Identity-as-a-Service

Global Identity-as-a-Service Market to Reach US$36.0 Billion by 2030

The global market for Identity-as-a-Service estimated at US$10.9 Billion in the year 2023, is expected to reach US$36.0 Billion by 2030, growing at a CAGR of 18.6% over the analysis period 2023-2030. Provisioning Component, one of the segments analyzed in the report, is expected to record a 17.0% CAGR and reach US$10.3 Billion by the end of the analysis period. Growth in the Single Sign-On Component segment is estimated at 18.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$3.1 Billion While China is Forecast to Grow at 18.1% CAGR

The Identity-as-a-Service market in the U.S. is estimated at US$3.1 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$5.6 Billion by the year 2030 trailing a CAGR of 18.1% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 16.0% and 15.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 12.5% CAGR.

Global Identity-as-a-Service Market - Key Trends and Drivers Summarized

Why Is Identity-as-a-Service (IDaaS) Gaining Traction in Modern Enterprises?

Identity-as-a-Service (IDaaS) is becoming a critical tool for enterprises as they manage the identities of employees, customers, and partners across complex digital ecosystems. IDaaS platforms provide cloud-based identity management solutions, enabling organizations to streamline the process of authenticating, authorizing, and managing user identities. These platforms offer a centralized approach to identity governance and access control, allowing businesses to enhance security and improve compliance with regulatory requirements. With the increasing shift towards cloud computing and remote work, IDaaS solutions provide a flexible, scalable, and cost-effective way to manage digital identities without the need for extensive on-premise infrastructure.

How Are Technological Innovations Shaping the Identity-as-a-Service Market?

Technological advancements such as artificial intelligence (AI), multi-factor authentication (MFA), and blockchain are transforming the IDaaS market. AI-powered identity analytics allow IDaaS platforms to continuously monitor user behaviors and detect anomalies, enabling proactive threat detection. Multi-factor authentication is now a standard feature, adding an extra layer of security by requiring users to provide multiple forms of identification before gaining access to systems. Additionally, blockchain-based IDaaS platforms are emerging, offering decentralized and immutable identity management systems that reduce the risk of data breaches and enhance privacy. These innovations are making IDaaS more secure, reliable, and efficient, allowing businesses to protect sensitive data in increasingly complex IT environments.

How Do Market Segments Define the Identity-as-a-Service Market?

Components include provisioning, directory services, and access management, with access management being one of the dominant segments as organizations prioritize secure and compliant access to digital resources. Deployment types are divided into public, private, and hybrid clouds, with public cloud solutions leading the market due to their cost-effectiveness and scalability. Organization sizes range from small and medium-sized enterprises (SMEs) to large enterprises, with large enterprises driving the adoption of IDaaS due to their complex identity management needs. Industry verticals include BFSI, healthcare, IT & telecom, and retail, with BFSI leading the market due to strict regulatory compliance requirements and the need to safeguard sensitive financial data.

What Factors Are Driving the Growth in the Identity-as-a-Service Market?

The growth in the Identity-as-a-Service market is driven by several factors, including the increasing adoption of cloud-based applications, rising concerns over data security, and stringent compliance requirements. As businesses continue to migrate to cloud environments, the need for scalable and flexible identity management solutions has surged. IDaaS platforms offer the ability to manage identities securely and efficiently across multiple cloud services and applications, making them essential for modern enterprises. Furthermore, growing concerns over data breaches and cyberattacks are pushing organizations to adopt more secure identity management practices, driving demand for IDaaS solutions. Additionally, regulatory mandates such as the General Data Protection Regulation (GDPR) and Health Insurance Portability and Accountability Act (HIPAA) are prompting businesses to enhance their identity governance and compliance efforts.

Select Competitors (Total 33 Featured) -

• Auth0
• CA Technologies
• Capgemini
• Connectis
• Gemalto
• Google
• HCL
• IBM
• Idaptive
• Jumio
• JumpCloud
• Microsoft
• One Identity
• Onelogin
• Oracle
• Ping Identity
• SailPoint Technologies
• Salesforce
• Simeio Solutions

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