Global Decentralized Identity Market Outlook to 2028

Global Decentralized Identity Market Overview

The Global Decentralized Identity Market was valued at USD 680 million in 2023. The market is primarily driven by the growing need for secure and user-centric identity management solutions, the rising incidence of data breaches, and the increasing adoption of blockchain technology.

The major players in the global decentralized identity market include Microsoft Corporation, IBM, u Port, Civic Technologies, and Sovrin Foundation. These companies are leading the development of decentralized identity solutions, focusing on blockchain-based technologies that enhance security, privacy, and user control over personal data.

North America dominated the global decentralized identity market due to the early adoption of blockchain technology, substantial investments in cybersecurity infrastructure, and a strong regulatory environment that emphasizes data privacy. The region's technological advancements and focus on digital transformation have further solidified North America's leading position in this market.

In October 2023, Microsoft announced significant changes related to Azure AD, including its rebranding to Microsoft Entra ID. This transition is part of a broader strategy to unify Microsoft's identity and access products under the Microsoft Entra umbrella, which includes various solutions such as Microsoft Entra Verified ID, a decentralized identity offering.

Global Decentralized Identity Market Segmentation

The global decentralized identity market is segmented by region, component, and identity type.

By Region: The global decentralized identity market is segmented into North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and Latin America. In 2023, North America held the largest market share, supported by technological advancements, substantial investments in cybersecurity infrastructure, and a strong regulatory environment that prioritizes data privacy.

By Component: The market is segmented into solutions and services. In 2023, the solutions segment held the highest market share, driven by the increasing demand for secure and user-centric identity management systems that utilize blockchain technology to enhance privacy and data security.

By Identity Type: The market is segmented into self-sovereign identity, federated identity, and verifiable credentials. In 2023, the self-sovereign identity segment held the largest market share due to its ability to provide users with full control over their digital identities, reducing the risk of data breaches and identity theft.

Global Decentralized Identity Market Competitive Landscape

Company

Establishment Year

Headquarters

Microsoft Corporation

1975

Redmond, Washington, USA

IBM

1911

Armonk, New York, USA

u Port

2016

New York, New York, USA

Civic Technologies

2016

San Francisco, California, USA

Sovrin Foundation

2017

Provo, Utah, USA

IBM: In 2023, IBM has been recognized as a key player in the decentralized identity landscape, leveraging blockchain technology to enhance security and user control over personal data. The company is part of a broader movement that anticipates the decentralized identity market will grow significantly.

u Port: In 2023, u Port has engaged in various partnerships aimed at enhancing its offerings and expanding its reach within the decentralized identity ecosystem. Collaborations with blockchain networks and enterprises are expected to bolster its market presence and drive adoption of decentralized identity solutions.

Global Decentralized Identity Market Analysis

Global Decentralized Identity Market Growth Drivers:

Increasing Data Privacy Regulations: In 2023, the European Union's General Data Protection Regulation (GDPR) prompted organizations to adopt decentralized identity solutions to comply with these rules. According to a report by the European Data Protection Board, over 6,000 data breach notifications were filed in the EU in the first half of 2023, underscoring the urgent need for identity management systems that decentralized identity solutions offer.

Rise in Cybersecurity Threats: In 2023, global cybercrime damages were estimated to cost USD 8 trillion annually, according to the World Economic Forum. The decentralized identity market is growing as organizations look for advanced solutions to mitigate these risks. By leveraging blockchain technology, decentralized identity solutions provide enhanced security and reduce the risk of identity theft and fraud.

Government Initiatives Promoting Data Privacy: Government initiatives aimed at enhancing data privacy and security are also driving the decentralized identity market. For example, the European Unions General Data Protection Regulation (GDPR) and Indias Digital Personal Data Protection Bill encourage the use of decentralized identity solutions to ensure compliance with data protection laws.

Global Decentralized Identity Market Challenges:

Lack of Standardization: One of the main challenges in the decentralized identity market is the lack of standardization across platforms and technologies. This lack of standardization creates interoperability issues and complicates the integration of decentralized identity solutions with existing systems. Organizations are often hesitant to invest in these solutions due to concerns about compatibility and long-term viability.

High Implementation Costs: The cost of implementing decentralized identity solutions can be a significant barrier for many organizations, especially small and medium-sized enterprises (SMEs). These costs include investments in blockchain infrastructure, software development, and integration with legacy systems. In 2023, a survey by the National Institute of Standards and Technology (NIST) found that 60% of SMEs in the United States cited high implementation costs as a major challenge.

Global Decentralized Identity Market Government Initiatives:

European Self-Sovereign Identity Framework (ESSIF): In 2023, the European Union launched the European Self-Sovereign Identity Framework (ESSIF) to promote the use of decentralized identity solutions across member states. By investing EUR 15 million in pilot projects, the EU is encouraging public and private sector organizations to develop and implement decentralized identity technologies, thereby fostering innovation and enhancing digital sovereignty in the region.

Indias Digital Personal Data Protection Bill: In 2024, the Indian government introduced the Digital Personal Data Protection Bill to enhance data privacy and protection measures in the country. The bill mandates the use of decentralized identity solutions to ensure that individuals have greater control over their personal data and to minimize the risk of data breaches.

Global Decentralized Identity Market Future Market Outlook

The Global Decentralized Identity Market is expected to grow substantially over the coming years, driven by the increasing demand for secure and user-centric identity management solutions, advancements in blockchain technology, and supportive government initiatives.

Global Decentralized Identity Market Future Market Trends:

Integration with Internet of Things (Io T) Devices: By 2028, decentralized identity solutions are expected to be widely integrated with Io T devices to ensure secure communication and data exchange. As the number of connected devices continues to grow, there will be a pressing need for robust identity solutions that can manage and protect sensitive information across multiple platforms.

Expansion into New Industries: The adoption of decentralized identity solutions is expected to expand into new industries, including education, retail, and supply chain management. These sectors are increasingly recognizing the benefits of secure and user-centric identity management systems, driving demand for decentralized identity technologies.
Please Note: It will take 5-7 business days to complete the report upon order confirmation