By 2026, Gartner forecasts that at least 500 million smartphone users will regularly use digital identity wallets (dubbed “DIWs” in Gartner’s parlance) to make “verifiable claims”.
This represents a major shift in how people manage and verify their identities online. The transition is driven by the limitations of current identity verification methods, which often require users to repeatedly submit identity documents and selfies for each new service or transaction.
Digital identity wallets are expected to offer a more comprehensive and user-friendly approach to identity management. As Gartner points out, they will store various attributes linked to a user’s identity, including core data like name and date of birth, as well as additional information such as educational qualifications, employment proof, and even healthcare data.
This evolution towards “portable digital identity” (PDI) solutions aims to give users greater control over their personal information while streamlining the verification process across multiple services.
“The market is entering a transition period as PDI solutions are starting to mature, which in the next five years, will reduce the demand for standalone IDV,” commented Gartner VP Analyst Akif Khan in remarks at the recent Gartner Security & Risk Management Summit in London.
Gartner also notes that governments are taking proactive steps in this direction. For instance, the European Commission’s eIDAS Regulation mandates that all EU member states provide citizens with a digital identity wallet by 2026. However, the adoption of DIWs is not limited to government initiatives. Many vendors already offer products that enable organizations to implement PDI solutions for specific use cases, allowing businesses to enhance security and improve user experience without waiting for government-issued solutions.
“For example, in the workforce, CISOs can use a readily available decentralized identity wallet product and issue it to their employees,” Khan explained. “The wallet could then be integrated into their employee onboarding, account recovery and IT help desk workflows.”
It’s a concept that was echoed in comments from FaceTec VP Jay Meier on a recent episode of the ID Talk podcast. Meier discussed the need, from an identity verification perspective, to bind a given identity credential directly to the biographic and biometric information held by the organization that issued the credential, noting that the organization could be anything from a DMV office to an employer.
Several consulting and analysis firms have echoed Gartner’s optimistic predictions about the widespread adoption of digital identity solutions. Forrester Consulting, in a study commissioned by Regula, reported that 89 percent of businesses expect a positive impact on revenue from implementing digital IDs.
The market for digital identity solutions, meanwhile, is projected to experience significant growth. According to Fortune Business Insights, it is expected to expand from $30.81 billion in 2023 to $101.37 billion by 2030, reflecting a compound annual growth rate (CAGR) of 18.5 percent.
Source: Gartner
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September 25, 2024 – by the ID Tech Editorial Team
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