Digital sovereign identity market seen reaching $23.17 billion by 2030

By AI, Created 4:30 PM UTC, May 18, 2026, /AGP/ – The Business Research Company says the digital sovereign identity market will grow from $8.82 billion in 2025 to $23.18 billion by 2030 as demand rises for user-controlled identity tools and stronger cybersecurity. North America led the market in 2025, while Asia-Pacific is expected to be the fastest-growing region.

Why it matters: - Digital sovereign identity shifts control of identity data away from centralized systems and toward users and organizations. - The market is expanding as cybersecurity risks, privacy demands and compliance pressure push companies to adopt more secure identity tools. - The category could reshape how businesses verify users, manage consent and reduce exposure to large-scale data breaches.

What happened: - The Business Research Company projected the digital sovereign identity market will reach $23.18 billion by 2030. - The forecast implies a 21.4% compound annual growth rate through 2030. - The market was estimated at $8.82 billion in 2025 and is expected to rise to $10.68 billion in 2026. - The report was released in London on May 15, 2026. - A free sample of the report is available.

The details: - The report defines digital sovereign identity as a decentralized identity framework that lets individuals and organizations own, control and manage their identity data. - The system uses cryptography and distributed ledger technology to support trusted verification while protecting privacy and requiring user consent for data use. - Historic growth from 2025 to 2026 was tied to digitization of enterprise identity systems, cybersecurity concerns, tighter regulation, centralized identity management and demand for secure authentication. - Future growth is expected to come from decentralized identity platforms, blockchain-based verification, user-controlled identity data, cloud-based identity services and cross-industry interoperability. - Key developments expected over the forecast period include decentralized identity wallets, stronger consent management, deeper integration with authentication and access control systems, identity verification as a service, and compliance and regulatory advisory services. - The market report says cyber threats are a major driver because they can compromise data security, disrupt operations and cause financial and reputational harm. - The report says digital sovereign identity can reduce reliance on centralized identity repositories and limit risks from identity theft, unauthorized access and large-scale breaches. - In October 2025, the Australian Cyber Security Hotline reported more than 42,500 cyber-related calls for fiscal 2024-25, up 16% from the prior year. - A full market report is also available.

Between the lines: - The forecast suggests identity security is moving from a back-office IT issue to a core trust and compliance layer for digital business. - The emphasis on wallets, consent and interoperability points to a market built around portability and user permission, not just authentication. - North America led the market in 2025, but the strongest growth is expected in Asia-Pacific, signaling broader adoption beyond early enterprise markets.

What’s next: - Adoption of decentralized identity wallets and verification services is expected to accelerate as organizations look for lower-risk ways to manage credentials. - Demand for privacy controls, regulatory support and cross-system compatibility should continue to rise as the market scales. - The report highlights additional regional coverage across Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East and Africa. - The Business Research Company is promoting related reports on online microtransactions, bioinformatics platforms and commercial quantum computing solutions.