Digital identity market to reach $33B in 2025, Malaysia plans biometric national online ID system
The international market for Digital Identity solutions will grow at a 16 percent CAGR from 2020 to 2025 to reach $33 billion, with increasing integration of biometric technologies in smartphones and numerous industries as a driving factor, according to a forecast from Adroit Market Research.
The 109-page “Digital Identity Solutions Market…” breaks down digital identity solutions by authentication type, whether they involve biometrics, end-user and region. Single-factor authentication dominated the market in 2019, according to Adroit, but will give way to multi-factor authentication over the forecast period. North America is expected to remain the top market’s top region, though Asia-Pacific is expected to have the highest growth rate.
Many organizations are planning to use digital identity to provide enhanced customer experiences, but a lack of consumer data security could hold back market growth.
Market leaders identified in the report are Idemia, ForgeRock, Imageware Systems, Jumio, NEC, Samsung SDS, Signicat, Telus, Tessi, and Thales Group, Au10tix and Smartmatic are also identified among potentially significant market players.
Consultations in Malaysia and EU
Malaysia’s government is planning a biometric national digital identity, and seeking input on a framework from the public, the Malay Mail reports.
The Malaysian Communications and Multimedia Commission has begun engaging with the public, according to the article, on elements of the framework from conceptualization to implementation. The MCMC said in a statement that establishing a national digital identity is important for integration various transaction systems to provide flexibility for consumers.
The system will be used for identity verification based on biometrics like facial, fingerprint or iris recognition, and will also include biographic details such as names and dates of birth, according to the Mail.
Malaysia already has a mandatory national ID card. Additional information on providing feedback will be available from the MCMC website until August 7.
The European Commission has launched a public consultation as it considers revising the eIDAS Regulation, which governs electronic identification and trust services for electronic transactions in the internal market.
“These rules make it easier for citizens to access public services using electronic identification, such as e-signatures,” says EC Executive Vice President Margrethe Vestager. “The revision aims to improve its effectiveness, extend its benefits to the private sector and promote trusted digital identities for all Europeans and create a secure and interoperable European Digital Identity which gives citizens control.”
The evaluation will consider the latest developments in technology and policy, including the increased reliance on online business processes.
eIDAS Regulation enables the use of national eID across the EU by citizens and companies in eight EU Member States, and will cover 55 percent of the region’s population next year.
The consultation will last until October 2, 2020, and will be accompanied by targeted consultations with stakeholder groups.
Samsung fund director sees digital identity reliance growing
The digital identity infrastructure to support the sudden mass adoption of digital services in only beginning to be established, Samsung Catalyst Fund VP and Managing Director Dede Goldschmidt writes for CTech.
Changes during the pandemic, including the growth of ecommerce from 16 percent to 28 percent of retail sales after taking a decade to grow by 10 percent, a 72 percent rise in the use of fintech apps in Europe, and a rapid increase in healthcare interactions are in large part likely to remain in place. Biometric authentication with liveness detection is vital to onboarding, but signing in after that usually involves a username and password. The use of single sign-on (SSO) and password managers can help mitigate the security concerns associated with this change.
The addition of behavioral biometrics can help secure transactions with digital identity but Goldschmidt notes the increasing concerns around centralized storage of biometric data.