Identity as a Service Market Statistics: 2031
The global identity as a service market was valued at $5.8 billion in 2021, and is projected to reach $53 billion by 2031, growing at a CAGR of 25.2% from 2022 to 2031.
Increasing number of identity frauds and enhanced integration with IoT devices primarily drive the growth of the identity as a service market. However, data privacy issues involving consumer information and critical application outsourcing hamper the market growth to some extent. Moreover, integration of evolving technologies to improve digital identities is expected to provide lucrative opportunities for the market growth during the forecast period.
Identity as a Service (IDaaS) is the term used to describe identity and access management (IAM) services that are offered via the cloud and are paid for via subscription. IDaaS offers administrators protection from security problems due to its ability to automate a variety of user account-related operations. It reduces company risk and saves time and money by standardizing and automating crucial identity, authentication, and permission management components. Numerous services, including ID verification, user access control, multi-factor authentication and compliance management, are included in IDaaS that combines the advantages of cloud computing Identity as a Service with enterprise-class identity and access management-as-a-service. User IDs are managed and authenticated using IDaaS. It also aids in preventing unauthorized users and cybercriminals from accessing private information.
The global identity as a service market is segmented on the basis of component, enterprise size, deployment type, industry vertical, and region. On the basis of component, it is segregated into provisioning, single-sign-on, advanced authentication, audit, compliance and governance, directory services and password management. On the basis of enterprise size, it is segregated into large enterprise and SMEs. On the basis of deployment, it is segregated into public cloud, private cloud and hybrid cloud. On the basis of industry vertical, it is segregated into BFSI, IT and telecom, energy and utilities, government, manufacturing, healthcare, retail and consumer goods, and others. On the basis of region, the identity as a service market forecast is divided into North America, Europe, Asia-Pacific, and LAMEA.
The identity as a service industry is dominated by key players such as CyberArk, Google LLC, IBM, Microsoft Corporation, Okta, OneLogin, Inc., Oracle Corporation, Ping Identity, SailPoint Technologies and Thales. These players have adopted various strategies to increase their market penetration and strengthen their position in identity as a service industry.
Depending on enterprise size, the large enterprise segment dominated the identity as a service market size in 2021 and is expected to maintain its dominance in the upcoming years, owing to the increasing adoption of IDaaS devices and cloud computing by enterprises, which significantly aids in market growth. However, the SMEs segment is expected to witness highest growth, owing to expansion of BYOD policy usage and the demand to uphold compliance standards.
Region-wise, North America dominated the identity as a service market share in 2021, owing to the adoption of BYOD and increase in the number of online transactions are driving the market in the region. Demand for IDaaS is high in countries such as the U.S. and Canada. However, Asia-Pacific is expected to contribute significant growth in 2021, owing to adoption mobile, cloud, and new generation technologies. It has become highly essential to secure applications and authenticate users and maintain control over business-critical information to minimize the risk associated with the data breach.
Top Impacting Factors
Increasing Number of Identity Frauds
Organizations across all industries continue to face a threat from cybercrimes on critical applications and infrastructure. The intricacy of cyberattacks increases daily. Threats may be from the outside world or from within the company, like a rogue employee. These cyberattacks cause system failures, data breaches, and financial losses. Eventually corporations have significant financial difficulties as these earnings, and their reputations are frequently put at risk. By resulting in payment stoppage, bank account fraud, and service degradation, these schemes have the ability to harm client relationships and erode trust.
In addition to reputational harm and financial losses, organizations may suffer indirect costs like a drop in productivity, low employee morale, and a deterioration of the brand image. Due to the growing threat of cyberattacks, identity management increasingly plays a key driver in an organization's IT operations. When used by all businesses, IDaaS can lessen the possibility of these frauds and the associated financial damage.
Enhanced Integration with IoT Devices
IDaaS frameworks are changing to support Identity of Things. To address the problems unique to loT, IDaaS providers are continuously enhancing their existing solutions and services with device-centric capabilities. In order to provide a single IDaaS solution that includes an integrated solution for employee, customer, and loT solution, suppliers are rearranging their product portfolio. Market dynamics and technological advancement are anticipated to change with the entry of multiple device-centric IDaaS providers and anticipated mergers and acquisitions in this space. On the other hand, the IoT IDaaS industry is still in its infancy, with a number of providers rearranging their unified IDaaS solutions to meet the demand for IoT IDaaS solutions.
Additionally, various small-scale projects are being undertaken by the specialized loT IDaaS providers to demonstrate the legitimacy and efficacy of a solution that has been specifically designed for loT IDaaS. The IoT IDaaS market is anticipated to develop into an integrated loT security solution that will feature an integrated root-of-trust solution, device-centric identity and access management, end-to-end data security, thorough device visibility and granular access control, among other things. Continued emphasis and spending on digital transformation initiatives across industrial sectors and geographic regions as well as the rising acceptance of next-generation wireless technologies like LP WAN, 56, and Gigabit LTE are further drivers driving the market's expansion.
Key Benefits for Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the identity as a service market analysis from 2021 to 2031 to identify the prevailing identity as a service market opportunities.
- The identity as a service market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the identity as a service market growth segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global identity as a service market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global identity as a service market trends, key players, market segments, application areas, and market growth strategies.
Identity as a Service Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 53 billion |
 Growth Rate | CAGR of 25.2% |
 Forecast period | 2021 - 2031 |
 Report Pages | 466 |
 By Component |
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 By Deployment Type |
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 By Enterprise Size |
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 By Industry Vertical |
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 By Region |
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 Key Market Players | Okta, OneLogin, Inc., CyberArk, SailPoint Technologies, Google LLC, Thales, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation, Ping Identity |
Analyst Review
CXOs of top companies claim that the emergence of new technologies and its widespread adoption across a range of industries, including the consumer sector, businesses, industrial, energy & utility, building & facilities, mobility, and infrastructure, are fundamentally altering how people, processes, and technologies are convergent and driving advancements. However, as smart technologies are adopted widely, security concerns are also growing. The scope of Identity as a Service is no longer limited to merely humans because of the rising usage of internet of things technology. Technology is now a well-liked innovation that is altering IDaaS services.
Rather than waiting until an attack occurs to add security to devices, organizations are adopting security-by-design philosophies. This means that security is built into the design of the device from the beginning. In order to ensure that security keys and certificates are provisioned during the manufacturing process, guaranteeing a strong root of trust, security vendors are increasingly working with device makers. For secure and automated device onboarding and registration, as well as secure operation, these devices can use these security keys and certificates. Additionally, providers of IDaaS are aiming to provide end-to-end data encryption in various devices as well as secure data when it is at rest and in transit between devices and users. Moreover, in order to provide end-to-end security, vendors of identity security are focused on integrated features that make sure data security and privacy are successfully associated with device identification and root-of-trust. As a result, industries that provide lucrative potential for market expansion eventually find a need for IDaaS solutions.
Factors such as increase in number of identity frauds and enhanced integration with IoT devices primarily drive growth of the identity as a service market.
North America is the largest regional market for Identity as a Service
The Identity as a Service Market valued for $5,746.02 million in 2021 and is estimated to surpass $52,998.87 million by 2031, exhibiting a CAGR of 25.2% from 2022-2031.
The identity as a service market is dominated by market players such as CyberArk, Google LLC, IBM Corporation, Microsoft?Corporation, Okta, OneLogin, Inc., Oracle?Corporation, Ping Identity, SailPoint?Technologies and Thales. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
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