Blockchain Identity Management Market Size USD 11.24 Billion by 2035 | Market Insights Research

Blockchain Identity Management Market was worth USD 5.58 billion in 2024 and is anticipated to expand at a CAGR of more than 51.34% during the period from 2024 to 2035.

Among the major drivers of the market growth is backing from major technology firms. Major technology firms such as Microsoft, IBM, and Oracle are investing heavily in the development and adoption of identity management solutions using blockchain technology. These companies add immense resources, state-of-the-art technological expertise, and immense market influence, all of which accelerate the innovation and adoption of these solutions. Businesses elevate the reputation and credibility of blockchain identity management by integrating it into their platforms and product portfolios.

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One of the biggest challenges to the blockchain identity management industry is integration with legacy systems. An established IT platform that has been developed and matured over several decades drives much business. Because these legacy systems often rely on traditional & centralized identity management systems, a move to a decentralized blockchain-based approach will require much technical expertise and resources. Some existing systems may not be designed to talk to blockchain technology, resulting in issues of compatibility.

The market also has to deal with the problem of data migration, which requires careful planning and execution in order to ensure proper and safe transfer of identification data to the new system. To operate and manage the new blockchain-based identification systems, the staff usually needs to be heavily retrained, which increases the cost and the complexity even more. These challenges of assimilation can hinder the implementation of blockchain identity management since organizations might not want to upset their existing processes and systems.

Blockchain Identity Management Market Analysis

On the basis of offering, the market has been segmented into software & service. The service segment will witness a CAGR of 55% during the period from 2024 to 2032.

Different professional services that assist the implementation, integration, and maintenance of blockchain-based identity solutions are under the service part of the blockchain identity management market. It includes managed services, custom development, system integration, and consultancy.
The demand for expert expertise to guide businesses through the complicated landscape of identity management and blockchain technology is increasing as more and more businesses use blockchain identity management systems. Advisory services help businesses develop plans, coordinate implementations, and understand the potential benefits and challenges of blockchain identification solutions.
System integration services ensure that applications and IT infrastructure that are already deployed are able to talk to blockchain identity systems with no issues. Custom development services design solutions specifically tailored to satisfy the needs of an organization. Professional services demand is increasing with more companies becoming aware of the importance of blockchain identity management and wanting to benefit from its capability while maintaining smooth transition and optimum performance.

Blockchain is going mainstream in Japan! With the nation strengthening its defenses against cyber threats and going digital all the way, blockchain identity management is stepping up to be the solution of choice. The government is spearheading it with its “Society 5.0” initiative aimed at making technology a part of all walks of life. And secure digital identities form a significant part of that initiative. Firms, particularly in manufacturing and finance, are looking at blockchain to secure and simplify their identity management systems. Not only that, but government agencies such as the Financial Services Agency (FSA) are also working aggressively to develop regulations that promote the use of these technologies. And businesses and policymakers are working together to establish standards for using blockchain to authenticate who you are online. All of this is pushing the development of blockchain identity management in Japan forward.

South Korea is also a buzzword in the world of blockchain identity management, due to its highly developed tech infrastructure and government support. The government of South Korea has introduced projects and legislation to make it simpler to utilize blockchain technology, including digital ID systems. Shout-out to the Ministry of Science and ICT for also making things blockchain-friendly. High-profile South Korean firms such as LG and Samsung are boarding the blockchain train, investing in ID management technologies to secure and privatize their products and services. Clever South Koreans love embracing the latest technology, which is providing a boost to the blockchain sector. All of these elements are setting South Korea at the wheel as a pioneer in this new realm.

China’s vision to emerge as a pioneer in blockchain-based identity management is no easy achievement. The administration thinks it’s revolutionary, so it’s pumping serious money into the technology and supporting it with firm regulations. Government-sponsored projects are exploring how to apply blockchain to secure and streamline digital transactions and government services. These solutions may ultimately become part of the massive digital platforms employed by technology giants such as Tencent and Alibaba. However, China’s stringent data protection and cybersecurity laws may render it difficult for blockchain identity management solutions to gain traction.

Network Insights

The permission segment led the market in 2022 and recorded a revenue share of more than 72.0%. Permissioned networks have become prominent as they can solve major issues around privacy, scalability, and regulatory compliance. Permissioned networks offer selective access to approved stakeholders while keeping sensitive identity information away from unwanted parties. This solution fits hand-in-glove with the requirements for security and protection of data by identity management since organizations get a greater sense of control about whom to invite in and be on the network. Furthermore, permissioned networks support better scalability so that more volume of identities could be accommodated without making performance an issue.

MIR has segmented the global blockchain identity management market report based on offering, provider type, network, enterprise size, vertical, and region:

• Offering Outlook 
  • Software
  • Services
• Provider Type Outlook 
  • Application Provider
  • Middleware Provider
  • Infrastructure Provider
• Network Outlook 
  • Permissioned
  • Permissionless
• Enterprise Size Outlook 
  • Small & Medium Enterprises
  • Large Enterprise
• Vertical Outlook 
  • BFSI
  • IT & ITeS
  • Telecommunications
  • Government
  • Healthcare
  • Retail & E-commerce
  • Media & Entertainment
  • Travel & Hospitality
  • Others

Key Players & Market Share Analysis

A combination of long-standing technology vendors, new-age startups, and strategic partnerships defines the competitive market landscape. Industry leaders are always investing in R&D to advance their blockchain identity offerings, focusing on delivering strong security capabilities, easy-to-use experiences, and support for emerging regulations. Veteran technology players bring their significant resources and experience to the table, and the startups introduce new ideas and nimble methods for addressing identity management issues. Strategic alliances and collaborations between government agencies, financial institutions, and tech firms are driving the creation of end-to-end and interoperable identity solutions.

Major players are focusing on new product releases. For example, in March 2023, Ping Identity, a leading enterprise intelligent identity solutions provider, launched a new product called PingOne Neo, which offers early access to a decentralized identity management solution with multi-standard support. This new solution is designed to improve data security, privacy, and personal control while simplifying operational efficiency and business compliance needs. Some of the key players in the global market for blockchain identity management are:

IBM Corporation

Amazon Web Services, Inc.

Oracle Corporation

Microsoft Corporation

Dock Labs AG

NEC Corporation

Bitfury Group Limited

Antiersolutions

Wipro

NuID, Inc.

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