The size of the global decentralized identity market was approximately USD 899.80 million in 2024 and is estimated to increase at a compound annual growth rate (CAGR) of 23.3% from 2025 to 2035
Concerns around privacy and security have been becoming increasingly significant in the current digital age. Using the traditional centralized identity models, the control one has over data is very little, which raises fears about unauthorized access and data breaches. Decentralized ID solutions provide a safer and privacy-focused alternative by allowing users to own and manage their digital identities.
The surge in identity fraud and theft is a fire that drives the development of decentralized identity. They are similar to burglars breaking into our online identities and stealing from us, resulting in lost funds, damaged reputations, and broken trust online. Old methods of dealing with our identities are a huge, juicy piggy bank for these thieves. But decentralized identity is a bunch of smaller, tougher-to-burst piggy banks distributed over a vast open field. That makes it extremely difficult for the crooks to bust into all of them simultaneously. So, in decentralized identity, our personal info is more secure, and there are fewer opportunities for identity-based crime. It’s like a set of lots of little well-defended fortresses rather than a single big vulnerable castle.
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Decentralized Identity Market Trends
So, in digital identity, one of the really hip trends is the emergence of Self-Sovereign Identity (SSI) systems. With SSI, you become the master of your own identity information. You can hold it close to your heart, control it yourself, and share it only when you choose to do so, all without needing some large corporation in the middle to manage things. Why has SSI gained so much popularity? Well, individuals are becoming increasingly concerned about their data security and privacy. SSI addresses this by allowing you to keep your identity information on your own device. That way, if a hacker attempts to access a large corporation’s database, your information remains secure. In addition, you can control exactly what information you wish to give to various individuals. Another awesome thing about SSI is that it sometimes employs blockchain tech. This tech wizard ensures that your identity information is extremely secure and cannot be altered. Since more and more governments and corporations begin to bother about safeguarding our data, the demand for SSI systems is likely to continue growing.
There is a neat trend that is increasing our digital identity security and confidentiality. It’s referred to as “decentralized identity.” Imagine this wayBlockchain is like an extremely secure and open book where you can keep your ID details, such as your name, address, and even your fingerprint. And rather than having a single big boss manage that book, it’s distributed and managed by a group of various individuals. Now, our identity systems are being enhanced by employing blockchain. It makes them so much more difficult to hack or tamper with, because the information is spread out across all of these different locations. And since there’s no central authority, nobody can simply choose to erase or modify your information. This is particularly handy in fields such as banking, medicine, and shipping, where you want to know that someone’s identity is genuine. And as blockchain becomes even stronger, we will most likely find that decentralized identity solutions become more widespread.
| Report coverage | Revenue forecast, company market share, competitive landscape, growth factors, and trends |
| Segments covered | Identity type, end-user, enterprise size, vertical, region |
| Regional scope | North America; Europe; Asia Pacific; Latin America; MEA |
| Country scope | U.S.; Canada; Germany; UK; France; Italy; Spain; China; India; Japan; South Korea; Australia; Brazil; Mexico; Kingdom of Saudi Arabia (KSA); UAE; South Africa |
| Key companies profiled | Microsoft Corporation; Accenture plc; Wipro Limited and Subsidiaries; Secure Technologies Inc.; Persistent Systems Limited; Avast Software s.r.o.; Civic Technologies, Inc.; R3; Validated ID, SL; Dragonchain; Nuggets; 1Kosmos Inc |
| Customization scope | Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope |
On the basis of identity type, the market is segmented into biometrics & non-biometrics. The non-biometrics methods segment is anticipated to record a CAGR of 70% between 2024 and 2032.
Within the decentralized identity industry, identity management and verification methods that do not rely on biometric data—like fingerprints, facial recognition, or iris scans—are referred to as non-biometrics. Technologies such as digital certificates, cryptographic keys, and Decentralized Identifiers (DIDs) are discussed in this section.
Organizations and entities concerned with the privacy and security implications of handling and storing biometric data appreciate the non-biometrics option. With no need for sensitive biometric information, non-biometric decentralized identity solutions ensure a high level of security and privacy by leveraging blockchain and cryptography methods to construct verifiable & impenetrable identities.
Since it minimizes the risk of biometric data breaches and abuse, this approach also meets the increasing legislative demands for data privacy and user consent. As awareness of these privacy concerns increases, and as laws tighten, the non-biometrics segment is likely to experience high adoption, especially in sectors like finance, healthcare, and digital services, where data security and user privacy are critical.
Market, By Identity Type
- Biometrics
- Non-biometrics
Market, By Enterprise Size
- Large Enterprises
- Small And Medium-sized Enterprises
Market, By Industry Vertical
- BFSI
- Retail & E-commerce
- It & Telecommunication
- Government & Public Sector
- Healthcare
- Real Estate
- Media & Entertainment
- Others
Enterprise Size Insights
By enterprise size, the large enterprises segment held the largest share in the market in 2022 with a revenue share of more than 67.0%. Decentralized identity is in increasing demand by large enterprises as these enterprises are attempting in an aggressive manner to steer clear of identity risk. For example, in August 2022, Litentry, a multi-chain identity protocol, revealed that it had entered into a partnership with Node Real, a blockchain infrastructure solution provider. With the alliance, Litentry is able to integrate NodeReal’s MegaNode, with its robust real-time and historical data indexing on the Binance Chain and Ethereum networks.
The SMEs segment is expected to achieve the highest CAGR of 90.8% during the forecast period. Small businesses usually attempt to digitize their offerings as well as customer experience. In addition, the use of blockchain technology-based identity management can be extensively applied as a method of ensuring the safeguarding of private data and enhancing accountability and trust among parties. Besides, SMEs also gain from enhanced product and service efficiency and quality, enhanced supply chain management, and business model innovation through blockchain.
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Vertical Insights
BFSI, in vertical terms, held market share in 2022 of more than 19.0%. Banks need to do KYC checks to verify customers’ identity and ensure that they are not engaged in any illegal practices, including bribery and money laundering. Moreover, the U.S. incurs USD 25 billion on Anti Money Laundering (AML) compliances. In addition, Forbes states that in April 2019, top banks spent as much as USD 500 million a year on cybersecurity.
