Blockchain Identity Management Market Size - By Offering (Software, Service), By Provider Type (Application Provider, Middleware Provider, Infrastructure Provider), By Network (Permissioned, Permissionless), By Enterprise Size, Industry Vertical & Forecast, 2024 - 2032

Published on: 2024-07-07 | No of Pages : 240 | Industry : Media and IT

Publisher : MRA | Format : PDF&Excel

Blockchain Identity Management Market Size - By Offering (Software, Service), By Provider Type (Application Provider, Middleware Provider, Infrastructure Provider), By Network (Permissioned, Permissionless), By Enterprise Size, Industry Vertical & Forecast, 2024 - 2032

Blockchain Identity Management Market Size

Blockchain Identity Management Market was valued at USD 3.38 billion in 2023 and is expected to grow at a CAGR of over 50% between 2024 and 2032.

One of the key factors driving the market growth is support from significant technological companies. Prominent technology corporations including Microsoft, IBM, and Oracle are making substantial investments in the creation and implementation of identity management solutions based on blockchain technology. These businesses contribute enormous resources, cutting-edge technological know-how, and significant market power, all of which hasten the development and uptake of these solutions. Companies raise the profile and legitimacy of blockchain identity management by incorporating it into their platforms and product offerings.

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The blockchain identity management market is also being driven by the expansion of digital transformation projects in many industries. Identity management solutions must be safe, effective, and dependable as more companies and organizations move their operations online. Blockchain technology is a desirable alternative for businesses going through a digital transition as it provides a decentralized & unchangeable solution that improves the security and integrity of digital identities. As digital transformation continues to accelerate, the demand for blockchain-based identity management solutions is expected to rise, driving significant growth in this market.

Blockchain Identity Management Market Report Attributes
Report Attribute	Details
Base Year	2023
Blockchain Identity Management Market Size in 2023	USD 3.38 Billion
Forecast Period	2024-2032
Forecast Period 2024-2032 CAGR	50%
032 Value Projection	USD 160 Billion
Historical Data for	2021-2023
No. of Pages	280
Tables, Charts & Figures	366
Segments covered	By Offering, Provider Type, Network, Enterprise Size, Industry Vertical, and Region
Growth Drivers	Support from major technology companies Growth of digital transformation initiatives Proliferation of IOT devices Regulatory compliance & standards Increased demand for data security & privacy
Pitfalls & Challenges	Integration with legacy systems Regulatory and legal uncertainties

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A major challenge for the blockchain identity management sector is integration with older systems. An established IT infrastructure that has been developed and refined over many years powers many enterprises. As these older systems frequently depend on conventional & centralized identity management systems, switching to a decentralized blockchain-based strategy will need significant technical know-how and resources. Certain current systems may not be built to communicate with blockchain technology, leading to compatibility problems.

The market also faces issues with data migration, which call for meticulous preparation and implementation to guarantee the correct and secure transfer of identity data to the new system. To manage and run the new blockchain-based identification systems, personnel often need to undergo considerable retraining, which raises the expenses and complexity even further. These difficulties with assimilation can slow down the adoption of blockchain identity management as organizations may be reluctant to disrupt their established processes and systems.

Blockchain Identity Management Market Trends

The growing use of Self-sovereign Identification (SSI) frameworks is one of the main growth trends in the blockchain identity management industry. By eliminating the need for centralized authorities, SSI gives people the ability to own, control, and govern their digital identities. This method makes use of blockchain technology to give users safe, tamper-proof, and verifiable identities that they can use on various platforms and services. The shift toward SSI is driven by increased concerns over data privacy and security, as well as the demand for more user-centric identity management systems. By giving consumers complete control over their personal data, SSI lowers the dangers related to identity theft and data breaches. As legal frameworks change to emphasize user privacy and data protection, SSI framework use is anticipated to increase.

The growing integration of blockchain identity management systems with enterprise systems is another significant trend. Big businesses are realizing how blockchain technology may improve security, lower fraud, and expedite identity verification procedures. By combining blockchain-based identity solutions with current IT infrastructure, organizations may achieve improved levels of data accuracy, transparency, and efficiency. This integration is particularly essential in industries such as finance, healthcare, and supply-chain management, where safe and trustworthy identity verification is critical. Additionally, blockchain technology makes it easier to comply with strict legal standards, which attracts businesses trying to strengthen their security posture. The market is anticipated to develop significantly as more businesses implement blockchain identity management solutions.

The market for blockchain identity management is being shaped by the emphasis on creating and implementing interoperability standards. Interoperability guarantees the smooth operation of various identity systems based on blockchain, resulting in a unified and intuitive user experience. Verifiable Credentials (VCs) and Decentralized Identifiers (DIDs) are two examples of standards that industry consortia and standardization organizations, such as the World Wide Web Consortium (W3C) and the Blockchain identity management Foundation (DIF), are actively striving to create and promote. These standards are essential for the widespread adoption of blockchain identity management solutions, as they enable interoperability across various platforms and ecosystems. The creation of these standards supports innovations, ensures interoperability, and promotes trust in blockchain-based identification solutions, driving industry growth.

Blockchain Identity Management Market Analysis

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Based on offering, the market is divided into software & service. The service segment is expected to register a CAGR of 55% during 2024 and 2032.

A variety of expert services supporting the deployment, integration, and upkeep of blockchain-based identification solutions are included in the service section of the blockchain identity management market. This covers managed services, custom development, system integration, and consultancy.
The need for specialist knowledge to help enterprises navigate the complex world of identity management and blockchain technology is growing as more companies implement blockchain identity management systems. Consulting services assist businesses in formulating plans, organizing implementations, and comprehending the possible advantages and difficulties of blockchain identification solutions.
System integration services guarantee that applications and IT infrastructure currently in use can communicate with blockchain identity systems without any problems. Custom development services create solutions that are specifically built to meet the demands of an organization. The demand for these professional services is rising as more businesses recognize the value of blockchain identity management and seek to leverage its capabilities while ensuring a smooth transition and sustained performance.

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Based on network, the market is divided into permissioned & permissionless. In 2032, the permissioned segment dominated the global market with a revenue of over USD 110 billion.

The permissioned segment comprises systems where access to the blockchain network is limited to a predetermined group of participants. Permissioned blockchains are more controllable over network participation than public blockchains, which makes them especially appealing to businesses and organizations with strict security, privacy, and compliance requirements. Permissioned blockchains allow enterprises to create trusted environments for identity management, allowing identity data to be safely transferred and validated among known entities.
As participants are screened and given authorization, this technique lowers the risk of unwanted access and data breaches. Among the leading users of permissioned blockchain identification systems are financial institutions, healthcare providers, and governmental organizations.
The ability to maintain control over the network while benefiting from the decentralized nature of blockchain technology drives the segmental growth.

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North America dominated the global blockchain identity management market in 2023, accounting for a share of over 35%. The region’s market is expanding rapidly due to regulatory changes, technological advancements, and the need for safe identification solutions. With prominent IT firms, such as Microsoft, IBM, and Oracle, setting the standard for creating and implementing blockchain-based identity management solutions, the U.S. is leading the way in this sector. These businesses are using blockchain technology to improve identity verification procedures, lower fraud, and safeguard data. By highlighting the significance of data protection and user privacy, regulatory frameworks, such as the California Consumer Privacy Act (CCPA), and ongoing negotiations about a federal data privacy law are fostering a climate that is conducive to the adoption of these technologies.

The region's robust digital adoption rates, rising cybersecurity concerns, and robust technological infrastructure are all contributing to the growth of the blockchain identity management market in North America. Blockchain-based technology is projected to witness increasing demand as local governments and enterprises look for more effective & safe identity management systems.

The market for blockchain identity management is expanding rapidly in the U.S. owing to a strong focus on privacy, data security, and regulatory compliance. Decentralized identification solutions are finding appeal in the U.S. regulatory environment, which is defined by laws such as the California Consumer Privacy Act (CCPA) and current negotiations about a federal data privacy framework. Furthermore, the U.S. boasts a thriving technology ecosystem that includes a high concentration of startups and innovation hubs, which promotes the creation and application of state-of-the-art blockchain identity solutions. The growing frequency of cyberattacks is driving the need for secure digital identity systems.

The market for blockchain identity management is expanding in Japan as the nation strengthens its cybersecurity protocols and develops its attempts at digital transformation. The Japanese government has taken the lead in advancing blockchain technology through programs such as the Society 5.0 vision, which aims to incorporate cutting-edge technologies into every facet of society. The creation of effective and safe digital identity solutions is a part of this progressive strategy. To increase security and streamline processes, many Japanese firms are investigating and implementing blockchain-based identity management, especially in the financial services and manufacturing industries. In addition, the Financial Services Agency (FSA) and other organizations are striving to create rules to facilitate the adoption of these technologies, and Japan's regulatory landscape is changing to promote this development. The public & private sectors' cooperative efforts are also a factor in the establishment of standardized frameworks for decentralized identity, which are also expected to drive blockchain identity management market growth.

South Korea's outstanding technological infrastructure and strong government support for blockchain initiatives are helping it emerge as a major participant in the blockchain identity management sector. The South Korean government has started several initiatives and legislative initiatives to encourage the adoption of blockchain technology including decentralized identification systems. The active promotion of a blockchain-friendly environment by the Ministry of Science and ICT is also notable. Leading South Korean tech firms, including LG and Samsung, are enhancing security and privacy in their goods and services by investing in blockchain identity management solutions. Several firms are creating novel applications for decentralized identification. South Korean firms and consumers are quickly embracing digital adoption, which further supports the market growth, positioning the country as a leader in this emerging field.

China's strategy for entering the blockchain identity management market is distinguished by a large investment in blockchain technology and strong government support. Through several programs & regulations, the Chinese government is aggressively fostering the development of blockchain technology, having recognized it as a strategic priority. Decentralized identification solutions are being investigated by state-backed programs to improve the security and effectiveness of digital transactions and public services. With the goal of incorporating these solutions into their vast digital ecosystems, Chinese IT behemoths, such as Tencent and Alibaba, are making significant investments in blockchain and decentralized identification technology. However, there are difficulties and challenges for the adoption of blockchain identity management solutions due to China's legal framework, which includes strict data management and cybersecurity rules.

Blockchain Identity Management Market Share

Microsoft and IBM held a significant share of over 10% in the blockchain identity management industry. Owing to its strategic blockchain technology investments and strong cloud infrastructure, Microsoft has a substantial market share in the blockchain identity management space. Businesses can create and administer blockchain networks with ease with Microsoft's Azure platform, which offers a wide range of blockchain services, including Azure Blockchain Service. Microsoft's Identity Overlay Network (ION), created on the Bitcoin blockchain, offers a Decentralized Identity (DID) solution that improves security and gives users control over personal data. Microsoft's robust reputation for security and compliance, along with its large enterprise customer base, reinforces its market leadership. By incorporating decentralized identification solutions into the widely used Azure Active Directory (Azure AD) from Microsoft, enterprises may seamlessly shift to blockchain-based identity management while utilizing their current Microsoft infrastructure and technology.

IBM's deep industry expertise and complete blockchain platform have enabled it to develop a substantial position in the blockchain identity management sector. Blockchain-based identity management solutions can be developed & implemented in a stable environment with IBM Blockchain, a component of the IBM Cloud. With several noteworthy initiatives and partnerships in a range of sectors, such as supply chain, healthcare, and finance, IBM has been a leader in blockchain technology. The company's blockchain identification solutions, such as IBM Verify Credentials, which make use of the Hyperledger Fabric infrastructure, provide secure & scalable identity verification. For businesses wishing to deploy blockchain identity management, IBM is a reliable partner owing to its strong emphasis on enterprise solutions and in-depth knowledge of legal and compliance needs.