Blockchain Identity Management Market Size, Share & Trends Analysis Report By Vertical (Government, BFSI), By Offering (Software, Services), By Enterprise Size (SMEs, Large), By Provider Type, By Network, And Segment Forecasts, 2023 - 2030

Report Overview

The global blockchain identity management market size was estimated at USD 296.4 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 82.6% from 2023 to 2030. The growing adoption of blockchain technology is driving the evolution of identity management systems, giving rise to the market. As digital interactions expand across various sectors, the need for secure, decentralized, and tamper-proof identity verification mechanisms has become important. This has led to the exploration and adoption of blockchain-based solutions as a way to address the shortcomings of traditional identity management systems. Blockchain's inherent characteristics of transparency, immutability, and decentralization offer a unique solution to the challenges of identity management.

Traditional systems often involve multiple intermediaries and databases, leading to data silos and potential vulnerabilities. In contrast, the blockchain's decentralized ledger ensures that identity information is stored securely across a distributed network, reducing the risk of centralized data breaches and unauthorized access. Moreover, privacy concerns have become a driving force behind the adoption of blockchain identity management solutions. Users are wary of sharing personal information with centralized authorities, given the prevalence of data breaches and misuse of data. Blockchain's ability to provide users with control over their own identity data while enabling secure verification without exposing sensitive details aligns well with the demand for enhanced privacy and consent-driven identity solutions.

The need for interoperability in a digitally connected world is another major driver of market growth. Individuals often need to authenticate their identities across different platforms, services, and organizations. Blockchain's potential to establish a universal and standardized identity protocol can simplify the verification process, enabling users to seamlessly access services without repeatedly proving their identity and reducing friction in digital interactions. In addition, regulatory compliance is a critical driver in the adoption of blockchain identity management, particularly in industries dealing with sensitive data, such as finance and healthcare. Regulations like GDPR emphasize the importance of data protection and consent.

Blockchain's transparent and auditable nature can facilitate compliance by providing an immutable record of user consent and data usage, ensuring that organizations adhere to regulatory requirements. The emergence of Self-Sovereign Identity (SSI) is fundamentally transforming the identity management arena and sparking a surge in the adoption of blockchain-based solutions. SSI empowers individuals to wield authority over their own identity attributes and decide whom to share them with, enhancing control and privacy. Blockchain's capacity to facilitate secure, decentralized, and unalterable storage and exchange of identity data harmonizes seamlessly with the tenets of SSI, rendering it an organic match for this innovative identity management approach.

As a result, blockchain technology is becoming a pivotal enabler of SSI's principles and its growing implementation. The challenge of interoperability and standardization across different blockchain platforms and identity systems is restraining the market growth. The lack of universally accepted protocols can lead to fragmentation, hindering seamless data exchange and collaboration among diverse systems. To overcome this hurdle, industry stakeholders need to collaborate in developing common frameworks and standards that ensure compatibility between various blockchain networks and identity solutions. This calls for concerted efforts to establish cross-platform protocols, fostering a cohesive ecosystem that enables efficient and secure identity management across multiple blockchain environments.

COVID-19 Impact Analysis

The COVID-19 pandemic has acted as a catalyst for adopting blockchain identity management solutions. With the rise in remote work, online transactions, and digital interactions, the need for secure & reliable identity verification has increased. Blockchain technology's inherent attributes, such as its ability to provide tamper-resistant and decentralized identity verification, have gained prominence as organizations and individuals seek robust methods to protect sensitive data and prevent identity fraud. The pandemic has underscored the importance of contactless interactions and trust in digital identities, driving increased interest and investment in blockchain-based identity management systems that can provide enhanced security, privacy, and transparency in a rapidly evolving digital landscape.

Offering Insights

The software segment dominated the market in 2022 and accounted for a revenue share of more than 62.0%. Software solutions offer greater flexibility and scalability, allowing organizations to tailor identity management systems to their specific needs and integrate them seamlessly with existing infrastructure. Moreover, software-based solutions are more cost-effective to implement and maintain compared to hardware alternatives. The dynamic nature of identity management, requiring frequent updates and adaptations to changing security requirements, aligns well with the agility that software solutions provide. In addition, software solutions enable quicker deployment and accessibility across various devices and platforms, making them a preferred choice for organizations looking to enhance user experiences while ensuring robust identity verification and data protection.

The services segment is anticipated to register significant growth over the forecast period. Organizations are increasingly recognizing the complexities involved in implementing and managing blockchain-based identity solutions and are seeking specialized expertise to ensure seamless integration and optimal utilization. Service providers offer consulting, customization, deployment, and ongoing support, addressing each client's unique requirements and ensuring effective implementation. As the blockchain identity management landscape evolves, organizations are looking to leverage the knowledge and experience of service providers to navigate emerging challenges and evolving regulations. The segment's growth is further fueled by the need for continuous monitoring, maintenance, and updates, aligning with the ongoing nature of identity management solutions.

Provider Type Insights

The application provider segment dominated the market in 2022 and accounted for a revenue share of above 38.0% due to its pivotal role in delivering user-friendly and accessible solutions that cater to diverse industry needs. These providers develop and offer ready-to-use applications and platforms that streamline the adoption of blockchain-based identity management systems. By addressing the complex technical aspects and intricacies of blockchain technology, application providers allow organizations to focus on the practical implementation of identity solutions rather than grappling with the underlying technology. Their offerings often come with intuitive interfaces, seamless integration options, and robust functionalities that appeal to a wide range of users, from enterprises to individuals.

The infrastructure provider segment is anticipated to register significant growth over the forecast period owing to its crucial role in laying the foundation for seamless and scalable identity solutions. These providers offer the underlying infrastructure, including blockchain networks, protocols, and security frameworks, that empower organizations to build and deploy robust identity management systems. As the adoption of blockchain technology expands across industries, the demand for reliable and efficient infrastructure becomes important. Infrastructure providers cater to this demand by offering specialized tools and services that simplify the integration of identity management functionalities into existing systems.

Network Insights

The permission segment dominated the market in 2022 and accounted for a revenue share of over 72.0%. Permissioned networks have emerged due to their ability to address key concerns related to privacy, scalability, and regulatory compliance. These networks provide controlled access to authorized participants, ensuring that sensitive identity data is shared only with trusted parties. This approach aligns well with the security and data protection requirements of identity management, as organizations can maintain a higher degree of control over who can participate and access the network. In addition, permissioned networks offer enhanced scalability, making them suitable for handling a large volume of identity transactions without compromising performance.

The permissionless segment is anticipated to register significant growth due to its inherent characteristics of decentralization and inclusivity. Permissionless networks, often referred to as public blockchains, allow anyone to participate and contribute to the network without requiring explicit permission from a central authority. This openness promotes a broader sense of collaboration and innovation, which is particularly appealing in the context of identity management. The permissionless approach aligns with the principles of self-sovereign identity, where individuals have greater control over their personal data.

Enterprise Size Insights

The large enterprises segment dominated the market in 2022 and accounted for a global revenue share of over 68.0%. This growth can be attributed to the expansive user bases, resources, and complex identity management needs of large-scale enterprises. These enterprises often handle vast amounts of user data and interactions across various platforms, necessitating secure, efficient, and scalable identity solutions. Blockchain technology offers the capability to address these challenges by providing a decentralized and tamper-proof way to manage and verify identities. Large enterprises are drawn to blockchain's potential to enhance data security, streamline identity verification processes, and reduce the risks of data breaches.

The small & medium enterprises (SMEs) segment is expected to register significant growth over the forecast period. The segment is witnessing rapid expansion due to the inherent agility & adaptability of SMEs and their growing awareness about the benefits offered by secure identity solutions to their operational activities. These enterprises typically function in dynamic landscapes with constrained resources, rendering them more receptive to adopting cutting-edge technologies that can amplify their competitive advantages. Blockchain-based identity management presents SMEs with a cost-efficient and resilient avenue to tackle security and identity validation hurdles, facilitating the establishment of trust with their clientele and collaborators.

Vertical Insights

The IT & ITeS segment dominated the market in 2022 and accounted for a revenue share of more than 18.0%. The segment's dominance can be attributed to its intrinsic need for secure and efficient identity verification. With the extensive use of digital platforms and data-driven processes, the IT & ITeS sector places a premium on safeguarding sensitive information while ensuring seamless user experiences. Blockchain-based identity management solutions align well with these demands, offering a decentralized and tamper-proof framework that bolsters data security, streamlines processes, and enhances user trust. As a result, IT & ITeS firms have embraced these solutions not only to meet regulatory compliance but also to remain at the forefront of technological advancements in identity management.

The government segment is expected to register significant growth over the forecast period. The segment is growing due to its imperative to provide secure, transparent, and citizen-centric services. Governments worldwide recognize blockchain technology's potential to revolutionize identity verification and enhance public service delivery. By adopting blockchain-based identity management solutions, governments can offer more efficient and secure online services while mitigating identity fraud and data breaches. As a result, the government vertical is witnessing significant growth as administrations strive to create a more resilient and technologically advanced environment for their citizens.

Regional Insights

North America dominated the market in 2022 and accounted for a revenue share of more than 28.0%. The North America region has positioned itself as a center of technological innovation, boasting a thriving ecosystem of both emerging blockchain startups and well-established technology giants. Furthermore, the area's stringent regulatory environment and prioritization of data security have played a pivotal role in promoting the acceptance of secure identity management solutions. The region's mature financial sector, widespread e-commerce engagements, and tech-savvy populace have collectively heightened the need for blockchain-powered identity verification. In addition, partnerships among industry stakeholders, academic institutions, and governmental entities have been instrumental in propelling the creation and utilization of cutting-edge identity management solutions.

Asia Pacific is anticipated to emerge as the fastest-growing regional market from 2023 to 2030. The Asia Pacific region is experiencing a rapid growth trajectory due to its dynamic blend of technological adoption and economic expansion. Countries within this region, including China, India, and Southeast Asian nations, are witnessing a surge in digital transformation, bolstered by the widespread adoption of smartphones and internet connectivity. This technological readiness has paved the way for integrating blockchain-based identity solutions, catering to the region's growing demand. In addition, the region’s diverse and evolving retail landscape, coupled with a significant presence of e-commerce giants & emerging startups, has led to partnerships with blockchain identity providers to offer secure and convenient identity verification for online transactions.

Key Companies & Market Share Insights

A mix of established technology players, innovative startups, and strategic collaborations characterizes the competitive landscape in the market. Key industry participants are continuously investing in R&D to enhance their blockchain identity solutions, aiming to provide robust security features, seamless user experiences, and compliance with evolving regulations. Established tech giants bring their considerable resources and expertise to the table, while startups bring fresh perspectives and agile approaches to tackling identity management challenges. Strategic partnerships and collaborations between technology companies, financial institutions, and government bodies are fostering the development of comprehensive and interoperable identity solutions.

Prominent players are invested in new product launches. For instance, in March 2023, Ping Identity, a prominent provider of enterprise intelligent identity solutions, unveiled a new offering called PingOne Neo, which provides early access to a decentralized identity management solution with support for multiple standards. This innovative solution aims to enhance data security, privacy, and individual control while streamlining operational efficiency and business compliance requirements. Some of the prominent players in the global blockchain identity management market include:

• IBM Corporation

• Amazon Web Services, Inc.

• Oracle Corporation

• Microsoft Corporation

• Dock Labs AG

• NEC Corporation

• Bitfury Group Limited

• Antiersolutions

• Wipro

• NuID, Inc.

Blockchain Identity Management Market Report Scope

Global Blockchain Identity Management Market Report Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global blockchain identity management market report based on offering, provider type, network, enterprise size, vertical, and region:

• Offering Outlook (Revenue, USD Million, 2017 - 2030)

  • Software

  • Services

• Provider Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Application Provider

  • Middleware Provider

  • Infrastructure Provider

• Network Outlook (Revenue, USD Million, 2017 - 2030)

  • Permissioned

  • Permissionless

• Enterprise Size Outlook (Revenue, USD Million, 2017 - 2030)

  • Small & Medium Enterprises

  • Large Enterprise

• Vertical Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • IT & ITeS

  • Telecommunications

  • Government

  • Healthcare

  • Retail & E-commerce

  • Media & Entertainment

  • Travel & Hospitality

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa