Decentralized Identity Market Size | Global Outlook 2025

Q: How does decentralized identity benefit individuals and organizations?

It enhances privacy by giving individuals ownership and control over their personal data while enabling secure, verifiable transactions and compliance for organizations.

Q: What technologies support decentralized identity solutions?

Blockchain, distributed ledgers, cryptographic keys and verifiable credentials form the core technologies that ensure tamper-proof, trust less identity ecosystems.

Q: What is the overall size of the decentralized identity market?

The decentralized identity market is projected to grow USD 6.8 billion by 2031.

Q: Which industries are rapidly adopting decentralized identity solutions?

Financial services, healthcare, government, education and travel sectors are leading adopters due to their high need for secure and compliant identity verification.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

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Code: MTA4474

Publication Date: Jun 2025

What is the Decentralized Identity Market Size?

According to 6Wresearch internal database and industry insights, the Global decentralized identity market was valued at approximatelyUSD 0.9 billion in 2024 and is projected to reach overUSD 6.8 billion by 2031. The market is registering a strongCAGR of 32.5% during the coming years.

This growth is driven by the rising need for secure, privacy identity solutions and increasing concerns over centralized data breaches. Blockchain and distributed ledger technologies are driving the adoption of decentralized identity frameworks and empowering individuals with more control over their personal data.

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Key Growth Factors of the Decentralized Identity Market

Growing incidences of identity theft and data breaches in centralized systems
Increased demand for user privacy and regulatory compliance with data protection laws
Rapid adoption of blockchain and self-sovereign identity frameworks
Rising use of decentralized identity in digital banking, healthcare and government services
Growing investment by tech giants and startups in decentralized identity solutions
Emergence of digital ID initiatives to enable seamless and trusted global digital transactions

Decentralized Identity Market Trends

The decentralized identity market trends highlight the shift towards self-sovereign identities (SSI) and verifiable credentials to reduce dependence on centralized authorities. Integration with blockchain-based authentication, secure digital wallets and biometric verification is gaining traction. Additionally, interoperability standards and cross-border identity verification are emerging as key focus areas to facilitate seamless digital interactions.

Emerging Developments in the Decentralized Identity Market

The decentralized identity market is expanding rapidly as organizations and governments embrace blockchain-based solutions to give individuals greater control over their personal data. This emerging model replaces traditional, centralized identity systems with secure, tamper-proof digital credentials, enhancing privacy and reducing fraud. Growing concerns over data breaches and regulatory compliance are accelerating adoption across sectors like finance, healthcare, and public services.