MarketsandMarkets Predicts Threat of Fraud Will Drive Demand for Digital Identity Solutions

MarketsandMarkets continues to forecast major growth for the Digital Identity Solutions Market. The firm has predicted that the demand for digital identity solutions will climb from $23.3 billion to $49.5 billion between 2021 and 2026, numbers that correspond to a CAGR of 16.2 percent for the period covered in the report.

Those figures are also consistent with MarketsandMarkets’ prior reporting on the Digital Identity Solutions market. In February of 2020, the firm suggested that the market would be valued at $30.5 billion in 2024, after growing at a CAGR of 17.3 percent from 2019.

This time around, MarketsandMarkets attributed the anticipated growth to the rising volume of identity fraud and data breaches, which creates a need for identity verification solutions that can guard against those threats. International lawmakers have also passed more digital identity regulations, and organizations will need solutions that are compliant with those frameworks.

In that regard, MarketsandMarkets believes that digital identity technology will be particularly popular in the retail and e-commerce sectors, which are growing rapidly in North America, Europe, and the Asia Pacific regions. The threat in those sectors is high because e-commerce establishments often collect sensitive personal information. As a result, digital businesses need technology solutions that build trust and keep their customers safe.

Biometric identity solutions will hold a larger portion of the market than their non-biometric counterparts, while the presence of several key vendors will make North America the most mature region. However, the digital identity trend will cut across all levels of industry, insofar as small, medium, and large enterprises are all searching for solutions that can protect their customers and their digital and physical assets.

MarketsandMarkets listed NEC, Samsung, Thales, Daon, IDEMIA, Jumio, iProov, and ID R&D as some of the most noteworthy providers of digital identity tech. The firm’s figures are more ambitious than those of Goode Intelligence, which has indicated that the digital identity market will hit $15 billion in 2024.

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July 26, 2021 – by Eric Weiss