Identity Service Market Analysis

Identity as a Service Market Overview

The Identity as a Service Market is projected to grow from USD 7.79 billion in 2024 to USD 34.33 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 20.37% during the forecast period (2024 - 2032). Additionally, the market size for identity as a service was valued at USD 6.30 billion in 2023.

The strict government directives for data protection are another factor that drives the growth of the IDaaS marketand is the key market driver enhancing the market growth.

Figure 1: Identity as a Service Market Size, 2023-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Identity as a Service Market Trends

Cyber crimes targeting vital applications and infrastructures pose an ongoing risk to organizations in all sectors. Each day, the complexity of these attacks continues to grow. A recent study revealed that a company experiences approximately 5% annual sales losses due to fraud. It is estimated that by 2022, the total revenue loss for businesses will reach a staggering USD 4.2 trillion. These threats, originating from external and internal sources, can lead to operational disruptions, data breaches, and financial setbacks. The financial implications for corporations are significant, and their reputations are consistently compromised.These scams have the potential to damage customer relationships, erode trust, and disrupt payment processes, resulting in bank account fraud and deteriorating services. Moreover, organizations also face indirect costs such as decreased productivity, low employee morale, and a tarnished brand image, in addition to those mentioned above, reputational and financial losses. Given the escalating risk of cyberattacks, effective identity management has become crucial for organizations' IT operations. Implementing Identity-as-a-Service (IDaaS) solutions across enterprises can help minimize the likelihood of such scams and mitigate revenue losses. This factor drives the market CAGR.

Integrating advanced technologies such as blockchain, artificial intelligence (AI), and machine learning is a popular trend. Automated systems are taking over the workforce, reducing potential negative consequences. These innovations enable computers to uncover hidden insights without explicit programming and automate the creation of analytical models. Providers of Identity-as-a-Service (IDaaS) solutions can leverage machine learning-based analytics to analyze large volumes of data and assess access-related behaviors. Closely monitoring and reporting on users, accounts, applications, departments, and organizational risk levels can minimize exposure to identity attacks. Implementing risk-based access certificates, which aid in identification and authentication processes, is also simplified through detecting abnormal activities. Various industries, such as BFSI, automotive, and government, have embraced these techniques to plan strategic and remedial actions for their businesses. Therefore, leveraging technology offers numerous growth opportunities for IDaaS companies.Thus, driving the Identity as a Servicemarket revenue.

Identity as a Service MarketSegment Insights

Identity as Service Type Insights

The Identity as a Service market segmentation, based on type, includes large, small, and medium-sized enterprises. The large enterprise segment dominated the market; large corporations generally have intricate organizational frameworks, a substantial workforce, and an extensive array of digital assets that necessitate secure access control. Identity-as-a-Service (IDaaS) solutions provide comprehensive capabilities for managing identities and access, making them highly suitable for these enterprises' vast scale and complexity. Moreover, large corporations encounter heightened security vulnerabilities due to their prominence and size, emphasizing the importance of robust identity and access management. IDaaS solutions offer advanced security functionalities like multi-factor authentication, single sign-on, and identity verification, thereby fortifying the safeguarding of sensitive data and resources.

Identity as Service Deployment Insights

Based on Deployment, the Identity as a Service market segmentation includes public, private, and hybrid clouds. The public cloud segment dominated the market; Public cloud services provide convenience and cost efficiency. Businesses can utilize the infrastructure and resources offered by cloud service providers, eliminating the necessity for significant investments in on-premise infrastructure. Public cloud solutions offer scalability, enabling organizations to effortlessly adjust their identity management resources according to their evolving requirements. Furthermore, public cloud deployments offer an extensive array of integrated services and APIs that can enhance the functionality and integration of IDaaS solutions. Cloud service providers also offer supplementary services like identity federation, single sign-on, and multi-factor authentication, which can be seamlessly incorporated into the IDaaS platform.

Figure 2: Identity as a Service Market, by Deployment, 2022&2032(USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Identity as Service Vertical Insights

Based on vertical, the Identity as Service market segmentation includes BFSI, IT and Telecommunication, Retail and CPG, Energy and Utilities, Manufacturing, Life Sciences, Transportation, Government, and Defense. The BFSI segment dominated the market; The BFSI sector manages extensive quantities of confidential customer data and financial transactions. Consequently, upholding strong identity management and security protocols to protect customer information and deter fraudulent activities is of utmost importance. IDaaS solutions provide advanced authentication and access control features that fortify defenses against unauthorized access and identity theft, making them highly appealing to the BFSI industry. Moreover, the BFSI sector frequently encounters intricate organizational frameworks and multiple systems and applications.

Identity as Service Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Identity as a Service market area will dominate this market, owing to the early adoption of DevSecOps practices for identity and access management and strict government directives for data protection will boost the market growth in this region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: IDENTITY AS A SERVICE MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe Identity as a Service market accounts for the second-highest market share due tothe rising cyber threats and growing demand for strong identification and authentication solutions on the cloud is driving the IDaaS market in the region. Further, the German Identity as a Service market witnessed the highest market share, and the UK Identity as a Service market was the fastest growing market in the European region.

The Asia-Pacific Identity as a Service Market is anticipated to grow at the fastest CAGR from 2023 to 2032. This is due tothe growing adoption of the BYOD trend and loT across verticals and increasing awareness among enterprises about security in developing economies in the region. Moreover, China’s Identity as a Service market held the largest market share, and the Indian Identity as a Service market was the fastest-growing market in the Asia-Pacific region.

Identity as a Service Key Market Players & Competitive Insights

Leading market players invest heavily in research and development to expand their product lines, which will help the Identity as a Service market grow even more. Market participants are also undertaking different strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Identity as a Service industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Identity as a Service industry to benefit clients and increase the market sector. In recent years, the Identity as a Service industry has offered some of the most significant advantages. Major players in the Identity as a Service market, includingAvatier (US), Okta, Inc. (US), Microsoft Corporation (US), OneLogin, Inc (US), Fischer Identity (US), Centrify Corporation (US), Oracle Corporation (US), iWelcome (Netherlands), Ping Identity (US), LoginRadius (Canada), VMWare (US), IDaptive, LLC. (US), empowered (US), Ubisecure, Inc. (Finland), and others are attempting to increase market demand by investing in research and development operations.

A ping is a software tool used in computer network administration. Its purpose is to test whether an Internet Protocol network host is reachable. This utility is compatible with nearly all operating systems with networking capabilities, including most embedded network administration software.Recently, Ping Identity introduced a new product called PingOne DaVinci. This product is designed to be compatible with multiple vendors, allowing businesses to combine and coordinate identity services from various suppliers. PingOne DaVinci offers a wide range of pre-built connections (more than 100) for different identification, IT, and automation services.

Okta, Inc. is a San Francisco-based company specializing in identity and access management solutions. Their cloud software assists businesses in effectively managing and securing user authentication for applications and helping developers incorporate identity controls into applications, website web services, and devices.Recently, Okta has made improvements to its product, Okta Workflows. These enhancements have expanded the range of identity automation use cases it can address beyond just Lifecycle Management capabilities. The updated features now include advanced security orchestration and DevOps, which enable customers to accelerate innovation and automate identity procedures.

Key Companies In The Identity As A Service Market Include

• Avatier (US)


• Okta Inc. (US)


• Fischer Identity (US)


• Microsoft Corporation (US)


• Centrify Corporation (US)


• OneLogin Inc (US)


• Oracle Corporation (US)


• iWelcome (Netherlands)


• Ping Identity (US)


• LoginRadius (Canada)


• VMWare (US)

Identity as a Service Industry Developments

February 2022: Ping Identity has recently introduced a new offering called PingOne DaVinci. This product is designed to be vendor-neutral, enabling businesses to effectively merge and manage identity services from multiple suppliers. With over 100 pre-built connections for various identification, IT, and automation services, PingOne DaVinci streamlines the integration and Deployment of identity services. As a result, it simplifies the process of creating seamless digital user experiences across multiple applications and ecosystems.

October 2021: Okta has improved its product, Okta Workflows, by adding new features that cater to a wider range of identity automation needs. These features go beyond the capabilities of Lifecycle Management and include advanced security orchestration and DevOps. With these enhancements, customers can accelerate innovation and automate identity processes more effectively.

Identity as a Service Market Segmentation

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  Identity Governance & Administration

  
  


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  Access

  
  


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  Intelligence

  
  

Identity as a Service Organization Size Outlook

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  Large Enterprise

  
  


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  Small Enterprise

  
  


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  Medium-Sized Enterprise

  
  

Identity as a Service Deployment Outlook

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  Public Cloud

  
  


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  Private Cloud

  
  


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  Hybrid

  
  

Identity as a Service Vertical Outlook

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  BFSI

  
  


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  IT and Telecommunication

  
  


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  Retail and CPG

  
  


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  Energy and Utilities

  
  


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  Manufacturing

  
  


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  Life Sciences

  
  


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  Transportation

  
  


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  Government and Defense

  
  

Identity as a Service Regional Outlook