Blockchain Identity Management Market

Market Definition

The market refers to the industry focused on leveraging blockchain technology to create secure, decentralized systems for managing digital identities. These solutions enhance security, privacy, and transparency while reducing identity fraud and unauthorized access. 

Key applications include authentication, self-sovereign identities (SSI), Know Your Customer (KYC) compliance, and decentralized identity management across industries such as finance, healthcare, government, and supply chain management.

Blockchain Identity Management Market Overview

Global blockchain identity management market size was valued at USD 1,320.0 million in 2023, which is estimated to grow from USD 2,169.8 million in 2024 to USD 1,01,131.3 million by 2031, growing at a CAGR of 73.12% from 2024 to 2031. 

The growing demand for privacy and control over personal data is driving the market. Consumers increasingly adopting self-sovereign identities (SSI), which provide full control and security over digital identities, without relying on centralized authorities. 

Major companies operating in the blockchain identity management industry are Amazon Web Services, Inc., IBM, Oracle, Bitfury Group Limited, NEC Corporation, Dock Labs AG, Accumulate, Procivis AG, OARO, Fractal ID, KYC-CHAIN LIMITED, Civic, LeewayHertz, Antiersolutions, and Wipro.

The market is experiencing significant growth, fueled by the demand for secure, decentralized solutions to manage digital identities. By leveraging blockchain, individuals and organizations can ensure enhanced privacy, minimize identity theft risks, and streamline authentication processes. 

As trust in digital platforms grows, blockchain-based identity systems are becoming integral to securing online interactions, boosting transparency, and reducing reliance on centralized authorities.

• In March 2023, Ping Identity introduced PingOne Neo, a decentralized identity solution that enables users to control and securely manage their digital credentials. This platform empowers organizations to enhance privacy, reduce data breaches, and offer a frictionless, scalable identity management system across various sectors.

Key Highlights:

1. The blockchain identity management industry size was recorded at USD 1,320.0 million in 2023.
2. The market is projected to grow at a CAGR of 73.12% from 2024 to 2031.
3. North America held a market share of 36.63% in 2023, with a valuation of USD 483.5 million.
4. The solutions segment garnered USD 742.2 million in revenue in 2023.
5. The permissioned segment is expected to reach USD 60,235.9 million by 2031.
6. The identity verification segment had a market share of 32.12% in 2023.
7. The healthcare segment is anticipated to have a CAGR of 78.33% during the forecast period.
8. Asia Pacific is anticipated to grow at a CAGR of 74.37% during the forecast period.

Market Driver

Rising Demand for Privacy and Control

As concerns about data privacy and security rise, consumers are seeking more control over their personal information. Blockchain-based identity management enables self-sovereign identities (SSI), allowing individuals to manage their digital identities without depending on centralized entities, such as governments or corporations. 

This approach enhances privacy, reduces the risk of identity theft and ensures secure data sharing. The increasing demand for privacy and control is driving the growth of the blockchain identity management market, as organizations adopt decentralized and secure identity solutions to enhance data protection and user autonomy.

• In May 2023, Tech Mahindra and EarthID announced a partnership to develop a Self-Sovereign Identity (SSI)-powered Metaverse platform. This initiative enhances user control over data, privacy, and consent, addressing growing privacy concerns and boosting the market.

Market Challenge

Interoperability Issues

The lack of seamless integration between different blockchain platforms and identity systems poses a significant challenge to the widespread adoption of blockchain identity management. Variations in protocols, standards, and data formats create compatibility issues, limiting cross-platform functionality. 

Addressing this challenge requires the development of universal standards and protocols to enhance interoperability. Industry collaboration and open-source initiatives can further support seamless identity verification across multiple blockchain networks.

Market Trend

Growing Adoption of Identity Verification Services in the Metaverse

A key trend in the market is the rise of identity verification services tailored for the metaverse. The expansion of virtual worlds is driving the demand for secure and decentralized identity verification services. 

Blockchain-based identity solutions help prevent fraud, protect user privacy, and establish trust between users and digital platforms. Additionally, the integration of blockchain-based identities in the metaverse helps safeguard users against identity theft, improve user experience, and ensure compliance with evolving regulations.

• In March 2025, Tencent Cloud partnered with Trident Digital Tech to enhance Trident's Tridentity app by leveraging Tencent’s advanced infrastructure and Metaverse-in-a-Box solutions.

Blockchain Identity Management Market Report Snapshot

Market Segmentation:

• By Offering (Solutions, Services): The solutions segment earned USD 742.2 million in 2023 due to increasing demand for secure, decentralized digital identity management solutions in various industries.
• By Network (Permissioned, Permissionless): The permissioned segment held 57.43% of the market in 2023, due to its enhanced security and regulatory compliance for enterprise applications.
• By Application (Identity Verification, Credentialing and Attestation, Access Management, Data Sharing and Consent Management, Authentication and Authorization): The identity verification segment is projected to reach USD 33,613.1 million by 2031, owing to rising concerns over online fraud and privacy protection.
• By Vertical (BFSI, IT and Telecommunications, Government, Healthcare, Retail and eCommerce, Others): The healthcare segment is anticipated to have a CAGR of 78.33% during the forecast period driven by the need for secure patient data management and compliance with privacy regulations.

Blockchain Identity Management Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

North America blockchain identity management market share stood at around 36.63% in 2023 in the global market, with a valuation of USD 483.5 million. 

North America dominates the market due to the region's technological advancements in blockchain solutions, strong cybersecurity regulations, and increasing adoption of blockchain across finance, healthcare, and government sectors. Leading enterprises and innovative startups drive the demand for secure and decentralized identity solutions, ensuring privacy and data security.

• In July 2024, the U.S. Department of Homeland Security awarded contracts to six startups, including Credence ID, Hushmesh, Netis d.o.o., Procivis, SpruceID, and Ubiqu, to develop privacy enhanced digital wallets and verifiers. These solutions will securely store and verify digital credentials, which are essential for cross border travel, employment eligibility, residency status, and citizenship.

Asia Pacific is poised for significant growth at a robust CAGR of 74.37% over the forecast period. Asia-Pacific is witnessing the fastest growth in the blockchain identity management industry, driven by rapid digital transformation and an expanding tech-savvy population. 

Countries like China, Japan, India, and South Korea are increasingly adopting blockchain-based identity management systems across sectors such as e-commerce, finance, and government. The increasing demand for secure and privacy-focused solutions, along with supportive government initiatives to promote blockchain adoption, is fueling this growth.

• In October 2024, Zetrix launched a pioneering Chinese Digital ID verification service on ZCert. This solution enables overseas entities to authenticate and verify Chinese Digital IDs securely, enhancing cross-border identity verification through Zetrix’s blockchain platform and integration with China’s Xinghuo BIF.

Regulatory Frameworks

• In the US, the National Institute of Standards and Technology (NIST) promotes innovation and economic security by advancing measurement science and technology, including guidelines for digital identity management to enhance competitiveness.
• In the EU, the General Data Protection Regulation (GDPR) provides individuals with control over their personal data, enforcing privacy rules that govern digital identity management for organizations processing EU citizens' data.
• In India, the Personal Data Protection Bill (PDPB) aims to protect digital personal data, ensuring data privacy and security through consent, accountability, and rights for individuals, while imposing obligations on data fiduciaries.

Competitive Landscape:

Companies in the market are adopting advanced technologies, such as blockchain and zero-knowledge proofs, to enhance identity verification processes. These innovations enable organizations to enhance verification processes while also ensuring privacy and control over personal data for users.  

By enhancing data integrity and safeguarding privacy, companies are streamlining the verification process, making it more secure and user-friendly, thus gaining a competitive edge in the market.

• In October 2023, Aleo blockchain introduced zPass, a zero-knowledge protocol for verifying identities. This system allows users to securely upload identity documents offline, sharing anonymous proofs without centralized data storage for privacy and control over personal information.

List of Key Companies in Blockchain Identity Management Market:

• Amazon Web Services, Inc.
• IBM
• Oracle
• Bitfury Group Limited
• NEC Corporation
• Dock Labs AG
• Accumulate
• Procivis AG
• OARO
• Fractal ID
• KYC-CHAIN LIMITED
• Civic
• LeewayHertz
• Antiersolutions
• Wipro

Recent Developments (Funding/New Product Launch)

• In January 2025, Humanity Protocol, a decentralized identity blockchain solution, secured strategic funding from Pantera Capital and Jump Crypto at a USD 1.1 billion valuation. This investment will accelerate the development of secure, user-owned digital identities and expand adoption across Web3 platforms.
• In May 2024, MicroStrategy introduced "MicroStrategy Orange," a decentralized identity platform built on the Bitcoin blockchain. This innovation empowers organizations to manage decentralized identities, leveraging Bitcoin's security for verifiable credentials across various digital identity use cases.