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Blockchain Identity Management Market Poised for 74.9 % Growth, Set to Hit $26.74 Billion by 2029

March 18, 2025
in Web 3
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Blockchain Identity Management Market Poised for 74.9 % Growth, Set to Hit $26.74 Billion by 2029
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Blockchain Identity Management Market Size

Blockchain Identity Management Market Size

What combination of drivers is leading to accelerated growth in the blockchain identity management market?
Escalating concerns regarding data security are anticipated to fuel the expansion of the blockchain identity management market in the future. Concerns about data security encompass problems related to safeguarding data against unauthorized entry, violations, theft, and corruption. The growth in such concerns arises from sophisticated cyber threats, the widening online presence of individuals and businesses, the spread of interconnected devices and IoT systems, and an increased dependency on cloud services and work-from-home setups. By offering decentralized, unalterable, and cryptographically secure solutions, blockchain technology significantly mitigates cyber threat risks and bolsters data security. For example, a report by Check Point, an Israel-based software security provider, stated in January 2023 that global cyberattacks in 2022 burgeoned by 38% compared to 2021. In 2022, the communications industry underwent an average of 1,380 attacks per organization every week, showing a 27% surge compared to 2021. Similarly, the Internet Service Provider/Managed Service Provider (ISP/MSP) industry faced an average of 1,372 attacks per organization every week in 2022, marking a 28% rise from the preceding year. Hence, the mounting concerns over data security are fueling the blockchain identity management market.

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What is the projected compound annual growth rate (CAGR) of the blockchain identity management market from 2025 to 2034, and what factors influence it?
The sphere of blockchain identity management has seen immense expansion in recent years, with its market size expected to surge from $2.8 billion in 2024 to $4.91 billion in 2025, marking a compound annual growth rate (CAGR) of 75.2%. The historic growth pattern is linked to escalating issues surrounding data privacy, increasing cybersecurity threats, regulatory compliance necessities, the spread of digital transactions, issues of trust and transparency, cost-effectiveness, and interoperability demands.

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There is a prediction of significant expansion in the blockchain identity management market in the forthcoming years, with it growing to a staggering $45.92 billion by the year 2029, reflecting a compound annual growth rate (CAGR) of 74.9%. Factors contributing to this increase during the forecasted period include the rise of decentralized identity standards, the incorporation of burgeoning technologies, a shift towards identity solutions centered on the user, as well as industry collaboration, consortia, regulatory changes, globalization and management of identity across borders. Notable trends expected during this period are interoperable identity solutions, integration with DEFI, an emphasis on technologies that enhance privacy, the blending of AI and machine learning, models governing blockchain, the rise of tokenized identity, and regulatory sandbox initiatives.

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How are the latest trends influencing the growth of the blockchain identity management market?
Key enterprises in the blockchain identity management industry are turning to strategic alliances to improve compliance and risk management offerings in the realm of digital assets, which encompasses identity confirmation and administration. Strategic alliances allow companies to utilize each other’s strengths and assets to achieve mutual profit and victory. For example, in November 2022, K2 Integrity, a risk consultancy based in the US, joined forces with US blockchain intelligence firm TRM Labs. This partnership implies that TRM Labs’ superior blockchain forensics and compliance instruments will be combined with K2 Integrity’s wide-ranging skillset in risk management, inquiries, and compliance advice. This combined effort will lend support to global organizations and government authorities in evaluating the risks of virtual assets and formulating efficient risk reduction tactics. The alliance is also targeted at enhancing bonds between conventional finance (TradFi), virtual asset service vendors, and government bodies, to foster the secure and progressive expansion of blockchain and virtual assets.

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What are the major segments of the blockchain identity management market and their role in driving growth?
The blockchain identity management market covered in this report is segmented –

1) By Offering: Software, Services
2) By Network: Permissioned, Permissionless
3) By Provider Type: Application Provider, Middleware Provider, Infrastructure Provider
4) By Enterprise Size: Small And Medium Enterprises, Large Enterprise
5) By Industry Vertical: Banking, Financial Services And Insurance (BFSI), Government, Retail, Automotive And Transportation, Healthcare, Other Industry Verticals

Subsegments:
1) By Software: Identity Verification Software, Access Management Software, Decentralized Identity Solutions, Identity Authentication Software, Blockchain-Based Digital Identity Platforms
2) By Services: Consulting Services, Integration Services, Support And Maintenance Services, Identity-As-A-Service (Idaas), Blockchain-Based Identity Governance Services

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What regions are leading the charge in the blockchain identity management market?
North America was the largest region in the blockchain identity management market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the blockchain identity management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Who are the key firms paving the way for growth in the blockchain identity management market?
Major companies operating in the blockchain identity management market are Microsoft Corporation, Amazon Web Services Inc. (AWS), International Business Machines Corporation (IBM), Oracle Corporation, NEC Corporation, Unum ID Inc., Wipro Limited, SpringRole Inc., Bitfury Group Limited, Dock Labs AG, Antier Solutions Private Limited, Civic Technologies Inc., Evernym Inc., Jolocom GmbH, BTL Group, Blockpass IDN Ltd., Blockstack PBC, ConsenSys, Symbiont Inc, Sovrin Foundation Inc., SelfKey Foundation Ltd., Factom Inc., ChainGuardian Inc., Netki Inc., ShoCard Inc.

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What Is Covered In The Blockchain Identity Management Global Market Report?

•Market Size Forecast: Examine the blockchain identity management market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the blockchain identity management market for a structured understanding.
•Key Players Overview: Analyze major players in the blockchain identity management market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the blockchain identity management market.
•Segment Contributions: Evaluate how different segments drive overall growth in the blockchain identity management market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the blockchain identity management market.
•Industry Challenges: Identify potential risks and obstacles affecting the blockchain identity management market.
•Competitive Landscape: Review strategic developments in the blockchain identity management market, including expansions, agreements, and new product launches.

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