Identity As A Service Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, Canada, UK - Size and Forecast 2024-2028

Identity As A Service Market Size 2024-2028 

The identity as a service market size to increase by USD 7.68 billion and is estimated to grow at a CAGR of 20.62% between 2023 and 2028. The Identity as a Service (IDaaS) market is experiencing significant growth, driven by the increasing adoption of cloud security solutions and the widespread use of cloud computing. IDaaS provides centralized identity management and access control services over the internet, addressing the challenges of managing multiple identities and access permissions across various systems and applications. The market is also influenced by the need for system integration and interoperability, as organizations seek to streamline their IT infrastructure and improve security. However, concerns around data privacy and security, as well as the complexity of implementing and managing IDaaS solutions, present challenges for market growth. Despite these challenges, the IDaaS market is expected to continue expanding, fueled by the benefits it offers in terms of cost savings, scalability, and enhanced security.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The market is witnessing significant growth due to the digital identity transformation taking place in organizations. With the increasing adoption of cloud-based services and multi-cloud computing systems, the need for secure and efficient identity management solutions has become crucial. IDaaS provides authentication, permission management, and other identity-related services through the cloud, making it an attractive option for businesses. However, with this shift to cloud-based identity solutions comes new security challenges. Cybercriminals are constantly finding new ways to exploit vulnerabilities, making it essential for IDaaS providers to implement robust security measures. Regulatory mandates and data protection laws, such as those enforced by the FTC, add another layer of complexity. AI/ML-powered services are being integrated into IDaaS solutions to enhance security and streamline identity management processes. Subscription-based models and multifactor authentication are also becoming increasingly popular. IDaaS providers must stay abreast of the latest security threats and regulatory requirements to ensure company risk is minimized. Digital payments are also driving the growth of IDaaS, as organizations seek to provide seamless and secure customer experiences. Overall, the IDaaS market is poised for continued growth as more organizations embrace digital transformation and the as-a-service model. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The growing adoption of cloud security solutions is notably driving the market growth. The market is poised for substantial expansion in the coming years due to the escalating need for advanced cybersecurity solutions in the digital era. With an increasing number of companies adopting cloud computing, communication networks, and digital media for their operations, the importance of securing access to these systems has become paramount.

Moreover, identity and access management (IAM) solutions have emerged as crucial components in mitigating security problems and managing company risk. These systems enable administrators to control authentication, permission management, and single-sign-on for their employees, ensuring secure access to sensitive data. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

The rising adoption of cloud computing is the key trend in the market. The increasing adoption of cloud computing, particularly in IT and telecommunications sectors, has led to a surge in the need for Identity as a Service (IDaaS) solutions to manage access and security in digital media and communication networks. IDaaS provides subscription-based services for authentication, permission management, and advanced authentication to mitigate security problems and reduce company risk.

Moreover, with the rise of advanced threats and cybersecurity breaches, IDaaS solutions have become essential for large enterprises and Small and Medium-sized Enterprises (SMEs) alike. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

System integration and interoperability issues is the major challenge that affects the growth of the market. The Identity as a Service (IDaaS) market is witnessing significant growth due to the increasing adoption of advanced technologies in various industry verticals, including banking, financial services and insurance (BFSI), telecom, and the public sector.

However, this technological surge brings about challenges such as integration and interoperability issues, which can lead to security problems and company risk. These challenges can result in time and money being wasted on resolving technical glitches during business operations. For instance, organizations using different versions of operating systems on their mobile devices may encounter software implementation issues. To mitigate these risks, companies require unified IDaaS solutions that can be easily integrated into their existing IT infrastructure. Hence, the above factors will impede the growth of the market during the forecast period.

Exculsive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Atos SE: The company offers identity as a service through its subsidiary Evidian.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Alphabet Inc.
• Broadcom Inc.
• Capgemini Service SAS
• Centrify Corp.
• CyberArk Software Ltd.
• HCL Technologies Ltd.
• Ilantus Inc.
• International Business Machines Corp.
• Jumio Corp.
• JumpCloud Inc.
• Microsoft Corp.
• Okta Inc.
• Oracle Corp.
• Ping Identity Corp.
• Quest Software Inc.
• SailPoint Technologies Inc.
• Salesforce Inc.
• Simeio Solutions LLC
• Thales Group

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

By End-user 

The Telecom and IT segment is estimated to witness significant growth during the forecast period. The market refers to the subscription-based delivery of Identity and Access Management (IAM) solutions, including authentication, permission management, and cybersecurity, to administrators in companies of various sizes and industries.

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The Telecom and IT segment was the largest segment and was valued at USD 662.10 million in 2018. With the increasing use of digital media, communication networks, and cloud computing, companies face growing risks from cybersecurity breaches and identity-related fraud. IAM solutions, such as those offered by Delinea and Authomize, provide advanced authentication, audit, compliance, and governance capabilities to mitigate these risks.  Hence, such factors are fuelling the growth of this segment during the forecast period.

Regional Analysis

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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is experiencing significant growth due to the digital identity transformation taking place among organizations. Regulations, such as those enforced by the Federal Trade Commission (FTC) against identity theft, are driving the demand for advanced cloud-based security solutions. AI/ML-powered services are increasingly being adopted to address privacy challenges and ensure security measures against cybercriminals. Cloud survey results indicate that government agencies and the public sector are leading the way in IDaaS adoption, followed closely by the private sector. Hence, such factors are driving the market in North America during the forecast period.

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• End-user Outlook
  • Telecom and IT
  • BFSI
  • Education
  • Others
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The market is experiencing significant growth as organizations undergo digital identity transformation. This shift is driven by the need for advanced security measures to protect user identity data from cybercriminals. Regulations, such as those enforced by the FTC against identity theft, are pushing businesses to adopt cloud-based security solutions. AI and ML-powered services are becoming increasingly popular in the IDaaS market, providing predictive threat analysis and rapid response capabilities. However, the adoption of IDaaS comes with challenges, including privacy concerns and interoperability issues with network devices and standards and protocols. Cloud-based solutions offer operational efficiency and a competitive edge for CXOs, but they also present new technological expenses. Blockchain technologies are also being explored as a potential solution for enhancing digital security and ensuring ownership and privacy of user identity data. The public sector and government agencies are also adopting IDaaS,  Telecom and IT companies, with the private cloud emerging as a preferred choice for computing resources. Despite these advancements, the market faces challenges, including the need for industry innovators to address cyberattacks and the ongoing evolution of AI and ML capabilities.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies