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Covid-19

COVID-19

Understand the influence of COVID-19 on the Digital Identity Solutions Market with our analysts monitoring the situation across the globe.

Market Overview

Digital identity is the information used by the computer systems to represent a person, organization, application, or device. The term digital identity denotes a set of electronically captured and stored attributes and credentials that can uniquely identify a person. The information processed by the computer systems allows for the assessment and authentication of a user interacting with a business system without the involvement of human operators.

Digital identity solutions have been witnessing a significant surge in demand to manage user data and collect information generated by a person's online activity, including usernames and passwords, online search activities, birth date, social security, and purchasing history. The digital solutions market is expected to grow with a considerable rate during the forecast period, against a backdrop of globalization and technological advancements, such as AI, blockchain, and machine learning. The below figure depicts the digital identity lifecycle.

digital-identity-lifecycle

Impact of COVID-19 on the Adoption of Digital Verification Solutions

The evolution of digital identity solutions from passwords to biometric authentication, such as fingerprint, facial recognition, retina scan, handprint, and voice recognition, enables businesses to operate in a contactless manner. The COVID-19 pandemic has intensified the need for digital solutions more than ever. Companies around the world are switching to contactless digital and scanning solutions to prevent the spread of the virus.

On the other hand, the ever-increasing cases of fraud have made it vital for authorities to have a sound KYC solution to track and tackle fraudsters. The banking and finance sectors are allocating notable budgets to comply with anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations. Constant changes and improvements in the mandatory regulations against fraudsters pose a challenge for businesses to stay a step ahead of cybercriminals. Thus, digital identity solutions are foreseen as a potential market to make processes smooth and accurate.

Digital-Identity-Solutions-Market

Increasing criminal activities have made customer on-boarding difficult, compelling financial institutes to channelize efforts in verifying customers. Implementing digital identity solutions in retail, e-commerce, finance, healthcare, education, and other sectors are also proving to be useful in the fight against the ongoing pandemic. With most businesses working from home, laying off, and re-hiring employees, these verification solutions provide a way to authenticate a person without any direct contact.

Rising Cybercrime and Fraud in the Healthcare and Banking Sectors

Increasing cases of identity thefts and growing focus on enhanced end-to-end customer experiences drive the market growth. Striking growth in demand for online ID verification due to COVID-19 is fuelling market adoption. Businesses are switching to remote working, further surging the demand for video-conferencing. Rising online doctor consultation and increasing demand for telemedicine drive the market growth.

Healthcare organizations are adopting the ‘Know Your Patient’ approach, where they use an online digital identity verification system that verifies patients by comparing their photos with a government-issued ID. Rising incidences of health insurance fraud and surging focus on patient info security drive the market growth. The market players are investing in digital platforms to mitigate the impact of the outbreak and practice social distancing for long. Therefore, the digital identity verification market inhibits growth during the pandemic.

Social Distancing Practices and Emerging Contactless Business Strategies 

The future holds a promising growth opportunity for the players in the digital identity solutions market. The active players, on the other hand, are arduously working to develop new ways in order to serve customers and build better risk profiles. Future science is expected to unlock opportunities in terms of earning revenue from other businesses that lack access to such customer information. With digital identity, firms might look beyond their current business, and serve as a broker between parties and provide identity services to the public sector. They can also eliminate third-party data mining in the evaluation of customer credit history and extend non-financial advisory work.

Digital Identity Solutions Market: Segmentation

Rising Adoption of Biometric Solutions in the Corporate Sector

Increasing adoption of Bring Your Own Device (BYOD) trends in enterprises is significantly driving the solution segment. Fingerprint, retina scanning, and facial recognition are becoming widely popular among authorities. In the coming years, biometric scanners will be used to verify an employee's identity to grant access to corporate data via a BYOD device.

In September 2019, IDEMIA launched MFace Flex, a facial biometric solution to simplify user experience and crowd flow for easier travel at high traffic locations. DuoSecurity Inc. estimated that by 2022, about 60% of large and global enterprises and 90% of midsized enterprises (MSEs) are likely to implement digital authentication methods turning to password fewer strategies

On-Premise Solutions to Witness High Demand among Large Enterprises 

The on-premises deployment mode segment is expected to grow at a considerable CAGR on account of shifting customer preference towards on-premises solutions for ease of use. In addition to this, on-premises deployment mode is extensively used by the government and defense sector to identity-related risks. 

Regional Overview

North-America-Lead-Digital-Identity-Solutions-Market

Increasing Cases of Data Breaches to Prompt the Need for Effective Digital Identity Solution across North America   

The U.S. spearheads the digital identity solutions market in North America as the country is backed by the presence of leading market players. The digital signature and electronic authentication law (SEAL) established by the U.S. Senate has made digital verification mandatory for all forms of digital transactions. Recently, Finastra, a fintech company, developed an eSignature solution for the U.S. banks to reduce paper use, storage cost, and courier fees.

  • BioMetric Signature ID and Mitek are among the leaders in the digital identity solutions market. The two companies partnered in February 2019 to digitally validate the authenticity of the government-issued identity documents during enrolment.
  • The HIPAA Journal revealed that in the U.S., there were over 2,550 healthcare data breaches in the last decade, and various medical records were published on the dark web that exposes patients' date, place of birth, and credit card information. Medical records have a high value on the dark web of up to USD 1,000 each.

Digital identity solution has become a key component of ensuring patient security and monitoring amidst the alarming spread of the coronavirus. Healthcare organizations are switching to Know Your Patient approach, and several online pharmacies are adopting age verification approaches.

Increasing cases of data breaches have compelled the authorities to adopt a secure platform, which includes new forms of identity management, leveraging artificial intelligence and machine learning to eliminate access gaps that impact clinical and operational workflows without affecting the risks to health data security and privacy.  

Key Players

  • NEC
  • Samsung SDS
  • Thales Group
  • GBG PLC
  • Telus Corp.
  • IDEMIA
  • Tessi
  • ForgeRock
  • Jumio
  • Refinitiv
  • Duo Security (Cisco)
  • AU10TIX
  • Imageware Systems
  • Verisec
  • Vintegris Tech
  • Smartmatic
  • Syntizen
  • IBM
  • RaulWalter

Recent Developments

  • In December 2019, Ubisecure Inc. partnered with Onfido, an identity solutions technology company, to enable Onfido's identity verification technology for Ubisecure customers' digital identity solutions. The companies aim to combine solutions for customers to securely verify user identity in various industry verticals using Ubisecure's technology.
  • In June 2019, Entrust Datacard, a leading provider of trusted identity and secure issuance technology solutions, acquired nCipher Security, a general-purpose hardware security module (HSM) business, to expand Entrust's business with growing nCipher Security in order to address the global demand for stronger data and application security.
  • In April 2019, BAE Systems introduced the NetReveal Fraud Prevention Solution with advanced analytics and detection methodologies. The solution incorporates machine learning techniques to help banks, insurers, and government agencies identify fraudulent activities.

Digital Identity Solutions Market Segmentation

By Solution

  • Biometric
  • Non-Biometric

By Organization Size

  • Small and Medium-Sized Enterprises
  • Large Enterprises

By Industry Vertical

  • BFSI
  • Retail
  • Government and Defence
  • Healthcare
  • IT and Telecommunication
  • Energy and Utilities

By Region

  • North America
  • Europe
  • Asia-Pacific
  • SAMEA

Frequently Asked Questions (FAQs)

Rising cybercrime and fraud in the healthcare and banking sectors, rising adoption of biometric solutions in the corporate sector are the key factors expected to drive Digital Identity Solutions Market during the forecast period.
NEC, Samsung SDS, Thales Group, GBG PLC, Telus Corp., IDEMIA, Tessi, ForgeRock. Jumio, Refinitiv are the top players in Digital Identity Solutions Market.
North America is expected to hold the highest market share in Digital Identity Solutions Market.
Biometric Solutions Segment is expected to be the leading segment in Digital Identity Solutions Market during the forecast period.
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