A new study by Juniper Research has found that revenue for digital identity vendors will exceed US $53 billion globally in 2026; doubling from US $26 billion in 2021.
Digital identity revenue includes third-party and civic identity apps, centralized identity schemes, & digital identity verification. In addition, the research predicts that the increased demand for digital onboarding frameworks in the face of the ongoing pandemic will accelerate the uptake of digital identity services.
The research also identified verified digital identity, where identities are confirmed as genuine using verifiable credentials, as being vital for improving fraud mitigation. This represents the next evolutionary step for digital identity; moving from establishing infrastructure to utilizing & verifying identity in practical applications. To facilitate this, the report predicts increasing data partnerships between vendors to provide comprehensive, data diverse identity systems.
Verification Now the Key Requirement
The new research, Digital Identity: Key Opportunities, Regulatory Landscape & Market Forecasts 2022-2026, found that verification spend will exceed US $16 billion in 2026, from $9 billion in 2021. This growth reflects that, as users migrate to digital channels, the need to verify identity digitally also grows. As fraudsters exploit opportunities, verification capabilities will proliferate to wider industries & use cases than ever before.
Research co-author Damla Sat explained in a statement, “Digital identity verification tools have become more critical across a broader range of industries than ever, from banking & financial services to eGovernment, healthcare & others. Developing effective user experiences for different verification scenarios will be important for realizing digital identity’s potential.”
