr Green's Website Enhanced Authentication
- Kalunga Expanding Product Line with HID Global's Secure Id Solutions
Company Profiles
- Thales
- NEC
- Idemia
- Samsung SDS
- Telus
- HID Global
- Crowdstrike
- DXC Technology
- IBM
- CyberArk
- SailPoint Technologies
- GBG
- Ping Identity
- Tessi
- ACI Worldwide
- Entrust
- Jumio
- OneSpan
- Duo Security
- Imprivata
- Smartmatic
- Signicat
- Shufti
- Regula
- Incode Technologies
- Persona
- AU10TIX
- Iproov
- Vintegris
- Innovatrics
- Verifinow
For more information about this report visit https://www.researchandmarkets.com/r/uxhnp7
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