Blockchain identity management is a technology that allows users to verify their identity and control their personal data in a secure and decentralized way. Blockchain identity management has various applications across different industries, such as banking, healthcare, retail, automotive, and others. In this article, we will explore the current state and future prospects of the blockchain identity management market, which is expected to reach $11.46 billion by 2026.
What is Blockchain Identity Management and Why is it Important?
Blockchain identity management is a system that uses blockchain technology to store and manage digital identities. Blockchain is a distributed ledger that records transactions in a transparent and immutable way. Blockchain identity management leverages the features of blockchain, such as cryptography, consensus, and smart contracts, to create and verify digital identities without relying on a central authority.
Blockchain identity management is important because it can solve many problems that traditional identity management systems face, such as:
- Data breaches and identity theft: Blockchain identity management can protect users’ data from hackers and malicious actors, as the data is encrypted and distributed across multiple nodes. Users can also control who can access their data and revoke permissions at any time.
- Privacy and consent: Blockchain identity management can empower users to own and manage their personal data, and decide how and when to share it with third parties. Users can also track and audit how their data is used and by whom, and enforce their rights under data protection regulations.
- Cost and efficiency: Blockchain identity management can reduce the cost and complexity of identity verification and authentication, as users can prove their identity with a single digital identity across multiple platforms and services. Users can also benefit from faster and cheaper transactions, as blockchain eliminates the need for intermediaries and fees.
How is Blockchain Identity Management Market Growing?
According to a recent report published by Allied Market Research, the global blockchain identity management market size was valued at $107 million in 2018, and is projected to reach $11.46 billion by 2026, registering a CAGR of 79.2% from 2019 to 2026. The report attributes the growth of the market to several factors, such as:
- The increasing demand for self-sovereign identity (SSI) solutions, which enable users to create and manage their own digital identities without depending on a central authority or intermediary.
- The rising adoption of blockchain technology across various industry verticals, such as banking, healthcare, retail, automotive, and others, which require secure and efficient identity management solutions.
- The growing awareness and support from governments and regulators, who recognize the potential of blockchain technology to enhance data security, privacy, and trust, and to foster innovation and inclusion.
The report also segments the market by service providers, organization size, and industry vertical, and provides a detailed analysis of each segment. Some of the key findings of the report are:
- The application provider segment is expected to exhibit the highest CAGR of 84.8% during the forecast period, as more and more applications and platforms are integrating blockchain identity management solutions to offer better user experience and value proposition.
- The large enterprises segment accounted for the major market share in 2018, as large enterprises have more resources and capabilities to adopt and implement blockchain identity management solutions. However, the small and medium enterprises (SMEs) segment is expected to grow at a higher rate, as SMEs can benefit from the cost-effectiveness and scalability of blockchain identity management solutions.
- The banking, financial services, and insurance (BFSI) industry vertical dominated the market in 2018, as the BFSI sector faces many challenges and opportunities related to identity management, such as fraud prevention, customer verification, compliance, and innovation. The healthcare industry vertical is expected to witness the highest growth rate, as the healthcare sector can leverage blockchain identity management solutions to improve data security, privacy, interoperability, and patient-centricity.
What are the Challenges and Opportunities for Blockchain Identity Management Market?
Despite the promising growth and potential of the blockchain identity management market, there are also some challenges and barriers that need to be overcome, such as:
- The lack of standardization and interoperability among different blockchain platforms and identity solutions, which can limit the usability and adoption of blockchain identity management solutions.
- The technical complexity and scalability issues of blockchain technology, which can affect the performance and reliability of blockchain identity management solutions.
- The legal and regulatory uncertainty and complexity, which can create confusion and risks for both users and providers of blockchain identity management solutions.
However, these challenges also present opportunities for further innovation and collaboration among various stakeholders, such as:
- The development and adoption of common standards and frameworks for blockchain identity management, which can enable interoperability and compatibility among different solutions and platforms, and enhance the user experience and trust.
- The advancement and improvement of blockchain technology, which can address the technical limitations and challenges of blockchain identity management, and enable more efficient and secure solutions.
- The engagement and dialogue with governments and regulators, which can foster a conducive and supportive environment for blockchain identity management, and ensure the alignment of interests and objectives among different parties.
Blockchain identity management is a technology that can revolutionize the way we create and manage our digital identities, and offer various benefits and advantages for both users and providers of identity services. The blockchain identity management market is growing rapidly and is expected to reach $11.46 billion by 2026, driven by the increasing demand, adoption, and support for blockchain identity management solutions across different industries and sectors. However, there are also some challenges and obstacles that need to be addressed and overcome, which can also create opportunities for further innovation and collaboration. Blockchain identity management is a booming market with huge potential, and it is worth keeping an eye on.
