Identity As A Service Market - Forecasts from 2025 to 2030

The identity as a service market is expected to grow from USD 8.514 billion in 2025 to USD 28.365 billion in 2030, at a CAGR of 27.21%.

Identity as a Service (IDaaS) is a cloud-based authentication model that provides identity and access management solutions through third-party providers, eliminating the need for in-house deployment. IDaaS offers multi-factor authentication, single sign-on, and directory services, delivering cost-effective, scalable, and secure identity management. The rising adoption of cloud-based platforms, increasing cyber threats, and the need for simplified security solutions are key drivers propelling the IDaaS market forward.

Market Drivers

Advancements in Cloud Technology and Modernization

The rapid shift to cloud-based solutions and the modernization of authentication systems have accelerated IDaaS adoption. The transition to remote work and Software-as-a-Service (SaaS) models has driven IT and security leaders to leverage IDaaS for its cloud economics, agility, and scalability. This enables organizations to streamline operations and enhance time-to-value. For example, in 2023, companies continued to prioritize cloud-based IDaaS solutions to modernize infrastructure, with providers offering scalable platforms to support small and medium enterprises (SMEs) alongside large organizations. These solutions provide enterprise-grade security, such as biometric authentication and support for modern federation standards, ensuring compatibility with diverse user directories.

New product launches reflect this trend. In 2023, providers introduced advanced IDaaS platforms to address evolving security needs. These solutions are designed to support digital transformation while offering robust tools for secure authentication in hybrid and multi-cloud environments. Strategic acquisitions also play a significant role in market growth. For instance, in 2023, companies pursued mergers to enhance their IDaaS offerings, focusing on AI-based, context-aware solutions rooted in Zero Trust and least privilege access principles. These acquisitions aim to strengthen brand presence, improve service offerings, and provide user-friendly, security-first platforms that protect identities across varied privilege levels.

Rising Cyber Threats

The surge in cyber-attacks and data breaches has heightened demand for IDaaS solutions. In 2023, the increasing frequency and sophistication of cyber threats underscored the need for robust identity management. The Identity Theft Resource Centre reported a significant rise in data breaches, with incidents continuing to grow in scope and impact. High-profile breaches, such as the 2023 Ikea Canada incident affecting 95,000 customers, highlighted vulnerabilities in enterprise security. Additionally, Cisco’s 2023 Annual Internet Report estimated 15.4 million DDoS attacks, emphasizing the persistent threat landscape. These incidents drive organizations to adopt IDaaS for its ability to restrict unauthorized access and mitigate risks through advanced authentication methods.

The IDaaS market is experiencing strong growth driven by the adoption of cloud-based solutions, modernization of authentication systems, and escalating cyber threats. Strategic product launches and acquisitions in 2023 have enhanced the availability of scalable, secure, and user-friendly IDaaS platforms. As enterprises prioritize security in multi-cloud and remote work environments, IDaaS solutions are critical for safeguarding digital identities and ensuring compliance with modern security standards.

Key Benefits of this Report:

• Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, and other sub-segments.
• Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
• Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape future market developments.
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Report Coverage:

• Historical data from 2022 to 2024 & forecast data from 2025 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others).

Identity As A Service Market Segmentation

By Component

• Solutions
• Services

By Deployment

• Cloud
• On-Premise

By Enterprise Size

• Small
• Medium
• Large

By End-User

• BFSI
• IT & Telecommunication
• Healthcare
• Energy & Utilities
• Manufacturing
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Others
• Middle East and Africa
• Israel
• South Africa
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Others