This represents a growth of 82% over the next four years, Juniper said in ‘Digital Identity: Solutions Assessment, Regional Analysis & Market Forecasts 2023-2027’.

This increase will be driven by the use of government-backed digital identities to replace physical identity documents as a source of verification for third-party apps, such as banking, financial services and employment. (See the upcoming March-April issue of Recruiter for insight into digital ID technology in recruitment, out next week.) This will be critical, as businesses aim to reduce ID theft and meet increasingly stringent Know Your Customer (KYC) regulations.

The research also identified a move away from reliance on passwords for identity verification, with these replaced by biometric verification and Multi-Factor Authentication (MFA) under a zero-trust model, where identities are authenticated continuously. “This approach is more resistant to traditional hacking methods, such as phishing, reducing the risk of data breaches,” Juniper said.

Zero trust will be delivered via SSO (Single Sign On), which allows the user to access multiple accounts via a central, secured system. Critical to SSO is the use of mobile subscriber identity, with the number of mobile devices using their mobile number for SSO predicted to reach 2bn in 2027, up from 922m in 2023.

Research author Michael Greenwood explained: “Consumers are highly motivated by convenience, making a streamlining of user experience significant for attracting and retaining them. SSO can achieve this, whilst also appealing to security-conscious users.”

The primary competition for dedicated digital ID apps will come from digital wallets, which offer payment functionality alongside a digital ID capability, the report said. For instance, in some US states, digital driver’s licences held within Apple Wallets are fully recognised. “However, these digital wallets will struggle to monetise identity in the same way as they have payments, due to competition from government-run schemes limiting adoption,” Juniper said.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and commentary.

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