Identity as a Service Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for the Identity as a Service is expected to register a CAGR of 18% over the forecast period (2021 - 2026).

Key Highlights

• Over the years, with the growing number of data breaches, organization's preference for cloud infrastructure, OSs such as Windows OS, macOS gaining traction at the enterprise level has rendered the coupling of web application SSO and AD less effective and has evidently resulted in the advent of Identity-as-service platforms that help the organizations to forgo about managing deployment, security, configuration, and maintenance in-house
• The IDaaS embeds the Identity and Access Management ( IAM) capabilities build on standards such as SAML, OpenID, 0Auth, SW-Federation into organization' applications which would otherwise cost a considerable amount to the organization to keep up with the standards. Additionally, it offers a plug-in model to developers with all necessary pre-existing API installed which reduces time and money spent on in-house development.
• The Analytics and Intelligence capabilities of IDaas help organizations to enhance and identify the anomalies with the access privileges within multifaceted relationships between users, their roles and responsibilities, data usage, job function.
• Also, the potential of Blockchain could open up new business opportunities for the vendors and end-users by further enhancing the trust and security as it avoids centralized network and single point of failure. the decentralized nature of blockchain avoids maintaining large consolidated pools of data that are the primary target for hackers by implementing distributed ledgers that can maintain the chains of data without compromising the security
• Additionally, Compliance acts such as EU ' s General Data Protection Regulation Act, that ensures key attributes including analysis of personal data, access rights, data breaches, impact assessment among others is all global businesses that maintain and process data of EU citizen, Addiontionalyl other similar regulation such as California Consumer Privacy Act (CCPA) are on the rise.
• For instance, Organizations that are reluctant to comply with data compliance and do not have adequate security measures in managing consumer data could be fine up to EUR 20 million or 4% of total annual turnover. These compliance force the organizations to follow and adopt service as IDaas and thereby fosters the growth of the market
• Furthermore, due to the recent outbreak of global pandemic COVID-19 and announcement of lockdown, organizations had to shift their business operations over the cloud by enabling access to employee from home making them vulnerable to cyberattacks. For instance, on April 19, 2020, Cognizant Technology Solutions Corporation reported that it was hit by ransomware attack by a group called Maze, the attackers threaten the company to leak company information if they opt no to pay their ransom

Key Market Trends

Public Sector to Witness Significant Share in The Market

• The raising concerns among citizens and public administration officials with respect to cybersecurity is considered to be one of the major barriers to e-government implementations also with rising of cyberterrorism the operational state of cybersecurity in the public sector is considered to be a black box
• For instance, according to the report on Cyber risk (2019) submitted by Tenable and Ponemon state that cyberattacks are pervading public sector with as much as 88% of public sector organizations have reported at least one cyberattack over the past two years with 62% of the organizations reporting two or more cyber attacks.
• The study also suggests that the public sector are consistently prone to cyberattacks due to their reliance on a manual process, as per the survey conducted 56% of respondents claim that their organization is at disadvantage for handling vulnerabilities because of their manual processes and 51% of the respondent state that security teams occupied most of their time in manual process than responding to security flaws leading major backlogs.
• Thereby, organizations are now looking for automated solutions that can help prevent attacks and manage vulnerabilities by restricting access and management of Identity is considered to be the forefront to any cyberattack and data breach which evidently raises the demand for Identity as a Service and elevates the growth of the market

North America to Hold the Significant Share in The Market

• North America holds major share for the market owing to factors including the adoption of cloud infrastructure by the major organizations within the region, the presence of key IDaaS vendors including Idaptive, Okta, OneLogin, and Ping Identity whose relay on the region as a primary source of income and additionally home for the global player including oracle corporation and Microsoft Corporation that hold major market share.
• According to the US Cyberspace Solarium Commission report published in March 2020, states that the US faces multiple threats from cyber-criminals with major cases owing to IP theft, critical infrastructure attacks, and espionage owing to its digital connectivity.
• Moreover, The organization such as Lastpass in the region opt to BYOD model that allows employees to bring their own devices to work rather than using a company-owned device making them vulnerable to cyber-attacks.
• The region operates in cyber-landscape that requires a level of data security, resilience and trustworthiness that neither public authorities nor the private sector is able to provide, thereby vendors within the region have the opportunity to capture the market by offering IDaaS that is powered by advanced technologies including blockchain, AI, and Machine Learning among others.
• Furthermore, the region has various regulation acts with respect to privacy including the California Consumer Privacy Act voted at the end of May 2018, that aims to come into force by mid-2020, This act is a major step forwards for the privacy rights and is potentially a model for the US data privacy law that aims to become as important as GDPR.

Competitive Landscape

Identity as a Service market is highly competitive and consists of several major players. In terms of market share, few of the major players such as Oracle Corporation, Microsoft Corporation among others currently dominate the market. These major players with a prominent share in the market are focusing on enhancing their product line with integration and expanding their customer base across foreign countries. These companies are leveraging strategic collaborative initiatives, acquisitions to increase their market share and increase their profitability.

• March 2020 - Ping Identity Corporation announced the availability of PingID multifactor authentication in the AWS marketplace, this allows AWS users seamlessly procure and deploy PingID into their work network from home and thereby adds an additional layer of security to their existing AWS infrastructure. The company is an advanced technological partner in AWS Partner Network (APN) and has aimed itself AWS security competency status.
• January 2020 - OneLogin Inc announced the introduction of its Trusted Experience Platform that enables organizations to provide scalable, secure and smart experience. It is end-to-end identity and access management that leverages the company' expertise in investment and AI to help manage organization digital identities for its workforces and customers

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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