Revenue for digital identity marketplace vendors is expected to exceed $53bn by 2026, doubling from the $26bn value in 2021, research from Juniper Research claims.
Digital identity revenue includes third-party and civic identity apps, centralised identity schemes and digital identity verification.
The finding comes from Juniper Research’s new Digital Identity: Key Opportunities, Regulatory Landscape & Market Forecasts 2022-2026.
Another finding of the report was that the pandemic’s pressure for firms to implement digital onboarding will accelerate the usage of digital identity services.
As part of its findings, Juniper Research claims verified digital identity, where identities are confirmed as genuine using verifiable credentials, will be crucial for fraud mitigation. It claims the services are the next evolutionary step for digital identity, moving away from established infrastructure to utilising and verifying identity in practical applications.
To support this, the research company predicts an increase in the amount of data partnerships between vendors to provide comprehensive, data diverse systems.
The report also found that verification spending will pass $16bn in 2026, rising from $9bn in 2021. This shift will be caused by the migration to digital channels and the need for digital identity.
Research co-author Damla Sat said, “Digital identity 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 digital identity’s potential.”
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