Digital Identity Solutions Market worth $132.14 billion by 2031 | MarketsandMarkets™

DELRAY BEACH, Fla., Nov. 24, 2025 /PRNewswire/ -- According to MarketsandMarkets™, the global Digital Identity Solutions Market size is projected to grow from USD 44.20 billion in 2025 to USD 132.14 billion by 2031 at a compound annual growth rate (CAGR) of 20.0% during the forecast period.

Browse 708 market data Tables and 50 Figures spread through 408 Pages and in-depth TOC on "Digital Identity Solutions Market - Global Forecast to 2031"

Digital Identity Solutions Market Size & Forecast:

• Market Size Available for Years: 2019–2031
• 2025 Market Size: USD 44.20 billion
• 2031 Projected Market Size: USD 132.14 billion
• CAGR (2025–2031): 20.0%

Digital Identity Solutions Market Trends & Insights:

• The market growth is driven by rising cyber threats, digital transformation initiatives, and regulatory compliance requirements.
• Audit, Compliance, & Governance solution type segment to register 20.8% CAGR during forecast period
• Single-sign-on authentication type segment is expected to grow at the highest CAGR during the forecast period
• Non-human identity segment is projected to record the highest CAGR during the forecast period
• North America is expected to hold the largest market share during the forecast period.

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The market expansion is fueled by the accelerated pace of digital transformation and the rise of remote work and services, which demand robust identity verification, seamless onboarding, and secure access across cloud and hybrid ecosystems.

Meanwhile, the proliferation of ID wallet solutions is creating rich opportunity streams, as governments and private-sector entities enable citizens and customers to store and use digital credentials via mobile apps and wallets, simplifying transactions and identity verification in public and commercial contexts. These combined trends are creating fertile ground for vendors, integrators, and service providers to deliver end-to-end solutions that support identity lifecycle management, credential issuance, and digital wallet ecosystems.

Single-sign-on authentication type segment is expected to grow at the highest CAGR during the forecast period

The single sign-on (SSO) segment is experiencing the fastest growth in the Digital Identity Solutions Market, due to its ability to simplify user authentication while enhancing security and operational efficiency. Organizations are adopting SSO to reduce password fatigue, streamline access management, and minimize the risks associated with credential theft. The rapid expansion of cloud-based applications and remote work environments has further accelerated the demand for centralized authentication mechanisms. SSO also aligns with zero-trust architecture frameworks, ensuring secure and seamless access across multiple platforms. Enterprises across banking, healthcare, and education are leveraging SSO solutions to improve user experience, optimize IT administration, and strengthen compliance with stringent identity and data protection regulations.

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Non-human identity segment is projected to record the highest CAGR during the forecast period

The non-human identity segment is growing at the fastest rate in the Digital Identity Solutions Market due to the rapid proliferation of connected devices, APIs, and automated systems across enterprise ecosystems. As organizations embrace digital transformation, securing machine-to-machine communication and automated workflows has become a critical priority. Non-human identities, including IoT devices, service accounts, and bots, outnumber human users in many networks, demanding robust authentication and lifecycle management solutions. The increasing adoption of cloud-native infrastructure and DevOps practices further amplifies the need for scalable identity governance. Enterprises are investing in technologies that ensure visibility, control, and compliance for these digital entities, driving accelerated growth within the digital identity landscape segment.

North America is expected to hold the largest market share during the forecast period

North America holds the largest market share in the Digital Identity Solutions Market due to its advanced technological infrastructure, strong cybersecurity framework, and widespread digital transformation initiatives. The regional enterprises and government agencies are early adopters of identity and access management technologies, driven by stringent data protection regulations such as CCPA and HIPAA.

The growing frequency of cyberattacks and identity fraud has further prompted organizations to invest in secure and scalable identity verification platforms. Moreover, the presence of leading market players, high cloud adoption, and increased deployment of AI and biometric-based authentication systems have strengthened regional dominance. Ongoing investments in digital identity programs and innovation ecosystems continue to position North America as a global leader in this domain.

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Top Companies in Digital Identity Solutions Market:

The Top Companies in Digital Identity Solutions Market are Thales (France), NEC (Japan), IDEMIA (France), Samsung SDS (South Korea), TELUS (US), HID Global (US), CrowdStrike (US), DXC Technology (US), IBM (US), CyberArk (US), and HCLTech (US).

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