UK Digital Identity Market Expected to Reach USD 8.7 Billion by 2033 - IMARC Group

UK Digital Identity Market Statistics, Outlook and Regional Analysis 2025-2033

The UK digital identity market size was valued at USD 2.4 Billion in 2024, and it is expected to reach USD 8.7 Billion by 2033, exhibiting a growth rate (CAGR) of 15.70% from 2025 to 2033.

The UK digital identity market is experiencing significant growth, driven by regulatory, technological, and societal factors highlighting the importance of secure and efficient identity verification systems. The UK government’s commitment to fostering a robust digital economy has led to various initiatives, including the Digital Identity and Attributes Trust Framework. These regulations aim to establish secure, standardized methods for verifying digital identities, ensuring compliance with data protection laws like the UK GDPR. Such frameworks encourage the adoption of digital identity solutions across sectors, including banking, healthcare, and public services. For instance, in October 2024, the government of the UK launched a watchdog function to ensure the utilization of digital identities. The initiative to establish the Office for Digital Identities and Attributes (OfDIA), as part of what was then the Department for Digital, Culture, Media, and Sport, were first unveiled in March 2022 by the previous administration to serve as the governing body” for the use of digital IDs.

The rapid shift toward digital platforms for banking, e-commerce, healthcare, and government services has increased the demand for secure digital identity systems. Consumers and businesses require reliable identity verification to prevent fraud, streamline processes, and enhance user experiences. This growing reliance on digital platforms has propelled the need for robust identity solutions. The surge in cybercrime, including identity theft and data breaches, has heightened the need for secure and efficient identity verification systems. Digital identity solutions incorporating advanced technologies, such as biometrics and multi-factor authentication, offer enhanced security, reducing the risks of fraud and unauthorized access risks. For instance, in October 2024, Bridgepoint announced its financing of a management-led buyout of Condatis, a leading UK-based cybersecurity consulting firm specializing in digital identity and access management solutions, via Bridgepoint Growth II (BG II), its small-cap franchise focused on providing growth capital to dynamic, rapidly growing businesses across Europe.

UK Digital Identity Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include South East, London, North West, East of England, South West, Scotland, West Midlands, East Midlands, Yorkshire and The Humber, and Others. In London, the concentration of financial institutions and tech startups drives demand for advanced digital identity solutions to combat fraud and enhance security. In the South East, a hub for innovation and e-commerce accelerates the adoption of digital identity systems for secure transactions and online services. In the North West, the expanding public sector initiatives and smart city projects boost the need for reliable identity verification technologies. In the East of England, the growth in the healthcare and research sectors demands robust digital identity systems for secure access and data management. In the South West, a growing tech ecosystem and focus on cybersecurity drive the implementation of digital identity solutions across industries. In Scotland, government-backed initiatives like digital public services fuel the adoption of secure digital identity frameworks. In the West Midlands, a strong manufacturing base and emerging digital transformation projects increase demand for secure identity verification tools. In Yorkshire and the Humber, the expanding e-governance and regional fintech growth stimulate the need for advanced digital identity systems. In East Midlands, the rising adoption of digital services in education and local government drives the demand for efficient identity solutions.

London Digital Identity Market Trends:

London's digital identity market is fueled by its position as a global financial hub, driving demand for secure identity verification in banking and fintech. High-tech adoption, government digital transformation initiatives, and diverse demographics requiring robust identity solutions contribute significantly to growth.

South East Digital Identity Market Trends:

The South East benefits from its proximity to London and a thriving tech sector. Businesses in cybersecurity, e-commerce, and health tech demand advanced identity solutions to ensure compliance and customer trust, spurring innovation and adoption in digital identity technologies.

North West Digital Identity Market Trends:

The North West's growth is supported by a burgeoning fintech sector and smart city initiatives in Manchester and Liverpool. Increased investments in digital transformation across public and private sectors, along with regional business expansion, drive demand for secure digital identity systems.

East of England Digital Identity Market Trends:

A strong technology and research sector centered in Cambridge bolsters the East of England's digital identity market. Demand arises from healthcare, academia, and technology companies seeking secure digital identification to protect data and facilitate seamless online transactions.

South West Digital Identity Market Trends:

The South West sees growing adoption driven by its emerging tech hubs and tourism-dependent businesses. Digital identity tools help enhance security for remote workforces, e-commerce, and hospitality, addressing the region's diverse economic demands.

Scotland Digital Identity Market Trends:

Scotland’s digital identity market is driven by strong public sector initiatives like Digital Scotland. The focus on e-government services, alongside thriving fintech and tech startups in Edinburgh and Glasgow, creates a strong demand for secure identity solutions.

West Midlands Digital Identity Market Trends:

The West Midlands, home to major industrial and commercial hubs, sees demand for digital identity in the manufacturing, logistics, and retail sectors. As businesses digitize operations, secure identity verification ensures compliance and trust in supply chains and customer interactions.

Yorkshire and The Humber Digital Identity Market Trends:

The region's focus on e-health and public services drives Yorkshire’s digital identity market. Smart city projects and a growing digital economy require secure identity solutions to support online services and regional business growth.

East Midlands Digital Identity Market Trends:

The East Midlands, with its growing logistics and e-commerce sector, demands digital identity solutions to secure online transactions and streamline operations. Regional startups and SMEs drive innovation, supported by local government initiatives promoting digital transformation.

Top Companies Leading in the UK Digital Identity Industry

The UK digital identity market is highly competitive, featuring established players, innovative startups, and public sector initiatives. Major global companies like Experian, GBG, and IDEMIA dominate with advanced verification solutions, while regional players and fintech firms contribute niche offerings. Startups are leveraging blockchain, AI, and biometrics to innovate digital identity systems. Public sector projects, such as the UK Digital Identity and Attributes Trust Framework, further shape the market. Competition intensifies in key sectors like banking, healthcare, e-commerce, and public services, with growing demand for seamless, secure solutions. Collaboration between private firms and the government drives adoption, enhancing market expansion opportunities. For instance, in October 2024, iProov, a pioneer in biometric identity solutions, and TrustCloud, a leader in secure digital transaction technologies, announced a strategic partnership aimed at revolutionizing digital identity management.

UK Digital Identity Market Segmentation Coverage

• On the basis of the identity type, the market has been categorized into biometric and non-biometric. Biometric solutions hold the largest share due to their high security, fraud prevention, and ease of use for authentication in sectors like banking and healthcare. Non-biometric solutions dominate due to their cost-effectiveness, widespread accessibility, and continued use in industries for secure, simple identity verification.
• Based on the offering, the market is classified into solutions and services. Digital identity solutions hold the largest share due to their essential role in providing secure, scalable, and compliant authentication across various industries. Services dominate because they ensure the successful implementation, integration, and ongoing management of digital identity systems for businesses and public sectors.
• On the basis of the organization size, the market has been divided into large organization and SMEs. Large organizations hold the largest share due to their need for robust, secure identity systems to manage extensive customer bases and comply with regulatory standards. SMEs contribute significantly as they adopt scalable and cost-effective digital identity solutions to enhance security, improve customer trust, and comply with regulations.
• Based on the deployment, the market is segregated into cloud and on-premise. Cloud-based solutions hold the largest share due to their scalability, flexibility, cost-effectiveness, and ability to support remote access and advanced technologies. On-premise solutions maintain a large share because they offer greater control, customization, and security for industries with stringent data privacy and compliance obligations.
• Based on the end user, the market is classified into BFSI, retail and ecommerce, government, healthcare, and IT and ITeS. BFSI holds the largest share due to the need for secure, compliant identity solutions to prevent fraud and protect financial transactions. Retail and e-commerce drive demand for digital identity to ensure secure transactions, personalized experiences, and compliance with data protection regulations. The government sector leads in digital identity adoption for secure citizen verification, public service digitization, and fraud prevention. Healthcare requires digital identity solutions to secure patient data, streamline access to medical records, and enable safe telemedicine services. IT and ITeS sectors dominate due to their need for secure authentication systems to protect data, support remote work, and comply with regulations.