Digital Identity Wallets Trends Report 2025

In 2024, digital identity wallets have reached an inflection point, driven by regulatory advancements, the maturation of core technologies, and growing consumer demand for easy to use solution with a focus on privacy.

Market projections underscore the scale of this transformation. Gartner predicts that by 2026, over 500 million people will be using verifiable credentials, while the decentralized identity market is expected to exceed $3 billion by 2031.

Within this context and looking ahead to 2025, this Digital identity Wallets 2025 Trends Report delves into the trends shaping digital identity wallets—not just as tools of convenience but as foundational infrastructure for digital societies.

Methodology

The Digital identity Wallets 2025 trends report is based on insights gathered through a survey conducted among 22 industry experts, including technology providers, regulators, advocacy groups, issuers and verifiers.

The questionnaire featured 15 questions designed to explore trends, challenges, and predictions for the adoption and evolution of digital identity wallets. The diverse perspectives collected provide a snapshot of the industry's current sentiment and expectations.

However, it is important to note that these insights reflect the opinions of the experts surveyed and should be regarded as a limited perspective on potential outcomes.

This article highlights select results. To access the results analysis and the complete set of results, including further predictions, download the full Digital identity Wallets 2025 Trends Report by clicking in the top banner.

Trend 1: Leading Sectors

Beyond government services, which industry sector is most likely to lead in adopting digital identity wallets?

Trend 2: Use Cases

Which use case for digital identity wallets do you anticipate will gain the most adoption?

Trend 3: Multiple Providers vs. Single Government Solutions

Do you expect that each country will offer multiple certified digital identity wallets, or will most countries implement a single, government-issued wallet?

Trend 4: Dominance vs. Diversity

Do you expect one or two digital identity wallets becoming dominant across multiple countries?

Trend 5: Superwallets vs. Specialization

The European Commission has released tenders for domain-specific wallets for use cases in payments, age verification, and travel. Do you think these specialized wallets will dominate, or will an all-in-one “superwallet” model eventually become the norm?

Download the full report by clicking on the top banner to view all the results.

Trend 6: State-Issued vs. Big Tech Solutions

In Europe, do you think state-issued digital wallets will surpass Google and Apple Wallets in popularity by 2030?

Trend 7: Expansion of Big Tech vs. Emergence of New Players

In the US, for use cases beyond current applications, do you expect new types of wallets to emerge, or will these use cases primarily move to Google and Apple Wallets?

Trend 8: Privacy: Meeting Expectations or Falling Short?

With current privacy concerns, do you believe digital identity wallets will be able to fulfil their initial privacy promises?

Trend 9: mDOC vs W3C Models

Do you anticipate that both the mDOC (mobile Document) and W3C data models will coexist at similar levels, or is one model likely to become the dominant standard?

Trend 10: SD-JWT vs. Zero-Knowledge Proofs

For selective disclosure, do you think the SD-JWT will become the primary standard, or will other Zero-Knowledge Proof (ZKP) protocols gain broader adoption?

Download the full report by clicking on the top banner to view all the results.

Trend 11: The Future of Decentralized Identifiers

What is your perspective on the future of Decentralized Identifiers (DIDs)?

Trend 12: A Revenue Generation or Cost Reduction Opportunity?

Should issuers and verifiers view digital identity wallets primarily as an opportunity for revenue generation, or more as a method for cost reduction?

Trend 13: Timings in Europe

When do you think digital identity wallets will become mainstream in Europe?

Trend 14: Timings in North America

When do you think digital identity wallets will become mainstream in North America?

Trend 15: Timings in Asia and Oceania

When do you think digital identity wallets will become mainstream in Asia and Oceania?

About Gataca

Gataca is an all-in-one decentralized identity platform for organizations.

Corporations and institutions around the globe use Gataca for interacting with ID Wallets for the issuance and verification of digital credentials for compliant identity verification and authentication in seconds.