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

The Asia Pacific Identity-as-a-Service (IDaaS) market size reached around USD 688.50 Million in 2024. The market is projected to grow at a CAGR of 23.50% between 2025 and 2034 to reach nearly USD 5.68 billion by 2034. The market growth can be attributed to the rising prevalence of work-from-home models and the rapid digitalisation of the BFSI industry across the region.

Asia Pacific Identity-as-a-Service (IDaaS) Market Summary

Market Size 2024

• USD
• 688.50

Market Size 2034

• USD
• 5682.95
• CAGR 2025-2034
• 23.50%

CAGR 2025-2034 - Market by Country

• India
• 26.8%

CAGR 2025-2034 - Market by Country

• Australia
• 20.8%

CAGR 2025-2034 - Market by Deployment Type

• Hybrid
• 26.3%

CAGR 2025-2034 - Market by End Use

IT and Telecommunication

• 27.8%

Market Share by Country 2024

• Japan
• 15.2%

Asia Pacific Identity-as-a-Service (IDaaS) Market Growth

In 2023, organisations in the Asia Pacific region experienced an alarming average of 1,963 cyberattacks per week. Approximately 25% of these incidents were driven by motives of espionage. As a result, security expenditures in the Asia Pacific have consistently increased at a CAGR of 12.8% since 2022, with projections indicating that spending will reach USD 52 billion by 2027, in response to the growing array of cyber threats facing digital enterprises. As cyberattacks evolve in complexity, businesses are increasingly seeking IDaaS solutions that provide advanced security measures, including multi-factor authentication, real-time threat detection, and comprehensive identity management. This is favourably shaping the Asia Pacific Identity-as-a-Service (IDaaS) market dynamics.

According to industry reports, approximately two-thirds of companies within the Asia Pacific region have integrated artificial intelligence (AI) and the Internet of Things (IoT) into their business infrastructures. The swift proliferation of IoT devices in the region is creating a heightened demand for Identity-as-a-Service (IDaaS). As the number of connected devices increases, IDaaS plays a crucial role in providing identity management and security, essential for navigating complex device networks. It ensures secure access, authentication, and monitoring, thereby assisting organisations in effectively managing and safeguarding a vast array of interconnected IoT devices.

Key Trends and Developments

Swift digital transformation of the BFSI industry; rising incidences of cyberattacks; strict data protection regulations; and expansion of cloud services in the region are the major factors driving the Asia Pacific Identity-as-a-Service (IDaaS) market growth.

September 2022

Secret Double Octopus, a leader in password-less authentication, partnered with PwC India to help organisations in the Asia Pacific comply with new multi-factor authentication (MFA) regulations. Together, they decide to deploy the Octopus Authentication Platform (OAP), Secret Double Octopus' top passwordless MFA solution for enterprises.

August 2022

Happiest Minds Technologies, a digital transformation IT consulting and services firm based in India, unveiled Identity Vigil 2.0, an advanced signature IDaaS MSSP solution. This innovative offering is powered by OneLogin, a provider of cloud-based identity and access management (IAM) solutions that specialises in creating secure and integrated access management (UAM) platforms.

May 2021

Microsoft Corporation unveiled a range of new products, employee initiatives, and strategic guidance aimed at addressing the escalating challenges posed by large-scale and intricate cyberattacks worldwide. This initiative encompassed enhanced support for multifactor authentication (MFA) and security measures for customers, in addition to Microsoft's commitment to transitioning its workforce towards a zero-trust security framework. This has contributed to Asia Pacific Identity-as-a-Service (IDaaS) market development.

July 2020

V-Key, a provider of software-based digital security solutions headquartered in Singapore, agreed with Ingram Micro Cloud to gradually implement its renowned V-OS Solution across seven Ingram Micro Cloud Marketplaces in the Asia Pacific. The V-OS Trusted Identity Services encompass Cloud-based Identity as a Service (IDaaS) offering, focusing on mobile security and authentication technologies.

Expansion of cloud services

Many businesses in the region are shifting their IT infrastructure to the cloud to reduce operational costs and enhance agility. As organisations embrace Software-as-a-Service (SaaS) and other cloud-based applications, they require secure identity management solutions to control user access, verify identities, and prevent unauthorised breaches.

Swift digitisation of the BFSI industry

The booming digital economy, rise of fintech, and expansion of e-commerce platforms have increased the demand for secure identity verification methods. IDaaS solutions facilitate password-less authentication, biometric security, and secure customer onboarding for digital financial services, ensuring both security and a smooth user experience. This is contributing to the Asia Pacific Identity-as-a-Service (IDaaS) market development.

Growing cybersecurity concerns

With the increasing threat of cyberattacks, data breaches, and identity fraud, businesses are investing in advanced identity security solutions. IDaaS provides AI-driven fraud detection, automated risk assessment, and behavioural analytics to identify and mitigate security threats in real-time. This enhances protection against phishing, credential theft, and unauthorised access.

Strict data protection regulations

Governments in the Asia Pacific are enforcing strict cybersecurity regulations to protect sensitive data. Countries like China, India, Singapore, and Australia have introduced stringent compliance measures, requiring businesses to adopt secure IAM solutions. IDaaS helps organisations meet these regulations by providing centralised identity governance, user monitoring, and real-time threat detection.

Asia Pacific Identity-as-a-Service (IDaaS) Market Trends

The integration of artificial intelligence and machine learning into IDaaS solutions has emerged as one of the key factors behind market growth. This has led to substantial improvements in organisations’ threat detection capabilities by streamlining identity management processes and enhancing user authentication techniques. This has made it possible for companies to strengthen their cybersecurity abilities. By 2030, the adoption of artificial intelligence-based tools is expected to increase the GDP of local economies by nearly 26%. This is creating a favourable Asia Pacific Identity-as-a-Service (IDaaS) market outlook.

As data protection regulations become more stringent throughout the Asia Pacific, IDaaS providers are prioritising features that facilitate compliance with these regulations. Standard offerings include improved privacy controls, comprehensive audit trails, and robust data encryption, which assist organisations in managing intricate legal frameworks while safeguarding sensitive data.

Asia Pacific Identity-as-a-Service (IDaaS) Industry Segmentation

The report titled “Asia Pacific 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

• Public Cloud
• Private Cloud
• Hybrid Cloud

Breakup by Industry Vertical

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

Breakup by Country

• China
• Japan
• India
• ASEAN
• Australia
• Others

Asia Pacific Identity-as-a-Service (IDaaS) Market Share

Based on deployment type, the market is segmented into public cloud, private cloud, and hybrid cloud. Over the forecast period of 2025-2034, hybrid cloud is expected to grow at a CAGR of 26.3% as it combines the scalability of the public cloud with the security of the private cloud. The cost efficiency, robust security and compliance, and customisation offered by hybrid cloud are further boosting its appeal.

Meanwhile, private and public clouds are expected to grow at a healthy pace in the coming years amid the growing demand for reliable and secure data management solutions and stringent data security and compliance regulations.

CAGR 2025-2034 - Market by

• Deployment Type
• Hybrid
• 26.3%
• Public
• Private

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

Leading IDaaS providers are expanding cloud-based IAM solutions, integrating AI-driven security, and enhancing multi-factor authentication. They are forming strategic partnerships, ensuring compliance with regional cybersecurity laws, and investing in zero-trust frameworks to expand their Asia Pacific Identity-as-a-Service (IDaaS) market share. Companies are also improving user experience with passwordless authentication and biometric verification to strengthen identity security.

Exostar LLC

Exostar LLC, established in 2000, is headquartered in Virginia, United States. The company is recognised as the preferred cloud platform for secure collaboration solutions in enterprise and supply chain environments, as well as for its expertise in identity and access management.

HCL Technologies Ltd.

HCL Technologies Ltd., established in 1991, is headquartered in India. HCL Tech operates as a global technology firm, employing over 219,000 individuals in 60 countries. The company offers industry-leading solutions focused on digital transformation, engineering, cloud computing, and artificial intelligence, supported by an extensive range of technology services and products.

Oracle Corporation

Oracle Corporation was established in 1977 and is a prominent American multinational computer technology firm based in Texas. It holds the position of being the largest database management company globally, boasting sales of US$100 million.

Thales S.A.

Thales S.A. was established in 1893 and is headquartered in Paris, France. The company specialises in delivering advanced technologies, electronic systems, software, and equipment, as well as services for the aerospace, defence, and security sectors, including space and ground transportation solutions.

Other players included in the Asia Pacific Identity-as-a-Service (IDaaS) market report are IBM Corp., Microsoft Corp., Broadcom Inc., Google LLC, Capgemini SE, Atos SE, and Okta Inc., among others.