DIGITAL TRUST MARKET ANALYSIS

The Global Digital Trust Market size is estimated at US$ 308.34 Billion in 2023 and is expected to reach US$ 781.07 billion by 2030, growing at a compound annual growth rate (CAGR) of 14.2% from 2023 to 2030.

The digital trust market is a rapidly growing sector that revolves around establishing and maintaining trust in digital interactions and transactions. As businesses and individuals increasingly rely on digital technologies for various activities, trust becomes a critical factor in ensuring security, privacy, and reliability. The market encompasses a wide range of solutions, including identity verification, authentication, encryption, digital signatures, and fraud detection, among others.

With the rising prevalence of cyber threats and data breaches, organizations are focusing on implementing robust digital trust solutions to safeguard sensitive information and build confidence among their customers. The digital trust market is witnessing significant advancements in technologies like block chain, biometrics, and artificial intelligence, which are contributing to enhanced security and authentication measures. As the digital landscape continues to evolve, the digital trust market is poised to expand further, offering innovative solutions to address the trust and security challenges of the digital era.

Digital Trust Market Regional Insights

• North America: North America is the largest market for digital trust market, which accounted for a share of over 35% in 2022. North America, led by the U.S., has been a prominent player in the digital trust market. The region's advanced digital infrastructure, high internet penetration, and strong cyber security ecosystem have fostered the adoption of digital trust solutions. The presence of numerous tech companies and financial institutions has also contributed to the growth of the market in this region.
• Europe: Europe is the second-largest market for digital trust market, which accounted for a share of over 30% in 2022. European countries have been actively adopting digital trust technologies to comply with stringent data protection regulations such as the General Data Protection Regulation (GDPR). Privacy and security concerns have driven the demand for authentication and identity verification solutions in various sectors including finance, healthcare, and government.
• Asia Pacific: Asia Pacific is the fastest-growing market for digital trust market, which accounted for a share of over 20% in 2022. The Asia Pacific region has seen a surge in digitalization, driven by expanding e-commerce markets and a growing number of tech-savvy consumers. Governments in countries like China, India, and Singapore have been investing in digital infrastructure and promoting digital transformation, creating opportunities for digital trust solution providers.

Figure 1. Global Digital Trust Market Share (%), By Region, 2023

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Analyst’s viewpoint:

The global digital trust market continues to grow rapidly due to rising digital transformation across industries and the need for organizations to securely integrate digital technologies and ensure customer trust. North America currently dominates the digital trust market due to high digital adoption and strict data privacy regulations like General Data Protection Regulation (GDPR). However, Asia Pacific is expected to emerge as the fastest growing region backed by countries like China, India.

Key drivers of the market growth include the need for securely facilitating e-commerce and online transactions, rising emphasis on data privacy and protection of personally identifiable information, expanding mobile workforce, and Bring your own device (BYOD) trends. Additionally, he proliferation of cloud applications, IoT (Internet Of Things) devices, and Blockchain technologies are fueling the demand for robust digital identity manage ment and authentication solutions.

Digital Trust Market Drivers:

• Growing Cyber Security Threats: The rising frequency and sophistication of cyber-attacks and data breaches have raised concerns about online security and privacy. Organizations and individuals are increasingly seeking robust digital trust solutions to protect sensitive data and prevent unauthorized access. According to data from Interpol's Global Cybercrime Digest (2022), ransom ware attacks increased by 151% in 2021 as compared to 2020. Such incidents have severely dented the digital trust between internet users, businesses, and governments.
• Increasing Digitalization: The ongoing digital transformation across industries, including finance, healthcare, retail, and government, has amplified the need for secure and reliable digital interactions. As more services and transactions move online, the demand for digital trust solutions to establish trust and confidence among users grows. The United Nations published a report in 2022 noting that strengthening cyber security and enabling digital identification will be crucial for achieving sustainable development goals related to areas like education, healthcare, and financial inclusion over the coming years.
• Regulatory Compliance: Stringent data protection and privacy regulations, such as GDPR in Europe and CCPA in California, mandate organizations to implement strong security measures and ensure trust in digital interactions. Compliance with these regulations drives the adoption of digital trust technologies. According to a 2021 report by the United Nations Conference on Trade and Development (UNCTAD), the volume of global e-commerce rose from 16% to 19% during 2020 due to the pandemic.
• Rise of E-commerce and Online Banking: The surge in e-commerce and online banking activities has created a demand for secure payment systems and user authentication mechanisms. Digital trust solutions play a crucial role in providing secure and seamless experiences for customers engaging in online transactions. According to data from the United Nations Conference on Trade and Development, global e-commerce sales amounted to around US$ 26.7 trillion in 2019 and are estimated to reach US$ 39 trillion in 2023.

Digital Trust Market Opportunities:

• Expansion of E-commerce: With the continued growth of e-commerce globally, there is a vast opportunity for digital trust solutions to enhance the security and reliability of online transactions. Implementing secure payment gateways, fraud detection systems, and robust authentication methods can boost consumer confidence and drive e-commerce growth. According to the 2022 data from the United Nations Conference on Trade and Development (UNCTAD), the value of global e-commerce reached US$ 26.7 trillion in 2020 - a jump of 4.9% compared to the previous year.
• Digital Identity Solutions: The demand for secure and verifiable digital identities is increasing, especially with the rise of digital services and government initiatives for digital identification. Developing innovative digital identity solutions, such as decentralized identity platforms or self-sovereign identity systems, presents a substantial opportunity in the market. According to the 2022 data from the United Nations Conference on Trade and Development, globally over 53% of individuals now lack officially recognized identification documents limiting their access to essential public and financial services.
• Internet of Things (IoT) Security: As the number of connected IoT devices grows exponentially, ensuring the security and trustworthiness of these devices becomes paramount. Developing specialized solutions for IoT security, including secure device authentication and data encryption, opens up opportunities in this emerging market segment. According to the GSMA study 2020, enterprise IoT connections will be overtake consumers in 2024, and will almost triple between 2019 and 2025 to reach 13.3 Billion. This will account for just over half of all IoT connections in 2025.
• Biometric Authentication Technologies: Advancements in biometrics, such as facial recognition and fingerprint scanning, offer opportunities to create secure and convenient authentication solutions. Biometric-based digital trust solutions can find applications in various industries including finance, healthcare, and government. According to the UN Department of Economic and Social Affairs report 2021, over 83% of government services in the European Union now allow biometric authentication using fingerprints or facial recognition for citizens to access public services digitally.

Digital Trust Market Trends:

• Decentralized Identity and Self-sovereign Identity (SSI): There is a growing interest in decentralized identity solutions and self-sovereign identity frameworks. These technologies empower individuals to have more control over their personal data and digital identities, reducing reliance on centralized identity providers and enhancing privacy. According to official data from the Ontario Digital ID program launched in 2021, over 1 million decentralized identities have already been created by residents to access over 140 government and private sector services.
• Biometric Authentication: Biometric authentication methods, such as facial recognition, fingerprint scanning, and voice recognition, are becoming more prevalent in digital trust solutions. Biometrics offer secure and convenient user authentication, and their integration into various applications is on the rise. According to a 2021 survey by the United States Office of Personnel Management, about 80% of U.S. federal government employees are now using fingerprint or facial recognition to access networks and databases containing sensitive work-related information. This shows how biometric authentication is becoming the primary method of digital verification even for mission-critical government applications.
• Zero Trust Security: The Zero Trust security model is gaining traction in the digital trust market. This approach assumes that no user or device can be inherently trusted, and access is granted based on continuous verification of identity and behavior, leading to enhanced security in an increasingly connected and distributed environment. According to a 2021 survey by the U.K.'s National Cyber Security Centre, zero trust adoption rates doubled year-over-year as organizations dealt with increased cyber threats from remote work.
• AI-driven Threat Detection: Artificial intelligence (AI) and machine learning are being leveraged to detect and respond to cyber threats in real-time. AI-powered solutions can analyze vast amounts of data to identify patterns and anomalies, enabling proactive threat mitigation and fraud prevention. According to the FBI’s 2020 Internet Crime Report, AI-powered anti-fraud tools helped identify over 1.2 million suspicious financial transactions and blocked over US$2.3 billion in potential losses in the U.S. alone.

Digital Trust Market Restraints:

• Lack of Awareness and Understanding: Many businesses and individuals may not fully comprehend the importance of digital trust solutions and their potential benefits. The lack of awareness and understanding about the significance of securing digital interactions can hinder the adoption of these technologies. Rapid adoption of technologies, such as AI, Block chain, and IoT, expand the digital trust landscape but also introduce complexity that can slow down market growth until trust is established.
• Complexity and Integration Challenges: Implementing digital trust solutions often involves integrating new technologies into existing systems and workflows. The complexity of integration can be a barrier, especially for organizations with legacy systems or limited IT resources. While the market shows significant growth potential, it faces counterbalancing forces in terms of complexity and integration challenges.
• Cost and Budget Constraints: Investing in robust digital trust solutions can require significant financial resources. Small and medium-sized enterprises (SMEs) and organizations with limited budgets may find it challenging to allocate funds for comprehensive digital trust initiatives. Cost and budget constraints can significantly affect an organizations' ability to invest in digital trust solutions.

Recent Developments

New product launches

• In 2022, Oracle launched its Oracle Identity Cloud Service, a cloud-based IAM solution that helps organizations to manage their identities and access across their IT environment. The solution includes a number of new features such as single sign-on, password less authentication, and identity governance.
• In 2022, Microsoft launched its Microsoft 365 Identity and Access, a cloud-based IAM solution that helps organizations to manage their identities and access across their IT environment. The solution includes a number of new features, such as multi-factor authentication, risk-based authentication, and identity governance.
• In 2019, IBM launched its Cloud Pak for Security, a unified platform that helps organizations to manage their security posture across hybrid cloud environments. The platform includes a number of new features, such as Identity and Access Management (IAM), fraud prevention, and encryption.

Acquisition and partnerships

• In May 2023, IBM acquired Polar Security, an innovator in technology that helps companies discover, continuously monitor, and secure cloud and software-as-a-service (SaaS) application data – and addresses the growing shadow data problem.
• In 2021, GB Group plc acquired Acuant, a leading identity verification and KYC/AML compliance provider, for a cash-free, debt-free enterprise value of US$ 736 million. The acquisition of Acuant brings together two of the leaders in the global digital trust market with a combined revenue of US$ 265 million.

Figure 2. Global Digital Trust Market Share (%), By Digital Identity Type, 2023

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Top Companies in the Digital Trust Market

• IBM Corporation
• Microsoft Corporation
• NASDAQ
• Oracle Corporation
• Symantec Corporation
• Thales Group
• DigiCert, Inc.
• Entrust Datacard Corporation
• Verizon Communications Inc.
• Trustwave Holdings, Inc.
• ForgeRock
• Ping Identity Corporation
• Cisco Systems, Inc.
• RSA Security LLC (a subsidiary of Dell Technologies)
• OneSpan Inc.
• Okta, Inc.
• Nok Labs, Inc.
• Signicat AS
• Jumio Corporation

Definition: Digital trust refers to the confidence and assurance in the security, authenticity, and reliability of digital interactions, transactions, and data exchange. It involves the use of authentication, encryption, and identity verification technologies to establish a trusted environment in the digital realm, ensuring that users' sensitive information remains secure and protected from cyber threats.