Global Identity as a Service Market Insights Forecasts to 2032

• The Global Identity as a Service Market Size was valued at USD 6.8 Billion in 2022.
• The Market is growing at a CAGR of 21.5% from 2022 to 2032
• The Worldwide Identity as a Service Market is expected to reach USD 47.8 Billion by 2032
• Asia Pacific is expected to grow the fastest during the forecast period

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The Global Identity as a Service Market Size is expected to reach USD 47.8 Billion by 2032, at a CAGR of 21.5% during the forecast period 2022 to 2032.

 

Identity and access management (IAM) services that are provided through the cloud and are billed on a subscription basis are referred to as Identity as a Service (IDaaS). In addition to its capability to automate a range of user account-related tasks, identity as a service offers administrators protection from security issues. By standardizing and automating essential identity, authentication, and permission management components, it lowers business risk and saves time and money. Identity as a service combines the benefits of cloud computing with several services, such as ID verification, user access control, multi-factor authentication, and compliance monitoring. Identity as a service is used to manage and authenticate user IDs. It also helps to stop hackers and unauthorized individuals from obtaining confidential data. The primary purpose of identity as a service is to offer authorized employees suitable access to data, software programs, or other resources at the proper moment. As a centralized cloud-based system created by identity specialists, identity as a service is significantly easier to implement.

 

Driving Factors

Since Identity as a Service solutions use an as-a-service approach, some features are supplied to other businesses via a third-party remote connection. It is the opposite of a task that is carried out internally and on-site. Many governments and financial institutions are currently encouraging digital payments to reduce operating expenses and increase transaction visibility. As a result, the integration of digitalized payment systems into banking and government services is likely to increase demand for identity as a service shortly. Furthermore, increased government and corporate business spending on security solutions to ensure regulatory compliance and prevent identity theft is likely to drive growth. These regulatory compliances are expected to be met by the strategically applied identity as a service. The system provides features for ensuring allowed and authenticated data access. As a result, it helps to prevent both internal and external data misuse within the company. As of right now, the risk of data protection is equivalent to the penalties for data breaches. Rising regulatory compliance everywhere is therefore anticipated to increase the market share for identity as a service.

 

Restraining Factors        

Banking applications are used by a large number of people all around the world. Failure or violation of user privacy in the case of breaches in the banking industry is a serious issue. The financial services sector has already embraced cutting-edge information and physical security technologies. On the other hand, worries about unprotected endpoints like PCs, laptops, and mobile devices are associated with growing internal and external user populations, as well as expanding transaction volume and complexity. As they offer simple access that may be used for a multitude of attack vectors, these endpoints are the main targets of cyberattacks. Users are therefore not aware of sophisticated threats and system weaknesses.

 

Market Segmentation

By Component Insights

The single sign-on segment dominates the market with the largest revenue share over the forecast period.

On the basis of component, the global Identity as a Service market is segmented into single sign-on (SSO), multi-factor authentication (MFA), provisioning, privacy management, password management, and others. Among these, the single sign-on segment is dominating the market with the largest revenue share more than 38.6% over the forecast period. Single sign-on solves essential business challenges in an organization by increasing security and compliance, improving usability and productivity, and reducing IT expenses. The proliferation of cloud apps and services in companies, often alongside on-premises counterparts, has resulted in serious fragmentation difficulties. It's a challenge for both IT and people. IT must manage the enterprise's numerous programs while also dealing with shadow IT. As a result, employees must log in to and navigate between multiple applications and websites every day to do their tasks. Single sign-on comes to the organization's aid in resolving enterprise fragmentation challenges. Furthermore, single sign-on reduces the number of attack surfaces.

 

By Deployment Insights

The public cloud segment is witnessing significant CAGR growth over the forecast period.

On the basis of deployment, the global identity as a service market is segmented into public cloud, private cloud, and hybrid cloud. Among these, the public cloud segment is witnessing significant CAGR growth over the forecast period. The public cloud deployment makes resources like applications, storage, virtual servers, and hardware available to client companies. You can subscribe to the public cloud's services or use free services to access them. Utilizing a public cloud has some advantages, including ease of use and deployment that is simple. Additionally, there are no duties involved in maintaining the infrastructure, and the deployment's initial cost is inexpensive. As the best deployment framework for managed services like business services, network services, and data center services, the public cloud is growing in popularity.

 

By Enterprise Size Insights

The large enterprise segment is expected to hold the largest share of the global identity as a service market during the forecast period.

Based on the enterprise size, the global Identity as a Service market is classified into SME and large enterprises. Among these, the large enterprise segment is expected to hold the largest share of the identity as a service market during the forecast period. The adoption of remote working, BYOD, and data access from anywhere is anticipated to increase the need for identity management in major companies. Additionally, worries about data security have grown dramatically. This element is anticipated to accelerate market expansion.

 

By End User Insights

The BFSI segment accounted for the largest revenue share during the forecast period.

On the basis of end users, the global identity as a service market is segmented into IT & telecom, BFSI, retail, healthcare, government, and others. The BFSI segment is expected to grow significantly in revenue over the forecast period due to rising use of IDaaS to increase productivity, ensure compliance, and reduce costs associated with IT infrastructure management. To ensure customer and employee trust and secure transactions, the sector makes large investments in identity management solutions. Vulnerabilities in data protection are growing as quickly as digital banking. Moreover, the BFSI sector keeps confidential data, requiring high security, which is expected to increase the adoption of IDaaS in the BFSI sector, boosting revenue growth in this segment.

 

Regional Insights

North America dominates the market with the largest market share over the forecast period.

 

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North America is dominating the market with more than 38.7% market share over the forecast period. With the increasing number of security threats and data breaches, North America is the region that uses cybersecurity solutions the most. Organizations in North America are adopting IDaaS solutions as a result of the increased number of cyberattacks aimed at gaining access to private customer data, expanding the use of cloud applications, rising BYOD trends, and changing workforce requirements to meet regulatory standards. The region's primary growth drivers for identity as a service are the extensive observance of data compliance regulations and cloud installations. As a result, businesses in North America are using comprehensive security solutions like IDaaS.

 

Asia Pacific is expected to grow the fastest during the forecast period. Organizations in the area are going through a change and using new technologies like mobile, cloud, and new generation. To reduce the danger of a data breach, it has become imperative to secure apps, authenticate users, and keep control over information that is crucial to a company's operations. The Middle East and Africa region is also anticipated to gain momentum during the ensuing years as a result of the region's increasing IT infrastructure.

 

List of Key Market Players

• IBM Corporation
• Oracle Corporation
• Microsoft Corporation
• Google LLC
• Atos SE
• Ping Identity Corporation
• OneLogin Inc.
• Salesforce Inc.
• CA Technologies, Inc.
• SailPoint Technologies Inc.

 

 Key Market Developments

• In May 2022, Microsoft introduced Microsoft Entra, a new product. A solution called Microsoft Entra Permissions Management was developed to allow users and workload identities access to permissions. To apply the principle of least privilege and keep a top-down view of identities across all cloud services, including Microsoft Azure, Amazon Web Services, and Google Cloud Platform, it enables security teams a mechanism to effectively discover unused and excessive permissions.

 

• In February 2022, Ping Identity unveiled PingOne DaVinci, a new product. It is a vendor-neutral platform that enables organizations to combine and manage identity services from several vendors. It offers more than 100 pre-built connectors for different IT, automation, and identification services. It streamlines the creation of digital user journeys across numerous apps and ecosystems by accelerating the integration and deployment of identity services.

 

• In October 2021, Okta improved Okta Workflows, one of its products. Beyond Lifecycle Management capabilities, Okta Workflows has added features that target a broader range of identity automation use cases, including sophisticated security orchestration and DevOps. Customers now have the option to speed up innovation and automate identity processes thanks to the new functionalities.

 

Market Segment

This study forecasts revenue at global, regional, and country levels from 2022 to 2031. Spherical Insights has segmented the global identity as a service market based on the below-mentioned segments:

 

Identity as a Service Market, Component Analysis

• Single Sign-on (SSO)
• Multi-factor Authentication (MFA)
• Provisioning
• Privacy Management
• Password Management
• Others

 

Identity as a Service Market, Deployment Analysis

• Public Cloud
• Private Cloud
• Hybrid Cloud

 

Identity as a Service Market, Enterprise Size Analysis

• Small and medium enterprise
• Large Enterprise

 

Identity as a Service Market, End user Analysis

• IT & Telecom
• BFSI
• Retail
• Healthcare
• Government
• Others

 

Identity as a Service Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa