Decentralised Identity and SSI Market Size:
The decentralised identity and SSI (Self-Sovereign Identity) market is anticipated to expand at a high CAGR over the forecast period.
The decentralised identity and self-sovereign identity market is experiencing growth due to the digital transformation. It is reshaping the way individuals and institutions manage identity, trust, and data privacy. This shift is being driven by growth in concerns over data breaches, a rise in digital fraud, and the limitations of centralised identity systems. Sectors like finance, healthcare, and government demand secure identities for regulatory compliance.SSI helps consumers to create and manage their digital identities without having to rely on central authorities. The interoperability in identity systems has become crucial. Interoperability helps in providing cross-border access to financial services, education, and healthcare.
Decentralised Identity and SSI (Self-Sovereign Identity) Market Overview & Scope:
The Decentralised Identity and SSI (Self-Sovereign Identity) market is segmented by:
- Offerings: Solutions has a significant share of the decentralised identity and self-sovereign identity market. This is because they can provide end-to-end frameworks that ensure secure, verifiable, and user-controlled identity management. Enterprises and governments have increased the adoption of SSi solutions to help in identity verification and to reduce fraud.
- Technology: Blockchain holds a significant share of the decentralised identity and self-sovereign identity (SSI) market. This is because blockchain can offer secure,tamper-proof, verifiable digital identities. With the help of blockchain, individuals can control and manage their personal information.
- End-user: The banking, financial services, and insurance sector holds a significant share of the decentralised identity and self-sovereign identity market, as NFSI institutions follow strict Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. The BFSI industry is one of the most targeted sectors for identity fraud and data breaches
- Region: The Asia-Pacific region is decentralised, and self-sovereign identity is experiencing rapid growth. This is because of digitisation, regulatory momentum, and heightened concerns around data privacy and user control. Governments have started to recognise the importance of secure, user-owned identity frameworks. Countries like India and China are investing heavily in digital identity infrastructure.
Top Trends Shaping the Decentralised and Self-Sovereign Identity(SSI) Market:
1. Increased Adoption of Zero-Knowledge Proofs: A trend in the decentralised identity and self-sovereign identity is an increase in the adoption of zero-knowledge proofs. The main work of zero-knowledge proofs is addressing privacy concerns and regulatory requirements. It allows users to prove specific attributes like age or eligibility without revealing sensitive data.
2. Strategic Partnerships for Cross-Border and Industry-Specific SSI Solutions- Another significant trend is the strategic partnerships for cross-border and industry-specific SSI solutions. Partnerships are helping to accelerate SSI adoption by addressing interoperability challenges. It also helps in tailoring solutions for finance, government, and education. It drives market scalability and regulatory alignment.
3. Expansion of Web3 and Metaverse: There has been an increase in SSI solutions tailored to Web3 and metaverse applications. It is due to user-controlled identities in decentralised ecosystems. These trends reflect the growth in the integration of SSi with Web3. It supports cases like passwordless logins, NFT ownership verification, and a metaverse avatar.
Decentralised Identity and SSI (Self-Sovereign Identity) Market Growth Drivers vs. Challenges:
Drivers:
- Rising Data Breaches and Privacy Concerns: The growing frequency and scale of data breaches and identity theft are key drivers for the adoption of decentralised identity frameworks. Centralised identity systems store sensitive data in large databases, making them prime targets for cyberattacks. These breaches compromise users’ privacy and result in reputational losses for financial companies. Self-sovereign identity ensures data privacy and security with the help of blockchain-based identifiers (DIDs), cryptographic proofs, and zero-knowledge protocols. According to the Federal Trade Commission, in 2024, consumers reported fraud worth $12.5 billion, showing a 25% year-on-year growth. Around 38% of these had reported that they had lost money to these frauds. Consumers also reported that they had lost $5.7 billion to investment scams, which was an increase of 24% from the prior year.
- Regulatory Compliance: The increase in data protection regulations and the global shift toward digital public services is another key driver of the decentralised identity and self-sovereign framework. The U.S. government emphasises the importance of user consent, data minimisation, and portability. The US has laws like the California Consumer Privacy Act (CCPA) for data protection. As per the OECD, all companies operating in California have to comply with the CCPA. The only exemption is when a company has an annual revenue of less than $25 million, collects from less than 50000 people and has earnings of less than 50% from data commerce
Challenges:
- Interoperability: One of the major challenges of the decentralised identity and self-sovereign identity market is achieving interoperability. Interoperability is needed across different platforms, blockchains and national defence systems for seamless fraud detection. Different self-sovereign identity frameworks use different standards, protocols or blockchains. It creates difficulty for credentials to be universally recognised. Likewise, different regional regulations complicate the cross-border compatibility of solutions. It is very important for decentralised identity to achieve interoperability for seamless fraud detection.
Decentralised Identity and SSI (Self-Sovereign Identity) Market Regional Analysis:
- North America: North America is a key region for the decentralised identity and self-sovereign identity market. This is because there has been an increase in demand for secure, privacy-centric digital identity solutions. There are different identity frameworks like GDPR and CCPA. Decentralised identity helps individuals to own, manage and share their credentials without having to rely on government authorities. In the United States, the government is actively taking the initiative to improve self-sovereign identity solutions. The rising adoption of Web3, decentralised finance (DeFi), and the metaverse is further accelerating the need for portable, verifiable digital identities.
Decentralised Identity and SSI (Self-Sovereign Identity) Market Competitive Landscape:
The market has many notable players, including Civic Technologies, Trinisic, Dock, SpruceID, 1kosmos, Nuggets, SelfKey, Gataca, and Walt.id, Xage Security, Anonybit, Cheqd, among others
- Partnership: In April 2025, Anonybit announced its partnership with Ping Identity’s PingOne DaVinci. This partnership will secure data and provide multi-modal biometric authentication solutions. It will also provide solutions that will solve the next-generation identity security problem.
- Acquisition: In January 2025, Cheq announced the acquisition of Deduce. This acquisition brings together Cheq’s identity intelligence with Deduce’s AI-driven fraud detection to prevent attacks across different sectors. It will also make the digital journey secure, compliant, and friction-free.
Decentralised Identity and SSI Market Scope:
| Report Metric |
Details |
| Growth Rate |
CAGR during the forecast period |
| Study Period |
2021 to 2031 |
| Historical Data |
2021 to 2024 |
| Base Year |
2025 |
| Forecast Period |
2026 – 2031 |
| Segmentation |
Offerings, Technology, End-user, Geography |
| Geographical Segmentation |
North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Companies |
- Civic Technologies
- Trinisic
- Dock
- SpruceID
- 1kosmos
|
Decentralised Identity and SSI (Self-Sovereign Identity) Market Segmentation:
By Offerings
By Technology
- Blockchain
- Cryptographic Signatures
- Others
By End-user
- BFSI
- Healthcare
- Retail & E-Commerce
- IT & Telecommunication
- Others
By Region
- North America
- South America
- Europe
- United Kingdom
- Germany
- France
- Italy
- Spain
- Others
- Middle East & Africa
- Asia Pacific
- China
- India
- Japan
- South Korea
- Taiwan
- Thailand
- Others