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Research and analysis

Digital Identity Sectoral Analysis Report 2026

Findings from OfDIA's 2026 research on the UK's digital identity sector.

From:
Department for Science, Innovation and Technology and Office for Digital Identities and Attributes
Published
8 July 2026

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Digital Identity Sectoral Analysis Report 2026

Ref: DSIT 2026/014

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Digital Identity Sectoral Analysis 2026

Ref: DSIT 2026/014

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Details

This research provides an annual update to the 2025 baseline study, published on GOV.UK in May 2025. It explores how the market has evolved in the previous year, including an assessment of market growth, new entrants, market changes, and consumer attitudes towards use and adoption of digital identity.

Key Findings 

The UK Digital Identity Market  

  • We estimate 275 firms are currently providing digital identity products and services in the UK, a net increase of 9 firms (+3%) since the baseline study. Of these, 233 are dedicated providers and 42 are diversified firms.    

  • The sector generated an estimated £2,027 million in annual revenue in 2024/2025.   

  • Estimated Gross Value Added (GVA) reached £1,037 million, an increase of £149 million (+17%) since the baseline, suggesting an improvement in sectoral productivity.  

  • GVA per employee rose to £107,800, up from £86,600 at baseline, comparable to the cyber security sector (£116,200) and the wider digital sector (£89,200) and is approximately 46% above the estimated UK workforce average.   

  • An estimated 9,624 Full-Time Equivalents (FTEs) are employed in digital identity roles across the UK, a decrease of 6% from the baseline (10,246). We note that this reduction is concentrated among large and medium firms and is consistent with market consolidation, increased use of AI, and broader tech sector headcount pressures.  

Digital Identity Market Adoption  

  • Almost 4,700 unique customers and partnerships were identified across providers. Financial and professional services remain the core customer sector (90% of firms), with healthcare and public services rising notably from 58% to 72%.   

Consumer Attitudes to Digital Identity  

  • A consumer survey of 5,658 UK residents was conducted by Survation in November 2025, with results weighted by age, sex, region, income, qualifications, employment status, socioeconomic group, and ethnicity.  

  • 81% of respondents report some level of understanding of digital identity, up from 71% at baseline. The proportion reporting limited or no understanding has fallen from 29% to 19%.  

  • 77% of respondents report having used a digital identity service for at least one purpose. The most common digital use cases include insurance, credit applications, and bank account opening (each 40%), followed by property and right to work checks.  

  • Among non-users of digital identity services (23%), the most commonly cited reasons were preference for physical ID (29%) and not having had to prove their identity (29%). Access barriers such as lack of a digital option (15%) and lack of documents (13%) also featured.  

This research was conducted independently by Perspective Economics and Survation.

Updates to this page

Published 8 July 2026

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