Decentralized Identity

Global Decentralized Identity Market to Reach US$130.5 Billion by 2030

The global market for Decentralized Identity estimated at US$2.6 Billion in the year 2024, is expected to reach US$130.5 Billion by 2030, growing at a CAGR of 92.0% over the analysis period 2024-2030. Biometrics-based Identity, one of the segments analyzed in the report, is expected to record a 105.5% CAGR and reach US$101.9 Billion by the end of the analysis period. Growth in the Non-Biometrics Identity segment is estimated at 68.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$684.8 Million While China is Forecast to Grow at 86.0% CAGR

The Decentralized Identity market in the U.S. is estimated at US$684.8 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$17.5 Billion by the year 2030 trailing a CAGR of 86.0% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 85.4% and 77.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 61.7% CAGR.

Global Decentralized Identity Market - Key Trends & Drivers Summarized

What is Decentralized Identity and Why is it Gaining Traction?

Decentralized identity (DID) refers to a new approach to digital identity management that empowers individuals with full control over their personal data, enabling them to share it selectively and securely without relying on central authorities or intermediaries. Unlike traditional identity systems where a central organization (such as a government or a corporation) manages and verifies identity, decentralized identity relies on blockchain or distributed ledger technologies (DLT) to create a secure, immutable, and privacy-preserving identity system. This model allows users to have ownership and control over their identity and credentials, providing a higher level of privacy and security in digital interactions.

The primary appeal of decentralized identity systems is that they eliminate the need for third-party verifiers, such as banks, governments, or large tech corporations, to act as gatekeepers for identity validation. This not only enhances security but also reduces the risk of identity theft, fraud, and unauthorized access to sensitive personal data. Additionally, it provides individuals with more autonomy over how and when their personal information is shared. As data privacy concerns and cybersecurity threats continue to rise globally, decentralized identity solutions are increasingly viewed as a way to offer more secure and user-centric alternatives to traditional identity management systems. The shift toward decentralized identity also aligns with global efforts to reduce the reliance on centralized databases, making it an important part of the broader digital transformation landscape.

How Are Technological Innovations Advancing Decentralized Identity Solutions?

Technological innovations, particularly in blockchain and distributed ledger technologies (DLT), are central to the evolution and growth of decentralized identity solutions. The use of blockchain ensures that identity data is not stored in a centralized server, reducing the risks of data breaches or unauthorized access. Blockchain’s immutable nature guarantees the integrity and authenticity of identity records, which can be verified without compromising user privacy. As blockchain technology continues to mature, the use of smart contracts is also being integrated into decentralized identity systems, enabling automated and trustless verification of credentials in real-time.

Another key innovation driving the development of decentralized identities is the use of zero-knowledge proofs (ZKPs) in identity verification. ZKPs allow individuals to prove certain facts about themselves—such as their age, citizenship, or qualifications—without revealing the underlying personal data. This feature is particularly important in scenarios where privacy is paramount, such as online age verification or authentication for sensitive transactions. Furthermore, the integration of biometrics (such as facial recognition or fingerprints) and multifactor authentication (MFA) with decentralized identity solutions is enhancing both security and user convenience. These innovations are pushing the boundaries of what’s possible in terms of secure, user-controlled, and privacy-preserving digital identities, making them a compelling choice for enterprises and consumers alike.

What Are the Key Market Trends Shaping the Decentralized Identity Landscape?

Several key trends are driving the adoption and growth of decentralized identity solutions. First and foremost is the increasing demand for data privacy and cybersecurity. As data breaches and identity theft incidents become more prevalent, individuals and organizations are seeking alternatives that provide enhanced security and greater control over personal information. With traditional identity systems often prone to centralized points of failure, decentralized identity offers a robust solution to these security risks by ensuring that identity data is not stored in vulnerable central repositories.

Another significant trend is the rise of digital transformation and the need for scalable, secure identity management solutions across industries. As businesses move towards digital-first models, they need a secure, interoperable way to verify identities without relying on traditional, paper-based or centralized verification systems. Decentralized identity is well-suited to meet this need, especially in industries like finance, healthcare, government services, and e-commerce, where secure and seamless identity management is critical for both compliance and user experience. Moreover, the global push for self-sovereign identity (SSI) is accelerating, as it aligns with the principles of individual empowerment and autonomy over personal data, making decentralized identity increasingly relevant in the age of data ownership.

The integration of decentralized identity with emerging technologies like Internet of Things (IoT), artificial intelligence (AI), and smart cities is also a growing trend. As more devices and systems require identity verification to interact with individuals, a decentralized and secure identity system becomes increasingly necessary. For instance, in smart cities, decentralized identity solutions can be used to authenticate individuals for services like public transport, healthcare, or access to government programs, ensuring both security and privacy. Similarly, in the IoT ecosystem, where millions of devices communicate with users, secure and verifiable identity systems are crucial to ensure that the right individuals have access to the right data and services.

What Are the Key Growth Drivers Behind the Decentralized Identity Market?

The growth in the decentralized identity market is driven by several key factors, each rooted in the increasing demand for privacy, security, and efficiency in digital identity management. One of the primary growth drivers is the escalating concerns around data privacy and cyberattacks. Traditional identity systems are often centralized, making them vulnerable to breaches and misuse. As people become more aware of these risks, there is a growing desire for a more secure and user-controlled alternative, which decentralized identity solutions provide. With regulations like the European Union’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) increasing pressure on organizations to prioritize privacy, decentralized identity is emerging as a solution to help businesses meet these regulatory requirements while empowering consumers to control their own data.

Another significant driver is the increasing adoption of blockchain technology, which forms the backbone of most decentralized identity systems. As blockchain continues to gain traction across various industries for its security, transparency, and decentralization features, its use in identity management is also growing. This adoption is helping organizations to streamline their identity verification processes, reduce fraud, and improve user trust. Furthermore, the growing importance of digital-first services, from remote work to online banking and telemedicine, is propelling the need for secure, interoperable identity systems that can function across multiple platforms and jurisdictions. Decentralized identity solutions are uniquely positioned to meet this demand, as they enable individuals to seamlessly authenticate their identities across a range of digital environments without the need for multiple passwords or logins.

Moreover, the shift toward self-sovereign identity (SSI) is gaining momentum, especially as users demand more control over their personal information. SSI systems enable individuals to manage their own credentials, reducing the reliance on third-party providers for identity verification. This is particularly valuable in industries where individuals need to prove their identity across various contexts (e.g., applying for loans, accessing healthcare services, or renting property), and it ensures that personal data is only shared when absolutely necessary. As the global shift toward data sovereignty continues, decentralized identity systems are expected to play a pivotal role in shaping the future of identity management. The increasing recognition of the economic, security, and user-centric benefits of decentralized identity is thus driving rapid growth in the market, positioning it as a critical component of the broader digital ecosystem.

SCOPE OF STUDY:

The report analyzes the Decentralized Identity market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Identity Type (Biometrics-based Identity, Non-Biometrics Identity); User Type (Individual Users, Enterprise Users); Enterprise Size (Large Enterprises, Small and Medium Enterprises); Vertical (BFSI Vertical, Government Vertical, Healthcare and Life Sciences Vertical, Telecom and IT Vertical, Retail and E-commerce Vertical, Transport and Logistics Vertical, Real Estate Vertical, Other Verticals)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 42 Featured) -

• IBM
• Ping Identity
• Avast
• walt.id
• Dock
• Civic
• Evernym
• Concordium
• Curity
• IndieAuth
• Ethereum Name Service (ENS)
• Galxe
• Voyatek
• SoluLab
• Alchemy
• Antier Solutions
• Gartner
• MeWe
• Frank McCourt`s Project Liberty
• Sovrin Foundation

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

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APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

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JAPAN
INDIA
176 OTHER COUNTRIES.

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