IDaaS Market

Global IDaaS Market Size

The global IDaaS market was worth USD 10.89 billion in 2025. The global market is predicted to reach USD 13.58 billion in 2026 and USD 79.40 billion by 2034, growing at a CAGR of 24.7% during the forecast period 2026 to 2034.

IDaaS, also known as Identity as a Service, is a technological solution that offers identity access and management (IAM) services. IDaaS is a SaaS-based application model managed by an external provider and offers a way for users to access identity management services from a cloud. The adoption of IDaaS is growing rapidly, and many organizations worldwide rely on IDaaS to manage their customer database. Organizations that deal with a massive volume of customer data face numerous challenges while saving their customers' sensitive information. To cope with the challenges, IDaaS is one of the best solutions available. As the adoption of IDaaS is picking up, the market for IDaaS is anticipated to grow at a significant CAGR in the coming years.

MARKET DRIVERS

A growing number of identity theft and fraud worldwide is majorly propelling the IDaaS market. There is a rapid increase in identity theft across the world. Per the reports of the Identity Theft Research Centre (ITRC), there was a whopping 68% increase in data compromising issues between 2020 and 2021 in the United States. An estimated 47% of Americans suffered from financial identity theft in 2020. According to finanso.se data, 56% of Europeans have faced identity fraud in the last two years. Growing concern around data safety, increasing adoption of BYOD devices, and rise in the integration of the digital payment systems market are further hiking the IDaaS market's growth rate.

Furthermore, the advantages associated with IDaaS, such as enhanced security and password protection, favor market growth. In addition, technological advancements are anticipated to boost market growth during the forecast period. The core components of IDaaS, such as single sign-on, multifactor authentication, biometrics, and provisioning, provide all required solutions to enterprises. Various governments ' increasing support for IDaaS is also propelling market growth. In addition, the high adoption of the Internet of Things (IoT) supports the IDaaS market expansion. A growing number of laws are being implemented in multiple countries to enhance data security, which is expected to offer lucrative growth possibilities to the IDaaS market. Developing countries are experiencing significant investments in the implementation of IDaaS. The increasing focus of key market participants on the untapped geographies of IDaaS is further expected to provide growth opportunities. Furthermore, technological advancements such as Artificial Intelligence, Machine Learning, and Blockchain technologies have been used to enhance security, which is also broadening the growth scope of the IDaaS market.

MARKET RESTRAINTS

However, the high costs associated with IDaaS solutions are significant factors inhibiting market growth. The backstep by the organizations to adopt cloud-based security and the complications with the growing IT infrastructure are further anticipated to hamper the growth rate of the IDaaS market. The security issues associated with customer data are another notable factor that negatively impacts the IDaaS market growth.

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Component Insights

During the forecast period, the provisioning segment had the largest share of the IDaaS market in 2021. The need to automate identity lifecycle management is growing significantly year-over-year, driving the growth of the provisioning segment under the IDaaS market. However, the multifactor authentication segment is expected to grow the fastest during the forecast period. This is because multifactor authentication is crucial in user authentication and password protection. In addition, strict policies around Internet banking are one factor promoting the segment's growth. On the other hand, the single sign-on segment is also estimated to project a healthy CAGR.

By End-User Insights

The public sector by end-user had the most significant share of the IDaaS market. The demand for IDaaS solutions in government institutions is growing considerably with the increasing number of cybercriminals who are trying to gain control over the sensitive records of the government. Therefore, during the forecast period, the IDaaS market is expected to receive a significant contribution from the public sector as the end-user. On the other hand, the BFSI segment is anticipated to showcase a healthy CAGR during the forecast period. BFSI is one of the sectors in which a high level of security for their data is required. Therefore, the adoption of IDaaS solutions in the BFSI segment has seen a spike in recent years as these solutions enhance security, are cost-effective, and offer better productivity.

REGIONAL ANALYSIS

North America contributed a significant share of the global IDaaS market in 2024 and is anticipated to be the most dominant region in the global market throughout the forecast period. Among all the regions, North America has the highest adoption of cybersecurity. The growing incidence of data leakages and the increasing number of security threats across the region have increased the need for cybersecurity. The United States had an estimated 1900 cyberattacks in 2021. The increasing adoption of cloud applications in the U.S. is anticipated to favor the North American IDaaS market during the forecast period. Cloud spending in the United States is reached to USD 90 billion in 2022. The European IDaaS market also accounted for a decent share of the global market in 2021 and is also expected to showcase a healthy growth rate during the forecast period.

The APAC region is anticipated to register the fastest CAGR worldwide during the forecast period. The Asia-Pacific region has recently noticed a quick transition in adopting new-generation technologies. The growing demand for BFSI services in this region is one of the major factors increasing the adoption of IDaaS solutions. In addition, the increasing focus of key market participants on emerging regions such as Asia-Pacific, the Middle East, and Africa is expected to increase the adoption of IDaaS solutions among the SMEs and large organizations located in these regions and, thus, drive market growth in these regions.

KEY PARTICIPANTS IN THE MARKET

The major companies operating in the global IDaaS market include Okta, Inc., Ping Identity Corporation, OneLogin, Inc., Microsoft Corporation, ForgeRock, Inc., IBM Corporation, ManageEngine, CyberArk Software Ltd., Oracle Corporation, SailPoint Technologies Inc., and JumpCloud Inc.

RECENT HAPPENINGS IN THE MARKET

• In November 2022, the UK government approved the G-13 cloud program of Entrust Solutions, which includes nShield as a service.

• In October 2021, WSO2, an open-source technology provider, introduced Asgardeo, a Next-Generation IDaaS.

• In August 2022, Happiest Minds Technologies, a company that offers digital transformation services to organizations, announced the launch of Identity Vigil 2.0, which OneLogin also powers.

MARKET SEGMENTATION

This research report on the global IDaaS market has been segmented and sub-segmented based on the component, end-user, and region.

By Component

• Single Sign-On

• Multifactor Authentication

• Provisioning

• Password Management

• Directory Services

• Audit, Compliance & Governance

By End-User

• BFSI

• Telecom and IT

• Education

• Healthcare

• Manufacturing

• Public Sector

By Region

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East and Africa