Self-Sovereign Identity (SSI) Market to Reach USD 44.98 Billion by 2032, Driven by Blockchain Adoption and Privacy Regulations | DataM Intelligence

AUSTIN, Texas and TOKYO, Nov. 5, 2025 /PRNewswire/ -- According to DataM Intelligence, the Self-Sovereign Identity (SSI) Market Size is growing from USD 1.30 billion in 2024 to USD 44.98 billion by 2032, registering an extraordinary CAGR of 84.5% during 2025–2032.

The exponential rise of digital transformation, blockchain technology, and zero-trust identity architectures is fueling demand for SSI solutions that give individuals and enterprises control over their personal data. SSI eliminates centralized identity storage-reducing fraud risk and data breaches-and enhances compliance with data protection laws such as GDPR, CCPA, and Japan's APPI.

By combining decentralized identifiers (DIDs) with verifiable credentials, SSI represents a foundational shift in how trust and authentication are managed across digital ecosystems spanning banking, healthcare, education, and government services.

Growth Drivers

• Over 5 billion digital identity credentials were issued globally in 2024, with SSI-based systems accounting for 6% share, projected to exceed 35% by 2032.
• Identity theft and data breach costs surpassed USD 50 billion in 2024, accelerating enterprise adoption of decentralized identity solutions.
• Governments in the U.S., EU, Japan, and India collectively invested over USD 2.5 billion in digital identity infrastructure based on blockchain and zero-trust frameworks.
• The number of blockchain-anchored identity wallets grew from 50 million in 2023 to 210 million in 2024, expected to surpass 1.5 billion users by 2032.
• SSI adoption in financial services is forecast to save USD 4.2 billion annually in customer verification and Know-Your-Customer (KYC) costs by 2030.

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Market Segmentation Analysis

By Component

The SSI market is segmented into Software and Services.

• Software leads with 68% market share (USD 884 million in 2024), driven by decentralized identity wallets, verifiable credential frameworks, and blockchain infrastructure. It is projected to reach USD 31 billion by 2032 at an 85% CAGR.
• Services (consulting, integration, and managed identity support) account for 32% (USD 416 million) and will grow at 82% CAGR, surpassing USD 13 billion by 2032 as enterprises seek end-to-end SSI deployment support.

By Identity

• Individual Identity represents 60% of market share (USD 780 million in 2024), expected to reach USD 27 billion by 2032, driven by growing use of digital wallets for banking, travel, and healthcare.
• Enterprise Identity holds 30% (USD 390 million) and is projected to exceed USD 13 billion, as organizations adopt SSI for workforce authentication, supply chain traceability, and partner access management.
• Other Identities (IoT and machine identity) make up the remaining 10% (USD 130 million) and will grow fastest at 90% CAGR, reaching USD 5 billion by 2032, reflecting machine-to-machine verification in connected systems.

By Deployment Mode

• Cloud-Based SSI dominates with 70% share (USD 910 million) and is expected to exceed USD 32 billion by 2032, growing at 86% CAGR. It enables scalability, multi-cloud integration, and interoperability across decentralized networks.
• On-Premises Deployments hold 30% (USD 390 million), primarily used by government and financial institutions prioritizing sovereignty and internal security controls.

By Application

The SSI market spans multiple verticals, with varying growth rates and adoption maturity:

• Banking, Financial Services & Insurance (BFSI) accounted for 28% (USD 364 million in 2024) and will exceed USD 12 billion by 2032, fueled by decentralized KYC and anti-fraud initiatives.
• Government & Public Sector contributed 20% (USD 260 million), projected to reach USD 9 billion, supported by digital ID programs in the EU and Asia.
• Healthcare & Life Sciences represented 15% (USD 195 million), with SSI adoption improving patient record access and clinical data security.
• IT & Telecom and Retail & E-commerce jointly held 22% (USD 286 million), driven by secure customer identity and loyalty management applications.
• Education, Supply Chain, and Others collectively comprised 15% (USD 195 million), rapidly scaling due to verifiable academic credentials and traceable logistics data.

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Regional Insights

United States

The U.S. SSI market was valued at USD 520 million in 2024 and is projected to reach USD 18.2 billion by 2032, growing at 84% CAGR.

• Federal digital identity initiatives under the National Cybersecurity Strategy 2024 have allocated USD 600 million for decentralized authentication pilots.
• The Department of Homeland Security (DHS) is testing SSI for travel credential verification and secure passport digitization.
• Over 40% of leading U.S. banks have adopted or piloted SSI-based customer onboarding systems since 2023.

Japan

Japan's SSI market reached USD 110 million in 2024 and will grow to USD 3.8 billion by 2032 at 82.6% CAGR.

• The Japanese government's Digital Agency invested USD 200 million to integrate SSI into national ID (My Number) infrastructure.
• Corporates such as NTT Data and Sony are piloting blockchain-based credentials for employees and citizens.
• Japan's FinTech Association projects SSI-enabled banking to cut customer verification time by 60% and compliance costs by 30% by 2027.

Competitive Landscape

According to DataM Intelligence, the Self-Sovereign Identity Market is moderately fragmented, with global tech leaders and blockchain startups converging to build secure, interoperable digital identity frameworks.

Key Players:
Microsoft Corp | IBM Corporation | DSR Corporation | Voyatek | Dock Labs AG | Okta | Bosch | SAP SE | Validated ID | Netcetera

Key Highlights:

• Microsoft Corporation reported USD 8.1 billion in security and identity-related revenues, with decentralized identity pilots under Entra Verified ID growing 120% YoY.
• IBM generated USD 6.2 billion in hybrid cloud and blockchain solutions, including SSI deployments for finance and healthcare clients.
• SAP SE launched SAP ID Service 2.0, reaching 20% adoption growth across enterprise clients.
• Okta recorded USD 2.3 billion in identity management revenue, integrating SSI protocols into its Workforce Identity Cloud suite.
• Dock Labs AG and Validated ID together issued over 15 million verifiable credentials in 2024, representing 10% of the global decentralized credential market.

Recent Developments

• Microsoft expanded Entra Verified ID to include cross-chain verifiable credentials (April 2025).
• IBM partnered with the U.S. Department of Defense to deploy SSI for secure workforce and supply chain authentication (February 2025).
• SAP SE collaborated with Bosch to launch Decentralized IoT Identity Management Suite (March 2025).
• Okta introduced SSI-powered Multi-Factor Authentication (MFA+), reducing login fraud by 90% among enterprise clients (January 2025).
• Voyatek launched a cross-border SSI platform for education and healthcare credentials across Asia-Pacific (December 2024).

Market Outlook and Opportunities

The SSI market is at a tipping point, driven by privacy-first digital ecosystems and rapid regulatory evolution.

Key Forecast Indicators:

• Software segment to surpass USD 31 billion by 2032, accounting for 70% of total market revenue.
• Individual digital wallets to exceed 1.5 billion users globally by 2032.
• BFSI and government sectors to collectively contribute 45% of total SSI demand by 2032.
• Asia-Pacific expected to record the fastest CAGR (86%) as digital ID and fintech ecosystems mature.
• Integration of SSI with IoT and Web3 to unlock an additional USD 10 billion in value by 2032.

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Conclusion

The Global Self-Sovereign Identity (SSI) Market represents a paradigm shift toward decentralized trust, transparency, and privacy-centric identity management. Expanding from USD 1.30 billion in 2024 to USD 44.98 billion by 2032 at an unprecedented 84.5% CAGR, SSI is redefining the foundations of digital identity across industries.

According to DataM Intelligence, market leaders such as Microsoft, IBM, SAP, and Okta-alongside innovators like Dock Labs AG and Validated ID-are driving this transformation by deploying blockchain-based identity frameworks that empower individuals, reduce cyber risk, and streamline digital transactions. As global data protection laws tighten and Web3 ecosystems mature, Self-Sovereign Identity is set to become the default model for digital authentication by 2032.

Related Report:

1. Digital Identity Solutions Market Size to Soar - From US$ 42 B in 2024 to US$ 133 B by 2030.
2. IDaaS Market Size to Expand from US$ 6.2 B in 2023 to US$ 54.1 B by 2032 - DataM Intelligence
3. Identity & Access Management Market Size to Reach US$ 54.04 B by 2032 at 14.4% CAGR - DataM Intelligence
4. Identity Verification Market Share Set for Double-Digit Growth Through 2031 - DataM Intelligence
5. Identity Verification & Authentication Market Share Set to Accelerate as Biometric Security Goes Mainstream - DataM Intelligence

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