Tuesday, June 25, 2024
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    Digital identity revenue to exceed $53bn globally by 2026, as verification becomes critical 

    Revenue from digital identity (DI) vendors will exceed $53bn globally in 2026; doubling from $26bn in 2021, according to research.

    Digital identity revenue includes third-party and civic identity apps, centralised identity schemes, and DI verification. In addition, the research predicts that the increased demand for digital onboarding frameworks in the face of the ongoing pandemic will accelerate the uptake of digital identity services.

    The research also identified verified DI, where identities are confirmed as genuine using verifiable credentials, as being vital for improving fraud mitigation. This represents the next evolutionary step for digital identity; moving from establishing infrastructure to utilising and verifying identity in practical applications. To facilitate this, the report predicts increasing data partnerships between vendors to provide comprehensive, data diverse identity systems.

    Verification now the key requirement

    The new research, Digital Identity: Key Opportunities, Regulatory Landscape & Market Forecasts 2022-2026, found that verification spend will exceed $16 billion in 2026, from $9 billion in 2021. This growth reflects that, as users migrate to digital channels, the need to verify identity digitally also grows. As fraudsters exploit opportunities, verification capabilities will proliferate to wider industries and use cases than ever before.

    Research co-author Damla Sat explains: “DI verification tools have become more critical across a broader range of industries than ever, from banking and financial services to eGovernment, healthcare and others. Developing effective user experiences for different verification scenarios will be important for realising DI’s potential.”

    The US falling behind in digital identity

    The research found that the US is significantly lagging behind in DI terms; accounting for only 7% of global DI revenue in 2026. The US’ lack of national identity schemes and coordinated strategies is a major limiting factor. The report, however, recognised the potential for decentralised identity in the US, and recommends vendors focus on private initiatives to realise identity’s potential in this market.

     

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