The striking growth is due to factors such as the rise in cyber crime specifically related to digital authentication and identity related frauds, the need to comply with stringent regulations such as GDPR, CCPA, and eIDAS, and an increased innovation in technologies such as biometric authentication and AI which has brought maximum convenience and security to the users.
Increasing appetite for biometrics
The hardware segment dominates the digital identity solutions market because of the increasing demand for biometric authentication hardware, such as fingerprint scanners and facial recognition systems, addresses stringent security requirements against identity fraud and cyber threats, offering more robust protection compared to software solutions. In addition to this, the integration of advanced and emerging technologies like IoT and AI into hardware is fueling the demand, enabling secure identity management across various applications. Additionally, the rising adoption of biometric techniques in sectors such as retail and e-commerce boosts the growth potential of the hardware segment as it enhances secure and seamless identity verification for fraud prevention and customer convenience.
Flexibility and scalability in the cloud
The cloud segment provides flexibility, scalability, and cost-effectiveness, making it an excellent choice for enterprises managing identity services. The cloud-based model enables seamless integration with current IT infrastructure and improves accessibility across various devices, making it ideal for remote and hybrid work situations. Furthermore, the growing use of cloud services, along with advances in AI and machine learning for identity verification and authentication, is accelerating the need for cloud-based digital identity solutions. Furthermore, legal requirements for safe data handling, as well as increased cyber security concerns, are driving firms to adopt sophisticated cloud-based identity management.
Numerous US vendors
North America is projected to have the largest market size in the digital identity solutions market because of the presence of a large number of vendors such as IBM, Crowdstrike, and DXC Technology as well as due to the region’s advanced technological infrastructure. North America has strict regulations like HIPAA and CCPA which pushes organisations to maintain a secure environment by deploying robust cyber security solutions and services. In addition to this, the growing cases of identity-related fraud and cyber crimes in the region are driving the region’s market growth.
Main players
The report profiles key players such as Thales, NEC Corporation, Idemia, Samsung SDS, Telus, HID Global, Crowdstrike, DXC Technologies , IBM , and Cyberark (US).
