Identity as a Service Market Size - By Component (Single Sign-On, Multifactor Authentication, Provisioning, Password Management, Directory Services, Audit, Compliance & Governance), Deployment Model, Enterprise Size, Industry Vertical & Forecast, 2024 - 2032
Published Date: March - 2025 | Publisher: MIR | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationIdentity as a Service Market Size
Identity as a Service (IDaaS) Market size was valued at USD 7.2 billion in 2023 and is estimated to register a CAGR of over 24% between 2024 and 2032. The growing adoption of cloud services across various industries has been a significant driver for the market. As organizations migrate their infrastructure, applications, and data to the cloud, there is a heightened need for secure and scalable identity and access management solutions. IDaaS offers a centralized and cloud-based approach to managing user identities, enabling organizations to control access and enhance security in a cloud-centric environment efficiently.
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With this background, Entrust, the reliable provider of payments, identities, and digital infrastructure, enhanced its solutions by offering its cloud-based identity and access management (IAM) solution on AWS Marketplace in December 2022. The Entrust Identity as a Service is a cloud solution that includes passwordless login, multi-factor authentication (MFA), and risk-based adaptive authentication. This holistic solution facilitates the implementation of a zero-trust security strategy. Increased innovations and initiatives in the same line will assist in creating a wholesome growth path for the market.
Identity as a Service Market Report Attributes
Report Attribute Details
Base Year 2023
Identity as a Service Market Size in 2023 USD 7.2 Billion
Forecast Period 2024 to 2032
Forecast Period 2024 to 2032 CAGR 24%
2032 Value Projection USD 49.6 Billion
Historical Data for 2018 - 2023
No. of Pages 240
Tables, Charts & Figures 351
Segments covered Component, Deployment Model, Enterprise Size, Industry Vertical
Growth Drivers
Unreliable grid infrastructure accompanied by swift population growth
Increased identity and authentication threats
Surge in digital transformation efforts in different industries
Cloud computing's increasing adoption
Government efforts to aid digital identity change
Pitfalls & Challenges
Enterprise hesitancy to embrace cloud-based security
Compliance & regulatory concerns
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Against this backdrop, in December 2022, Entrust, a trusted provider of payments, identities, and digital infrastructure, expanded its offerings by making its cloud-based identity and access management (IAM) solution available on AWS Marketplace. The Entrust Identity as a Service is a cloud-based solution featuring passwordless login, multi-factor authentication (MFA), and risk-based adaptive authentication. This comprehensive solution supports the implementation of a zero-trust security approach. More innovations and efforts in this direction will help carve a healthy growth trajectory for the market.
Rising concerns about cybersecurity and data privacy will be a key factor strengthening the IDaaS market forecast through 2032. With the escalating frequency and sophistication of cyber threats, organizations are prioritizing cybersecurity and data privacy. In the year 2022, IT Governance identified 1,063 security incidents, leading to the compromise of 480,014,323 records. This indicates a 14.8% reduction in security incidents compared to the previous year, 2021, which recorded 1,243 incidents. IDaaS solutions provide advanced authentication and authorization mechanisms, helping companies bolster their security postures.
However, many enterprises have established on-premises legacy systems and applications that may not seamlessly integrate with cloud-based IDaaS solutions. The complexity of integrating IDaaS with existing infrastructure, applications, and directories can be a barrier to adoption. Organizations may face challenges in ensuring a smooth transition without disrupting existing workflows and processes. Integration difficulties can slow down the adoption of IDaaS, especially in large enterprises with complex IT environments, which may impact industry dynamics.
COVID-19 Impact
The COVID-19 pandemic significantly influenced the Identity as a Service (IDaaS) market, accelerating the shift towards remote work. With the sudden surge in remote access requirements, organizations prioritized cloud-based identity solutions to manage and secure user identities. The increased demand for Identity as a Service was driven by the need for scalable and flexible authentication mechanisms, as well as enhanced security measures to protect against cyber threats in the evolving remote work landscape.
Identity as a Service Market Trends
The IDaaS industry could see a growing emphasis on continuous authentication as a trend. Rather than relying solely on traditional authentication methods, continuous authentication involves ongoing verification of a user's identity throughout a session. This approach enhances security by dynamically adapting to user behavior and changes in risk, providing a more robust defense against unauthorized access.
The integration of AI and ML technologies into IDaaS solutions is expected to become more prominent. These technologies can analyze patterns, detect anomalies, and provide insights into user behavior. By leveraging AI and ML for identity and access management, organizations can enhance threat detection, automate responses to security incidents, and improve the overall efficiency of their identity management processes.
Identity as a Service Market Analysis
Learn more about the key segments shaping this market
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Based on enterprise size, the large enterprises segment held over 65% of the market share in 2023, propelled by the need for secure and efficient identity management solutions in today's dynamic digital landscape. Large companies grappling with complex IT ecosystems find IDaaS appealing due to its ability to centralize and streamline identity and access management processes. The scalability, flexibility, and cost-effectiveness of cloud-based IDaaS solutions resonate with organizations managing a vast user base and diverse applications, facilitating improved security, compliance, and seamless user experiences across the enterprise.
Learn more about the key segments shaping this market
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Based on industry vertical, the BFSI segment accounted for 29% of the identity as a service market share in 2023, led by the sector's heightened focus on security, compliance, and customer experience. IDaaS offers robust authentication, multi-factor security, and compliance adherence, addressing the industry's stringent regulatory requirements. The scalability and agility of cloud-based IDaaS align with the dynamic nature of financial services, enabling secure and seamless access to sensitive data. As the BFSI sector undergoes digital transformation, IDaaS provides a strategic solution to safeguard customer information, prevent fraud, and ensure regulatory compliance.
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North America identity as a service market recorded around 35% of the revenue share in 2023. The region's robust technological infrastructure and early adoption of cloud technologies create a conducive environment for IDaaS solutions. The heightened awareness and prioritization of cybersecurity, particularly in the wake of increasing cyber threats, drives organizations to invest in advanced identity and access management. Additionally, the regulatory landscape, such as GDPR and CCPA, compels businesses to implement comprehensive IDaaS solutions for data protection. The competitive business landscape in North America further propels companies to leverage IDaaS for secure, scalable, and compliant identity management practices.
Identity as a Service Market Share
Microsoft Corporation and Okta, Inc. hold a significant revenue share in the identity as a service (IDaaS) industry. Companies in the market employ various strategies to enhance their presence, including robust partnerships, continuous innovation in security features, and seamless integration with emerging technologies. Focused customer-centric approaches and adherence to compliance standards further solidify their market positions.
Identity as a Service Market Companies
Major companies operating in the identity as a service (IDaaS) industry are
- Capgemini
- ForgeRock, Inc.
- Google LLC
- IBM Corporation
- Microsoft Corporation
- Okta, Inc.
- OneLogin, Inc.
- Oracle Corporation
- Ping Identity Corporation
- SailPoint Technologies, Inc.
- Salesforce Inc.
- Thales Group
Identity as a Service Industry News
- In June 2023, WALLIX, a European cybersecurity software expert in digital identity and access solutions signed a partnership with Cris Réseaux, a company having expertise in managed services. Under this partnership, Cris Réseaux distributed WALLIX IDaaS, WALLIX’s SaaS identity and access management solution, to its network of 1,500 resellers.
The identity as a service (IDaaS) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments
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Market, By Component
- Single sign-on
- Multifactor authentication
- Provisioning
- Password management
- Directory services
- Audit, compliance & governance
Market, By Deployment Model
- Public cloud
- Private cloud
- Hybrid cloud
Market, By Enterprise Size
- Large Enterprises
- SMEs
Market, By Industry Vertical
- BFSI
- IT & Telecom
- Public Sector
- Healthcare
- Manufacturing
- Education
- Others
The above information has been provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Nordics
- Asia Pacific
- China
- India
- Japan
- South Korea
- ANZ
- Southeast Asia
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- UAE
- South Africa
- Saudi Arabia
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