According to a recent Markets and Markets report, the global digital identity solutions market is poised to grow at a compounded annual growth rate (CAGR) of 17.3% between 2019 and 2024, growing from $13.7 billion to $30.5 billion.
Growth will be driven by a number of factors including the rise of identity and authentication fraud efforts, the increasing integration of biometrics in smartphones, and the growing focus on enhanced end-to-end customer experience.
During the forecast period, multi-factor authentication is expected to grow at a higher CAGR than the industry as a whole. Multi-factor authentication aims to provide multiple layers of protection for users, making it more difficult for unauthorized users to gain access to a network, database, account, or system.
In terms of mode of deployment, the cloud-based market segment is forecast to grow more than the on-premises segment. This prediction is based on the reduced costs to organizations that use cloud-based deployments in terms of maintenance of infrastructure and technical staff.
Small and Medium-sized Enterprises (SMEs) are more likely to deploy cloud-based systems due to limited security budgets and the lower cost of such systems.
Finally, the Asia Pacific (APAC) region is expected to register the highest growth rate during the forecast period. This is due to a large amount of investments from governments in the APAC region in securing the identity of citizens through national biometric programs.
The region is also experiencing an amalgamation of AI, machine learning, and blockchain technologies with digital identities, which is also seen as a factor that will contribute to the growth of the market.
March 12, 2020 – by Tony Bitzionis