UK digital ID companies raised $1B since 2015

The UK digital identity market has generated £2.05 billion (US$2.5 billion) annual revenue during the 2023-2024 fiscal year while the sector could reach £4 billion ($5 billion) in revenue by 2030, according to an interim analysis published by the government earlier this month.

The study is conducted by the Office for Digital Identities and Attributes (OfDIA), which oversees the country’s digital ID market, alongside policy consultancy Perspective Economics. The analysis provides an overview of the UK digital ID market size and its future growth.

The UK’s digital ID market has a maturing ecosystem, attracting major international investors in digital identity. During 2023, local firms raised £148 million ($185.8 million) across 34 deals (19 percent growth). Since 2015, digital ID companies have raised £826 million ($1 billion) in investment.

“The UK digital identity sector has demonstrated strong growth, with employment showing a compound annual growth rate (CAGR) of approximately 11.7 percent over the past five years,” the analysis notes. The CAGR growth trajectory to 2030 will reach between 7 percent (low growth) and 15 percent (high growth), according to the analysis.

The sector counts 270 companies. Over half of them offer digital identity creation and management, while 70 percent provide identity or attribute verification services. More than a third of providers have “trust services” such as digital signatures, seals and certificates.

Key services include document verification (54 percent), identity management (51 percent) and biometrics (46 percent), according to the interim analysis published this month.

The full report is due to be published in 2025.

Article Topics

biometrics  |  digital ID  |  digital identity  |  funding  |  identity proofing  |  identity verification  |  investment  |  UK  |  UK digital ID