Strong Growth In Digital ID Market Drives Biometrics Sector
Marketsandmarkets researchers estimate that the global digital identity solutions, or DIS, market size is projected to grow from USD 34.5 billion in 2023 to USD 83.2 billion by 2028 at a more than healthy CAGR of 19.3% during the forecast period. The rise in identity and authentication fraud and increased integration of AI, ML, and blockchain to enhance digital identities drives the growth of the DIS market. Moreover, the high cost associated with the deployment of digital identity solutions may hinder market growth.
The adoption of digital identity solutions is driven by enhanced security needs for secure authentication and access control in large enterprises. Large enterprises were the early adopters of digital identity solutions. They have a vast workforce and associated networking devices susceptible to identity-related risks. Organisations have offices across regions, forcing them to provide their solution through real-time data access to their employees. Additionally, there are no budget constraints in large organisations; therefore, these organisations can adopt the on-premises-based digital identity solution. Organisations are increasingly enhancing their businesses’ productivity across regions by adopting digital identity solutions. Additionally, the solution can detect access risk, excess risk, and risk outliers. Hence, large enterprises are expected to increasingly adopt digital identity solutions that comply with various standards and regulations.
Secure biometrics leads the charge
The need for biometric solutions is driven by the demand for a seamless experience for the customer. Digital identity solutions traditionally evolved from passwords to biometric authentication, such as fingerprint, facial recognition, retina or eye scan, handprint, and voice recognition. Lock and capture mechanisms are followed by biometric solutions to authenticate the individuals and enable access to a specific set of services. Compared to conventional keys (or keycards) and password systems, biometric solutions are more secure. These solutions also use multi-factor authentication to add an extra layer of protection. Increasing demand for digital identity solutions, identity authentication, ID verification, and others, including compliance management and fraud prevention, is driving the growth of the biometric solutions segment.
Asia Pacific is a huge growth area
Asia Pacific includes big developing economies, such as Australia, China, Japan, India, Singapore, and South Korea. With the increase in technological innovations, the digital identity solutions market is witnessing high growth opportunities in this region. Developing countries, such as India, use digital identities to authenticate their citizens, whereas developed countries use digital identities for more advanced applications, including accessing government services and identification. Various vendors are trying to fulfill the demand for digital identity in the Asia Pacific. For example, Forgerock, a global digital identification provider, continues its development throughout Asia and the local availability of its Forgerock identification Cloud from two additional data centres in Hong Kong and Indonesia. With this expansion, Forgerock’s Identity cloud is now available in 17 countries globally. Such expansions are strengthening the growth of digital identity solutions in the Asia Pacific.
The widespread technology implementation across verticals, such as BFSI, retail and Ecommerce, and healthcare, in terms of mobility and cloud computing, has led to the increase in customer base and internet users, compliance regulations, and mobile usage, eventually leading to the need to deploy digital identity solutions.
Major players
Some of the largest and most active players in this market that are mentioned in the new report from Marketsandmarkets, are as follows: NEC, Samsung SDS, Thales, Telus, Idemia, GBG, Tessi, Daon, Forgerock, Imageware, Jumio, Iproov, ID R&D, Refinitiv, Onespan, Smartmatic, Freja EID Group, Vintegris, Au10tix, Signicat, Duo Security, Synitzen, Hashcash Consultant, and Good Digital Identity.
