Self-sovereign Identity Market Insights: The Role of Identity Verification in E-commerce

The global self-sovereign identity (SSI) market was valued at approximately USD 1.9 billion in 2024 and is expected to grow to USD 38,085.4 million by 2030, reflecting a compound annual growth rate (CAGR) of 66.8% from 2025 to 2030. The SSI market is rapidly expanding as organizations pursue secure, decentralized methods for managing digital identities. This growth is driven by mobile-first solutions that empower users to control their identity data via digital wallets. The integration of biometrics with verifiable credentials is improving security and user convenience, particularly in high-trust environments.

Standardization initiatives, such as W3C Verifiable Credentials, are fostering interoperability and broadening the applications of SSI across various industries and regions. For instance, in August 2024, NEC Corporation, a Japanese IT and electronics firm, launched a cardless digital employee ID system for 20,000 employees. This system combines facial recognition with Microsoft Entra Verified ID to facilitate secure self-sovereign identity management through smartphones, enabling employees to manage their identity data while enhancing workplace security and efficiency in line with NEC’s Client Zero innovation strategy.

On-device identity proofing is emerging as a crucial trend in digital identity management, allowing users to authenticate directly on their devices without depending on centralized databases. This method significantly boosts data security by minimizing the exposure of personal information. It also complies with global privacy regulations like GDPR and CCPA, which focus on user control and data minimization. This decentralized model reinforces Self-Sovereign Identity (SSI), giving users full control over their credentials and the ability to share only the necessary information.

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Key Market Trends & Insights

• North America is the leading region in the global self-sovereign identity (SSI) market, accounting for a significant share of 38.7% in 2024. This dominance is attributed to early technology adoption and a robust digital infrastructure. Both governments and enterprises are increasingly investing in decentralized identity systems for secure data management.

• In terms of offerings, the solution segment is expected to dominate the SSI market, projected to hold 63.9% in 2024. This growth is fueled by the rising demand for secure and privacy-preserving identity management solutions across various sectors. Organizations are implementing SSI solutions to enhance user control over personal data while ensuring compliance with privacy regulations.

• In terms of identity type, the biometrics segment has generated the highest revenue in the SSI market, driven by the growing need for secure, user-friendly, and efficient identity verification methods. Biometric technologies, including facial recognition, fingerprint scanning, and iris recognition, offer high accuracy and security, making them ideal for SSI applications.

• In terms of network, the permissioned segment is anticipated to capture the largest market revenue share in 2024 due to its controlled access and enhanced security features. Organizations prefer permissioned networks for SSI as they permit only authorized entities to participate, fostering greater trust and compliance. This model is particularly prevalent in sectors such as finance, healthcare, and government, where regulatory requirements and data sensitivity are critical.

• In terms of vertical, the BFSI (Banking, Financial Services, and Insurance) segment held the largest market revenue share in 2024, driven by the sector’s strong demand for secure, compliant, and efficient digital identity solutions. Financial institutions are adopting SSI to streamline customer onboarding, minimize fraud, and enhance data privacy. The ability to verify identities without relying on centralized systems aligns well with regulatory requirements such as KYC (Know Your Customer) and AML (Anti-Money Laundering).

Market Size & Forecast

• 2024 Market Size: USD 1.9 Billion

• 2030 Projected Market Size: USD 38,085.4 Million

• CAGR (2025-2030): 66.8%

• North America: Largest market in 2024

Key Companies & Market Share Insights

Some of the prominent companies in the Self-Sovereign Identity (SSI) market include IBM Corporation, IDEMIA, NEC Corporation, Microsoft, and others. Organizations are concentrating on expanding their customer base to secure a competitive advantage in the industry. As a result, key players are pursuing various strategic initiatives, including mergers and acquisitions, as well as partnerships with other major firms.

Key Players

• AU10TIX

• ConsenSys

• ConnectID

• IBM Corporation

• IDEMIA

• NEC Corporation

• Microsoft

• Ping Identity

• SecureKey Technologies

• Wipro

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Conclusion

The self-sovereign identity (SSI) market is experiencing extraordinary growth, driven by the increasing demand for decentralized, secure, and privacy-centric identity solutions. As businesses and governments seek to improve data security and user control, SSI is emerging as a critical component of digital transformation. With strong contributions from biometric integration, on-device authentication, and global standardization, the market is well-positioned for continued expansion. North America’s leadership and the BFSI sector’s heavy adoption underscore the market’s relevance across industries. Looking ahead, SSI is expected to redefine digital identity management by placing control firmly in the hands of individuals.