The global digital identity solutions market size is growing at a high CAGR during the forecast period (2022-2029).
Information on an entity used by a computer system to represent an external agent is digital identity. Accessing computers and offering services to clients is made possible by digital identity systems. A digital identity solution is the compliance of information about an individual that exists in a digital form, encompassing all data ranging from the individual's date of birth to all behaviors on social media platforms.
The solutions have various advantages, including high accuracy & compliance, minimal operational costs, improved client experience and enhanced security. As they have a large workforce and accompanying networking equipment prone to identity-related threats, several businesses benefit from digital identification solutions.
Identity results have received greater popularity due to the increasing adoption and investments in digital transformation, as it aids safe identification and improved positive security, which promotes industry growth. As per the International Data Corporation (IDC), 40 percent of all technology spending is committed to transformations each year, leading to concurrent rises in the market for digital identity solutions over the projection period.
The increasing adoption of authentication across various end-user
Previously, identification and authentication were only available in certain industries, such as banking, finance and aviation. Identification and authentication were time-consuming procedures that necessitated a great deal of documentation. Identification and authentication processes have become easier due to greater technological innovation and digitization, yet there are certain concerns, such as data security and privacy breaches.
Banks were the first to implement the simpler authentication method, followed by other industries such as retail, eCommerce and healthcare. Even though this growing use across other end-users is now limited to a few affluent countries, it is rapidly gaining traction globally. As a result, it is a terrific opportunity that businesses are looking for.
Biometrics integrated smartphones
The number of smartphone users global has surged due to rapid technology breakthroughs and the world is becoming more linked than ever before. The only secure authentication method was using a password key mechanism in the past. As technology advances, password security measures are becoming easier to exploit. Digital identity-based security, such as biometric technology and multi-factor authentication, is more secure than passwords. Most smartphones come with a camera and security features like fingerprint and facial recognition. Many smartphone manufacturers are incorporating fingerprint and facial recognition technologies into their devices.
These authentication systems are also popular among consumers because they are more secure. After all, only one person can unlock them. Smartphones will be even more useful shortly, thanks to increased online buying due to a boom in eCommerce and an increase in digital identity-based verification in sectors like BFSI and retail. As a result of convenience and reduced time consumption, digital identity-based authentication would eventually replace traditional password systems.
High deployment costs
Organizations across all sectors are concerned regarding the growing threat of cyberattacks and identity-related frauds and thefts. To address the security concerns, organizations have begun to install digital identity solutions for identification & authentication. However, one of the factors limiting the growth of the digital identity solutions market is the high cost of implementation.
The initial expenses and investments required to establish digital identity solutions are substantial. Because of their limited expenditures, SMEs usually only pay attention to security after a breach. Enterprises prioritize the security of only critical servers, ignoring the data held in databases, which becomes vulnerable to cyber-attacks. As a result, the insufficient budget remains a significant challenge for professionals to effectively carry out IT security operations.
The COVID-19 pandemic positively impacted the market for digital identity solutions. COVID-19-imposed lockdowns and mandates to move industries and organizations to operate remotely increase the widespread use of BYOD devices. As a result, there is a significant market demand for digital identity solutions.
Amid the COVID-19 pandemic, the necessity for cybersecurity measures and cyber hygiene practices to maintain robust security policies and procedures grew, contributing to the growth of the digital identity solutions market.
The digital identity solutions market is segmented into small & medium enterprises and large enterprises by organization size.
Large enterprises are highly prone to risks related to identity.
Large businesses have a larger proportion of the global digital identification solutions market in terms of revenue. Large companies are redesigning their security policies and architecture to embrace digital identity solutions to safeguard important assets from diverse cyber-attacks. They were early adopters of digital identification solutions because they have a large workforce and associated networking equipment vulnerable to identity-related risk. The businesses employ a huge number of people, making them particularly vulnerable to identity-related dangers and, as a result, to data loss.
Furthermore, because the businesses are based in different parts of the world, they exchange real-time data with their staff. These data losses might severely impact an organization's financial growth in the face of escalating cyber-attacks. As a result, businesses are likely to engage in digital identification solutions to mitigate identity threats. It will very certainly enhance demand in the targeted market category.
The early adoption of digital identity solutions in North America
North America held a majority of the global market share and is expected to continue to do so in the future years. Because of the early adoption of digital identification solutions for managing duties effectively and securely across enterprises and industry end-users. Furthermore, businesses and sectors in the region are rapidly using digital identity solutions to enable data protection and maintain data security and confidentiality to ensure business continuity.
Furthermore, the region has a large pool of market suppliers with diverse operations and consumer bases, resulting in increased availability of such solutions. Daon and ForgeRock, for example, extended their current cooperation in May 2020 to include their biometric products with plug-and-play biometric nodes. This type of initiative is also to blame for the market growth in the region.
Product launches, approvals and other organic growth tactics such as patents & events are being prioritized by several companies. Acquisitions, partnerships and collaborations were seen as inorganic growth tactics. With the rise in demand globally, market payers in the digital identity solutions market are expected to benefit from attractive growth prospects.
GBG and Sanci Address formed cooperation in June 2020 to improve retailer and logistics company location data for easier access to niche markets. In September 2020, Thales Group partnered with AUGENTIC-INCM to secure a substantial national ID document contract in Sweden and Cameroon. The agreement would benefit the Republic of Cameroon as it revolutionizes its biometric passport and issuance procedure.
Major global digital identity solutions market companies include NEC Corporation, Samsung SDS America Inc., Thales Group, TELUS group, ForgeRock, Jumio, Tessi, Duo security, Image ware systems Inc. and Syntizen technologies Pvt. Ltd.
Overview: NEC Corporation, based in Minato, Tokyo, is a Japanese multinational information technology and electronics corporation. Before rebranding as NEC in 1983, the corporation was known as the Nippon Electric Company, Limited. It offers cloud computing, artificial intelligence (AI), an Internet of Things (IoT) platform and telecommunications equipment and software. It has been Japan's largest PC vendor since the 1980s when it introduced the PC-8000 series.
NEC is the world's top producer of biometric software and digital identity solutions. NEC enables businesses to simply and cost-effectively integrate biometric capabilities into their applications and processes for accurate 1:1 or 1:n real-time matching. Over 1,000 customers in over 30 countries have used NEC's identifying systems.
Product Portfolio: NEC Corporation invests extensively in research and has years of experience providing national-scale digital identity services and biometrics to secure airports and international borders. Face Recognition is a biometric modality offered by NEC Biometrics, which can be expanded in the future to incorporate additional biometric modalities such as voice, iris and fingerprint. Many global governments have utilized NEC's facial recognition systems to identify and authenticate well over a billion people. India, Singapore, Argentina, South Africa and Japan are involved.
Key Development: NEC Corporation, a Japanese technology corporation and SITA, an IT technology firm, announced a partnership in 2020 to develop solutions for a secure travel experience at airports throughout the world. NEC's I: Delight identity management technology and SITA Smart Path and SITA Flex will be used in the agreement. In the wake of the COVID-19 outbreak, airports and airlines are looking into ensuring low-touch and automated passenger processing to meet safety criteria.
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