New Delhi, Jan 31 (IANS): The digital identity vendors are likely to generate revenues more than $53 billion globally by 2026, doubling from $26 billion in 2021, as verification becomes critical in the face of the ongoing pandemic, a new report showed on Monday.

Digital identity revenue includes third-party and civic identity apps, centralised identity schemes and digital identity verification.

According to Juniper Research, verification spend alone will exceed $16 billion in 2026, from $9 billion in 2021.

This growth reflects that, as users migrate to digital channels, the need to verify identity digitally also grows.

As fraudsters exploit opportunities, verification capabilities will proliferate to wider industries and use cases than ever before, the report said.

"Digital identity verification tools have become more critical across a broader range of industries than ever, from banking and financial services to eGovernment, healthcare and others," said research co-author Damla Sat.

"Developing effective user experiences for different verification scenarios will be important for realising digital identity's potential."

The research identified verified digital identity, where identities are confirmed as genuine using verifiable credentials, as being vital for improving fraud mitigation.

This represents the next evolutionary step for digital identity -- moving from establishing infrastructure to utilising and verifying identity in practical applications.

The research found that the US is significantly lagging behind in digital identity terms, accounting for only 7 per cent of global digital identity revenue in 2026.