Digital identity apps to hit 5.2bn installations by 2029

A new study by Juniper Research has predicted that the installation of digital identity apps will reach 5.2 billion globally by 2029, representing over 60% of the global population. This figure marks a significant increase of 126% from the current 2.3 billion app installations noted this year.

The study attributes this growth to standardisation efforts, such as the European Union's eIDAS2 framework and the UK's Digital Identity and Trust Framework. These initiatives are expected to simplify the process of integrating identity apps with third-party services. Juniper Research defines a digital identity as a digital representation of an entity, which can consist of individual pieces of identity data, events, or signals.

The report, titled "Global Digital Identity Market 2024-2029," is considered by Juniper Research as their most comprehensive assessment of the digital identity market to date, covering five-year forecasts over 20,000 datapoints across 60 countries. An extract of the report is available for free download.

One of the critical insights from the report is the importance of digital identity-based onboarding in enhancing the user experience. The use of biometrics for user verification against stored identity credentials is highlighted as being both faster and more secure than traditional methods such as passwords or one-time passcodes. This incentivises the integration of digital identity apps into a broader range of services, including eGovernment and financial services.

The report indicates that eGovernment services, in particular, will be early adopters of digital identity integration due to their typically poor user experience. Faster and more reliable access to government services can encourage quick consumer adoption of these technologies.

Michael Greenwood, the author of the report, commented on the necessity for identity app providers to focus on integrating with government services. "Providers of identity apps must prioritise integration with government services to facilitate this high-value use case. Governments must redesign eGovernment services to fully leverage digital identity apps; improving user experience and catalysing overall adoption." His comments underline the potential for digital identity to transform the accessibility and efficiency of government services, thereby increasing overall adoption rates among consumers.

In summary, Juniper Research's latest study sheds light on the burgeoning market for digital identity apps, driven by regulatory standardisation and the need for enhanced user experiences. The findings underscore the critical role that biometric verification will play in the future integration of digital identity apps into various sectors, with the government services sector poised as a significant early adopter. The focus on improving user experience through these initiatives could potentially lead to greater consumer acceptance and utilisation of digital identity solutions globally.