How big is the Digital Identity Wallet Market

Q: What is the projected growth rate of the digital identity wallet market?

The digital identity wallet market is expected to grow at a CAGR of 9.5% in the coming years.

Q: What is stimulating the growth of the digital identity wallet market?

The growth is stimulated by digital transformation across governments and enterprises and global moves toward decentralized identity management.

Q: What will the digital identity wallet market size by 2031?

Digital identity wallet market is projected to exceed USD 16.4 billion by 2031.

Q: What are the challenges facing the digital identity wallet market?

Key challenges include interoperability across regions and the need for robust infrastructure in developing economies.

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6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

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How big is the Digital Identity Wallet Market | Trend 2025

Code: MTA5066

Publication Date: Jul 2025

What is the Digital Identity Wallet Market Size?

According to 绿帽社 internal database and industry insights, the digital identity wallet market was valued at USD 4.4 billion in 2024 and is anticipated to reach USD 12.4 billion by 2031, expanding at a CAGR of 12.6% during the forecast period.

The growth of the market is being bolstered by the rapid digitalization of public services, demand for secure user authentication in financial transactions, rising cybersecurity concerns, and widespread adoption of decentralized identity solutions across sectors like banking, healthcare, and government.

Growth Factors of the Digital Identity Wallet Market

Surging demand for secure and portable digital credentials for individuals and organizations
Government-backed national identity wallet initiatives in Europe, Asia, and the Middle East
Integration of blockchain for decentralized, tamper-proof digital ID management
Surge in mobile banking, digital onboarding, and remote verification needs
Increasing number of cyber threats pushing enterprises to adopt verifiable identity solutions
Regulatory compliance encouraging identity wallets with strong data protection

Digital Identity Wallet Market Trends

Digital Identity Wallet Market is witnessing growing investment in interoperable wallet infrastructure and cross-border digital identity frameworks. Governments are launching citizen-centric identity wallets, while private players are rolling out wallets integrated with biometrics and zero-knowledge proofs. Digital wallets are being extended beyond identity to store digital driving licenses, health records, and educational certificates. The convergence of self-sovereign identity (SSI), digital signatures, and verifiable credentials is expected to reshape digital identity ecosystems.

Emerging Developments in Digital Identity Wallet Market

Recent developments in the Digital Identity Wallet Industry include pilots for blockchain-based identity credentials, implementation of AI-driven fraud detection in wallet systems, and the rise of wallet-as-a-service (WaaS) offerings for fintechs and enterprises. Countries are testing interoperability between wallets for cross-border travel and finance. Additionally, there is a growing focus on identity wallets for underbanked populations to promote financial inclusion. Smart contracts and tokenized identity rights are also entering mainstream discussions in the digital wallet evolution.