Digital identity to be worth $53 billion by 2026: Juniper

Revenue for digital identity is projected to be worth $53 billion by 2026 according to new Juniper research.

Digital identity is information on an entity used by computer systems to recognise someone. The Juniper report states digital identity presents a more complex picture when current multi-use ecosystems, heavily dependent on the sharing of identity credentials, are considered.

In new Juniper Research, Digital Identity – Realising Critical Opportunities noted digital identity revenue includes third-party and civic identity apps, centralised identity schemes, and digital identity verification.

In addition, the research predicts that the increased demand for digital onboarding frameworks in the face of the ongoing pandemic will accelerate the uptake of digital identity services.

The research also highlighted that verified digital identity, where identities are confirmed as genuine using verifiable credentials, as being vital for improving fraud mitigation.

This represents the next evolutionary step for digital identity; moving from establishing infrastructure to utilising and verifying identity in practical applications. To facilitate this, the report predicts increasing data partnerships between vendors to provide comprehensive, data diverse identity systems.

The new research found that verification spend will exceed $16 billion in 2026, from $9 billion in 2021. This growth reflects that, as users migrate to digital channels, the need to verify identity digitally also grows. As fraudsters exploit opportunities, verification capabilities will proliferate to wider industries and use cases than ever before.

Research co-author Damla Sat said, “Digital identity verification tools have become more critical across a broader range of industries than ever, from banking and financial services to eGovernment, healthcare and others. Developing effective user experiences for different verification scenarios will be important for realising digital identity’s potential.”

Digital identity is a widely debated concept that is constantly evolving and becoming increasingly entwined with allied areas, such as security, privacy, and management of identity-related data.