The digital identity industry is experiencing rapid growth, with four times as many solution providers today than just a few years ago. The increasing demand among businesses and consumers for more secure and convenient digital interactions drives this exponential growth. The rise of digital transactions has been a significant driving factor for innovative capabilities and solutions emerging in the digital identity space.
According to Statista, the projected transaction value of US digital payments in 2023 is $2 billion, indicating a shift toward a cashless society. As digital transactions become the norm, privacy concerns are also rising, driving the need for more secure and reliable identity solutions. In our recent survey, consumers are also demanding more autonomy over their digital identity, with around 73% supporting the idea of having control over their data privacy.
The trend of everything digital is gaining momentum, with more than 100 countries exploring digital currencies. Around 42.9% of e-commerce transactions are conducted via a mobile device. However, digital transactions also mean more risk, with a significant increase in consumer fraud loss since 2020, making security the top priority for onboarding digital accounts for 8 out of 10 consumers, according to our 2021 consumer survey.
The 2023 Digital Identity Landscape highlights increased activity in reusable identity solutions, decentralized identity and verifiable credential management (DID/VCM), persona and signals-based intelligence (PSBI), and identity wallets. Our recent research forecasts that the market for reusable identity solutions will reach $53.0 billion by 2023, with a CAGR of 57.0% through 2027.
Additionally, Liminal’s research suggests that decentralized identity and verifiable credential management will be worth $1.0 billion in 2023 and is poised to reach $11 billion by 2027, growing at a CAGR of 83%. Persona and signals-based intelligence will be worth $5.8 billion in 2023 and is poised to reach $11.8 billion by 2027, growing at a CAGR of 19.8%. Identity wallets will be worth $17.5 billion in 2023 and are expected to reach $35.4 billion by 2027, growing at a CAGR of 24.6%. The digital identity space is evolving rapidly, creating more secure, convenient, and optimal digital experiences.
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