Digital Identity Solutions Market Overview
According to MarketsandMarkets, the global Digital Identity Solutions Market Size is expected to expand from USD 44.20 billion in 2025 to USD 132.14 billion by 2031, registering a CAGR of 20.0% during the forecast period. This rapid growth is being driven by the accelerating pace of digital transformation and the growing adoption of remote work and digital services. Organizations increasingly require secure identity verification, frictionless onboarding, and protected access across cloud and hybrid environments, fueling market demand.
The rising adoption of digital ID wallets is opening new growth opportunities. Governments and enterprises are enabling individuals to store and manage digital credentials through mobile wallets, streamlining identity verification and transactions in both public and private sectors. These developments are strengthening demand for integrated solutions that support identity lifecycle management, credential issuance, and digital wallet ecosystems.
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Fastest-Growing Segments
Single Sign-On (SSO) Authentication
The SSO authentication segment is projected to record the highest growth rate in the market. Organizations are increasingly adopting SSO to simplify login processes, reduce password fatigue, and enhance security while improving operational efficiency. The rapid expansion of cloud services and remote work has intensified the need for centralized authentication systems. Furthermore, SSO aligns with zero-trust security frameworks, enabling seamless and secure access across multiple platforms. Industries such as banking, healthcare, and education are deploying SSO solutions to improve user experience, streamline IT operations, and ensure regulatory compliance.
Non-Human Identity (NHI)
The non-human identity segment is also expected to grow at the fastest pace. The increasing number of connected devices, APIs, bots, and automated systems within enterprise environments has made securing machine identities a critical priority. As cloud-native architectures and DevOps models expand, the need for scalable identity governance and lifecycle management has intensified. Organizations are investing heavily in technologies that provide visibility, control, and compliance for non-human identities, significantly accelerating growth in this segment.
Regional Insights
North America is anticipated to maintain the largest share of the digital identity solutions market throughout the forecast period. This dominance is supported by the region’s advanced IT infrastructure, mature cybersecurity ecosystem, and strong focus on digital innovation. Enterprises and government bodies are early adopters of identity and access management technologies, driven by strict regulatory requirements such as CCPA and HIPAA. Rising incidents of cybercrime and identity fraud have further increased investment in secure identity platforms. The strong presence of leading technology vendors, along with widespread cloud adoption and growing use of AI and biometric authentication, continues to reinforce North America’s leadership in the global market.
Key Market Players
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).