Research and advisory firm Gartner forecasts that by 2026 at least 500 million smartphone users will regularly use digital identity wallets (DIWs) to make verifiable claims. This significant shift is driven by the limitations of current identity verification methods, which often require users to repeatedly submit identity documents and biometric data for each new service or transaction.
Digital identity wallets are expected to offer a comprehensive and user-friendly approach to identity management. These wallets will store various attributes linked to a user’s identity, including core data like name and date of birth, as well as additional information such as educational qualifications, employment records, and healthcare data.
The move toward portable digital identity (PDI) solutions aims to streamline the verification process across multiple services while giving users greater control over their personal information.
Governments are playing a proactive role in this transition. For example, the European Commission’s eIDAS Regulation mandates that all EU member states provide citizens with a digital identity wallet by 2026. However, the adoption of DIWs is not limited to government initiatives; many vendors already offer products that enable organizations to implement PDI solutions for specific use cases, enhancing security and user experience without waiting for government-issued solutions.
Akif Khan, Gartner VP Analyst, noted that the market is entering a transition period as PDI solutions mature, which will reduce the demand for standalone identity verification services over the next five years. Organizations can leverage decentralized identity wallet products to improve processes like employee onboarding and account recovery.
Industry experts support Gartner’s outlook. Jay Meier, Vice President at FaceTec, emphasized the importance of binding identity credentials directly to the biometric and biographic information held by issuing organizations, whether they are governmental agencies or employers.
Market projections align with these trends. Fortune Business Insights estimates that the digital identity solutions market will grow from $30.81 billion in 2023 to $101.37 billion by 2030, reflecting a compound annual growth rate of 18.5 percent. This anticipated growth underscores the increasing importance of biometric and identity technologies across various sectors.
Source: Gartner
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September 25, 2024 – by the Mobile ID World Editorial Team
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