Digital identity documents to exceed 6.5 billion users by 2026: Juniper

Users of digital identity documents are set to grow from 4.2 billion to more than 6.5 billion by 2026, according to Juniper Research.

In a whitepaper on the subject Juniper Research defines digital identity as, “A digital representation of an entity, which can be one or more individual pieces of identifying data, an event, or a signal such as an assurance indicator and similar, yet to be determined items defined by the industry.”

The expansion in use of digital identity documents has been accelerated by the uptick in digital identity use in government services, the authors reveal, as advancements surge in eGovernment.

According to the report, “The pandemic did not only boost the already existing needs underlying digital identity use, but also helped spread them into different and previously non imminent areas such as healthcare. Testing the governments’ preparedness to provide access to public services, solutions from vaccine passports to stimulus payments needed to be developed and deployed quickly and securely.”

In order to ensure an inclusive digital transformation to eGovernment, the authors advise governments to partner with digital identity vendors that have diverse identity datasets.
The research house projects that revenue for digital identity vendors is set double by 2026, exceeding $53 billion globally, up from $26 billion in 2021.

“Digital identity revenue includes third-party and civic identity apps, centralised identity schemes, and digital identity verification. In addition, the increased demand for digital onboarding frameworks in the face of the ongoing pandemic will accelerate the uptake of digital identity services," the authors write.

Despite privacy controversies around identity cards in some countries, co-author Damla Sat explains that with good governance they are a useful and well-established tool.

“Identity cards have been controversial in some countries due to privacy concerns, but they are a well-established mechanism for digitising identity practices. If third-party access is governed correctly, identity cards can be at the centre of the digital identity market, but they need to be backed by robust processes," she said.