BOSTON, MA / ACCESSWIRE / December 20, 2023 / 1414 Ventures, a venture capital firm providing pre-seed and seed funding to companies building the next wave of digital identity solutions, announces end-of-year analysis showing the Digital Identity MarketScape growing roughly $100 billion over last year to $763 billion, with a trajectory to $1 trillion in the next few years. 1414 Ventures created the Digital Identity MarketScape to organize and showcase 50 subsectors that are the building blocks of the overall market.
Digital identity (DI) refers to the unique representation of an individual, organization or device in the digital world. It encompasses the information and attributes that distinguish one entity from another in online interactions. DI is a critical component of online authentication, authorization, and personalization processes. In the data economy, how information gets shared and stored drives our personal and business lives.
The DI market's growth reflects the continued increase in identity fraud and cyberattack data breaches. According to a recent Forbes article, global cyberattacks spiked by 40-45% this past year. The latest Consumer Sentinel report by the Federal Trade Commission (FTC) shows total reported fraud loss rose 50% between 2021 to 2022, increasing to $9 billion from $6.1 billion despite a 15% drop in the number of reported fraud cases. Market growth has also been driven by the expansion of online transactions and the new analytical tools to support this digital ecosystem.
Several key market subsectors are particularly aligned to these trends: Transaction Detection, Fraud Prevention & Risk Management (FPRM) and Customer Identity Access Management (CIAM), and stand out for their growth and relevance over the past year.
FPRM leverages identity intelligence to prevent fraud or escalate risk intelligence regarding a digital identity or transaction in order to assess and prevent cybercrimes, payment fraud and insurance fraud. The FPRM market grew 19% from 2022 to 2023, increasing from $2.8 billion to $3.3 billion.
A CIAM system is an identity access management system that focuses on customer relationships and access to services. It is an important tool for storing, accessing and identifying customers' digital identities securely. The market expanded 58% from $994 million in 2022 to $1.5 billion in 2023. Businesses pushed to protect customer data amid an increase in cyberattacks.
"Safeguarding information is a key underpinning for success," said 1414 Ventures co-founder and Managing Director Jackie Shoback. "Digital identity platforms that offer efficiency while meeting privacy and security requirements will dominate as the stakes continue to escalate in this growing digital economy."
About 1414 Ventures
1414 Ventures invests in pre-seed and seed stage companies with digital identity technology solutions that support foundational consumer and enterprise functions such as payments, cybersecurity, and data privacy/trust. The surge in virtual and digital transactions and interactions, combined with increased security, fraud prevention and privacy needs, is generating increased demand for next-generation digital identity startups. Learn more at 1414 Ventures.
Contact Information:
Claire Wadlington
Managing Director
contact@1414ventures.com
SOURCE: 1414 Ventures
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