Published on November 9, 2023, 5:15 am

According to ABI Research, the global circulation of mobile identities reached approximately 322 million in 2021. However, they predict that this number will triple to 1.02 billion by 2027.

The COVID-19 pandemic has played a significant role in accelerating the adoption of mobile identity technology. By addressing the challenges related to physical contact in identity applications, the potential implementation of mobile IDs has become a prominent topic of discussion. This trend aligns with the growing digitalization strategies adopted by governments worldwide.

The European Commission’s commitment to further digitize identities under the eIDAS revision in 2023 is a clear example of such strategies in Europe. This initiative marks a significant leap towards embracing mobile identities, and it may inspire the development of programs like the European Digital Identity Wallet, leading to substantial market growth.

Lucas Stewart, citizen digital identity analyst at ABI Research, believes that mobile identities will play an increasingly important role in citizens’ lives in the coming years. While mobile IDs have been available for quite some time, recent advancements in technology and regulations, including the rise of digital wallet solutions, are poised to drive market expansion.

Stewart highlights that looking at how digital wallets have enhanced user experience and convenience in digital payment contexts, it’s time for the identity space to follow suit and leverage the numerous benefits offered by secure and functional mobile identity structures.

Benefits can be seen for both governments and citizens as greater efficiency and improved communication channels are achieved. Citizens can seamlessly utilize their identities across various applications. Similarly, enterprise authentication and verification processes stand to benefit from these advancements.

In essence, all sectors of society are recognizing and will benefit from the transformation brought about by mobile IDs. Considering how derived credentials can easily be obtained from existing physical documents, it is natural to anticipate such high market growth.

Stewart advises implementers to carefully examine the vast emerging opportunities within the mobile identities market since only a small fraction of the world’s population currently possesses a mobile identity despite billions of identities in existence.

However, he remains optimistic that implementation is feasible within a relatively short period in many countries and regions, even though mobile identity penetration rates remain low. With digital transformation taking center stage across various industries and areas, the relevance of digital ID will only increase over time, making mobile forms of identity gain further traction.

In summary, the digitization efforts undertaken by governments worldwide are expected to fuel the growth of mobile identities. As technology and regulations continue to advance, more individuals and organizations are recognizing the benefits and potentials offered by secure and functional mobile identity structures.

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