The Growth Pipeline™ Company Powering clients towards a future shaped by growth
Surge in Digital Transactions and Increase in Cases of Identity Theft Driving Future Growth Potential
Global Digital Identity Solutions Growth Opportunities
PBBC-23 2021
Global Security Research Team at Frost & Sullivan
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Section Slide Number
Strategic Imperatives 6
Why is it Increasingly Difficult to Grow? 7
The Strategic Imperative 8™ 8
The Impact of the Top Three Strategic Imperatives on Digital Identity Industry 9
Growth Opportunities Fuel the Growth Pipeline Engine™ 10
Digital Identity Programs—Research Scope 11
Market Overview—Digital Identity Market 12
Requirement Overview—Digital Identity Market 13
Core Needs for Digital ID Systems 14
The Need for Unified National Identification Systems 15
Evolving Identity Crisis 16
Terrorism Driving Need for Robust Identity Management Solutions 17
Governments Adopting Digital Strategies 18
Evolution of Identity Authentication Techniques 19
Taxonomy of Biometrics Applications in Digital Identity Management 20
Contents
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Section Slide Number
Authentication Approaches for Digital ID Programs 21
Digital Identity Process Breakdown 22
World Bank ID4D Initiative and Approach 23
Key Trends Across Sectors 24
Growth Drivers—Digital Identity Market 25
Growth Restraints—Digital Identity Market 26
Evolving Business Models—Identity-as-a-Service in the Private Sector 27
Digital-Identity-as-a-Service—Identification Everywhere 28
CLEAR—Airport Security Process Optimization 29
Onfido—Identity-Management-as-a-Service 30
Airport Security—Known Traveller Digital Identity System Powered by Blockchain 31
Regional Analysis 32
Major Digital Identity Initiatives and Investments 33
Market Analysis by Region—Digital Identity Market 34
Major National Digital Identity Programs 36
Contents (continued)
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Section Slide Number
Competitive Environment 42
Competitive Environment—Digital Identity Market 43
Key Contracts for Digital Identity Management 44
Global Regulations for Digital Data Protection and Privacy 45
Data Protection and Privacy Regulations for Digital Identity Management 46
Legislative Trends—Mandates for Enhanced Security 47
Global Standards for Biometric Applications in Digital Identity Management 48
Growth Opportunity Universe—Digital Identity Market 49
Growth Opportunity 1: Advanced Cyber Security for Digital Identity, 2023 50
Growth Opportunity 2: Block Chain Powered Digital Identity Solutions, 2025 52
Block Chain Powered Digital Identity Management—Healthcare Security Application 53
Growth Opportunity 3: Portable Biometric Readers/Kiosks for Digital Identity Management, 2023 55
State of the Industry—Need for Portable Systems for Remote Credentialing/Digital Identity Verification
56
Growth Opportunities and Way Forward 58
Contents (continued)
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Section Slide Number
List of Exhibits 59
Legal Disclaimer 60
Contents (continued)
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Strategic Imperatives
Preview
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Source: Frost & Sullivan
Why is it Increasingly Difficult to Grow? The Strategic Imperative 8™: Factors Creating Pressure on Growth
Preview
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The Strategic Imperative 8™
Customer Value Chain
Compression
Innovative Business
Models
Transformative Mega
Trends
Customer value chain compression as a result of advanced technologies, internet platforms, and other direct-to-consumer models that enables reduction in friction and the number of steps in customer journeys.
A new revenue model that defines how a company creates and capitalizes economic value, typically impacting its value proposition, product offering, operational strategies, and brand positioning.
Global forces that define the future world with their far-reaching impact on business, societies, economies, cultures, and personal lives.
The internal organizational behaviors that prevent a company from making required changes.
Internal Challenges
Geopolitical Chaos Competitive Intensity Disruptive Technologies
Chaos and disorder arising from political discord, natural calamities, pandemics, and social unrest that impact global trade, collaboration, and business security.
A new wave of competition from start-ups and digital business models that challenge the standing conventions of the past, compelling established industries to re-think their competitive stance.
New, disruptive technologies that are displacing the old, and significantly altering the way consumers, industries, or businesses operate.
Collaboration between previously disparate industries to deliver on whitespace cross-industry growth opportunities.
Industry Convergence
Source: Frost & Sullivan
Preview
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Disruptive Technologies Transformative Mega Trends Geopolitical Chaos
Biometrics-based national identification documents for citizens is taking center stage. By 2030, advancements in blockchain technology will lead to its integration with biometrics, resulting in the establishment of a single-token digital identity for individuals.
As hackers adopt refined technologies to disrupt and bypass security systems, multi-modal biometrics powered identity systems are expected to become crucial means to enhance security by 2030.
Implementing national identification programs in less developed and poor economies can be challenging. The World Bank’s ID4D initiative has been working with under developed and developing economies globally to create a system for establishing Digital ID for their citizens by 2030.
SI8
National identification programs are gaining prominence as countries are striving to establish a unified database of robust unique identity documents of citizens for ease of governance.
The ubiquitous nature of the internet drives increased digital transactions. However, this has resulted in an increasing number of digital identity theft cases, demanding highly secure technology such as biometrics to prevent fraud.
Growing concerns over threats posed by terrorism are driving the need for governments to establish robust techniques to identify their citizens. According to a survey conducted by the World Bank Group in 2019, an estimated 0.90 billion individuals lacked legal identity documents.
Wh
y W
he
n
The Impact of the Top Three Strategic Imperatives on Digital Identity Industry
Source: Frost & Sullivan
Preview
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Growth Opportunities Fuel the Growth Pipeline Engine™
The Growth Pipeline Engine™ The Innovation Generator™
An
alytical P
ersp
ectives
Source: Frost & Sullivan
Preview
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NA Forecast Period
2021–2030 Analysis
2020 Base Year
North America (NA) Europe
Central Asia Africa Middle East
Latin America (LATAM) Asia-Pacific (APAC)
Digital Identity Programs—Research Scope
Geographic Coverage (Global) This research study will assess the global digital identity program market by identifying the following:
• Market trends
• Drivers and restraints
• Key suppliers
• Key developments by country and region
The focus of the report is on digital identification documents issued by governments and private sectors to uniquely identify people and use such documents to efficiently run public and private welfare programs and other facilities.
Source: Frost & Sullivan
Preview
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Growth Drivers—Digital Identity Market
Digital Identity Market: Growth Drivers, Global, 2021–2030
Driver 1–2 Years 3–4 Years 5–10 Years
Identity Theft: Increase in security breaches is driving organizations to
use digital identity management solutions based on biometric
technology.
High High Medium
Security Threats: Civil disruptions and undocumented
immigration/overstays are driving the need for increased situational
awareness through robust digital ID and tracking solutions.
High High Medium
Need for Efficient Operations: Reduced processing time for identity
verification and seamless processing of authorized individuals are driving
nations to adopt digital ID solutions.
High High Medium
Digital Transformation: Digital transformational drives by governments
and private sectors across the globe has resulted in an uptick in digital
transactions, which requires a robust digital identity management
framework to operate securely.
High Medium Medium
Source: Frost & Sullivan
Preview
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Growth Restraints—Digital Identity Market
Source: Frost & Sullivan
Digital Identity Market: Growth Restraints, Global, 2021–2030
Restraint 1–2 Years 3–4 Years 5–10 Years
Data Security: Concerns over privacy and data security restrain the
adoption of digital identity solutions in a few private and public sectors.
However, enhanced cyber security solutions will help eliminate such
restraints by 2030.
High Medium Medium
Lack of Regulations: The lack of clear regulations for the collection,
processing, and storage of biometric data in many countries hinders
adoption.
High Medium Low
Lack of Awareness and Shortage of Funds: Many underdeveloped and
developing economies still lack awareness regarding the benefits of
digital identity solutions or do not have the economic and digital
framework for adopting them.
Medium Medium Low
Preview
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Growth Opportunity Universe—Digital Identity Market
Preview
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Growth Opportunity 1: Advanced Cyber Security for Digital Identity, 2023
Frost & Sullivan has identified 10 Growth Processes that serve as levers for determining and evaluating new Growth Opportunities.
>$1 Bn
2 Years
Relevant Industries for this Growth Opportunity
Industrial Automation
Environmental
Oil & Gas
Building Technologies
Consumer Electronics
Consumer Mobility
Commercial Mobility
Chemicals & Materials
Ag., Food & Nutrition
Test & Measurement
Aerospace
Defense
Security
Communications Tech
Information Tech
Pharma & Biotech
Advanced Medtech
Fintech
Applicable Regions
North America
Latin America
Central/Eastern Europe
Western Europe
Africa
Asia-Pacific
Opp. Size in 5 Years
Timeline for Action
Base Year 2020
Customer & Branding
Distribution Channel
Geographic Expansion
Vertical Market Expansion
Competitive Strategy
Strategic Partnering
Product Development
Merger & Acquisition Product Launch Technology & IP
Growth Processes
Source: Frost & Sullivan
Preview
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Growth Opportunity 2: Block Chain Powered Digital Identity Solutions, 2025
Frost & Sullivan has identified 10 Growth Processes that serve as levers for determining and evaluating new Growth Opportunities.
>$1 Bn
5 Years
Relevant Industries for this Growth Opportunity
Industrial Automation
Environmental
Oil & Gas
Building Technologies
Consumer Electronics
Consumer Mobility
Commercial Mobility
Chemicals & Materials
Ag., Food & Nutrition
Test & Measurement
Aerospace
Defense
Security
Communications Tech
Information Tech
Pharma & Biotech
Advanced Medtech
Fintech
Applicable Regions
North America
Latin America
Central/Eastern Europe
Western Europe
Africa
Asia-Pacific
Opp. Size in 5 Years
Timeline for Action
Base Year 2020
Customer & Branding
Distribution Channel
Geographic Expansion
Vertical Market Expansion
Competitive Strategy
Strategic Partnering
Product Development
Merger & Acquisition Product Launch Technology & IP
Growth Processes
Source: Frost & Sullivan
Preview
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Growth Opportunity 3: Portable Biometric Readers/Kiosks for Digital Identity Management, 2023
Frost & Sullivan has identified 10 Growth Processes that serve as levers for determining and evaluating new Growth Opportunities.
$100 M–
$500 M
3 Years
Relevant Industries for this Growth Opportunity
Industrial Automation
Environmental
Oil & Gas
Building Technologies
Consumer Electronics
Consumer Mobility
Commercial Mobility
Chemicals & Materials
Ag., Food & Nutrition
Test & Measurement
Aerospace
Defense
Security
Communications Tech
Information Tech
Pharma & Biotech
Advanced Medtech
Fintech
Applicable Regions
North America
Latin America
Central/Eastern Europe
Western Europe
Africa
Asia-Pacific
Opp. Size in 5 Years
Timeline for Action
Base Year 2020
Customer & Branding
Distribution Channel
Geographic Expansion
Vertical Market Expansion
Competitive Strategy
Strategic Partnering
Product Development
Merger & Acquisition Product Launch Technology & IP
Growth Processes
Source: Frost & Sullivan
Preview
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Legal Disclaimer
Frost & Sullivan is not responsible for any incorrect information supplied by companies or users. Quantitative market information is based primarily on interviews and therefore is subject to fluctuation. Frost & Sullivan research services are limited publications containing valuable market information provided to a select group of customers. Customers acknowledge, when ordering or downloading, that Frost & Sullivan research services are for internal use and not for general publication or disclosure to third parties. No part of this research service may be given, lent, resold, or disclosed to noncustomers without written permission. Furthermore, no part may be reproduced, stored in a retrieval system, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the publisher.
For information regarding permission, write to:
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© 2021 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied, or otherwise reproduced without the written approval of Frost & Sullivan.
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