MARKET NEEDS AND EXPECTED IMPACT

The identity management market is a subset of a larger segment composed of information security software and information security services. Identity management reflects the market demand for products and services that unify disparate user management, access management, directory services and authentication products. The Identity Management products and services market is supposed to increase to 3.4 billion dollars in 2008 (Yankee Group, July 2003).

On this market, the products and services enabled by smart cards are likely to experience the quickest development. The Gartner Group reports are confident about the demand for smart cards as identification and authentication device in the network security, Internet access and mobile Internet services market segments. Smart cards are predicted an annual growth of 26% by market experts according to Eurosmart, Axalto, Frost and Sullivan (Nov. 2003).

Federated identity is the logical evolution of identity management. It will provide architecture solutions and options for web services, e-commerce, e-administration and the identity management within large multi-service telecommunication groups. Federated identity is also very well adapted to the evolution of mobile telecommunication services, which are already making an intensive use of smart cards. Mobile/fix telcos, Internet service providers and their commercial associated partners should play a key role to improve this situation while preserving security and privacy for end-users under their control.

Identity management and provision are expected to become a completely new activity with commercial and legal aspects. Large telcos are particularly suited to play an important role in this new domain which will quickly expand through the development of e-commerce, web services and e-administration. FIDELITY-Project will promote adoption of IDM systems based on open architectures and standards and hence contribute to keep the market open for European players. This will also strengthen the market position of the European manufacturers both in Europe and world-wide, for Liberty compliant equipment.