Decentralized identity as a new approach to identity management on the internet is exploding, and it’s not slowing down any time soon.
The global decentralized identity (DI) market was valued at USD 379.66 million in 2021 and is expected to expand at a compound annual growth rate of 88.2 per cent from 2022 to 2030. By 2027, the DI market is likely to be valued at USD 6,822 million and, by 2030, it is expected to reach USD 102.0 billion.
Silicon Valley research agency, Grand View Research, which released the figures, says increasing cases of identity fraud worldwide are causing the explosion in DI solutions. Federal Trade Commission data from February 2022 show identity fraud incidents increased by about 45 percent globally in 2020. In 2021, Americans suffered total losses of $56 billion from identity fraud.
“Decentralized identity is considered one of the most secured identity solutions that can reduce such identity fraud, thereby driving the market over the forecast period,” Grand View Research says.
Individual user segment of DI market will grow fastest
Grand View Research’s DI report reveals some interesting market insights, including that the individual user segment of the DI industry is projected to register the fastest growth rate over the forecast period given the privacy and security benefits it offers individual users.
SMEs and banking are forecast as the fastest growing industry users of the new technology.
As an example of how enterprises and customers are already embracing DI products and services, Experian reports in its 2021 Global Identity and Fraud Report that 60 percent of global consumers now use a mobile wallet – up from 53 per cent pre-pandemic.
Explore Anonyome Labs’ new Sudo Platform decentralized identity wallet SDK.
Identity wallets like the one we offer through Sudo Platform replace passwords with public and private key encryption to give users more secure access, anchored in blockchain technology. Users use the identity wallet to store their verifiable credentials and to present them as proofs when requesting access to products and services. The wallet app also allows for cross-provider end-to-end encrypted messaging. Learn more.
With the continued rise of the surveillance economy, the world needs solutions that improve privacy for everyday internet users. Decentralized identity is widely recognized as the most important privacy technology innovation for the next decade because it gives users unprecedented control over their personal data.
Decentralized identity-based applications rely on blockchain as the anchor of trust and therefore decentralized identity is one of the most important use cases for blockchain technology.
Industry experts agree all eyes are beginning to turn to DI solutions to solve the challenges of centralized or federated identity management systems. Gartner calls DI a “must-know” emerging technology in its renowned hype cycle of emerging technologies:
Anonyome Labs has long recognized the enormous potential of DI, and is considered a leading expert on the technology, which we make available to enterprise customers through our Sudo Platform APIs.
Talk to us today about how to go fast to market with DI solutions for your customers.
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Anonyome Labs’ whitepapers on DI