Introduction
As the online world keeps growing at a fast rate, security and control of personal information have become a key issue. Decentralised Identity (DID) is revolutionising the way users control their digital identities, providing citizens with true ownership over their digital lives. Let’s discover MarketGenics’ analysis of the industry in detail.
According to MarketGenics, the global decentralized identity market was valued at around USD 850 million in 2024 and is projected to grow at a CAGR of around 88.7% between 2024 and 2030. This surge is driven by rising cybersecurity threats, regulatory frameworks, and increasing demand for privacy-first solutions in digital ecosystems.
Challenges
While the benefits are clear, developing and implementing decentralised identity frameworks presents unique challenges:
Combined Challenges and Solutions
● Standards Fragmentation:
○ Challenge: Lack of universally accepted DID protocols makes cross-platform integration difficult.
○ MarketGenics Solution: Provides ecosystem analysis and collaborative roadmaps to align industry standards.
● Data Interoperability:
○ Challenge: Integrating DID systems with existing legacy databases in banking, healthcare, and enterprise software.
○ MarketGenics Solution: Offers interoperability frameworks, identifying technology gaps and integration strategies.
● Scalability of Blockchain Infrastructure:
○ Challenge: High costs and technical complexity in deploying blockchain at a large scale.
○ MarketGenics Solution: Supplies performance modelling and market trends on scalable ledger technologies.
● Regulatory Complexity:
○ Challenge: Navigating privacy laws across multiple jurisdictions.
○ MarketGenics Solution: Delivers policy monitoring and regulatory mapping across global markets.
● User Adoption Barriers:
○ Challenge: Lack of consumer awareness and technical literacy for decentralised ID wallets.
○ MarketGenics Solution: Conducts behavioural research to design intuitive user interfaces and educational outreach programmes.
Why Decentralised Identity Is the Next Big Thing
● Data Ownership Is Everything: DID gives individuals complete control of their digital credentials – no more relying on centralised servers prone to hacks.
● Better Security Means Peace of Mind: No central database = fewer chances of mass data leaks.
● Aligns with Global Privacy Rules: Whether it’s GDPR or India’s DPDP Act, decentralised identity makes compliance smoother.
● Works Across Sectors: From banking to healthcare to social apps, DID solutions create a seamless login and verification experience.
Global Market Snapshot
● North America currently leads with about 41.2% market share in 2024, thanks to heavy investments from big tech players and favourable government regulations.
● Asia-Pacific is quickly catching up, with countries like India, Singapore, and South Korea actively investing in DID tech.
● According to MarketGenics, the overall decentralised identity market could easily surpass USD 12 billion by 2030 if growth keeps up at this pace.
Future Outlook
● Integration with Web3 ecosystems: DID will become the default standard for login and transaction verification across decentralised applications (dApps).
● Governance by DAOs: Future identity verification may be governed by Decentralised Autonomous Organisations, creating self-regulating digital ecosystems.
● AI + DID: Combining decentralised identity with artificial intelligence for personalised digital interactions and enhanced security layers.
● Financial Services & Fintech: Expect DID integration in digital banking, KYC processes, and peer-to-peer finance solutions by 2030.
Conclusion
Decentralised identity is not just a trend—it’s a total rethinking of how people control their data. And in an era where data privacy matters more than ever, DID might just become the default.
MarketGenics provides in-depth market intelligence and technological mapping to help identity tech companies align strategies with emerging decentralised ecosystems, empowering brands to lead securely and efficiently in this evolving landscape.
