Identity as a Service Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

IDaaS Market Trends & Growth Drivers

Rise in Pace of Technological Advancement Is Key Market Trend

• The integration of advanced technologies, such as ML, AI, , and biometrics, into IAM solutions enables risk-based authentication, anomaly detection, and behavioral biometrics.
• This integration enhances digital security by qualifying predictive threat analysis and rapid responses.
• Additionally, AI and ML technologies help detect irregularities in large datasets, identify unwanted activities that could lead to security breaches, and enable security systems to learn about new threats.
• In addition, the integration of ML aids in the analysis of large datasets pertaining to identity detection.
• It measures and reports on user account, application, department, and organization risk threats with high accuracy and aids in lowering the threat associated with identity.

Increasing Identity and Authentication Fraud Is Driving the Growth of the Market

• The adoption of digital devices for the overall workflow by individuals and large companies is increasing globally as a result of the development of the technology, which improves connections worldwide.
• This can be dangerous because there is a higher chance of data breaches and identity thefts, with hackers looking to gain access to other people's accounts.
• Moreover, to safeguard their operations, businesses, and consumer data, businesses are integrating the IDaaS system to safeguard their overall processes.
• The U.S. Federal Trade Commission received more than 1 million complaints of identity thefts and more than 2.6 million complaints related to fraud in 2023, resulting in total financial losses that exceed USD 10 billion.

Integration Difficulties Act as a Challenge for Market Growth

• Integrating IDaaS is challenging due to the time-consuming process with third-party apps, legacy systems, and current IT infrastructures.
• These challenges in integrating and interoperability issues can lead to security problems, thus hampering the overall productivity.
• In addition, these difficulties may result in technical issues that need a long time to resolve and financial waste, while resolving them during business operations, which could hinder market expansion.

IDaaS Market Analysis

Component Insights

• The single sign-on category will hold the largest market share, of 40%, in 2024.
• SSO can be used to access both on-premises and cloud-based applications, and it allows users to log-in to multiple applications and websites using one set of credentials.
• Additionally, SSO improves security and user experience by reducing the number of passwords and gives several methods to authenticate users, including ticket-granting services, smart card authentication, and security access markup language.
• Advanced authentication will grow at the highest CAGR of XX%, because it provides various authentication methods such as OTPs and fingerprints.

The components analyzed in this report are:

• Single Sign-On (Largest Category)
• Multifactor Authentication
• Directory Services
• Provisioning
• Advance Authentication (Fastest-Growing Category)
• Audit, Compliance, and Governance
• Password Management

Deployment Mode Insights

• The public cloud category will account the largest market share, of 45%, in 2024.
• This is due to the growth in the usage of business, network, and data center services worldwide, which are more likely to be offered on the public cloud.
• Private category is expected to grow at the highest CAGR, of 27%, during the forecast period.
• This is because private clouds provide flexibility to businesses by distributing all the workload over the cloud and on-premises.
• In addition, companies that use public clouds for IDaaS deployment frequently need higher security in order to reduce the danger of data leaks and cyberattacks.

The deployment modes analyzed in this report are:

• Public Cloud (Largest Category)
• Private Cloud (Fastest-Growing Category)
• Hybrid

Enterprise Size Insights

• Large enterprises will hold the larger market share, of 65%.
• This is due to the rising concern regarding security in large enterprises, as they are widely adopting BYOD, which can hamper the security of the overall business.
• BYOD and remote data access are driving the demand for identity management because they increase the risk of cyberattacks and data breaches.
• This calls for more-effective security solutions, which can be achieved by implementing IDaaS.
• Small and medium-sized enterprises will grow at the higher CAGR, of 30, in the forecast period.
• (SMEs) are adopting IDaaS solutions at a rapid pace because of their low cost and simplicity of implementation.
• IDaaS offers a scalable, subscription-based model that enables SMEs to manage their identity needs with minimal capital expenditure, in contrast to traditional identity management solutions that need considerable upfront investment and large IT infrastructure.

The enterprise sizes analyzed in this report are:

• Large Enterprises (Larger Category)
• Small and Medium-sized Enterprises (Faster-Growing Category)

Vertical Insights

• BFSI will hold the largest market share, of 45%, because this industry is investing heavily in security management to ensure consumer trust for secure transactions across the globe.
• Additionally, by implementing IDaaS, the BFSI sector seeks to ensure compliance, increase productivity, and reduce the cost of IT infrastructure.
• Furthermore, the implementation of biometric authentication at ATMs and the shift toward credit and debit cards and online payment modes are driving the demand for IDaaS in the BFSI segment.
• Healthcare is expected to grow at the highest CAGR, of 28%, due to the rapid adoption of the IDaaS system to handle large amounts of patient data, which is highly sensitive.

The verticals analyzed in this report are:

• BFSI (Largest Category)
• IT & ITeS
• Energy and Utilities
• Government
• Manufacturing
• Healthcare (Fastest-Growing Category)
• Telecommunications
• Others

Geographical Analysis

• North America will hold the largest market share, of 45%, in 2024.
• This is due to the growing number of cyberattacks in North American countries, which create the demand for a high security system.
• Additionally, there is a rise in the adoption of cloud-based applications in this region.
• The APAC region will grow at the highest CAGR of 32%, during the forecast period because the region is seeing rapid digitalization in different industrial verticals.
• Since companies in the area are implementing new technologies, such as mobile, cloud, and IDaaS, they must have advanced security measures in place to guard against cyberattacks and loss of customer information.
• Moreover, the IDaaS market in APAC is being driven by the widespread use of BYOD and changes in workforce regulatory regulations that require improved security systems.

The regions and countries analyzed for this report include:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

IDaaS Market Share

• The market nature of IDaaS is fragmented due to high competition.
• There are a large number of small, medium, and large enterprises present in the global market that are providing IDaaS services.
• Most of the market players are focusing on new product launches, contractual agreements, mergers and acquisitions, higher investment, and collaborations with other market players to increase their revenue share in the market globally.

IDaaS Market News

• In April 2024, Canadian IAM startup Ipseity Security was acquired by international cybersecurity services provider Cyderes.
• In August 2024, CyberArk Software Ltd. announced that SAP Enterprise Cloud Services (ECS) will use CyberArk to protect client data and provide simpler auditing, by securing sensitive and privileged access to their cloud services with zero standing rights.
• In June 2024, CyberArk Software Ltd. announced that Coca-Cola Hellenic Bottling Company has selected the CyberArk Identity Security Platform to manage sensitive access for both internal and external users, secure critical assets, and assist with cloud migration.
• In August 2024, HCL Software, the software subsidiary of the multinational IT services company HCL Technologies Limited, announced that it paid EUR 24 million to acquire Zeenea, a Paris-based company that offers governance and data catalog solutions.