Decentralized Identity Market Size Is Hit To USD 86,609.6 Million By 2031 Propelled By Growing Demand For Advancements In Blockchain Technology & Iot Devices
The SNS Insider report highlights a burgeoning Decentralized Identity market , reaching a value of USD 536.4 Million in 2023. This market is anticipated to witness a Stellar rise, reaching a staggering USD 86,609.6 Million by 2031. This phenomenal growth, projected at a CAGR of 88.8% over the forecast period (2024–2031), is primarily driven by the growing demand for secure, user-centric identity management solutions.
Growing Demand for Decentralized Identity Solutions
The decentralized identity market is flourishing due to several compelling factors. Blockchain technology underpins decentralized identity, offering a distributed ledger system that is inherently secure and tamper-proof. Data stored on a blockchain is encrypted and replicated across multiple nodes, making it virtually impossible to manipulate or breach. Decentralized identity solutions empower users with complete control over their data, allowing them to choose what information to share and with whom. This not only enhances privacy but also minimizes the risk of identity theft and data breaches. Additionally, decentralized identity streamlines identity verification processes, reducing administrative burdens and expediting transactions across various industries.
Furthermore, the decentralized identity market is gaining traction due to its ability to transform traditional business processes. In the banking sector, for example, decentralized identity can revolutionize Know Your Customer (KYC) procedures. Instead of relying on centralized databases, banks can leverage user-controlled identity wallets, streamlining KYC checks while ensuring user privacy. Similarly, decentralized identity holds immense potential for the Internet of Things (IoT) by facilitating secure and permissioned communication between devices. This eliminates the need for centralized servers, reducing vulnerability to cyberattacks.
Segmentation Analysis
The decentralized identity market is segmented based on Verticals, with the BFSI (Banking, Financial Services, and Insurance) sector projected to hold the dominant market share throughout the forecast period. Financial institutions are heavily regulated and obligated to perform stringent KYC checks. Decentralized identity offers an ideal solution by enabling efficient data sharing and verification while maintaining user control. Legacy KYC processes can be transformed, allowing secure outsourcing and decentralization of data while empowering users to retain complete autonomy. Additionally, decentralized identity can revolutionize insurance by facilitating a more personalized and secure customer experience.
