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

The North America identity-as-a-service (IDaaS) market reached around USD 2.41 billion in 2024. The market is projected to grow at a CAGR of 21.50% between 2025 and 2034 to reach nearly USD 16.94 billion by 2034.

North America Identity-as-a-Service (IDaaS) Market Growth

In the first half of 2022, approximately 53.35 million individuals in the United States experienced the impact of cybercrime. From July 2020 to June 2021, the United States emerged as the primary target for cyberattacks, representing 46% of global incidents. In 2021, American citizens incurred losses totalling $6.9 billion due to cyber-related offences, which included romance scams amounting to $956 million, investment scams totalling $1.4 billion, and business email compromise incidents costing $2.39 billion.

The rise in cybercrime is significantly increasing the demand for Identity-as-a-Service (IDaaS) solutions. As cyber threats evolve in complexity, organisations are in need of advanced and scalable identity management systems to safeguard sensitive information and ensure secure access. IDaaS provides strong authentication, real-time monitoring, and extensive access controls, effectively addressing vulnerabilities and reducing risks linked to cyberattacks. This trend underscores the urgent necessity for improved security measures with respect to the growing prevalence of cybercrime.

The United States holds the largest market for the IoT, projected to attain a value of $1 trillion by the year 2025. The increasing adoption of IoT services is fuelling the demand for Identity-as-a-Service (IDaaS) solutions, as organisations strive for secure management of a multitude of connected devices.

Key Trends and Developments

Rising incidences of cybersecurity threats, stringent regulatory compliance, rising adoption of cloud-based services, and increasing operation efficiency offered by IDaaS are the major trends impacting the North America identity-as-a-service (IDaaS) market expansion

October 2023

The Cybersecurity and Infrastructure Security Agency (CISA), along with the National Security Agency (NSA), in the USA, released a document titled "Identity and Access Management: Developer and Vendor Challenges." This publication was produced by the Enduring Security Framework ESF with the primary objective of mitigating risks that pose threats to critical infrastructure and national security systems.

February 2021

The Canada Revenue Agency (CRA) implemented a Multi-factor Authentication (MFA) system to strengthen the security of its online services and safeguard taxpayer information effectively.

May 2024

Microsoft, an American multinational corporation and technology firm, made the decision to progressively implement multi-factor authentication (MFA) for all users accessing Azure, the cloud computing platform created by Microsoft, in order to manage resources effectively.

July 2024

The Department of Labor and Industrial Relations (DLIR) in the United States implemented multi-factor authentication for claimants. As per this new requirement, individuals filing for Unemployment Insurance will be required to use multi-factor authentication when accessing the UI web portal.

Increasing Cybersecurity Threats

The increasing incidence of security breaches and cyberattacks compels organisations to implement IDaaS solutions, ensuring strong identity management and safeguarding against unauthorised access.

Stringent Regulatory Compliance

Stringent regulatory compliances are pushing organisations to adopt Identity-as-a-Service (IDaaS) solutions. Regulations such as CCPA require comprehensive identity management to safeguard data protection and privacy, prompting organisations to implement IDaaS to meet regulatory standards and improve security measures.

Adoption of Cloud-based Services

The rising shift towards cloud computing is significantly influencing the demand for cloud-based identity solutions. As organisations increasingly migrate their operations and data to the cloud, the need for robust and secure identity management becomes paramount.

Increased Operational Efficiency Offered by IDaaS Solutions

Identity as a Service (IDaaS) solutions play a crucial role in modernising and streamlining the processes of user authentication and access management within organisations. By leveraging cloud-based technologies, IDaaS solutions provide a centralised platform for managing user identities, which significantly reduces the complexity and administrative overhead associated with traditional identity management systems.

North America Identity-as-a-Service (IDaaS) Market Trends

The IDaaS market in North America is progressively integrating sophisticated multi-factor authentication (MFA) to bolster security measures. This incorporation provides enhanced safeguards against unauthorised access and cyber threats, highlighting an increasing commitment to implementing stronger, multi-layered security protocols for sensitive information.

Additionally, there is a heightened emphasis on Identity Governance and Administration (IGA) within the market. Organisations are focusing on holistic identity management solutions that deliver in-depth visibility, compliance, and oversight of user access, indicating a growing necessity for governance and adherence to regulatory standards.

North America Identity-as-a-Service (IDaaS) Industry Segmentation

North America Identity-as-a-Service (IDaaS) Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Component

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

Market Breakup by Deployment Type

• Public Cloud
• Private Cloud
• Hybrid Cloud

Market Breakup by Industry Vertical

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

Market Breakup by Country

• United States
• Canada

North America Identity-as-a-Service (IDaaS) Market Share

Based on country, the market is segmented into the United States and Canada. The United States is projected to grow at a CAGR of 21.8% during the forecast period of 2025-2034 due to the increasing number of IoT devices in the country.

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

Major players are focusing on technological advancements to gain a competitive edge in the market.

IBM Corp.

IBM Corp., or International Business Machines Corporation, is a global technology firm based in Armonk, New York. Established in 1911, it serves as a provider of worldwide hybrid cloud and artificial intelligence solutions, along with consulting services.

Microsoft Corp.

Microsoft Corporation, established in 1975, is a multinational technology company headquartered in Redmond, Washington, United States. The organisation offers a wide range of services, encompassing cloud-based solutions, support for those solutions, and consulting services.

Broadcom Inc.

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

Capgemini SE

Capgemini SE was established in 1967 and is based in Paris, France. The company operates as a technology consulting and services organisation. The firm provides a range of offerings, including digital services, technology solutions, cloud services, artificial intelligence solutions, as well as cybersecurity and engineering services.

Other major players in the market are Google LLC, Oracle Corp., HCL Technologies Ltd., Exostar LLC, Thales S.A., Atos SE, and Okta Inc., among others.