The digital identity market will grow from $51-billion in 2025 to $80- billion in 2030, representing a growth rate of 56%.
This is according to a new study by global tech strategist Juniper Research, which highlights two main drivers of this growth: tightening regulations which increasingly require digital identities; and rapid technological advancements which bring mobile driving licences and digital travel credentials closer to early public use.
“The EU Digital Identity Wallet (EUDI), which all member states are expected to have in place by the end of 2026, will have a transformative effect on identity in the region; however, digital identity is already socially acceptable in mainland Europe,” explains Louis Atkin, research analyst at Juniper Research.
“Adoption of the proposed UK scheme will require significant user benefits to overcome public scepticism. Focusing on self-sovereign principles, which give citizens control of their own data, will go a long way in improving support.”
The research identifies that issuing digital credentials alongside physical documents helps to drive adoption of digital identities. As digital identities are a new concept to many citizens, ensuring that the technology used is both accessible and something which citizens actively choose for themselves is key to their success.
“EUDI supports the adoption of digital identities, with standardisation of digital identity infrastructure massively improving the degree of interoperability of digital identities. However, to ensure sustainable growth, considering accessibility and providing explanations of how the systems work are vital for success,” Atkin says.