BIS Research has released a new report that suggests that the rising demand for decentralized identity (DID) solutions will lead to major gains in the global DID market. The research firm specifically believes that DID tech will gain traction as people and institutions try to address the privacy concerns inherent in many of the identity platforms that are currently being used.
BIS notes that data breaches have been occurring with increasing frequency, which has made many consumers more aware of data protection issues. A decentralized system would potentially give people more control over their personal information than a centralized government ID, which could give people more confidence when using many online services and IoT devices.
According to BIS, the biggest market opportunities for DID providers lie in the realm of blockchain integration and smart contracts. However, the firm does warn that inadequate interoperability could be a potential hindrance, as could the current lack of clear regulatory standards and best practices.
“The decentralized identity market is witnessing a huge demand from the end-user segment due to the considerable level of control it offers to the user,” said BIS Principal Analyst Paarijaat Sharma. “An increase in data breaches is creating a strong need for higher security measures and enhanced safety protocols in the enterprise sector.”
Europe is expected to be the largest market for DID tech, thanks in part to its stronger privacy legislation and in part to the presence of many key players in the industry. North America – and the U.S. and Canada in particular – will be the second largest market during the forecast period.
The report comes several months after Microsoft previewed an open-source DID platform based on blockchain technology, and a year after the company announced that it would be collaborating with Mastercard to develop a new identity service with a decentralized component. HYPR also demoed a decentralized authentication platform at 2018’s CES.