The global identity as a service market size is estimated to reach USD 33.51 billion by 2030, registering to grow at a CAGR of 25.3% from 2024 to 2030 according to a new report by Grand View Research, Inc. The rapid growth in IT infrastructure, ease of scalability, and cost-effectiveness of the Identity as a Service (IDaaS) solutions are anticipated to be the key factors driving the market. Rising threats and vulnerabilities across crucial organizational data have compelled companies to enhance their cybersecurity stand and focus on managing identities. This will support market growth.
Moreover, strict regulatory compliance and mandates pertaining to data security are likely to fuel the demand further. For instance, the EU's General Data Protection Regulation (GDPR), which came into force in May 2018, applies to all businesses worldwide that collect and process the data of EU citizens. The stringent compliance by the government agencies to curb theft of identity information has compelled the organizations to improve their spending on IT security substantially.
The proliferation of Bring Your Own Devices (BYOD) trend and adoption of cloud services within the organizations have potentially opened new avenues for threat actors. The deployment of IDaaS would reduce the risk and complexities of identity access with the help of cloud deployment and subscription as a services business model to its user. The adoption of cloud deployment in the organization is proliferating, owing to the flexibility and cost-effectiveness in the implementation of the business functions. Moreover, it also provides the opportunity to transform IT infrastructure digitally.
The average number of cloud-based applications that are used in an organization ranges from 900 to 1200 services. Each service involves its set of user credentials, which rely on vulnerable combinations of passwords. An organization may find it challenging to maintain the authentication credentials for its end-users. The capabilities provided by IDaaS solutions, such as Single Sign-On, Multi-Factor Authentications, help enable transparent authentication and improve the end-user experience for cloud-based services managed within the enterprise network.
Identity as a Service allows the organizations to enhance the security aspects making it more indulgent for employees to leverage the broad array of cloud services at their disposal. It also helps organizations by strengthening the identity and access parameter by enforcing policies about credential management and implementing more robust levels of authentication.
Request a free sample copy or view report summary: Identity As A Service Market Report
The single sign-on segment held the largest market revenue share of 28.0% in 2023. The increasing need for enhanced security and simplified access management in organizations drives segment growth.
The public cloud segment held the largest market revenue share in 2023. The demand for the public cloud segment is increasing due to its scalability, cost-efficiency, and ease of deployment.
The BFSI segment held the largest market revenue share in 2023. The demand for the BFSI segment is increasing due to the sector's heightened focus on security and compliance.
North America held the largest market revenue share of 38.6% in 2023.
Grand View Research has segmented the global identity as a service market based on type, deployment, end-use, and region:
Identity As A Service Type Outlook (Revenue, USD Billion, 2018 - 2030)
Single Sign-On
Multifactor Authentication
Provisioning
Password Management
Directory Services
Audit, Compliance & Governance
Identity As A Service Deployment Outlook (Revenue, USD Billion, 2018 - 2030)
Public Cloud
Private Cloud
Hybrid Cloud
Identity As A Service End-use Outlook (Revenue, USD Billion, 2018 - 2030)
BFSI
IT & ITeS
Manufacturing
Government
Telecom
Energy and tilities
Healthcare
Others
Identity As A Service Regional Outlook (Revenue, USD Billion, 2018 - 2030)
North America
U.S.
Canada
Mexico
Europe
U.K.
Germany
France
Asia Pacific
China
India
Japan
South Korea
Australia
Latin America
Brazil
Middle East and Africa (MEA)
Saudi Arabia
South Africa
UAE
List of Key Players in Identity As A Service Market
Okta, Inc.
Microsoft
Thales
Ping Identity
IBM
Atos SE
Oracle
Salesforce, Inc.
CyberArk Software Ltd.
"The quality of research they have done for us has been excellent..."