The Identity as a Service (IDaaS) Market size is expected to grow from USD 5.6 billion in 2022 to USD 32.74 billion by 2030, at a CAGR of 24.7 % during the forecast period.
Identity as a Service (IDaaS), is a cloud-based identity and access management (IAM) built and operated by a third-party provider. IDaaS is designed with the primary goal of an Identity Service to ensure that users get the right kinds of access to software applications, files, or other resources at the right times. These Users first subscribe to the service and are then provided with IDaaS supply cloud-based authentication or identity management solutions. When an enterprise subscribes to an IDaaS, it receives an API (application programming interface) and/or a centralized configuration portal which helps in integrating the application suite with the identity products of the service provider after which the user will get access to single sign-on, social login, adaptive authentication, and other features.
Top Key Players in the Identity as a Service (IDaaS) Market:
OneLogin Inc.(US), Atos SE (France), Ping Identity Corporation (US), Microsoft Corporation (US), Okta Inc. (US), IBM Corporation (US), CyberArk Software Ltd. (US), Oracle Corporation (US), Equifax (US), Salesforce Inc. (US), Google LLC (US), CA Technologies Inc. (US), SailPoint Technologies Inc. (US), ForgeRock Inc. (US) and Other Major Players
Market Dynamics and Factors for Identity as a Service (IDaaS) Market:
Drivers:
Growing Requirements of Maintaining Regulatory Compliances for User Data Protection
Cloud-based Identity as a Service (IDaaS) eliminates the need for on-premises hardware and infrastructure, reducing upfront capital expenditures. Businesses can opt for a subscription-based pricing model, paying only for the resources they use, resulting in cost optimization and predictable operational expenses. Cloud-based solutions offer flexibility and scalability, allowing distribution businesses to adjust their software resources based on changing demands. As the business grows or seasonal demands fluctuate, the software can easily scale up or down to accommodate the changing needs. High-profile data breaches and cyberattacks have raised awareness of the importance of data protection.
Opportunities:
Integration of Advanced Technologies Like AI, ML, And Blockchain To Enhance Digital Identities
AI and ML algorithms can strengthen identity verification processes by analyzing multiple data points and behavioral patterns. They can assess the risk associated with each identity and detect suspicious activities more accurately, leading to robust and reliable authentication methods. AI and ML can enable adaptive authentication, which adjusts security measures based on real-time risk assessments. This means that authentication methods can be strengthened or relaxed depending on the context, user behavior, and potential threats, providing a better user experience while maintaining security. AI and ML technologies can identify anomalies in user behavior and detect potential security threats.
Segmentation Analysis of the Identity as a Service (IDaaS) Market:
- By Component, the Single-Sign-On (SSO)segment is Anticipated to Dominate the Market Over the Forecast period. With SSO, users only need to log in once to gain access to multiple applications and services. This eliminates the need for remembering multiple passwords and reduces login friction, resulting in a smoother and more convenient user experience. Users appreciate the simplicity of accessing all their authorized resources with a single set of credentials.
- By Application, the Identification segment is Anticipated to Dominate the Market Over the Forecast period. The primary purpose of IDaaS is to verify the identities of users accessing digital services and applications. Identification involves the process of authenticating users based on their provided identity attributes, such as name, email address, phone number, and other personal information.
Regional Analysis of the Identity as a Service (IDaaS) Market:
North America dominates the Global Identity as a Service IDaaS Market by having by recording the largest share in past years. North America possesses the maximum number of IDaaS providers which results in the maximum revenue generation from Identity Services in the region. Being the quickest adopters of new technologies and having the most evolved tech industry, North American Countries have experienced a surge in the demand for Software as a Service Solutions including Identity as a Service. Moreover, rising data compliance rules and such compulsions are acting as growth drivers for IDaaS Market in the region. Also, in the last few years, the region has experienced a rise in cyberattacks and other malicious activities aimed at stealing sensitive data which is driving the demand for IDaaS in North America.
Key Industry Development:
- In October 2022, Atos with the launch of its new Evidian IDaaS Access & Governance extended its Identity and Access Management (IAM) cybersecurity offering. This new solution provides key identity governance and administration functions such as User lifecycle, Application access, and rights, Rights assignments and compliance, and Governance. Atos introduces its new solutions with the overall objective to manage on-premises, cloud-based and as-a-Service applications.
- In October 2021, Equifax announced the launch of its new Digital Identity as a Service capability and also announced an Innovation Partnership with Bonifii, an innovative financial technology company as a first adopter of the new solution. The new Digital Identity as a Service combines data and analytics with modern cryptography to help in offering a higher degree of trust along with a great user experience.
