Digital identity verification spending to soar by 74% by 2029

In a recent study published on December 2, 2024, Juniper Research based in the United Kingdom has revealed substantial insights into the global market for digital identity verification. The research indicates a remarkable growth forecast of 74%, projecting the total spending to reach over $26 billion by 2029, up from $15.2 billion in 2024. This escalation in financial commitment to digital identity verification is attributed primarily to innovative solutions aimed at enhancing the user experience while simultaneously reducing the barriers associated with verification processes. One of the pivotal technologies identified in the report is the rising adoption of behavioural biometrics. This approach leverages user behavior patterns, such as keystrokes and swipes, to identify potential fraudulent activities with increased accuracy and efficiency. According to report author Thomas Wilson, the integration of behavioural biometrics will allow digital identity vendors to detect fraud earlier and efficiently without compromising the overall user experience. This technology supports businesses in solidifying their defense systems against fraud while minimizing interruptions for genuine users. The findings also highlight the growing importance of blockchain technology in the realm of digital identity verification. The study emphasizes that integrating self-sovereign principles through blockchain can significantly enhance security and privacy for users, particularly in highly regulated sectors such as healthcare and finance. The emergence of regulations like the electronic Identification, Authentication, and trust Services (eIDAS2) in the European Union is indicative of a transformative shift, facilitating the creation of interoperable digital identity wallets available to all citizens by May 2026. Furthermore, the research underscores the necessity for vendors to adhere to evolving digital identity standards. By collaborating with decentralized databases, vendors can enhance the security and privacy of user information, responding to the increasing demand for robust digital identity solutions. Overall, this study provides a thorough analysis and forecast of over 82,000 data points across 60 countries for the next five years, indicating that the digital identity verification landscape is poised for unprecedented growth and innovation.