Government-focused Prism Report Lays Out ‘Identity Hierarchy’, Predicts 39% CAGR Through 2028

Acuity Market Intelligence has launched its Government Services Biometric Digital Identity Prism Report, marking the latest installment in its series of reports exploring the role of biometrics and digital identity technologies across key industries. Building on the foundational insights from the Biometric Digital Identity Prism Report, first introduced in 2023, and subsequent industry-focused publications, the new report offers a comprehensive analysis of how biometric digital identity solutions can address challenges in the government sector. The report provides a roadmap for stakeholders seeking to enhance operational efficiency, improve security, and foster inclusivity through biometric technologies.

One of the standout features of the new report is its detailed exploration of the Prism Identity Hierarchy, which outlines six levels of identity: Human, Foundational, Biographical, Contextual, Pseudonymous, and Transactional. This hierarchy emphasizes the importance of biometrics in establishing a secure and foundational digital identity, which can be used to build increasingly complex identity applications. In the context of government services, this model is particularly relevant, as it enables seamless and secure interactions across a wide range of use cases, from passport issuance to social services.

The report highlights key findings that underscore the potential for growth in this sector. According to Acuity’s proprietary market forecasts, the biometric digital identity market for government services is expected to grow at an impressive compound annual growth rate (CAGR) of 39.2 percent from 2024 to 2028, generating over $202.5 billion globally. Asia Pacific, North America, and Europe are expected to dominate revenues, with Asia Pacific leading in transaction volumes, driven by large-scale biometric initiatives in countries such as China and India. Innovations like biometric barcodes and offline-compatible mobile IDs are also highlighted as transformative technologies that could bridge digital divides and enhance inclusivity.

The report does not shy away from identifying the challenges faced by government services stakeholders. Legacy systems, cybersecurity threats, and resistance to change are cited as significant barriers to digital transformation. However, the adoption of biometric digital identity is presented as a solution to many of these issues, with benefits ranging from enhanced fraud prevention and operational efficiency to improved user experience and regulatory compliance. Case studies included in the report illustrate practical implementations, offering real-world examples of how biometric technologies are being deployed to tackle these challenges.

This latest report builds on the insights from Acuity’s previous Prism publications, which have explored biometric digital identity in financial services and the travel and hospitality industries. The earlier reports framed biometric digital identity as a holistic solution capable of addressing sector-specific pain points while enabling secure, user-friendly experiences. By shifting its focus to government services, Acuity has expanded its analysis to one of the most foundational arenas for digital identity, emphasizing the public sector’s unique role as both an issuer of identity credentials and a critical stakeholder in fostering global digital inclusion.

The Government Services Prism Report situates itself as a vital resource for policymakers, technology providers, and other stakeholders navigating the complexities of digital transformation in the public sector. Its findings not only highlight opportunities for innovation but also underscore the importance of collaboration between governments, technology vendors, and standards organizations in creating a secure and inclusive digital identity ecosystem.

Access the full report from the Prism Project website.

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November 20, 2024 – by the ID Tech Editorial Team