Digital ID Industry Set To Surpass $80 Billion In 5 Years

Juniper Research is expecting the digital ID market to reach $80 billion in 2030 as it sits at $51 billion in 2025. A report from Mordor Intelligence supports this rise, noting stronger demand from both governments and private companies building secure identification systems.

Much of the growth comes from tighter rules around identity checks. Governments and banks are adopting digital IDs to handle fraud prevention, security, and anti-money laundering processes. Juniper Research said these systems now form a foundation for things like digital onboarding, access control and verification.

Digital driver’s licences and travel credentials are also advancing quickly. These tools are moving into public use, helping people prove who they are across borders. Digital identity is turning into a normal part of daily life instead of a test project.

How Is Regulation Influencing Digital Identity?

A main driver in this space is eIDAS 2.0, the European regulation that defines how national digital identities should work. The EU expects every member country to have a Digital Identity Wallet ready before the end of 2026. Juniper Research said this will make online verification secure and trusted.

The pandemic exposed flaws in paper-based identification. Many governments saw that relying on physical documents caused long delays in health and travel systems. eIDAS 2.0 was created to fix that problem through verified online credentials.

Countries outside Europe are developing similar systems. Nations in Africa and Southeast Asia are designing frameworks that recognise one another’s digital IDs. This helps people who cross borders for work or trade to handle their records faster and shortens waiting times for public services.

“The EU Digital Identity Wallet (EUDI), which all Member States are expected to have in place by the end of 2026, will have a transformative effect on identity in the region; however, digital identity is already socially acceptable in mainland Europe. Adoption of the proposed UK scheme will require significant user benefits to overcome public scepticism. Focusing on self-sovereign principles, which give citizens control of their own data, will go a long way in improving support,” explained Louis Atkin, Research Analyst at Juniper Research.

“EUDI supports the adoption of digital identities, with standardisation of digital identity infrastructure massively improving the degree of interoperability of digital identities. However, to ensure sustainable growth, considering accessibility and providing explanations of how the systems work are vital for success,” Atkin added.

Are New Technologies Making Digital Identity Safer?

Security is one of the main issues in digital identification. Juniper’s research referred to methods such as zero trust security, single sign-s well as and self-sovereign identity as important developments.

Zero trust systems require every user to confirm their identity for each access attempt, even inside a network. This limits breaches but can add costs and complexity. Large organisations such as hospitals and financial companies often use it because they handle sensitive data.

Single sign-on lets people reach several platforms with one login. It saves time but can be risky if that main account is hacked. Juniper Research said multi-factor authentication and biometrics make this safer.

Self-sovereign identity gives people full control over their data. Information is stored in digital wallets using cryptographic methods, sometimes supported by blockchain. This gives users control but also makes them responsible for managing their information safely.

What Will The Market Look Like In 2030?

Juniper Research expects global digital identity revenue to reach $80 billion by 2030. Growth will come from both government-run and private systems. The report said that issuing both digital and physical IDs together helps build public trust, especially in areas where digital use is still new.

Success depends on effective communication as well as easy access. Governments that explain how these IDs work and make them widely available tend to see stronger adoption.

Hybrid models, which keep both physical and digital IDs in circulation, help people adapt gradually. This mix builds comfort while encouraging digital habits.

Juniper Research said that public trust, safety and government backing will influence progress. Digital IDs have become part of daily routines and this will only go up from here. Demand for services that verify them will in turn grow fast. Keeping data secure and transparent will decide how well this market develops through the next decade.