PUBLISHER: The Business Research Company | PRODUCT CODE: 1659154
PUBLISHER: The Business Research Company | PRODUCT CODE: 1659154
Identity as a Service (IDaaS) represents a cloud-based subscription model catering to identity and access management needs. This approach delivers identity services and access controls via the internet through a third-party provider, diverging from traditional on-premises hosting. IDaaS enables users to access and utilize identity management services directly from the cloud.
The primary categories within Identity as a Service encompass single sign-on, multi-factor authentication, compliance management, directory services, and additional access features deployed across public, private, and hybrid cloud environments. Single sign-on streamlines user access, allowing individuals to log in to multiple websites and applications using a single set of credentials. It simplifies the authentication process by employing a sole login for various online platforms. The components integral to Identity as a Service consist of solutions and services tailored for both small and medium-sized enterprises (SMEs) as well as large enterprises. Identity as a Service finds application across diverse industries such as government, retail, consumer electronics, transportation, logistics, media, entertainment, IT, telecommunications, banking, financial services, insurance (BFSI), energy, utilities, healthcare, automotive, and various other sectors. This cloud-based identity and access management solution caters to the unique needs of different end-users, offering comprehensive services tailored to their specific industry requirements.
The identity as a service market research report is one of a series of new reports from The Business Research Company that provides identity as a service market statistics, including identity as a service industry global market size, regional shares, competitors with a identity as a service market share, detailed identity as a service market segments, market trends and opportunities, and any further data you may need to thrive in the identity as a service industry. This identity as a service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The identity as a service market size has grown exponentially in recent years. It will grow from $7.06 billion in 2024 to $8.48 billion in 2025 at a compound annual growth rate (CAGR) of 20.2%. The growth in the historic period can be attributed to mobile device proliferation, regulatory compliance requirements, digital transformation initiatives, user experience and convenience, remote workforce challenges, increased use of social media logins, business continuity planning, adoption of bring your own device.
The identity as a service market size is expected to see exponential growth in the next few years. It will grow to $20.46 billion in 2029 at a compound annual growth rate (CAGR) of 24.6%. The growth in the forecast period can be attributed to increasing frequency of cyberattacks, rising adoption of zero trust security models, emergence of decentralized identity, advanced threat detection and analytics, globalization and cross-border identity management, continuous authentication practices. Major trends in the forecast period include multi-factor authentication (MFA), consumer identity and access management, blockchain for identity verification, password less authentication, API security, adoption of machine learning and ai, quantum-safe authentication.
The escalating frequency of cyberattacks is anticipated to drive growth in the identity as a service market. As cyber threats become more sophisticated, enterprises face heightened security concerns. Companies lacking robust customer and corporate information protection are more susceptible to these attacks. This growing vulnerability has led organizations to invest in robust identity verification systems, recognizing the imperative role of identification in modern security practices. In 2021, there was a 15.1% increase in data breaches and cyberattacks compared to the previous year, according to Forbes. This surge in cyber threats underlines the market's growth driven by the rising number of cyberattacks.
The increasing prevalence of fraudulent activities is anticipated to drive the growth of the identity as a service (IDaaS) market in the coming years. Fraud is defined as any act that employs deceit to gain an advantage and becomes a crime when it involves knowingly distorting the truth or concealing significant facts to persuade someone to act to their detriment. IDaaS solutions monitor personally identifiable information across credit applications, public records, websites, and other platforms for any unusual behavior that may signal identity theft. For example, in February 2024, the Federal Trade Commission, a US-based government agency, reported that consumers experienced over $10 billion in fraud losses in 2023, marking a 14% increase from the previous year. Furthermore, consumers lost more than $4.6 billion to investment scams in 2023, reflecting a 21% increase from 2022 and representing the highest loss among all fraud categories. Thus, the rise in identity and authentication fraud is fueling the growth of the identity as a service market.
Technological advancements are emerging as a significant trend in the identity as a service (IDaaS) market. Leading players in this market are developing cutting-edge products to maintain their competitive edge. For example, in December 2022, CloudIBN, a US-based cloud infrastructure consulting and deployment firm, introduced its Identity and Access Management (IAM) solution. This all-encompassing IAM offering is designed to assist businesses in effectively managing user access control throughout their entire enterprise while ensuring data security. CloudIBN tailors its IAM solutions to comply with industry-specific standards, helping businesses meet relevant regulatory requirements. The company aims to provide solutions that integrate smoothly with existing operations to minimize disruption. By leveraging its expertise in large-scale implementations across diverse sectors such as healthcare and finance, CloudIBN ensures that organizations can securely manage their digital assets remotely.
Major companies in the identity as a service (IDaaS) market are investing in innovative technologies, such as machine learning algorithms, to gain a competitive advantage. Machine learning algorithms are computational models that enable computers to identify patterns and make predictions or decisions based on data without explicit programming. For example, in June 2024, Microsoft Corporation, a US-based technology company, launched Microsoft Entra Identity Governance, an advanced identity governance solution aimed at helping organizations manage access to critical assets, enhance security, and comply with regulatory requirements. Microsoft Entra Identity Governance ensures that the right individuals have appropriate access to the right resources at the right time. It supports both cloud and on-premises applications and integrates smoothly with both Microsoft and non-Microsoft applications. This service improves productivity by automating identity lifecycle management tasks and streamlining access provisioning processes.
In July 2022, M2P Fintech, an Indian financial infrastructure provider, acquired Syntizen for an undisclosed sum. This acquisition positions M2P Fintech to enhance Aadhar verification and streamline know-your-customer (KYC) procedures, bolstering identity verification and onboarding services for financial institutions. Syntizen, the acquired company, specializes in identity verification services based in India.
Major companies operating in the identity as a service market are Centrify Corp., ILANTUS Technologies, iWelcome, JumpCloud Inc., Okta Inc., Salesforce.com Inc., Exostar LLC, Microsoft Corporation, Oracle Corporation, International Business Machines Corporation (IBM), Ping Identity Corporation, Google LLC, SailPoint Technologies Inc., Auth0 Inc., HCL Technologies Limited, Connectis LLC, SecureAuth Corporation, Avatier Corporation, Bitglass Inc., EmpowerID Inc.
North America was the largest region in the identity as a service market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global identity as a service market share during the forecast period. The regions covered in the identity as a service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the identity as a service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The identity as a service market includes revenues earned by entities by provisioning, single sign-on, advanced authentication, audit, compliance, governance, password management, and directory services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Identity As A Service Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on identity as a service market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for identity as a service ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The identity as a service market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.