Research: Digital Identity Sectoral Analysis Report 2026

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

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.

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.  

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.