As per MRFR analysis, the US Identity Service Market Size was estimated at 1.81 (USD Billion) in 2023. The US Identity Service Market Industry is expected to grow from 2.5(USD Billion) in 2024 to 18 (USD Billion) by 2035. The US Identity Service Market CAGR (growth rate) is expected to be around 19.657% during the forecast period (2025 - 2035).
The US Identity Service Market is currently witnessing significant trends that are reshaping the landscape of identity verification and management. A key market driver is the increasing emphasis on digital security, particularly as remote work and online transactions have surged. More businesses are recognizing the need for robust identity verification to protect sensitive information. This has led to greater adoption of biometric authentication solutions, such as facial recognition and fingerprint scanning, which are becoming commonplace in both public and private sectors.
Additionally, government initiatives aimed at enhancing national security and combating identity theft are pushing organizations to prioritize identity services.Opportunities to be explored include the growing demand for seamless customer experiences. As companies seek to streamline their onboarding processes, there is a strong interest in solutions that combine security with user convenience. Furthermore, the advancements in artificial intelligence and machine learning are opening new avenues for real-time identity verification, enhancing accuracy and efficiency.
In recent times, a notable trend has been the rise of regulatory compliance requirements, as federal and state laws continue to evolve. Organizations must navigate these regulations to ensure compliance, which has increased the demand for identity services that can seamlessly integrate with existing systems.There is also a heightened focus on privacy concerns, leading to the development of platforms that prioritize user consent and data protection. This confluence of security needs, regulatory measures, and technological advancements is driving innovation in the US Identity Service Market, shaping its future direction.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The growing incidence of cyberattacks in the United States is one of the significant drivers fueling the growth of the US Identity Service Market Industry. According to the Federal Bureau of Investigation's Internet Crime Complaint Center (IC3), cybercrime complaints increased by over 300% in 2020 compared to previous years, highlighting the urgent need for robust identity protection solutions. Major organizations like Microsoft have reported that over 90% of cyberattacks stem from identity-related issues, signaling a clear demand for identity services to verify authentic users and secure data.The increasing investment in cybersecurity technology in the US is expected to reach USD 248.26 billion by 2023, further establishing the necessity for comprehensive identity management systems to combat these threats effectively.
The US government has set stringent regulations and compliance requirements that organizations need to adhere to, driving the growth of the US Identity Service Market Industry. Policies like the General Data Protection Regulation (GDPR) and the Health Insurance Portability and Accountability Act (HIPAA) have increased the necessity for identity verification services. For instance, the Health and Human Services Department has enforced substantial fines for non-compliance, with more than USD 100 million collected in fiscal year 2020.This legal landscape has led companies to invest heavily in identity management solutions to ensure compliance and avoid penalties, fostering substantial market growth.
With the ongoing shift towards digital transformation in the United States, there has been an exponential rise in the demand for identity service solutions. A report from the US Digital Council indicated that approximately 64% of Americans have utilized online services for their needs as of 2021, a significant increase in digital consumption. Companies such as Google and Amazon have implemented advanced identity verification methods to enhance their customer experience and minimize fraud.This transition has created a pressing requirement for secure identity services to facilitate seamless access to digital services while prioritizing security, thereby propelling the US Identity Service Market Industry.
The Services segment of the US Identity Service Market plays a crucial role in defining the landscape of identity management solutions. This segment encompasses various aspects such as Identity Governance and Administration, Access, and Intelligence, all of which are instrumental in enhancing security and improving compliance for organizations. Identity Governance and Administration is vital for organizations aiming to manage user identities effectively while ensuring that policies are enforced consistently across all platforms. This aspect not only aids in mitigating risks associated with unauthorized access but also addresses regulatory compliance, which is increasingly becoming a priority for businesses operating within the US.
Furthermore, the Access component within the Services segment is increasingly significant as organizations seek seamless and secure access for users across various applications and systems. The demand for robust access management solutions is driven by the need to protect sensitive information and streamline user experiences in an age marked by remote work and digital transformation. This growing importance of effective access management helps organizations in maintaining operational integrity while minimizing potential security breaches.Intelligence capabilities within the Services segment are becoming indispensable as they provide organizations with the insights needed to make informed decisions regarding identity management. With increasing cyber threats, leveraging intelligence for anomaly detection and user behavior analytics aids in proactively addressing potential risks, thereby enhancing overall security posture.
The ability to analyze extensive data sets and establish patterns allows businesses to respond promptly to emerging challenges.As the industry continues to evolve, these components of the Services segment adapt to the changing landscape, driven largely by technological advancements and increasing regulatory demands. Overall, the US Identity Service Market remains focused on delivering comprehensive solutions across these areas to cater to organizations' diverse needs in managing identities while ensuring a strong security framework. This ongoing development strengthens the market's growth trajectory as more enterprises recognize the importance of implementing efficient identity solutions to safeguard their operations.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The US Identity Service Market is notably segmented by Organization Size, primarily encompassing Large Enterprises and Small to Medium-Sized Enterprises (SMEs). Large Enterprises tend to dominate this market due to their extensive operational frameworks and greater investment capabilities, enabling them to implement comprehensive identity services that bolster security and compliance across vast networks. Such organizations often require advanced identity management solutions to manage a higher volume of users and complex access controls effectively.
In contrast, SMEs represent a significant and rapidly growing portion of the market, driven by an increasing need for robust security solutions to protect sensitive data with limited resources. The adoption of identity services within SMEs is often fueled by the rise of cybersecurity threats and regulatory pressures that necessitate effective identity management practices. As a result, awareness of identity service importance is growing within this segment, presenting both challenges and opportunities for vendors aiming to tailor solutions that meet diverse organizational needs.The evolving regulatory landscape in the US further catalyzes the demand for identity services across all organization sizes, highlighting the critical role these services play in safeguarding digital identities and ensuring compliance within various industries.
The Deployment segment of the US Identity Service Market plays a crucial role in shaping the landscape of identity management solutions. This segment is primarily categorized into Public Cloud, Private Cloud, and Hybrid models, each offering distinctive advantages in scalability, security, and cost. Public Cloud solutions dominate in terms of flexibility, enabling organizations to access services on-demand, thereby driving rapid deployment and reducing costs. Conversely, Private Cloud models provide heightened security and compliance, particularly important for regulated industries such as healthcare and finance.
Hybrid approaches, combining the strengths of both Public and Private Clouds, cater to organizations looking for tailored solutions that meet specific needs while ensuring a seamless integration across platforms. With the rising concerns surrounding data privacy and security breaches, the relevant trends in this segment such as the growing adoption of multi-factor authentication and continuous identity verification are gaining momentum. Overall, the Deployment segment reflects an evolving identity service landscape that responds to both technological advancements and regulatory demands within the US, thus contributing significantly to the overarching growth of the US Identity Service Market.
The Vertical segment of the US Identity Service Market plays a significant role in enhancing security and management across various industries. Enabled by rapidly advancing technologies, this segment is characterized by diverse applications tailored to sector-specific needs. For instance, the Banking, Financial Services, and Insurance (BFSI) sector drives demand due to the increasing importance of secure transactions and regulatory compliance. Similarly, the IT and Telecommunication industry leverages identity services to protect sensitive data and ensure seamless user experiences.In Retail and Consumer Packaged Goods (CPG), safeguarding customer information is critical for maintaining trust and loyalty.
The Energy and Utilities sector benefits from identity solutions in managing access to critical infrastructure, thereby enhancing operational security. Manufacturing industries are embracing these services to streamline workforce management and improve supply chain integrity. Life Sciences organizations increasingly utilize identity solutions to comply with stringent regulations and protect intellectual property. In the Transportation sector, identity services facilitate enhanced passenger safety and operational efficiency while the Government and Defense sectors prioritize them for national security and protecting sensitive governmental data.Thus, the vast applications across these diverse sectors indicate a robust market growth trajectory, driven by the need for secure and efficient identity management solutions.
The US Identity Service Market is characterized by a rapidly evolving landscape driven by technological advancements and the increasing demand for secure identity verification solutions. As organizations prioritize data protection and regulatory compliance, the competition among identity service providers has intensified. This market is primarily influenced by the emergence of advanced authentication techniques, identity and access management solutions, and the growing significance of identity governance.
Key players continuously innovate to maintain a competitive edge by enhancing their service offerings and adopting cutting-edge technologies to meet the unique needs of various industries.CyberArk has established a strong presence in the US Identity Service Market by offering specialized solutions that focus on protecting against identity theft and unauthorized access to sensitive data. The company's strengths lie in its robust privileged access management capabilities, allowing organizations to manage user accounts and secure critical assets effectively. CyberArk's brand recognition and reputation for delivering reliable security solutions have positioned it favorably within the market.
The company's commitment to innovation, investment in research and development, and collaboration with partners further enhance its competitive advantage, making it a trusted choice for enterprises seeking effective identity management solutions in the US.ForgeRock, another key player in the US Identity Service Market, focuses on providing a comprehensive identity platform that includes access management, identity governance, and directory services.
The company offers essential products that cater to diverse customer needs, such as single sign-on and multifactor authentication, which are crucial for modern organizations. ForgeRock has built a notable market presence, leveraging its ability to serve various sectors, including healthcare, finance, and government, with tailored solutions. The company has demonstrated strength through its innovative approach, strategic mergers and acquisitions, and partnerships that expand its capabilities. By continually enhancing its offerings and focusing on customer-centric solutions, ForgeRock has secured a significant position in the competitive landscape of identity services within the US market.
The US Identity Service Market has seen considerable activity recently, particularly with companies such as CyberArk, ForgeRock, and IBM focusing on enhancing their security offerings amid rising cyber threats. Notably, in October 2023, Oracle announced an expansion of its identity management solutions to aid businesses in compliance with various regulatory requirements, while Okta introduced new features aimed at improving user experience and security integration, thus bolstering market competition. Additionally, in September 2023, ID.me secured a significant investment that strengthened its position in identity verification services, aiming to streamline access for government agencies and financial institutions. Mergers and acquisitions in this sector have become increasingly common, with Duo Security being acquired by Cisco Systems in August 2023 to enhance their cybersecurity capabilities. Another key development involved Microsoft's acquisition of Nuance Communications in April 2022, aimed at integrating AI-driven identity verification into their services. The overall growth in market valuation reflects a greater emphasis on digital security across various industries, influenced by regulations and the increasing need for identity management solutions in the US.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 1.81(USD Billion) |
| MARKET SIZE 2024 | 2.5(USD Billion) |
| MARKET SIZE 2035 | 18.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 19.657% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | CyberArk, ForgeRock, OneLogin, SailPoint, Duo Security, Oracle, Okta, IBM, Ping Identity, Auth0, Microsoft, ID.me, Salesforce, Symantec, LastPass |
| SEGMENTS COVERED | Services, Organization Size, Deployment, Vertical |
| KEY MARKET OPPORTUNITIES | Advanced biometric authentication solutions, Integration with AI and machine learning, Enhanced cybersecurity compliance services, Identity verification for remote access, Simplified user experience in onboarding |
| KEY MARKET DYNAMICS | growing cybersecurity threats, increasing regulatory compliance, demand for seamless user experience, rising adoption of biometrics, integration with AI technologies |
| COUNTRIES COVERED | US |
Frequently Asked Questions (FAQ) :
The US Identity Service Market is expected to be valued at 2.5 USD Billion in 2024.
By 2035, the US Identity Service Market is projected to reach a valuation of 18.0 USD Billion.
The US Identity Service Market is expected to grow at a CAGR of 19.657% from 2025 to 2035.
The Access segment is anticipated to have the highest value at 7.5 USD Billion in 2035.
Some major players in the market include CyberArk, ForgeRock, OneLogin, SailPoint, and Okta.
The market size for Identity Governance & Administration is valued at 0.8 USD Billion in 2024.
The growth opportunities in the market stem from increasing security concerns and the rise in digital transformation.
The Intelligence segment is projected to reach a value of 4.5 USD Billion by 2035.
In 2035, the Access segment at 7.5 USD Billion significantly outpaces Identity Governance & Administration, which is at 6.0 USD Billion.
Key challenges include evolving security threats and regulatory compliance requirements impacting market growth.
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