Decentralised Identity Market is Expected to grow at a robust CAGR of 23.18% through 2030F

Decentralised Identity Market is increasing due to rising demand for secure, privacy-focused, and user-controlled digital identity solutions during the forecast period 2026-2030F. 

According to TechSci Research report, “Decentralised Identity Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2020-2030F”, The Global Decentralised Identity Market was valued at USD 2.39 billion in 2024 and is expected to reach USD 8.42 billion by 2030 with a CAGR of 23.18% during the forecast period.

The growing demand for seamless and interoperable digital experiences across platforms is a key driver for the Decentralised Identity Market. Traditional identity systems require users to manage multiple credentials, such as usernames and passwords, for different services, leading to fragmented experiences and user fatigue. Decentralised identity solutions address this by providing portable, interoperable digital identities that can be used across various platforms, from financial services to social media and e-governance. By leveraging standards like those set by the World Wide Web Consortium (W3C) for DIDs and VCs, these solutions enable users to authenticate seamlessly without repetitive registrations.

For instance, a single digital wallet can store credentials for accessing banking services, verifying academic qualifications, or logging into decentralized applications, streamlining user interactions. This interoperability is particularly valuable in Web3 ecosystems, where cross-chain and cross-platform functionality is critical. Businesses benefit from reduced onboarding friction, lower verification costs, and improved customer satisfaction, while users enjoy greater convenience and control.

As digital ecosystems expand and consumers prioritize frictionless experiences, the adoption of decentralised identity solutions accelerates, driving market growth by addressing inefficiencies in traditional identity management and fostering trust in digital interactions.

A 2024 consumer survey by the World Economic Forum found that 78% of internet users preferred a single, portable digital identity for online services, with 65% reporting frustration with managing multiple credentials. Additionally, 70% of businesses adopting decentralised identity solutions noted a 35% reduction in onboarding time and costs in 2024.

Another significant challenge for the decentralised identity market lies in driving user adoption and establishing trust among end-users. Decentralised identity represents a fundamental shift in how individuals interact with digital identity systems. Unlike centralised platforms, where identity data is managed by a single entity, decentralised identity solutions place responsibility for identity control and data ownership directly in the hands of users. While this promises greater privacy and autonomy, it also imposes new burdens on individuals, such as managing cryptographic keys, safeguarding digital wallets, and understanding complex consent mechanisms.

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Based on End-User, the Telecom and Information Technology segment emerged as the dominant end-user category in the global decentralised identity market and is expected to maintain its leading position throughout the forecast period. The dominance of this segment is primarily attributed to the sector's increasing reliance on robust, privacy-preserving, and secure digital identity frameworks to facilitate seamless access to digital platforms, applications, and services. As global digital infrastructure expands and telecommunication networks become more complex, decentralised identity solutions are becoming vital for managing vast volumes of user data while ensuring data integrity and confidentiality.

The telecom and information technology sector has embraced decentralised identity to combat cyber threats, reduce identity theft, and enable privacy-centric authentication systems, especially in customer onboarding, mobile identity, and secure data sharing across networks. With growing adoption of 5G networks, cloud services, and Internet of Things infrastructure, the requirement for scalable and interoperable identity systems has intensified, further driving this segment’s market share. Moreover, leading telecom and information technology companies are increasingly investing in blockchain-based identity platforms, leveraging decentralised identifiers and verifiable credentials to deliver trust-based authentication models that comply with global data protection regulations.

These enterprises are also collaborating with decentralised identity providers to enhance their security ecosystems and reduce costs associated with legacy identity management systems. Additionally, the integration of decentralised identity in customer-facing digital channels such as portals, mobile applications, and customer service interfaces has improved user experience and transparency, reinforcing trust and loyalty. As demand for digital trust frameworks continues to rise across interconnected digital environments, the telecom and information technology segment is strategically positioned to sustain its dominance in the decentralised identity market, supported by strong infrastructure, a tech-savvy user base, and ongoing innovation in identity protocols and cybersecurity practices.

Europe has emerged as the fastest-growing region in the global decentralised identity market, driven by a combination of progressive regulatory frameworks, strong institutional support, and increasing demand for privacy-preserving digital identity solutions. The region’s rapid growth is largely attributed to the European Union’s proactive stance on digital sovereignty and data protection, particularly through the implementation of the General Data Protection Regulation and the proposed European Digital Identity framework. These regulations have accelerated the need for decentralised identity models that return control of personal data to users while ensuring transparency, consent, and compliance. Additionally, the European Commission's support for blockchain innovation and cross-border digital identity interoperability has created a fertile ground for decentralised identity pilots and commercial deployments. Several governments across Europe are actively investing in digital identity infrastructure based on decentralised technologies to improve citizen services and reduce administrative inefficiencies.

Moreover, Europe’s digital economy is undergoing a transformation, with growing demand for secure digital identities across sectors such as banking, telecommunications, healthcare, and public services. Financial institutions and public authorities in countries like Germany, France, the Netherlands, and Estonia are exploring or adopting decentralised identity frameworks to streamline Know Your Customer processes, secure digital interactions, and mitigate identity fraud. The region also benefits from a mature ecosystem of identity solution providers, blockchain startups, and academic institutions collaborating to develop secure, interoperable, and user-centric identity architectures. Strategic partnerships between private enterprises and public agencies are further accelerating the implementation of decentralised identity projects across the continent. With rising awareness around data breaches and identity theft, European consumers and businesses are increasingly embracing decentralised approaches that enhance trust, control, and accountability. Backed by regulatory clarity, technological readiness, and institutional commitment, Europe is expected to continue leading the global decentralised identity market in terms of speed of adoption and innovation.

Key market players in the Global Decentralised Identity Market are: -

• Microsoft Corporation
• IBM Corporation
• Accenture plc
• Okta, Inc.
• Ping Identity Holding Corp.
• R3 LLC
• SecureKey Technologies Inc.
• Evernym, Inc.
• Civic Technologies, Inc.
• Dock Labs AG

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“The decentralised identity market is expected to witness significant growth in the coming years due to increasing concerns over data privacy, rising incidents of identity theft, and growing demand for user-centric identity management. Advancements in blockchain technology, integration of zero-knowledge proofs, and regulatory initiatives promoting digital sovereignty are further propelling adoption. Enterprises across sectors such as finance, healthcare, and government are embracing decentralised identity solutions to enhance security, reduce fraud, and streamline verification. As interoperability standards evolve and ecosystem partnerships strengthen, decentralised identity is poised to become a foundational layer of digital trust in the global digital economy.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based Global management consulting firm.

“Decentralised Identity Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Identity Type (Biometrics, Non-Biometrics), By Deployment Mode (On-Premise, Cloud-Based), By End-User (Banking, Financial Services, and Insurance, Government and Public Sector, Healthcare and Life Sciences, Retail and E-commerce, Telecom and IT, Transportation and Logistics, Others), By Region & Competition, 2020-2030F,” has evaluated the future growth potential of Global Decentralised Identity Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Decentralised Identity Market.

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