Digital Identity Apps to Surpass 4.1bn by 2027, as Platforms Leverage...
Our latest digital identity research
predicts that the number of digital identity apps in use will exceed 4.1 billion globally by 2027; rising from 2.3 billion in 2023. This represents a growth of 82% over the next four years.
This increase will be driven by the use of government-backed digital identities to replace physical identity documents as a source of verification for third-party apps, such as banking and financial services. This will be critical, as businesses aim to reduce identity theft and meet increasingly stringent KYC (Know Your Customer) regulations.
The market is moving away from reliance on passwords for identity verification, with this being replaced by biometric verification and MFA under a zero-trust model, where identities are authenticated continuously. This approach is more resistant to traditional hacking methods, such as phishing, reducing the risk of data breaches.
Zero trust will be delivered via SSO (Single Sign On), which allows the user to access multiple accounts via a central, secured system. Critical to SSO is the use of mobile subscriber identity, with the number of mobile devices using their mobile number for SSO being predicted to reach 2 billion in 2027, up from 922 million in 2023. Consumers are highly motivated by convenience, making a streamlining of user experience significant for attracting and retaining them. SSO can achieve this, whilst also appealing to security-conscious users.
The primary competition for dedicated digital identity apps will come from digital wallets, which offer payment functionality alongside a digital identity capability. For instance, in some US states, digital driver’s licences held within Apple Wallets are fully recognised. However, these digital wallets will struggle to monetise identity in the same way as they have payments, due to competition from government-run schemes limiting adoption.
Our complimentary whitepaper, Digital Identity ~ The Next Frontier of Cybersecurity
, examines the driving forces behind the increasing merger of digital identity with cybersecurity.
“Juniper Research’s new Digital Identity research report presents an independent analysis of the future evolution of this highly dynamic market. It provides a comprehensive study of the growth of the digital identity market, resulting changes in how national IDs are issued, the way identity is authenticated and regulatory compliance around identity. The report positions 18 vendors via the Juniper Research Competitor Leaderboard; providing an invaluable resource for stakeholders seeking to understand the complex competitive landscape in the market.”