Juniper Research forecasts that revenue from mobile identity application programming interfaces (APIs) will surge to $22 billion by 2029, up from $2.4 billion in 2025. This anticipated growth reflects a broader shift towards more secure and efficient authentication methods, driven by increasing support for network APIs that authenticate users without relying on SMS.
Mobile identity services utilise a subscriber’s phone number to verify identities across various sectors, including banking, healthcare, and online retail. As organisations seek to enhance security and streamline processes, the shift away from traditional SMS-based methods is becoming increasingly significant.
The report, titled Global Mobile Identity Market 2025-2029, highlights emerging 'verification APIs' as potential disruptors to established mobile identity solutions, particularly one-time passwords (OTPs). These verification APIs are designed to compare the phone number registered during sign-up with the one accessing the mobile network, representing a crucial growth area within the mobile identity market.
Juniper Research suggests that the enhanced security features associated with these APIs, including spoofing mitigation, will render them more valuable to digital service providers than their SMS counterparts. Georgia Allen, the research author, states, “APIs are now comparable in price to SMS, however the additional security provided by APIs alone offers a compelling value proposition that encourages enterprises to migrate mobile identity traffic rapidly.”
To ensure the sustainable growth of API usage, the report recommends that mobile identity vendors implement rate limits on the number of API calls per user. This measure aims to prevent fraudulent activities that could undermine the integrity of mobile identity services.
As industries increasingly recognise the advantages of API-driven mobile identity solutions, the potential for widespread adoption appears promising. This transition not only enhances user security but also streamlines the authentication process, paving the way for more efficient customer interactions.
As the global mobile identity market evolves, stakeholders in telecommunications and digital services will need to adapt to these changes, leveraging the advantages of APIs to meet growing consumer demands for security and efficiency.
