Europe Identity-as-a-Service (IDaaS) Market Growth Analysis - Market Size, Share, Forecast Trends and Outlook Report (2025-2034)

The Europe Identity-as-a-Service (IDaaS) market size reached around USD 891.40 Million in 2024. The market is projected to grow at a CAGR of 17.60% between 2025 and 2034 to reach nearly USD 4.50 billion by 2034. The market growth can be attributed to the rising threats posed by cyberattacks and the emergence of multi-factor authentication systems ensuring 360-degree protection for organisations.

Europe Identity-as-a-Service (IDaaS) Market Summary

Market Size 2024

• USD
• 891.40

Market Size 2034

• USD
• 4509.68
• CAGR 2025-2034
• 17.60%

CAGR 2025-2034 - Market by Country

• UK
• 18.1%

CAGR 2025-2034 - Market by Country

• Germany
• 17.2%

CAGR 2025-2034 - Market by Deployment Type

• Hybrid
• 20.1%

CAGR 2025-2034 - Market by End Use

IT and Telecommunication

• 20.8%

Market Share by Country 2024

• Germany
• 16.9%

Europe Identity-as-a-Service (IDaaS) Market Growth

Nearly 32% of all cyberattacks in 2023 were directed towards the European Union. The United Kingdom accounted for the highest number of cyberattacks (27%), nearly twice the number of any other European nation. Other European countries like Germany (15%), and Denmark (14%) followed closely behind by the UK. In 2024, the IT services, software, and healthcare sectors in Europe emerged as the most targeted industries by cybercriminals. The increasing frequency and complexity of these attacks are driving the growth of Europe Identity-as-a-Service (IDaaS) market revenue.

Between 2020 and 2021, there was a 5% increase in the adoption of cloud services across Europe. In 2023, 42.5% of enterprises within the European Union procured cloud computing services, primarily for purposes such as email, file storage, and office software applications. Based on industry reports, countries like Sweden (75%), Finland (75%), Netherlands (65%), Denmark (65%), Italy (60%), Ireland (59%), and Estonia (58%) report the highest rate of cloud services adoption. Moreover, the French government has invested nearly EUR 1.8 billion towards supporting the expansion of the national cloud ecosystem. The European cloud services industry is further expected to record double digit growth in the coming years, thereby driving the Europe Identity-as-a-Service (IDaaS) market development.

Key Trends and Developments

Strict regulatory compliance in the region; rising data privacy and security concerns; rise in remote work culture; and surging cases of cyberattacks are the major trends impacting the Europe identity-as-a-service (IDaaS) market expansion.

November 2024

Eviden announced the launch of Evidian Orbion, its next-generation Identity-as-a-Service (IDaaS) solution. The solution integrates Access Management (AM), Identity Governance and Administration (IGA), and Privileged Access Management (PAM) into a single-as-a-service solution designed for hybrid environments to offer organisations a scalable and flexible way to manage identities and access rights.

May 2024

The EU Digital ID Regulation mandated member states to offer digital identity wallets to their citizens. This new regulation is an extension of eIDAS, which refers to "Electronic Identification, Authentication, and Trust Services," and aims to govern electronic identification and trust services related to electronic transactions. This indicates that the rising adoption of IDaaS services by government agencies is creating a favourable Europe identity-as-a-service (IDaaS) market outlook.

June 2023

The European Medicines Agency (EMA) implemented multi-factor authentication (MFA) for the Clinical Trial Information System (CTIS), applicable to both sponsor and member state workspaces. To prepare for the MFA, each user has to be equipped with an additional work phone or mobile.

May 2022

Censornet, a security platform based in England, incorporated integrated identity as a service (IDaaS) into its advanced cybersecurity platform. This introduction enhances its services for organisations, providing them with comprehensive control over user access by integrating with its well-established solutions in web security, cloud application security (CASB), email security, and multi-factor authentication (MFA).

Rapid digital transformation

As organisations embrace digital transformation, the demand for adaptable and scalable identity management solutions becomes essential. Identity as a Service (IDaaS) plays a crucial role in this transition by offering a cloud-based, scalable framework that seamlessly integrates with a multitude of applications and services, thereby enhancing user access in a more secure and efficient manner.

Rising cyber security threats

The increasing prevalence of cyber threats and data breaches has intensified the demand for effective identity management solutions. Identity as a Service (IDaaS) platforms provide sophisticated security measures, including multi-factor authentication (MFA) and single sign-on (SSO), to safeguard against unauthorised access and improve overall security.

Growing data privacy and security concerns

As apprehensions regarding data privacy and security continue to rise, organisations across Europe are progressively pursuing solutions that provide improved protection and oversight of user data. Identity-as-a-service (IDaaS) providers are developing advanced systems for the management and safeguarding of identity information, thereby contributing to the Europe Identity-as-a-Service (IDaaS) market expansion.

Rise in remote work culture

The increasing prevalence of remote work and the utilisation of mobile devices has impacted the demand for robust and adaptable identity management solutions. Identity as a Service (IDaaS) facilitates secure remote access and mobile functionality while ensuring adherence to security and compliance standards, which are critical in contemporary workplace settings.

Europe Identity-as-a-Service (IDaaS) Market Trends

The growing emphasis on compliance with GDPR and eIDAS is propelling the adoption of Identity as a Service (IDaaS) solutions across the European Union (EU). These platforms are designed to offer improved data privacy, secure authentication, and enhance the efficiency of compliance mechanisms. Organisations are actively seeking solutions that meet rigorous regulatory standards while ensuring the protection of user data, prompting IDaaS providers to bolster their compliance functionalities and data security measures. This is one of the key Europe Identity-as-a-Service (IDaaS) market trends.

The increase in remote work and the use of mobile devices is driving the demand for adaptable IDaaS solutions. Companies require scalable and secure access to accommodate distributed teams, which has led IDaaS providers to prioritise strong remote access capabilities, seamless integration, and enhanced security features that cater to various work settings. This is facilitating the Europe Identity-as-a-Service (IDaaS) market expansion.

Europe Identity-as-a-Service (IDaaS) Industry Segmentation

The report titled “Europe Identity-as-a-Service (IDaaS) Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Breakup by Component

• Single Sign-on
• Multi Factor Authentication
• Provisioning
• Password Management
• Directory Services
• Audit, Compliance and Governance

Breakup by Deployment Type

• Public Cloud
• Private Cloud
• Hybrid Cloud

Breakup by Industry Vertical

• BFSI
• Telecom and IT
• Government
• Healthcare
• Energy and Utilities
• Manufacturing
• Others

Breakup by Country

• Germany
• United Kingdom
• France
• Italy
• Others

Europe Identity-as-a-Service (IDaaS) Market Share

Based on country, the market is segmented into the United Kingdom, Germany, France, and Italy, among others. Over the forecast period of 2025-2034, the United Kingdom is estimated to grow at a CAGR of 18.1% amid the rising prevalence of cyberattacks and the introduction of various regulations mandating businesses to ensure secure handling of user data.

It was followed by Germany, which is projected to grow at a CAGR of 17.2% between 2025 and 2034 due to rising digital transformation, the increasing adoption of remote and hybrid work models, and technological advancements.

CAGR 2025-2034- Market by

• Country
• UK
• 18.1%
• Germany
• 17.2%
• France
• Italy

Leading Companies in the Europe Identity-as-a-Service (IDaaS) Market

Major market players are enhancing their offerings by integrating advanced features like multi-factor authentication, single sign-on, and AI-driven security. They focus on expanding their cloud-based solutions, improving user experience, and strengthening security measures, driving the Europe Identity-as-a-Service (IDaaS) market growth. These innovations address the increasing demand for secure, scalable identity management solutions across various industries, including finance, healthcare, and retail.

Oracle Corp.

Oracle Corporation, founded in 1977, is a leading American multinational technology company headquartered in Texas. It is recognised as the largest database management firm in the world, with reported sales reaching US$100 million.

IBM Corp.

IBM Corporation, also known as International Business Machines Corporation, is a multinational technology company headquartered in Armonk, New York. Founded in 1911, it specialises in delivering global hybrid cloud and artificial intelligence solutions, in addition to offering consulting services.

Microsoft Corp.

Microsoft Corporation, established in 1975, is headquartered in Washington, United States. This American multinational corporation operates as a technology firm, focusing on the creation and promotion of software, services, and hardware products that offer innovative solutions and improved convenience.

Broadcom Inc.

Broadcom Inc., established in 1961 and based in California, the United States, is a prominent global technology company specialising in the design, development, and provision of a wide array of semiconductor products, enterprise software, and security solutions.

Other players included in the Europe Identity-as-a-Service (IDaaS) market report are Google LLC, Capgemini SE, HCL Technologies Ltd., Exostar LLC, Thales S.A., Atos SE, and Okta Inc., among others.