Identity as a Service Global Market Report 2024

The global identity as a service market has grown exponentially in recent years. It will grow from $5.94 billion in 2023 to $7.2 billion in 2024 at a compound annual growth rate (CAGR) of 21.4%. The expansion observed in the historical period can be attributed to various factors. These include the widespread proliferation of mobile devices, the necessity to comply with regulatory standards, initiatives driving digital transformation, emphasis on user experience and convenience, challenges posed by remote workforces, heightened utilization of social media logins, strategic business continuity planning, and the adoption of the bring-your-own-device (BYOD) approach.

The global identity as a service market is expected to see exponential growth in the next few years. It will grow to $16.25 billion in 2028 at a compound annual growth rate (CAGR) of 22.6%. Anticipated growth in the forecast period stems from several factors. These include the escalating frequency of cyberattacks, the heightened adoption of zero trust security models, the emergence of decentralized identity systems, advancements in threat detection and analytics, globalization's impact on cross-border identity management, and the increased implementation of continuous authentication practices.

The escalating frequency of cyberattacks is anticipated to drive growth in the identity as a service market. As cyber threats become more sophisticated, enterprises face heightened security concerns. Companies lacking robust customer and corporate information protection are more susceptible to these attacks. This growing vulnerability has led organizations to invest in robust identity verification systems, recognizing the imperative role of identification in modern security practices. In 2021, there was a 15.1% increase in data breaches and cyberattacks compared to the previous year, according to Forbes. This surge in cyber threats underlines the market's growth driven by the rising number of cyberattacks.

The surge in identity and authentication frauds is poised to fuel the identity as a service market. Identity fraud involves the manipulation or theft of personal information to carry out fraudulent activities, while authentication fraud pertains to illicit attempts to bypass authentication systems. This rising trend in fraud incidences highlights the vulnerabilities of traditional authentication systems, consequently spurring the demand for advanced IDaaS solutions. For instance, in 2021, the Federal Trade Commission reported a surge of over 70% in fraud reports compared to the previous year, emphasizing the driving force of identity and authentication frauds on the market's expansion.

Technological advancements emerge as a prominent trend in the identity as a service market, with major players leveraging artificial intelligence (AI) and machine learning (ML) to develop innovative solutions. AI enables machines to replicate human mental capabilities, while ML is a subset of AI facilitating system learning from data. For example, ForgeRock introduced ForgeRock Autonomous Identity in September 2021, employing AI and ML for identity governance and administration. This solution utilizes these technologies to mitigate enterprise risk by identifying access patterns across the organization and suggesting optimized role structures, aiding in risk reduction and access management.

Leading companies in the identity as a service sector are innovating by introducing solutions like one-touch multi-factor authentication to maintain their market position. This security mechanism combines user convenience with enhanced security through a single action, often a touch or tap, and multiple authentication factors. JumpCloud's launch of one-touch multi-factor authentication in May 2021 exemplifies this trend. Their solution, JumpCloud Protect, simplifies and streamlines multi-factor authentication deployment for IT administrators without compromising user experience, providing a seamless 'touch to verify' functionality for accessing corporate IT resources.

In July 2022, M2P Fintech, an Indian financial infrastructure provider, acquired Syntizen for an undisclosed sum. This acquisition positions M2P Fintech to enhance Aadhar verification and streamline know-your-customer (KYC) procedures, bolstering identity verification and onboarding services for financial institutions. Syntizen, the acquired company, specializes in identity verification services based in India.

Major companies operating in the identity as a service market report are CA Technologies Inc., Centrify Corp., ILANTUS Technologies, iWelcome, JumpCloud Inc., Okta Inc., OneLogin Inc., Salesforce.com Inc., Exostar LLC, Microsoft Corporation, Oracle Corporation, International Business Machines Corporation (IBM), Ping Identity Corporation, Google LLC, SailPoint Technologies Inc., Idaptive LLC, Auth0 Inc., HCL Technologies Limited, Connectis LLC, Gemalto N.V., Fischer International Identity, NetIQ Corporation, Symantec Corporation, SecureAuth Corporation, Avatier Corporation, Bitium Inc., Bitglass Inc., Covisint Corporation, Dell Technologies Inc., EmpowerID Inc.

North America was the largest region in the identity as a service market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global identity as a service market share during the forecast period. The regions covered in the identity as a service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the identity as a service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary categories within Identity as a Service encompass single sign-on, multi-factor authentication, compliance management, directory services, and additional access features deployed across public, private, and hybrid cloud environments. Single sign-on streamlines user access, allowing individuals to log in to multiple websites and applications using a single set of credentials. It simplifies the authentication process by employing a sole login for various online platforms. The components integral to Identity as a Service consist of solutions and services tailored for both small and medium-sized enterprises (SMEs) as well as large enterprises. Identity as a Service finds application across diverse industries such as government, retail, consumer electronics, transportation, logistics, media, entertainment, IT, telecommunications, banking, financial services, insurance (BFSI), energy, utilities, healthcare, automotive, and various other sectors. This cloud-based identity and access management solution caters to the unique needs of different end-users, offering comprehensive services tailored to their specific industry requirements.

This report provides identity as a service market statistics, including identity as a service industry global market size, regional shares, competitors with a identity as a service market share, detailed identity as a service market segments, market trends and opportunities, and any further data you may need to thrive in the identity as a service industry. This identity as a service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The identity as a service market includes revenues earned by entities by provisioning, single sign-on, advanced authentication, audit, compliance, governance, password management, and directory services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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