Wide Adoption of Authentication across Multiple Industry Verticals to Create Lucrative Opportunities for Canada Digital Identity Management Solution Market during 2022–2028
According to our latest market study on “Canada Digital Identity Management solution Market Forecast to 2028 – COVID-19 Impact and Country Analysis – by Component, Deployment, Enterprise Size, and Industry Vertical,” the Canada digital identity management solution market size is expected to grow from US$ 990 million in 2021 to US$ 2,272.6 million by 2028; Canada digital identity management solution market size is expected to grow at a CAGR of 12.9% from 2022 to 2028.
Several industries across Canada are adopting digital identity management solution due to its numerous benefits, including short process time, high level of accuracy, upgraded security, lower operational costs, and better customer experience. For instance, in March 2022, IDENTOS (a digital identity and access control technology company) used the work of Kantara Initiative's UMA 2.0 specification as the major technology in the Ontario trusted account. The recently launched digital identity service provides patients a convenient, reliable, accessible, and secure way to access health information and services online. Kantara and IDENTOS are committed to putting patients in control of their health data. Similarly, in June 2021, Prodigy Ventures Inc. announced an agreement between IDVerifact Inc.—its subsidiary, and EnStream (a company with direct access to mobile telecom information in Canada), covering over ~90% of Canadians on all major mobile networks. As part of the agreement, IDVerifact integrates EnStream's identity verification services into the IDVerifact platform, providing the inputs that enable mobile phone owners to allow verification of their identities, mobile numbers, and devices during digital transactions.
In October 2019, according to the Digital ID and Authentication Council of Canada (DIACC) survey, Canadians were comfortable using a digital ID to authenticate their online engagement with day-to-day service providers in industries such as government agencies (76%), financial institutions (75%), healthcare providers (74%), telecom (63%), and e-commerce (63%). Therefore, an increase in the adoption of digital identity management solution across several industries is expected to create lucrative opportunities for multiple market players to expand their business across Canada.
Canada digital identity management solution market analysis by deployment, the Canada Digital Identity Management solution market is bifurcated into cloud based and on premise. In 2021, the cloud-based segment led the Canada Digital Identity Management solution market and accounted for a larger market share. Canada digital identity management solution market analysis by enterprise size, the Canada Digital Identity Management market is bifurcated into SMEs and large enterprises. In 2021, the large enterprises segment accounted for a larger Canada digital identity management solution market share. Based on industry vertical, the Canada Digital Identity Management solution market is segmented into BFSI, IT & telecommunications, government & defense, retail & commerce, and others. In 2021, the BFSI industry vertical led the market and accounted for the largest Canada digital identity management solution market share. Based on component, the Canada Digital Identity Management solution market is bifurcated into solution and services. In 2021, the solution segment led the Canada Digital Identity Management solution market and accounted for a larger market share.
Impact of COVID-19 Pandemic on Canada Digital Identity Management solution market
Before the emergence of the COVID-19 pandemic, the Canada Digital Identity Management solution market was growing due to rising cybercrimes. For instance, in October 2019, Canadians lost US$ 43 million to cybercrime, as per Ontario Provincial Police (OPP) statistics. Further, based on The Canadian Anti-Fraud Centre (CAFC) report of 2019, the country faced ~10,278 cases of extortion and 7,642 cases of personal information scams (in which someone pretending to represent a business, government agency, bank, or utility company urgently asks victims to verify personal and confidential information). Therefore, with the growing security threats regarding personal information, it became essential to implement digital identity management solution market growth in Canada, leading to a rise in demand.
In 2020, the COVID-19 pandemic positively influenced the Canada Digital Identity Management solution market growth due to rising government schemes to protect an individual's identity. For instance, in November 2020, the Canadian government proposed the Digital Charter Implementation Act 2020, which will modernize the framework for safeguarding personal information in the private sector. This legislation takes several necessary steps to ensure that a modern and responsive law will protect Canadians and offer benefits to innovative businesses from significant rules, considering technology evolution. This has helped in adoption of digital identity management solution across the country.
Akamai Technologies, Avanade Inc., DXC Technology Company, NEC Corporation, and Telus are a few key players operating in the global Canada digital identity solutions market. Several market players have been analyzed to understand the Canada Digital Identity Management solution market.
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