Digital Identity Market to Exceed $80B by 2030 amid New Regulations and Hybrid Models
Digital Identity Market to Exceed $80B by 2030 amid New Regulations and Hybrid Models
Digital identity is growing faster than ever. Once confined to government initiatives and fintech startups, it is now central to how companies and organizations verify users, secure data, and meet compliance requirements.
A new Juniper Research forecast projects the digital identity market will climb from $51 billion in 2025 to $80 billion in 2030, driven by stricter regulations and emerging technologies such as mobile driver’s licenses and digital travel credentials. As digital IDs move from policy plans to mainstream use, their role in cybersecurity and the global economy is expanding fast.
Why digital identity is entering a high-growth phase
Juniper Research, a UK-based technology analyst firm specializing in fintech, telecoms, and IoT forecasting, found that the digital identity market is set for strong momentum through 2030. The study identified two main drivers: tightening regulations, which increasingly require digital identities, and the emergence of new digital credential technologies ready for everyday use.
Governments are leading much of this momentum as more services move online. According to Juniper Research,national and regional programs such as the EU Digital Identity Wallet (EUDI) and the UK’s digital identity framework are setting standards that make it easier for businesses, such as banks and telecom providers, to adopt secure and interoperable identity systems.
These efforts align with the EU’s broader digital strategy, which aims to strengthen data protection, promote innovation, and build cross-border trust in online services.
Regulation and interoperability drive adoption
Digital identity has moved to the center of compliance planning as enterprises respond to tightening regulations and global efforts to make online verification consistent across borders. Juniper Research said these policies are improving interoperability, allowing individuals and institutions to use verified credentials more smoothly.
The firm explained that standardization efforts like the EUDI are creating a framework for how identity systems can work together across regions and sectors. This interoperability is essential for making digital identity both secure and practical for everyone. It allows citizens to use the same verified credentials for services such as renewing a passport online or accessing healthcare in another EU country, reducing the patchwork of separate logins and systems that have slowed adoption in the past.
Hybrid models bridge security and usability gaps
Juniper Research emphasized that pairing digital IDs with physical credentials will help smooth the adoption of digital identities. The study described this as the “hybridization of credentials,” noting that many citizens still prefer tangible documents for verification. Providing both options builds trust and makes the transition to fully digital systems more accessible and inclusive.
Louis Atkin, research analyst at Juniper Research, said that focusing on self-sovereign principles will give users control of their own data, which is critical to gaining public support. He added that accessibility and education will determine the program’s success and sustainable growth. Emerging facial recognition technology is also helping streamline identity checks in digital ID systems, blending strong security with ease of use for citizens and enterprises alike.
Atkin also emphasized that the EUDI is central to improving interoperability, noting that “standardization of digital identity infrastructure massively improves 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.”
What the surge means for enterprise IT
For enterprise and government CIOs, digital identity integration into access management and zero-trust security models is becoming essential. Hybrid identity systems reduce fraud and simplify onboarding, but introduce new compliance challenges.
As identity becomes a regulated infrastructure, IT leaders must ensure verification systems comply with privacy-by-design standards and data protection requirements. For financial institutions, verified digital identities strengthen online payment security, reduce fraud risk, and build consumer trust in digital transactions.
Juniper Research said the next five years will be defined by how effectively regulations, interoperability standards, and user trust are combined because these factors will ultimately determine the pace of digital identity adoption worldwide. The firm’s study analyzed more than 30,000 data points across 61 countries, offering forecasts through 2030 and insights into where digital identity adoption is most likely to accelerate.
For enterprises, the takeaway is clear: as governments build the infrastructure for trusted digital credentials, the private sector will need to align security and identity strategies. Businesses should turn compliance into an opportunity by simplifying authentication, improving customer experience, and preparing for a more connected digital economy.
For organizations looking to strengthen their defenses against credential fraud, explore TechRepublic’s identity theft protection policy template to build a proactive strategy.
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