Saudi Arabia Digital Identity Solutions Market is Expected to Register a 16.06% CAGR Through 2030
Saudi Arabia Digital
Identity Solutions Market is to be led by the Government and Defense sector,
driven by national digital transformation initiatives and increasing demand for
secure, integrated identity systems, during the forecast period.
According to
TechSci Research report, “Saudi Arabia Digital Identity Solutions Market
– By Region, Competition, Forecast and Opportunities, 2020-2030F”, Saudi Arabia Digital Identity
Solutions Market was valued at USD 815.42 Million in 2024 and is expected to
reach USD 1993.19 Million by 2030 with a CAGR of 16.06% during the forecast period.
The explosion of digital
payments, online shopping, and mobile banking in Saudi Arabia has created
immense demand for secure digital identity verification. With financial
inclusion and fintech growth identified as core Vision 2030 priorities, new
players in the banking and e-commerce space are racing to onboard users in
compliance with Know Your Customer (KYC) regulations. Digital identity
solutions—particularly biometric onboarding, document scanning, and secure
credential storage—enable faster, safer customer acquisition without
compromising on regulatory scrutiny.
The Saudi Central Bank has
also authorized a growing number of digital-only banks and e-wallet providers,
all of which rely on robust digital identity systems to verify users remotely.
As cashless transactions rise and cross-border payments become more frequent,
identity services that integrate seamlessly with payment APIs and fraud
detection engines are becoming essential infrastructure for financial service
providers.
This trend not only fuels
demand for enterprise-grade identity platforms but also opens doors for
startups offering specialized digital ID-as-a-service models. As of 2024, more
than 80% of the adult population in Saudi Arabia actively used digital banking
or mobile wallet applications. This rapid digitization led to an estimated 19
million monthly identity verifications across financial services and e-commerce
platforms, emphasizing the critical role of secure digital identity systems in
managing transactions, customer onboarding, and regulatory compliance in a
cashless economy.
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Based on End User, Government
& Defense sector emerged as the fastest-growing end-user segment in the
Saudi Arabia Digital Identity Solutions Market. This growth is primarily driven
by the Kingdom’s aggressive digital transformation initiatives under Vision
2030, which emphasize modernization, enhanced security, and the digitization of
public services. Platforms such as Absher and Nafath are widely used for
e-services including visa issuance, civil registrations, and secure identity
verification, laying a strong foundation for broader adoption of digital
identity technologies within the public sector.
The defense and internal
security establishments are increasingly adopting biometric authentication,
facial recognition, and access control systems to support national security,
border control, and surveillance infrastructure. With rising concerns over cybersecurity,
identity fraud, and unauthorized access to critical infrastructure, government
agencies are investing heavily in secure and scalable digital identity
platforms that can integrate with national databases and artificial
intelligence-driven analytics.
Continued investment in smart
city projects, digital passports, and e-government services will sustain the
rapid adoption of digital identity solutions in this sector. Additionally,
initiatives from the Saudi Data and Artificial Intelligence Authority (SDAIA)
and the Ministry of Interior are expected to further accelerate growth, making
Government and Defense the most dynamic and fast-evolving segment in the
market.
The Western region of Saudi
Arabia, including Jeddah, Makkah, and Madinah, has registered the fastest
growth in the Kingdom’s digital identity solutions market. This surge is
largely driven by the high volume of religious and leisure tourism, which demands
robust, scalable identity systems for efficient crowd management, border
control, and public services in pilgrimage seasons. Airports like King
Abdulaziz International and regional transportation hubs have accelerated
implementation of biometric e‑gates, facial recognition systems, and automated identity
verification tools to streamline passenger flows and bolster security. At the
same time, urban centers are modernizing municipal and healthcare services by
integrating digital identity protocols to support access to smart transit
systems, digital payments, and telemedicine services tailored for residents and
visitors alike.
Western Saudi Arabia benefits
from strategic inclusion in Vision 2030’s smart city initiatives such as Red
Sea and NEOM’s coastal expansions, which require sophisticated digital identity
platforms to support their futuristic ecosystems. These development zones are
implementing identity frameworks that combine biometric, cloud‑native, and behavioral
authentication mechanisms right from their foundational construction phases.
The region’s rapid digital adoption, enhanced connectivity, and focused
public–private collaboration are setting trends that neighboring provinces are
beginning to emulate. In light of these dynamics, Western Saudi Arabia is
positioned to retain its leadership in digital identity innovation and
deployment through the forecast period.
Major companies
operating in the Saudi Arabia Digital Identity Solutions Market are:
- Thales Group
- NEC Corporation
- IDEMIA
- Microsoft Corporation
- SAP SE
- Oracle Corporation
- ForgeRock, Inc.
- OneSpan Inc.
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“The Saudi Arabia Digital
Identity Solutions Market is poised for robust growth driven by national
digitalization initiatives under Vision 2030, increasing adoption of biometric
technologies, and rising demand for secure, user-centric identity platforms. Government-backed
programs such as Nafath and Absher are scaling rapidly, while sectors like
banking, healthcare, and defense continue integrating advanced identity
verification tools. Cloud-based deployments, AI integration, and decentralized
identity models will further accelerate market expansion. With ongoing
investment in smart cities, cybersecurity infrastructure, and digital
governance, Saudi Arabia is expected to lead the region in developing a secure,
efficient, and fully digital identity ecosystem.” said Mr. Karan Chechi, Research
Director of TechSci Research, a research-based management consulting firm.
“Saudi Arabia Digital Identity Solutions Market By Component
(Solutions, Services), By Deployment (Cloud, On-Premises), By Authentication
Type (Single-factor Authentication, Multi-factor Authentication), By Enterprise
Size (Large Enterprises, SMEs), By End User (BFSI, IT & telecommunication,
Healthcare, Government & Defense, Energy & Utilities, Others), By
Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of Saudi
Arabia Digital Identity Solutions 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 make
sound investment decisions., The report also identifies and analyzes the
emerging trends along with essential drivers, challenges, and opportunities in the
Saudi Arabia Digital Identity Solutions Market.
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