Identity and Digital Trust Software Market Size (2024 - 2030)

Global Identity and Digital Trust Software Market was valued at USD 15.24 Billion and is projected to reach a market size of USD 37.44 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 13.7%.

Companies earn digital trust by providing safety, privacy, security, reliability, and ethical data practices through their online programs or devices. Users distinguish between dependable and unreliable services and choose secure companies. Companies with high digital trust attract more users. Companies gain digital trust by transforming themselves digitally and creating greater confidence in security, safety, privacy, and reliability. Digital trust encourages companies to remove risks that could negatively affect consumer confidence. Business leaders involve cybersecurity and privacy personnel in the development process from the beginning. Companies adopt the zero-trust model to reduce opportunities for hackers to access secure content. As interconnected businesses, governments, and devices become the norm, the cyber and privacy threats they face increase dramatically. Trust has become a major factor in achieving digital success — as personalized data continues to be shared online, confidence in the security of services is paramount for customers. Organizations are now recognizing the importance of digital trust and adjusting their processes and budgets to build and sustain customer trust. This has led to a complete shift in the way companies handle cyber and privacy risks and the inclusion of privacy and security personnel in project plans and budgets. Digital trust makes it easier for customers to find reliable services, and as technology evolves, automation will take over these processes and make them more secure. Furthermore, the transparency of a company builds digital trust — the more information customers receive about services and products, the more confident they become. Overall, developing trust and ensuring reliable sources are paramount for digital success.

Global Identity and Digital Trust Software Market Drivers:

The increasing security concern among business firms is fueling the growth of the global identity and digital trust software market.

The rising incidence of cybercrimes and fraud is a stark reminder to companies of the importance of implementing identity and digital trust solutions. Yet, the unique complexity associated with these solutions demands identity analytics and intelligence operations to detect irregular activities within user accounts, bypass policy violations, eliminate dormant accounts, and revoke unwarranted access privileges. With businesses becoming increasingly concerned about issues of identity and security, the requirement for identity and digital trust solutions is projected to reach an all-time high. 

The growing awareness regarding compliance management is another factor contributing to the growth of the global identity and digital trust software market.

Compliance management is a key factor driving organizations to adopt identity and digital trust solutions; neglecting to comply with regulations can lead to costly penalties and fines. GDPR, PCI-DSS, SOX, and HIPAA are a few of the regulations being updated to address security concerns and authentication needs. Furthermore, the growing threat of identity theft and fraud has pushed governments to enact legislation requiring proactive measures to be taken for its detection and prevention. The United Nations Office on Drugs and Crime (UNODC) works with Member State agencies to resolve lingering concerns in the combat against economic fraud and identity-related crime. The evolving regulatory landscape, the growing threat of identity fraud and theft, and the need for enhanced security are all drivers propelling the global acceptance of identity and digital trust solutions.

Global Identity and Digital Trust Software Market Challenges:

The global identity and digital trust software market are encountering challenges, primarily in terms of the risks associated with identity and digital trust solutions and a shortage of trained professionals. Storing login credentials and personal information securely in a centralized location is paramount to preventing data breaches and digital identity fraud. Achieving a successful implementation of identity and digital trust solutions, however, is increasingly more difficult due to the widespread adoption of Bring Your Own Device (BYOD) policies in enterprises. Adding to these challenges is the lack of trained professionals who can effectively deploy these identity and digital trust solutions. Cloud-based identity and digital trust solutions, while offering many advantages, also present a variety of security and privacy issues, including data breaches, possibly compromised interfaces, credential protection, and denial-of-service (DoS) attacks. Thus, these challenges inhibit the growth of the global identity and digital trust software market.

Global Identity and Digital Trust Software Market Opportunities:

Expansion to end-user industries presents a lucrative opportunity in the global identity and digital trust software market. Given the rising demand for identity and digital trust software owing to its advantages, including improved security, fraud prevention, and enhanced user experience, businesses specializing in the development of identity and digital trust software can stand to gain significantly from this opportunity by expanding their solutions to other end-user industries, including travel and hospitality, energy and utilities, and transportation and logistics. This expansion will help companies to increase their customer base and boost their overall revenue.

COVID-19 Impact on the Global Identity and Digital Trust Software Market:

The outbreak of the COVID-19 pandemic substantially impacted the global identity and digital trust software market. The pandemic caused disruptions in supply chains and distribution of goods and services, which highly affected the deployment of identity and digital trust software. This factor negatively impacted the growth of the global identity and digital trust software market. However, the pandemic accelerated the adoption of identity and digital trust software owing to the swift transition to remote work and heightened online activity, which created extensive new opportunities for cybercriminals, resulting in a surge of cyberattacks, phishing attempts, and data breaches. This factor positively impacted the market's growth. Therefore, the global identity and digital trust software market experienced both challenges and opportunities during the difficult time of the COVID-19 pandemic.

Global Identity and Digital Trust Software Market Recent Developments:

• In January 2023, Inscribe, a leading platform for fraud detection and document automation, raised $25 million in Series B funding, which will be used to further develop their Risk Intelligence solutions, which help businesses establish digital trust.

• In January 2023, DigiCert, Inc., a US-based global provider of digital trust solutions, unveiled DigiCert Trust Lifecycle Manager, a comprehensive solution that brings together certificate management and public key infrastructure (PKI) services, regardless of the certificate authority (CA) utilized.

• In September 2022, Trust Stamp, a US-based software company specializing in the development of AI-powered identity services, unveiled the launch of a new solution catering to government-focused digital identity, with a strong emphasis on privacy protection.

IDENTITY AND DIGITAL TRUST SOFTWARE MARKET REPORT COVERAGE:

Global Identity and Digital Trust Software Market Segmentation: By Solution

• Advanced Authentication

• Audit, Compliance, and Governance

• Directory Service

• Password Management

• Provisioning

• Single Sign-On

• Others

In 2022, the provisioning segment held the highest market share. The growth can be attributed to its extensive range of capabilities. Provisioning is a crucial aspect of managing user identities and access in organizations, involving the granting or revoking of access rights based on roles and permissions. With the growth of organizations and larger user bases, efficient provisioning becomes essential for maintaining security and proper access controls. Additionally, provisioning solutions streamline user onboarding and offboarding processes, automating access management when employees join, change roles, or leave the company. This saves time, enhances productivity, and reduces the risk of unauthorized access. 

Global Identity and Digital Trust Software Market Segmentation: By Deployment Mode

• Cloud-Based

• On-Premises

The growth can be attributed to the advantages that the cloud-based deployment model offers in contrast to the on-premises deployment model, including easy and quick data accessibility, large storage availability, and the utmost data security. Cloud-based platforms store data on remote servers rather than maintaining it on physical data storage devices like hard drives, USB flash drives, etc. They are less expensive than on-site data centers and far more secure than storing data on personal computers.

Global Identity and Digital Trust Software Market Segmentation: By Organization Size

• Large Enterprises

• Small and Medium-sized Enterprises (SMEs)

In 2022, the large enterprise segment held the highest market share. The growth can be attributed to large enterprises being more likely to adopt identity and digital trust software as a result of their greater resources and expertise. Large enterprises benefit from the abundance of financial resources enabling them to implement comprehensive identity and digital trust solutions. These solutions are paramount to managing user access, authentication, authorization, and identity governance across different departments, locations, and applications within their intricate IT ecosystems. Compliance with strict criteria of regulation and security risks are of utmost importance for large enterprises, as identity and digital trust software is the key to obtaining these objectives. These solutions upgrade the overall security and protect data, as well as provide unauthorized access prevention. As large enterprises service a larger customer base or provide support to a bigger staff, identity, and digital trust solutions must be able to sustain high volumes of users and transactions. 

Global Identity and Digital Trust Software Market Segmentation: By End-User Industry 

• Banking, Financial Services, and Insurance (BFSI)

• Healthcare

• IT and Telecommunications

• Government and Public Sector

• Retail and E-commerce

• Energy and Utilities

• Others

In 2022, the banking, financial services, and insurance (BFSI) segment held the highest market share. The growth can be attributed to the identity and digital trust software being vital in the BFSI industry to fulfill regulatory requirements, reinforce security, reduce the risk of fraud, and enhance the customer experience. BFSI organizations depend on the software to manage customer identities, ensuring compliance with regulations such as KYC and AML. This remarkable software provides robust authentication and access control mechanisms, protecting sensitive financial information from unauthorized access, identity theft, and fraudulent activities.

Global Identity and Digital Trust Software Market Segmentation: By Region

• North America

• Europe

• Asia-Pacific

• South America

• Middle East & Africa

The region of North America dominated the global identity and digital trust software market in the year 2022. The presence of highly-established technological infrastructure in nations, such as the United States and Canada, the dramatic rise of cyber threats and data breaches that have pushed organizations to prioritize data security and implement effective identity and digital trust solutions to safeguard sensitive customer information, and the stringent regulatory standards, particularly in the financial, healthcare, and government industries, which has necessitated the implementation of identity and digital trust software are some of the factors propelling the region's growth. Additionally, North America is home to several significant market players, including International Data Corporation, DigiCert, Inc., DXC Technology, Entrust, and RSA Security LLC. Due to the rising adoption of identity and digital trust software in various end-user industries, such as BFSI, healthcare, IT and telecommunications, and retail and e-commerce, owing to the increasing emphasis on data privacy and the strong presence of major market players, including Thales Group, Enfo Oyj, and Atos, the region of Europe is anticipated to expand at the fastest rate over the forecast period.

Global Identity and Digital Trust Software Market Key Players:

1. Thales Group (France)

2. International Data Corporation (United States)

3. Accenture plc (Ireland)

4. RSA Security LLC (United States)

5. Atos (France)

6. DigiCert, Inc. (United States)

7. Enfo Oyj (Finland)

8. SK International (India)

9. DXC Technology (United States)

10. Entrust (United States)