Total global revenues from the provision of digital identity services and technologies, including third-party and civic identity apps, centralised identity schemes and digital ID verification, will exceed US$53bn in 2026 compared with US$26bn in 2021, according to a forecast by Juniper Research.
The total spend on digital ID verification will increase from US$9bn in 2021 to US$16bn in 2026, the researchers say.
However, the research also states that the US is “significantly lagging behind in digital identity terms, accounting for only 7% of digital identity revenue in 2026”.
“The US’s lack of national identity schemes and coordinated strategies is a major limiting factor,” the researchers say.
Juniper’s Digital Identity: Key Opportunities, Regulatory Landscape & Market Forecasts 2022-2026 report also identifies multimodal biometric authentication, digital onboarding — including single sign-on solutions and self-sovereign identity — as “growing trends” across the digital identity market.
“Identity is increasingly viewed as an ecosystem rather than an end product; therefore, new identity systems will heavily depend on both the foundations (ie federated and/or decentralised identity models) and the technology linked to process layers (ie biometrics, AI, ML),” the researchers say.
“At the core of these systems will be UX and simplicity/convenience of use. This success will also depend on how different components are integrated in quite possibly an all-in-one solution.”