Mobile Identity Management Market Heads Toward US$ 117.84 Billion by 2035 as the EU Digital Identity Wallet Deadline Nears and Okta Completes Permiso Acquisition to Secure AI Agent Identities

The mobile identity management market is shifting from passwords and one-time codes toward wallets, passkeys, and continuous verification of users, devices, and now AI agents. On August 26, 2026, Okta completed its acquisition of Permiso Security, a cloud-native platform that detects and mitigates identity threats across human, non-human, and AI agent identities in multi-cloud environments, and in September 2026 it unveiled new agent identity controls at its Oktane conference. In the public sector, mobile credentials are moving into everyday use. On May 27, 2026, IDEMIA Public Security and Arkansas launched the state's driver's licenses and state IDs in Apple Wallet, usable at TSA checkpoints at more than 250 airports and by participating businesses and apps. In Europe, every EU member state must offer at least one European Digital Identity (EUDI) Wallet by December 24, 2026, although the European Commission has signalled that not every country is likely to be ready with a fully featured wallet.

Okta, Thales, IDEMIA, SecureAuth, and Regula are positioned to benefit as enterprises, banks, and governments look for stronger authentication without adding friction. Opportunities lie in passwordless and passkey login, biometric verification, mobile API protection, digital identity wallets, and identity security for AI agents. Fragmented rollouts, privacy concerns over biometric data, and the cost of integrating legacy systems remain the main hurdles, and vendors without strong privacy controls and interoperability may struggle to win government and regulated-sector business.

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According to DataM Intelligence, the global mobile identity management market was valued at USD 56.7 billion in 2025 and is projected to reach USD 117.84 billion by 2035, growing at a compound annual growth rate (CAGR) of 7.6% during 2026-2035.

North America is the largest regional market, supported by mature cybersecurity spending, enterprise mobility adoption, and widespread deployment of identity platforms, while Asia-Pacific is the fastest-growing region, driven by mobile-first digital services, digital banking, e-government programs, and rising smartphone-based authentication. Biometric authentication is a major growth area as fingerprint, facial, and iris verification improve both security and convenience. Mobile devices have become the main access point for banking, healthcare, government, and enterprise applications, which is also why identity fraud, SIM-swap attacks, phishing, and mobile API abuse are driving investment.

United States: Recent Industry Developments

✅ September 2026: Okta used its Oktane 2026 conference to announce new capabilities for securing and governing AI agents, covering identity governance, privileged access, and identity threat detection. The company positioned its platform as a unified control plane for human, non-human, and AI agent identities, and said its recent Permiso acquisition would extend threat detection to those identities.

✅ August 2026: Okta reported second-quarter fiscal 2027 results on August 26, with revenue up 11%, subscription revenue up 12%, and current remaining performance obligations up 14% year on year. The company credited strength with its largest customers and its newer products, led by Okta Identity Governance.

✅ May 2026: IDEMIA Public Security and the Arkansas Department of Finance and Administration launched Arkansas driver's licenses and state IDs in Apple Wallet. Residents can present them at TSA checkpoints, at participating businesses, and in apps and online where age or identity checks are needed. Businesses can verify IDs from Apple Wallet and other mobile driver's licenses using IDEMIA's Mobile ID Verify app.

Europe: Recent Industry Developments

✅ October 2026: With the EUDI Wallet legal deadline of December 24, 2026 approaching, rollout status varies widely by country. Public trackers report that Denmark has a national wallet in production, Italy's IT-Wallet is among the most advanced national apps, and Germany's wallet is scheduled to launch on January 2, 2027. Finland has moved its timeline to 2027 citing EU certification delays. Acceptance duties for regulated private-sector services, including banks and very large online platforms, follow by December 24, 2027.

Asia-Pacific: Recent Industry Developments

✅ September 2026: Singapore's GovTech added passkey login to Singpass for Android users, following an iPhone beta launched on June 30. About 800,000 passkeys had been registered by September 9, and desktop support is planned by the end of 2026. The move extends phishing-resistant authentication across the national digital identity platform.

✅ May 2026: India's UIDAI moved Aadhaar users to its redesigned Aadhaar app, which replaces mAadhaar and adds QR-based identity sharing, face authentication, and in-app controls to lock fingerprint, face, and iris authentication. The app, launched in January 2026, lets users share only the data a verifier needs, with consent.

Key Mergers and Acquisitions

✅ Okta completed its acquisition of Permiso Security on August 26, 2026, according to its quarterly filing. Permiso provides a cloud-native identity security platform that detects and mitigates threats across human, non-human, and agentic identities. The consideration was not disclosed, and Okta said it was still evaluating the purchase accounting at the time of filing.

✅ IDEMIA Public Security and the state of Arkansas expanded their mobile ID program in May 2026 to include Apple Wallet, after earlier support for Google Wallet and Samsung Wallet. This is a technology and program partnership, not a merger or acquisition.

Key Players

OneLogin | Thales Group | IDEMIA | Okta | SecureAuth Corporation | Trend Micro Incorporated | F-Secure | Sophos Ltd. | Telesign | Regula

Strategic Profiles: How Market Leaders Are Positioning for 2026

-Okta: Extending its workforce and customer identity platform to AI agents, adding threat detection through Permiso and positioning identity as the control plane for human and non-human access.

-IDEMIA: Supplying mobile driver's license and biometric verification technology to U.S. state programs and wallet launches, backed by verification apps for businesses.

-Thales Group: Providing digital identity and biometric credential technology to governments and enterprises, including secure credentials and mobile identity verification.

-SecureAuth Corporation: Focusing on adaptive and passwordless authentication, using risk analysis to reduce friction for trusted users while stepping up checks for risky sessions.

-Regula: Supporting identity document verification and authentication workflows used for onboarding and fraud prevention in banking, telecom, and other regulated sectors.

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Mobile Identity Management Market Opportunities

-Passwordless and Passkey Authentication: Replacing passwords with passkeys, biometrics, and device-bound credentials to reduce phishing and credential theft, as national platforms like Singpass show.

-Digital Identity Wallets: Supplying wallet infrastructure, credential issuance, and verification tools for EUDI Wallets, state mobile driver's licenses, and similar programs.

-Agentic and Non-Human Identity Security: Governing the identities, permissions, and activity of AI agents and other non-human accounts that now access enterprise systems alongside people.

Regional Insights

-North America: Largest region, supported by mature cybersecurity spending, widespread cloud and mobile adoption, and growing state mobile ID programs tied to Apple, Google, and Samsung wallets.

-Europe: A regulation-driven market, with the EUDI Wallet deadline, GDPR privacy expectations, and strong demand for interoperable, privacy-preserving identity verification.

-Asia-Pacific: Fastest-growing region, led by government platforms such as Singpass in Singapore and Aadhaar in India, along with mobile payments, digital banking, and e-government.

-South America, Middle East and Africa: Emerging demand where mobile numbers are central to digital identity, creating opportunities in SIM-based identity, banking onboarding, and biometric verification.

Market Segmentation Analysis

-By Authentication: Single-factor authentication and multi-factor authentication.

-By Component: Biometric and non-biometric.

-By Deployment: Cloud and on-premise.

-By Enterprise Size: Small and medium-sized enterprises and large enterprises.

-By Application: IT and telecom, retail, healthcare, government and defense, banking, travel, and others.

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