Blockchain Identity Management Market

[257 Pages Report] The global blockchain identity management market size is projected to grow from USD 1.3 billion in 2023 to USD 35.1 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 92.7% during the forecast period. The rise in security concerns drives the expansion of the blockchain identity management market, creating a strong demand for robust blockchain identity management solutions. These solutions help verify, audit, and manage identity accomplished within seconds.

Additionally, the rapid growth of blockchain identity ecosystems has played a significant role in promoting the adoption of blockchain identity management measures. Hackers are increasingly targeting traditional identity management due to their extensive usage and access to valuable data, further bolstering the growth of the blockchain identity management market.

Moreover, the easing of business functions and growing demand for digital identity management are contributing to the growth of the market. These factors indicate a promising growth trajectory for the market as organizations actively seek improved security and data control measures. Consequently, the demand for blockchain identity management solutions is expected to witness a significant upsurge shortly.

To know about the assumptions considered for the study, Request for Free Sample Report

To know about the assumptions considered for the study, download the pdf brochure

Blockchain Identity Management Market Dynamics

Driver: Proliferation of digital identity ecosystem and blockchain gaming vertical

The surge in blockchain gaming and the digital identity ecosystem has led to a rapid rise in blockchain identity management. The demand for blockchain ID management is driven by the increased use of digital identities for online services, the widespread adoption of mobile devices, and rising data breaches. Blockchain identity management ensures secure and decentralized storage of identity data, protecting against theft and fraud while improving verification processes. It is also crucial in blockchain gaming, providing a secure way to manage player identities and assets, preventing fraud, and ensuring transparency. Examples of platforms in this space include Evernym, Socure, Enjin, and The Sandbox, all leveraging blockchain technology for identity verification and asset protection.

Restraint: Uncertainty in regulations and absence of uniform standards

Regulatory bodies struggle to keep up with technological advancements, including blockchain identity management. The lack of regulations hinders the widespread adoption of blockchain in various industries, and gaining acceptance from financial institutions is challenging. The early stage of distributed ledger technology raises questions about its applications, security, and authenticity, making regulators hesitant. Specific use cases like payments, smart contracts, and digital identity can be regulated, but comprehensive technology regulation is complex due to challenges like standardization and interoperability, leaving the regulatory status uncertain.

Opportunity: Government efforts promoting the adoption of blockchain technology

Blockchain technology has gained significant attention from governments and various industries in recent years. Governments worldwide are investing in research and development to explore blockchain's potential for identity management solutions. By using distributed ledgers, blockchain can enhance transparency, efficiency, and public service delivery. Estonia, for example, has become a leader in blockchain-based electronic voting and identity management, allowing secure voting from anywhere and efficient access to public services with citizens retaining control over their data.

Challenge: Limited expertise in blockchain principles

Blockchain technology has gained significant attention, but many users struggle to grasp its technical aspects. Despite its benefits, like security and decentralized control, the adoption of blockchain identity management solutions is still limited. Understanding blockchain and its platforms is essential as its applications grow. Technical knowledge of cryptographic algorithms and decentralized systems is necessary to explore their advantages fully. Legacy infrastructure also poses a challenge as it differs from traditional IT development. Overcoming these obstacles is crucial for unlocking blockchain identity management’s full potential.

Blockchain Identity Management Market Ecosystem

By vertical, the Healthcare segment is to grow at the highest CAGR during the forecast period.

The healthcare sector is witnessing the highest CAGR in the blockchain identity management market, primarily due to its numerous advantages. The enhanced security and privacy features of blockchain technology make it an ideal solution for safeguarding sensitive healthcare data from hacking or tampering. By creating a secure, shared platform for patient data storage and exchange, blockchain improves interoperability, resulting in reduced duplication of tests, enhanced patient care, and cost savings. Additionally, blockchain streamlines administrative processes like patient identity verification, leading to increased efficiency and reduced expenses. Moreover, the technology ensures healthcare organizations' compliance with regulations by enabling secure and auditable management of patient data, protecting them from potential fines and penalties.

By network, the permissionless segment is to grow at the highest CAGR during the forecast period.

The permissionless segment is thriving in the blockchain identity market due to its decentralized, trustless nature, granting users autonomy and control over their identities. With higher privacy and security, it reduces data breach risks. Its open access and inclusivity attract a global user base, and interoperability fosters a unified identity ecosystem. Additionally, resistance to censorship and scalability make permissionless blockchains highly attractive for identity management across verticals like healthcare and finance, fueling its rapid growth.

By region, North America accounts for the highest market size during the forecast period.

The blockchain identity management market in North America is experiencing rapid growth, driven by escalating adoption of digital identity solutions.  As businesses and individuals increasingly operate online, secure and decentralized identity management becomes crucial. With the rising demand for privacy and security, blockchain-based solutions offer enhanced protection against fraud and data breaches. The availability of such solutions from prominent technology companies has facilitated widespread adoption. Additionally, North America's supportive regulatory environment has fostered a favorable landscape for the blockchain identity management market's expansion, solidifying the region's position with the highest market share.

Key Market Players

AWS (US), IBM (US), Oracle (US), Microsoft (US), Bitfury (US), NEC (Japan), Dock (Switzerland), and Hu-manity.co (US), Metadium (Cayman Islands), Serto (US), Coinfirm (UK), Accumulate (US), Neuroware (Malaysia), Tradle (US), Peer Ledger (Canada), Procivis (Switzerland), SpringRole (US), Blockchains (US), Oaro (Canada), Fractal (Germany), NuID (US), Validated ID (Spain), KYC-Chain (Hong Kong), TRM Labs (US) and Factom (US) are the key players and other players in the blockchain identity management market.

Want to explore hidden markets that can drive new revenue in Blockchain Identity Management Market?

Unlock Insights

Click on image to enlarge

Scope of the Report

The study categorizes the blockchain identity management market by segments - offering, provider type, organization size, network, vertical, and region.

By Offering:

• Software
• Services

By Provider Type:

• Application Provider
• Middleware Provider
• Infrastructure Provider

By Organization Size:

• SMEs
• Large Enterprise

By Network

• Permissioned
• Permissionless

Vertical:

• BFSI
• IT and ITeS
• Telecom
• Government
• Real Estate and Construction
• Healthcare
• Retail and eCommerce
• Media and Entertainment
• Travel and Hospitality
• Other Verticals (Energy and Utilities; Transportation and Logistics; Research and Academia; and others)

By Region:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• Latin America

Recent Developments

• In January 2023, AWS (US) partnered with Ava Labs to promote blockchain adoption in enterprises, institutions, and governments. The collaboration aims to simplify node deployment and management on Avalanche, strengthen the network, and enhance the dApp ecosystem.
• In July 2021, Oracle Financial Services Software Ltd and Everest joined forces to bring blockchain technology to global banks. The partnership allows Oracle's banking clients to verify customer credentials and store them securely on the blockchain platform across multiple countries. Additionally, the integration improves Oracle's banking software and facilitates remote customer onboarding for financial institutions.
• In May 2022, Microsoft launched Microsoft Entra, a new product family that includes Azure Active Directory (Azure AD), and introduced two new categories: Microsoft Entra Permissions Management and Microsoft Entra Verified ID. The latter is based on decentralized identity standards, offering a secure, interoperable, and self-owned identity solution. Entra Permissions Management enables comprehensive visibility and management of permissions across multi-cloud environments, reducing access risks.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst