Cooperation between development companies and interoperability of blockchain solutions will play a major role in meeting the demands of digital identity market participants, according to a new MarketsandMarkets report.
The global market for blockchain-based digital identity solutions will grow from $34.5 billion in 2023 to $83.2 billion in 2028, analysts say. The Compound Annual Growth (CAGR) should hold steady at 19.3% during the forecast period.
MarketsandMarkets experts cite the rise in identification and authentication fraud, as well as the increasing integration of artificial intelligence, machine learning, and blockchain as drivers for the growing interest of market participants. At the same time, the high cost of deploying digital identity solutions for service consumers can negatively impact the investment attractiveness of the market.
MarketsandMarkets notes: New blockchain solutions that use specialized digital wallets to authenticate data have provided a major impetus for the adoption of digital identity methods around the world. In June 2021, the European Commission first proposed the creation of a universal digital wallet to authenticate the identity of citizens. It is planned that by 2030, more than 80% of EU citizens will be able to use this wallet when moving funds within EU borders.
In June, blockchain solutions provider Protokol and EBSI’s European integration project VECTOR said they would
a collaboration to create a decentralized framework for cross-border verification of education and qualifications for Eurozone citizens.