User verification and authentication with digital identity is increasingly required by global regulations and credentials like mobile driver’s licenses (mDLs) and digital travel IDs are providing a market tailwind, according to Juniper Research. The latest report from the firm on the “Digital Identity Market 2025-2030” forecasts revenues of $80.5 billion by the end of the decade.
Digital identity is a $51.5 billion market this year, according to the report, and expected to grow at an impressive 56 percent compound annual growth rate.
Issuing digital IDs alongside physical credentials in a hybridized approach will help encourage their adoption over the forecast period, Juniper says.
The ability of governments to make digital identities accessible and explain how they work will be important to their acceptance and ultimate adoption by the public, Juniper argues.
These pull factors are a major part of “How Digital Identity is Going Mainstream,” as explained in a whitepaper accompanying the market forecast. The 10-page whitepaper explores eIDAS 2.0, single sign-on (SSO) access control, zero trust and self-sovereign identity (SSI) as major trends impacting the market.
“The EU Digital Identity Wallet (EUDI), which all Member States are expected to have in place by the end of 2026, will have a transformative effect on identity in the region; however, digital identity is already socially acceptable in mainland Europe,” says Juniper Research Analyst Louis Atkin. “Adoption of the proposed UK scheme will require significant user benefits to overcome public scepticism. Focusing on self-sovereign principles, which give citizens control of their own data, will go a long way in improving support.”
The European Commission published a slate of new grant opportunities for EUDI Wallets and mDLs this month, while no-one seems quite sure what principles the UK’s digital ID will follow.
