The global decentralized identity market size was estimated at USD 647.80 million in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 90.3% from 2023 to 2030. Privacy and security concerns have become increasingly prominent in today's digital landscape. With traditional centralized identity systems, individuals have limited control over their data, which raises concerns about data breaches and unauthorized access. Decentralized identity (ID) solutions offer a more secure and privacy-centric approach by enabling individuals to own and control their digital identities.

The rise of blockchain technology has paved the way for decentralized identity solutions. Blockchain provides a transparent and immutable ledger that can securely store and verify identity information. This eliminates the requirement for intermediaries and creates a trustless environment where identity verification can be done directly between parties, reducing costs and improving efficiency. Moreover, increasing demand for frictionless and seamless user experiences is accentuating the acceptance of decentralized ID worldwide.

Gather more insights about the market drivers, restrains and growth of the Decentralized Identity Market

Detailed Segmentation:

Identity Type Insights

In terms of identity type, the biometric segment dominated the market in 2022 with a revenue share of more than 64.0%. Biometric identifiers, such as fingerprints, facial recognition, iris scans, and voice recognition, provide a high level of precision and security in authenticating an individual's identity. This type of identity verification offers a strong level of verification and is difficult to forge or replicate, making it highly reliable for forming trust in digital interactions. Biometric identity also offers convenience and ease of use for users. With biometric authentication, individuals can confirm their identity quickly and seamlessly by solely using their distinctive biological traits. This excludes the necessity for passwords or other traditional forms of authentication, which can be easily forgotten, stolen, or compromised.

End-user Insights

In terms of end-user, the enterprises segment dominated the market in 2022 with a revenue share of more than 65.0%. Growing concern for reducing business risk is a significant factor driving segment growth. Moreover, a decentralized identity framework enables enterprises to control users’ identities independently of the identity issuer. Furthermore, a decentralized identity eliminates the initial need for organizations to gather and store personal data.

Enterprise Size Insights

In terms of enterprise size, the large enterprises segment dominated the market in 2022 with a revenue share of over 67.0%. Demand for decentralized identity is rising among large enterprises as these enterprises are trying aggressively to avoid identity risk. For instance, in August 2022, Litentry, a multi-chain identity protocol, announced a partnership with Node Real, a blockchain infrastructure solution provider. Through the partnership, Litentry can incorporate NodeReal's MegaNode, which offers powerful real-time and historical data indexing on the Ethereum and Binance Chain networks.

Vertical Insights

In terms of vertical, the BFSI segment dominated the market in 2022 with a revenue share of over 19.0%. Banks are required to conduct KYC checks to confirm customers' identity and ensure they are not involved in any illegal activity, such as bribery or money laundering. In addition, the U.S. spends USD 25 billion on Anti Money Laundering (AML) compliances. Moreover, according to Forbes, in April 2019, major banks spent up to USD 500 million annually on cybersecurity.

Regional Insights

In terms of region, North America dominated the market in 2022 with a revenue share of more than 31.0%. North America region has a varied range of industries and sectors that can benefit from decentralized identity solutions. These comprise financial services, healthcare, government, and e-commerce, among others. The need for secure and effectual identity authentication, data sharing, and user verification in these sectors has driven the adoption of decentralized identity technologies. In addition, it has a huge and tech-savvy population that is progressively more aware of the significance of data privacy and digital security, which is also accentuating the market growth in the region.

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Key Companies profiled:

• Microsoft Corporation
• Accenture plc
• Wipro Limited
• SecureKey Technologies Inc.
• Persistent Systems Limited
• Avast Software s.r.o.
• Civic Technologies, Inc.
• R3
• Validated ID, SL
• Dragonchain
• Nuggets
• 1Kosmos Inc.

Decentralized Identity Market Segmentation

Grand View Research has segmented the global decentralized identity market based on identity type, end-user, enterprise size, vertical, and region:

Decentralized Identity Identity Type Outlook (Revenue, USD Million, 2019 - 2030)
• Biometrics
• Non-biometrics

Decentralized Identity End-user Outlook (Revenue, USD Million, 2019 - 2030)
• Individual
• Enterprises

Decentralized Identity Enterprise Size Outlook (Revenue, USD Million, 2019 - 2030)
• Large Enterprises
• Small & Medium Enterprises

Decentralized Identity Vertical Outlook (Revenue, USD Million, 2019 - 2030)
• BFSI
• Government
• Healthcare & Life Sciences
• Telecom & IT
• Retail & E-commerce
• Transport & Logistics
• Real Estate
• Media & Entertainment
• Travel & Hospitality
• Others

Decentralized Identity Regional Outlook (Revenue, USD Million, 2019 - 2030)
• North America
o U.S.
o Canada
• Europe
o Germany
o UK
o France
o Italy
o Spain
• Asia Pacific
o China
o India
o Japan
o South Korea
o Australia
• Latin America
o Brazil
o Mexico
• Middle East & Africa
o Kingdom of Saudi Arabia (KSA)
o UAE
o South Africa

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