Identity as Service Market Size, Share, Analysis, Trends, Growth Report, 2032

Identity as Service Market Insights

According to Zion Market Research, the global Identity as Service Market was worth USD 6.53 Billion in 2023. The market is forecast to reach USD 57.73 Billion by 2032, growing at a compound annual growth rate (CAGR) of 27.4% during the forecast period 2024-2032. The report offers a comprehensive analysis of the market, highlighting the factors that will determine growth, potential challenges, and opportunities that could emerge in the Identity as Service Market industry over the next decade.

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Identity as Service Industry Perspective:

The integration of technologies that offer cloud-based solutions for identity security and access management is referred to as identity as a service (IDaaS). IDaaS also allows for the collection of intelligence data, such as recording incidents and data to indicate where and from whom information was obtained. IDaaS is used in private, hybrid and public networks, as well as in nearly every industry that requires the tracking of data containing classified information, the verification of a user's identity, and the understanding and improvement of user habits.

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Growth Factors

One of the major growth drivers for the Identity as Service Market is the increasing demand for cloud based authentication platforms and solution in response to data security issues. Organizations must provide connectivity to remote personnel while ensuring security enforcement, necessitating the use of identity and access management solutions. Multi-cloud computing systems are increasingly infiltrating the modern organisational environment, especially in telecommunications and IT firms. As more multi-cloud operating systems are adopted, the need for even more efficient identity protection services to secure their public cloud infrastructure and services is becoming apparent.

Another factor for the growth in this market is strict rules and data protection laws. Stringent regulatory mandates and data privacy regulations increase the demand of IDaaS technologies. Global identity theft laws and legislation, such as the GDPR and HIPAA are pushing businesses to take special precautions in securing employee, contractor, and end-user accounts. To ensure robust protection against the rising threats associated with the introduction of cloud technology, end-to-end identity and access control capability will be expected.

Identity as Service Market: Report Scope

Component Segment Analysis Preview

The provisioning component segment dominated the IDaaS sector, accounting for 30% of total sales. Provisioning is the method of creating, deleting, validating, approving, and terminating the identity of each user in an entity, including customers, associates, and staff. It is one of the most important regulations and access rights policy programs.

The IDaaS service includes all required password management and authentication functionality, such as multifactor authentication, as a basic prerequisite of identity and access management. Multifactor authentication applications are expected to expand as a result of strict policies and enforcement for Internet banking, such as (Time Password) OTP and self-created password tokens. Furthermore, the introduction of features like biometrics, speech recognition, and smart cards is expected to boost multifactor authentication acceptance.

End Use Segment Analysis Preview

In 2019, the public sector led the industry, accounting for more than 28% of the overall market share. Data theft or a possible cyber-attack is often a danger to government departments and organizations. Cybercriminals are attacking those agencies in order to obtain access to sensitive government information. Identity fraud to gain access to confidential government data has increased significantly, resulting in a need for IDaaS solutions among government agencies.

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Regional Analysis Preview

North America has dominated the market, accounting for more than 38% of global market share in 2019. Because of the increasing number of security threats and data leaks, North America is the largest user of cybersecurity solutions. Organizations in North America are adopting IDaaS technologies as a result of an increase in cyberattacks to gain access to private customer data, increased penetration of cloud apps, rising BYOD trend, and evolving workforce needs to satisfy regulatory norms. Furthermore, the regional market is growing due to a favorable regulatory environment.

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The Middle East and Africa region is also projected to gain momentum in the coming years. Organizations in the field are undergoing changes and embracing mobile, cloud, and next-generation technology. To reduce the risk of a data breach, it has become crucial to protect systems, authenticate users, and retain control over business-critical information. Due to the region's expanding IT infrastructure.

Key Market Players & Competitive Landscape

Some of the key players in the global identity as a service market are 

• CA Technologies
• OneLogin
• Oracle
• HCL Technologies
• Google
• SailPoint Technologies
• Microsoft
• IDaptive
• Salesforce
• Gemalto among others.

Most businesses' core tactics for strengthening their market share include acquisitions, partnerships, and R&D investments. For example, Akamai Technologies announced in January 2019 that it had acquired Janrain, a leader in the creation of customer identity access management solutions. Avaya declared an agreement with Post Quantum in May 2018 to add Identity as a Service to its portfolio.

The global identity as a service market is segmented as follows:

By Component

• Provisioning
• Directory services
• Password management
• Single sign-on
• Advanced authentication
• Others

By End Use

• BFSI
• IT & Telecom
• Public
• Manufacturing
• Healthcare
• Education

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa