IDaaS Market Size

IDaaS Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

IDENTITY AS A SERVICE (IDaaS) MARKET is expected to grow at a significant rate, with an estimated market size of $ 3.74 billion in 2023 and $21.87 billion in 2032. The CAGR for this period is 21.31%. This growth is a result of the increasing digitalization of the world and the resulting demand for identity management solutions. The growing trend of working remotely, the increasing need for secure access to applications and data, and the need to simplify and increase the security of user management processes, all drive organizations to use IDaaS solutions. There are several technological trends that will support the growth of the market, including the increasing importance of cyber security, the increasing use of cloud services and the increasing use of multi-factor authentication (MFA). During the next five years, IDaaS vendors will continue to offer comprehensive solutions that integrate with existing IT systems. The main players in the IDaaS market, such as Okta, Microsoft and IBM, are working on strategic initiatives, such as partnership agreements and product launches, to increase the scope of their services and market share. Okta’s recent collaboration with various cloud service providers is a good example of this trend towards integrated solutions that meet the diverse needs of enterprise customers.

Regional Market Size

Regional Deep Dive

The market for IdaaS is growing rapidly in all regions. The need for secure identity management solutions is increasing as the threat of cyber attacks grows. In North America, the high cloud adoption rate and the strict regulatory environment are driving organizations to seek robust IdaaS solutions. In Europe, the GDPR is driving demand for IdaaS, while the Asia-Pacific region is rapidly transforming itself into a digital economy. Middle East and Africa (MEA) is seeing increasing investment in cybersecurity. Latin America is gradually adopting IdaaS, as organizations realize the importance of secure identity management in their digital strategies.

North America

• The Federal Identity, Credential and Access Management (FICAM) program, which stresses the need for secure identity management solutions across the federal government, is a key driver of the IDaaS market.
• Okta and Microsoft are constantly developing their identity and access management (IAM) solutions, integrating advanced features such as AI-driven identity analytics and multi-factor authentication, which increase security and enhance the customer experience.
• In the wake of the COVID-19 pandemic, remote working has increased, and the need for secure access to sensitive data and applications from any location has increased.

Europe

• The advent of the General Data Protection Regulation (GDPR) has had a profound effect on the identity-as-a-service (IDaaS) market, as it has forced companies to adopt compliant identity management solutions to avoid substantial fines.
• OneLogin and ForgeRock are expanding their presence in Europe, focusing on the specific regulatory environment and the particular privacy concerns of the region.
• The European Union’s digital identity project is designed to create a secure and usable digital identity framework, which will in turn drive the implementation of IDaaS solutions across its member states.

Asia-Pacific

• In countries like India and China, digital transformation is taking place at a rapid pace. The demand for IDaaS solutions is on the rise as companies seek to protect their digital identity in the face of the growing threat of cyber-attacks.
• Zscaler and Auth0 are gaining ground with their localised IDaaS solutions.
• The Aadhaar project in India is a great example of how governments can promote the use of digital identity.

MEA

• The National Cyber Security Strategy of the United Arab Emirates emphasizes the importance of secure identity management, leading to a surge in the investment in IDaaS solutions by the government and the private sector.
• Thales and Gemalto are developing identity-as-a-service solutions that meet the specific security challenges of the region, especially in the financial and health care sectors.
• It is a growing awareness of the dangers of cyber-security that is driving the demand for IDaaS solutions in the region.

Latin America

• In Latin America, the rise of e-banking and e-commerce is bringing with it a need for secure identity management. And as a result, the use of identity as a service (IDaaS) is on the rise.
• Securitas and Kio Networks are two of the most important players in the IDaaS market in the Nordics, with solutions tailored to the local regulatory and cultural conditions.
• Government initiatives aimed at strengthening the security of the cyber-physical systems have encouraged companies to invest in IDaaS solutions, recognizing their importance in securing digital identities.

Did You Know?

“Almost 80% of data breaches are caused by the theft of identity credentials, highlighting the need for a secure and robust identity management solution such as IDaaS.” — Verizon 2023 Data Breach Investigations Report

Segmental Market Size

The IDaaS segment is an important part of the identity management market, which is experiencing strong growth due to increasing cyber security threats and the growing trend towards remote work. The protection of sensitive data is becoming more and more important for companies, and therefore the security of access management is becoming an increasingly important part of the IT infrastructure.

A number of factors are driving the market, including the increasing need for a seamless customer experience and the need to comply with regulations such as the General Data Protection Regulation (GDPR) and the Californian Data Protection Act (CCPA). The current market is characterised by large-scale deployment, with companies such as Okta and Microsoft Azure Active Directory leading the way. The most important applications of IDaaS span a wide range of industries, including health care for access to patient data, finance for secure transactions, and education for managing the identities of students. These applications are being further driven by macro-developments such as the COVID19 epidemic, and by technological developments such as advances in AI and machine learning that are enhancing security and the identification of users.

Future Outlook

The market for identity as a service is expected to grow from $3.74 billion in 2023 to $21.87 billion by 2032, with a CAGR of 21.31 percent. The need for secure and efficient identity management solutions is increasing as organizations move to cloud-based systems. It is estimated that the penetration of identity as a service in the enterprise market will reach 60 percent by 2032, up from 25 percent in 2023.

During the first quarter of this year, the market for identity verification will grow at a CAGR of 48.6% over the next five years, according to a new study from Research and Markets. Regulatory frameworks that place a high priority on data privacy and security, such as the GDPR and the CCPA, will further drive the adoption of ID verification solutions by organizations seeking to comply with stricter regulatory requirements. The growing use of zero-trust security models and the increased use of biometrics for authentication will also shape the market. IDaaS will become a critical component of enterprise IT systems and will drive growth and innovation in the market through 2032.