Research conducted by ID Crypt Global, a digital identity security specialist, has revealed that the number of businesses operating in the UK’s digital identity theft protection market is expected to increase by 5% despite the market revenue still struggling to reach pre-pandemic levels.
ID Crypt has been measuring the market size of the UK’s digital identity theft protection market since 2018 by analyzing annual revenue and the changing number of businesses operating in the sector. Based on this analysis, they have forecasted the average turnover per business by the end of 2023.
According to the data, the annual revenue of the digital ID theft protection market dropped to £331.2 million in 2021 due to pandemic pressures. However, there was a promising recovery in 2022, with revenue increasing to £324.6 million. ID Crypt predicts that by the end of 2023, revenue will rise again to £331.9 million.
Despite this post-pandemic recovery, market revenue has not yet reached its pre-pandemic levels. In 2018, revenue in the market totaled £360.5 million.
The data also reveals that there were approximately 134 businesses operating in the UK market in 2018. Based on the overall market revenue, each business was generating an average of £2.7 million.
However, as market revenue slumped to £311.2 million in 2021, the number of operating businesses increased to 143, resulting in each firm generating revenue of only £2.18 million.
In 2022, the number of businesses increased by 1.4% and revenue per company increased by 2.9% to £2.24 million, thanks to an overall market revenue increase of around £13 million.
The forecast indicates that by the end of 2023, the number of businesses will have increased by 4.8% to 152. Despite the expected increase in market revenue by over £7 million, the average revenue per company is set to fall by 2.5% to £2.18 million.
Lauren Wilson-Smith, CEO and Founder of ID Crypt Global, commented on the findings, stating that as digital identities become increasingly important, businesses are entering the market to capitalize on the available profits. However, this influx of businesses has actually reduced revenue per company. Wilson-Smith sees this as a positive sign, indicating that digital ID protection is a growing market that will continue to expand in the coming years.
In conclusion, the research by ID Crypt Global highlights the growing trend in the UK’s digital identity theft protection market, with an expected increase in businesses despite a decline in revenue per company. This emphasizes the increasing importance of digital ID protection and its potential for future growth.
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