Identity Service Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The IDaaS market is growing at a rapid pace. The current size of the market is $ 6.3 billion, and by 2032 the size of the market is expected to reach $ 34,332,000,000. CAGR for this market is 20.37% from 2024 to 2032, indicating a growing demand for identity management solutions in an increasingly digitalized world. The growth of the market is mainly due to the increasing need for secure and efficient identity verification processes, driven by the growing popularity of cloud services and the growing number of cyber threats. As a result, more and more companies are turning to IDaaS solutions to enhance security, optimize access, and comply with regulatory requirements. Artificial intelligence, machine learning, and biometrics are also driving the IDaaS market by enabling more sophisticated identity management capabilities. Several major players in the IDaaS market, such as Okta, Microsoft, and IBM, are investing in new technology and forming strategic alliances to enhance their product offerings. Recent collaborations between technology companies and security companies, for example, aim to integrate advanced identity verification technology, thereby improving the user experience and enhancing security. Considering the increasing importance of digital security and digital transformation for companies, the IDaaS market is expected to continue to grow in the future.

Regional Market Size

Regional Deep Dive

In various countries, the market for IdaaS is growing rapidly, mainly because of the growing need for secure and efficient identity management. North America is characterized by a high level of cloud adoption and strict regulatory requirements that push organizations to seek robust identity solutions. Europe is characterized by a high demand for compliance with the GDPR and the high importance of data privacy. The Asia-Pacific region is developing rapidly with a growing number of digital initiatives and a young and technologically advanced population. The Middle East and Africa are characterized by increasing investments in digitalization, and Latin America is gradually embracing IdaaS as organizations become more aware of the importance of cyber security in their business operations.

Europe

• The implementation of the General Data Protection Regulation (GDPR) has significantly influenced the IDaaS market, prompting organizations to adopt solutions that ensure compliance with stringent data protection standards.
• Companies like ForgeRock and OneLogin are innovating in the IDaaS space, focusing on privacy-centric identity solutions that cater to the unique regulatory landscape of Europe.

Asia Pacific

• The rapid digital transformation in countries like India and China is fostering a burgeoning IDaaS market, with local players such as Zeta and AuthBridge emerging to meet the growing demand for identity solutions.
• Government initiatives, such as India's Digital India program, are promoting the adoption of digital identity solutions, which is expected to significantly boost the IDaaS market in the region.

Latin America

• The growing awareness of cybersecurity threats is driving organizations in Latin America to adopt IDaaS solutions, with companies like Securitas and IDnow making strides in the market.
• Regulatory frameworks are evolving, with countries like Brazil implementing the General Data Protection Law (LGPD), which is expected to increase the demand for compliant identity management solutions.

North America

• The rise of remote work has accelerated the adoption of IDaaS solutions, with companies like Okta and Microsoft leading the charge in providing comprehensive identity management services.
• Regulatory changes, such as the California Consumer Privacy Act (CCPA), are compelling organizations to enhance their identity verification processes, thereby driving demand for IDaaS solutions.

Middle East And Africa

• The UAE's government has launched initiatives to enhance cybersecurity, leading to increased investments in IDaaS solutions among both public and private sectors.
• Companies like Thales and Gemalto are actively expanding their IDaaS offerings in the region, focusing on solutions that cater to the unique security challenges faced by organizations in the Middle East and Africa.

Did You Know?

“As of 2023, over 80% of organizations globally are expected to adopt some form of Identity as a Service solution to enhance their security posture and streamline user access management.” — Gartner Research

Segmental Market Size

IDaaS is a crucial part of the identity management market, which is growing rapidly, spurred by the need to meet the growing demand for a more seamless customer experience. The growth of remote work, which requires secure access to company resources, and the tightening of regulations such as the GDPR and the Californian data protection law are also important drivers of the market. Today, IDaaS is in a stage of mass deployment, with Okta and Microsoft in particular leading the way in North America and Europe. The main use cases are SSO for enterprise applications and MFA for added security. A number of trends, such as the shift to cloud services and the growing emphasis on zero-trust security, are also driving the market forward. Artificial intelligence and machine learning are also influencing IDaaS, making it possible to develop more accurate identity verification and fraud detection methods.

Future Outlook

IDENTITY AS A SERVICE MARKET OPPORTUNITY: OVERVIEW OF THE MARKET AND IMPACT: The IdaaS market is poised for a significant growth from 2023 to 2032, when it is expected to reach a market size of $ 63 billion, growing at a CAGR of 20.37%. The growth will be driven by the growing demand for secure and efficient identity management solutions from various sectors such as finance, banking, and government. The IdaaS solution penetration is expected to increase to 36% in 2032 from the current 10%. As the security and regulatory compliance requirements of the companies are increasing, the IdaaS solution is expected to be adopted by more than half of the companies by 2032. The shift will be further accelerated by the growing trend of remote working and digital transformation, which requires a scalable and flexible identity management system. The technological developments such as artificial intelligence and machine learning will further enhance the capabilities of IdaaS, leading to a better identity verification and fraud detection. Also, the increasing stringency of data privacy regulations such as GDPR and CCPA will force companies to adopt IdaaS solutions to ensure compliance and better user experience. The integration of biometrics and decentralized identity frameworks will also shape the market landscape, offering more secure and convenient options for users. The IdaaS market is evolving rapidly, and the companies need to be responsive to the changing trends to benefit from the opportunities in this fast-evolving market.