The global Digital Identity Solutions Market is projected to grow from USD 44.20 billion in 2025 to USD 132.14 billion by 2031, registering a CAGR of 20.0% during the forecast period, according to a report by MarketsandMarkets™. The growing adoption of digital services, remote work, and cloud-based applications is increasing the need for reliable identity verification, streamlined digital onboarding, and secure access management across enterprise and government environments.
The expansion of digital identity wallets is creating new growth opportunities for technology providers and service integrators. Governments and private organizations are increasingly enabling individuals to store and share digital credentials through mobile applications and wallets, simplifying identity verification across public services and commercial transactions. This shift is driving demand for integrated solutions spanning credential issuance, identity lifecycle management, authentication, and digital wallet infrastructure.
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Single Sign-On (SSO) Authentication Segment to Register the Highest CAGR
The single sign-on (SSO) authentication segment is expected to record the highest CAGR in the digital identity solutions market during the forecast period. Organizations are adopting SSO to simplify user access across applications, reduce password-related risks, and improve operational efficiency. The growing use of cloud platforms and remote work models is strengthening demand for centralized authentication. Additionally, SSO supports zero-trust security strategies by enabling controlled access across enterprise environments while improving user experience and simplifying identity administration.
Non-Human Identity Segment to Witness Rapid Growth
The non-human identity (NHI) segment is projected to grow at the highest CAGR during the forecast period. The increasing use of application programming interfaces (APIs), connected devices, service accounts, bots, and automated workflows is creating a greater need to secure machine identities. Cloud-native infrastructure and DevOps adoption are further increasing demand for scalable identity governance, authentication, and lifecycle management. Organizations are prioritizing improved visibility and control over non-human identities to strengthen security and support compliance across increasingly complex digital ecosystems.
North America to Maintain Market Leadership
North America is expected to account for the largest share of the digital identity solutions market during the forecast period. The region benefits from advanced technology infrastructure, high cloud adoption, established cybersecurity capabilities, and early adoption of identity and access management solutions. Regulatory requirements, including the California Consumer Privacy Act (CCPA) and the Health Insurance Portability and Accountability Act (HIPAA), are also encouraging organizations to strengthen identity and data protection practices.
Rising identity fraud and cyber threats are accelerating investments in identity verification, biometric authentication, and AI-enabled security technologies. The presence of established technology providers and continued investments in digital identity initiatives are further supporting the region’s market position.
Key Players in the Digital Identity Solutions Market
Major companies operating in the digital identity solutions market include Thales (France), NEC (Japan), IDEMIA (France), Samsung SDS (South Korea), TELUS (US), HID Global (US), CrowdStrike (US), DXC Technology (US), IBM (US), CyberArk (US), and HCLTech (US). These companies participate in the evolving market through digital identity, authentication, identity security, and related technology offerings.
Explore the Digital Identity Solutions Market
According to the MarketsandMarkets™ report, Digital Identity Solutions Market by Hardware (RFID Reader & Encoder, Hardware-Based Tokens, Processor ID Cards), Solution Type (Identity Verification, Authentication), Identity Type (Non-Human Identity (NHI), Human Identity) – Global Forecast to 2031, the study provides insights into market trends, growth opportunities, segments, regional developments, and the competitive landscape.