Introduction: Navigating the Competitive Landscape of Identity as a Service
The market for identity as a service is experiencing a rapid uptake of technology, evolving regulatory frameworks, and consumers with higher expectations for security and convenience. The market is dominated by established IT system integrators, new artificial intelligence-driven startups, and traditional suppliers of IT hardware and services. IT system integrators are able to offer comprehensive solutions, while new artificial intelligence-driven startups are disrupting the market with advanced analytic and automation capabilities that enhance the user experience and security. Biometrics and the Internet of Things are reshaping identity verification and setting new standards for differentiation. Greener IT is increasingly important to companies, so vendors that can align with their green and sustainable initiatives are gaining a competitive advantage. Opportunities are particularly strong in North America and Asia-Pacific. Strategic deployments are set to accelerate from 2024–25, putting agile players in a position to take advantage of emerging trends and meet the needs of consumers.
Competitive Positioning
Full-Suite Integrators
These vendors offer comprehensive identity management solutions that integrate multiple functionalities into a single platform.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| Okta Inc. |
Strong user experience and integration capabilities |
Identity and access management |
Global |
| Microsoft Corporation |
Seamless integration with Microsoft ecosystem |
Identity management and security |
Global |
| Oracle Corporation |
Robust enterprise-grade solutions |
Identity governance and administration |
Global |
Specialized Technology Vendors
These vendors focus on niche identity solutions, providing specialized technology for specific use cases.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| Ping Identity |
Strong focus on API security and SSO |
Identity security and access management |
Global |
| Centrify Corporation |
Focus on privileged access management |
Identity and access management |
Global |
| Fischer Identity |
Comprehensive identity governance solutions |
Identity governance and administration |
North America |
| OneLogin Inc |
User-friendly interface and integration |
Single sign-on and identity management |
North America |
| LoginRadius |
Focus on customer identity solutions |
Customer identity and access management |
North America, Europe |
Infrastructure & Equipment Providers
These vendors provide foundational technology and infrastructure that support identity management solutions.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| VMWare |
Strong virtualization and cloud integration |
Identity management in virtual environments |
Global |
| Avatier |
Focus on automated identity management |
Identity governance and administration |
North America |
| iWelcome |
Strong focus on European data protection |
Customer identity and access management |
Europe |
Emerging Players & Regional Champions
- The company is based in the U.S. and offers a flexible identity platform for application developers, with an emphasis on ease of integration and customization. Recently it has teamed up with several fintech companies to strengthen their security, and it is competing with established players such as Okta with more developer-friendly solutions.
- OneLogin (USA): SSO and MFA solution provider. Recent contracts with several universities, making it a strong alternative to the big players like Microsoft Azure AD.
- CybSafe (UK): focuses on the security of identity and behavior, and provides unique solutions that combine behavior analysis with identity services. Their platform has been implemented in several government organizations. They are competing with the traditional identity services by focusing on educating and informing the end-user.
- idNOW (Germany): idNOW offers identity verification and electronic signature solutions that are compliant with the strict regulatory requirements of the European market. In its recent collaboration with major European banks, idNOW has established itself as a regional champion that competes with the larger global players.
- The MIT – Zitadel (Germany) – is an open-source identity management platform with a focus on privacy and data sovereignty. The project has been successful in the European market by offering companies who are afraid of the upcoming GDPR a way to comply with the new law. It also competes with established vendors through its community-driven approach.
Regional Trends: In 2023, a notable trend is towards the localization of identity solutions, with the aim of ensuring compliance with local regulations, especially in Europe. In the same vein, there is an increasing demand for developer-friendly platforms. Organizations are seeking to integrate identity services into their existing business processes. In addition, there is an increased emphasis on security education and the importance of user behavior.
Collaborations & M&A Movements
- Okta and Microsoft have entered into an agreement to integrate their respective identity management solutions, in order to enhance security and simplify access to cloud applications. The companies are thus strengthening their positions in the enterprise market.
- Ping Identity acquired SecuredTouch in 2023 to bolster its fraud prevention capabilities, enhancing its market share in the Identity as a Service sector amidst increasing regulatory scrutiny on data protection.
- ForgeRock and AWS collaborated to provide a comprehensive identity management solution that leverages cloud scalability, aiming to capture a larger share of the growing cloud identity market.
Competitive Summary Table
| Capability | Leading Players | Remarks |
|---|
| Biometric Self-Boarding |
IDEMIA, Gemalto |
IDEMIA has been implementing biometric boarding at major airports. This has increased the flow of passengers and reduced waiting times. Gemalto’s technology has proved its accuracy and its integration into existing systems at European airports. |
| AI-Powered Ops Mgmt |
Microsoft Azure AD, Okta |
AI in Microsoft Azure AD is used for identity management, providing insights into the behavior of the users. Okta's adaptive authentication uses machine learning to improve security, and case studies have shown a reduction in the number of frauds in the enterprise environment. |
| Border Control |
Thales, NEC |
Thales is a company which has developed an advanced system of facial recognition which has been successfully used in several international airports. Similarly NEC’s biometric border control system has been adopted in Asia and has been found to be very fast and reliable. |
| Sustainability |
IBM, Salesforce |
IBM's identity solutions focus on reducing carbon footprints through efficient data management. Salesforce has integrated sustainability metrics into its identity services, promoting eco-friendly practices among its clients. |
| Passenger Experience |
SITA, AirAsia |
SITA's Smart Path solution enhances the passenger experience by enabling seamless identity verification at all touchpoints. AirAsia has adopted a mobile-first identity solution that is simplifying check-in and boarding, and delivering a significant increase in customer satisfaction. |
Conclusion: Navigating the Identity as a Service Landscape
The market for IDaaS will be characterized by a high degree of competition and by considerable fragmentation. Regional developments point to a growing demand for localized solutions, which will force vendors to adapt their offerings to meet local regulatory and cultural requirements. Providers of long standing are relying on their established reputation and their large customer bases. Newcomers are focusing on innovative features such as the use of artificial intelligence for identity verification and the automation of the user management process, as well as on a sustainable approach. The key to success for any vendor aiming to establish itself in a leadership position will be the ability to offer a flexible and scalable solution. Such a solution will not only enhance a vendor’s competitive edge but also meet the customers’ rising expectations for seamless and secure identity management.
