Global Identity as a Service Market Assessment, By Component [Single Sign-On, Multifactor Authentication, Provisioning, Password Management, Directory Services, Audit, Compliance and Governance], By Deployment Mode [Public Cloud, Private Cloud, Hybrid Cloud], By End-user Industry [Banking, Financial Services, and Insurance (BFSI), Healthcare, IT and Telecom, Retail, Manufacturing, Others], Region, Opportunities and Forecast, 2018-2032F

Global identity as a service market is projected to witness a CAGR of 16.87% during the forecast period 2025-2032, growing from USD 8.45 billion in 2024 to USD 29.41 billion in 2032. The global Identity as a Service (IDaaS) market is expanding rapidly, driven by the growing need for secure and efficient identity management solutions across cloud environments. Increasing cyber threats and regulatory requirements are pushing organizations to adopt advanced, AI-powered authentication and access control technologies.

Report Attribute	Details
Base Year	2024
Forecast Period	2025-2032
Historical Period	2018-2023
Projected Growth Rate	CAGR of 16.87% between 2024 and 2032
Revenue Forecast in 2032	USD 29.41 billion

As the speed of digital transformation is gaining momentum, businesses increasingly are embracing hybrid workplaces, cloud infrastructures, and remote access, which are driving the demand for secure identity verification and access control solutions. It has led to IDaaS platform adoption for identity governance in a single point, multi-factor authentication, and real-time threat detection.

Aside from that, compliance requirements such as GDPR, HIPAA, and other data privacy laws have compelled organizations to enhance their identity and access management (IAM) strategy. These solutions are no longer optional but critical for maintaining compliance, preventing data breaches, and ensuring secure access to applications and systems. AI and machine learning technologies are being integrated into IDaaS platforms to offer ongoing risk assessment and behavioral analysis to enable more sophisticated identity monitoring and response.

For instance, Cybersecurity Ventures estimates that the cost of cybercrime will reach up to USD 10.5 trillion by 2025, it shows the necessity for businesses to have effective identity management systems in place. As businesses concentrate on security-first strategies, the global Identity as a Service market will expand exponentially during the next several years and form a critical component of enterprise security strategy.

Increasing Adoption of AI-Powered Security Solutions to Combat Advanced Cyber Threats

With increasingly sophisticated and deep-rooted cyber threats, organizations globally are seriously contemplating adopting cutting-edge identity and access management solutions that can identify and ward off imminent attacks. With the increasing identity-based threats of phishing, credential stuffing, and session hijacking, the necessity of cutting-edge solutions beyond standard authentication processes has been brought to the forefront. IDaaS solutions powered by AI provide real-time threat intelligence, behavior-based access control decisions, and adaptive response to anomalies with improved protection without a negative impact on user experience.

For example, in October 2023, Okta, Inc. announced its AI-powered Identity Threat Protection. The offering delivers real-time session monitoring to evaluate user risk in real time and trigger automated responses when suspicious activity is detected. With integration through market-leading security partners like CrowdStrike and Palo Alto Networks, Okta's latest feature is a move towards integrated, smart, and preventive identity security frameworks. Increased confidence in AI-powered identity protection by businesses is also strongly driving IDaaS demand, compelling market participants to keep innovating and offer more.

Strategic Partnerships and Cloud-First Approaches Driving the Market Expansion

The increasing trend towards cloud computing and hybrid environments is establishing a compelling demand for scalable and secure identity management solutions. Organizations functioning across complex, distributed IT infrastructures need frictionless identity authentication and access control mechanisms that function across on-premises, cloud, and hybrid environments. Strategic collaborations among technology leaders are contributing significantly towards overcoming these challenges, leading to the establishment of complete identity services that match contemporary IT architecture.

For example, in July 2024, Microsoft and IBM Consulting collaborated to advance security operations with a focus on protecting cloud identity. The collaboration unifies IBM cybersecurity expertise with Microsoft security technology to form powerful identity protection solutions for hybrid cloud environments. Such collaborative efforts are key to creating integrated, intuitive, and enterprise-class solutions that enable business continuity and regulatory compliance. As more organizations transition to cloud and adopt multi-cloud environments, partnerships such as these not only foster innovation but also reinforce client trust, ultimately propelling the global Identity as a Service market forward.

Multi-Factor Authentication Segment Propelling the Identity as a Service Market

Multi-Factor Authentication (MFA) is the biggest segment of the global identity as a service (IDaaS) market because it is a vital component in enhancing digital security and preventing unauthorized access scenarios. As the threat scenario expands to target more with phishing, credential theft, and session hijacking, organizations are turning towards MFA solutions to introduce an extra level of security to the traditional username-password paradigm. MFA verifies the user based on a mix of attributes such as biometrics, OTPs, hardware tokens, or device-based approvals, which restricts the range of attackers to take over accounts by several orders of magnitude.

Growing adoption of zero-trust architectures and strict compliance requirements in BFSI, healthcare, and government further strengthens the position of MFA at the center of identity strategy. Organizations look for scalable, easy-to-use MFA solutions that are easy to deploy with cloud infrastructures and enterprise applications. For instance, in June 2023, WALLIX, a French leader in the software cybersecurity market for digital identity and access solutions, entered a partnership with Cris Réseaux, which has managed services capabilities. The agreement was aimed at further securing real-time identity verification as well as delivering closer security against looming cyber threats, particularly in identity-as-a-service environments.

North America Holds a Significant Share in the Global Identity as a Service Market

North America leads the IDaaS market globally because it has a highly developed digital infrastructure, a high degree of cybersecurity consciousness, and because it was the first region to adopt new technologies such as cloud computing and artificial intelligence. North America also boasts some of the largest technology firms and cybersecurity providers, such as Microsoft, IBM, Okta, and others, which are all heavily investing in upcoming identity management solutions.

Besides this, stringent regulatory guidelines such as the Health Insurance Portability and Accountability Act (HIPAA), California Consumer Privacy Act (CCPA), and others are compelling organizations from different sectors to adopt strong identity and access management solutions, hence propelling regional growth even more. For instance, in April 2023, Arista Networks introduced a cloud-delivered AI-fueled network identity service for IT and security operations in the enterprise. Due to the overwhelming presence of international IDaaS providers, increasing cyberattacks, and increased cloud usage, North America would surely dominate the market over the next coming years.

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Impact of U.S. Tariffs on Global Identity as a Service Market

Though the identity as a service (IDaaS) industry is mostly fueled by digital transformation and cloud adoption, U.S. tariffs have had minimal direct influence. There can be indirect repercussions in the shape of a rise in hardware and IT infrastructure imported from countries under tariffs, most notably China. This may result in greater operational costs for cloud service providers and business customers, having a direct impact on the price and deployment of IDaaS solutions. Moreover, geopolitical tensions that revolve around tariffs can also encourage companies to reconsider their data residency and supply chain approaches, driving more regionalized cloud infrastructure. Though not a main growth inhibitor, but such trade policies can affect procurement strategies and vendor relationships in the global IDaaS market, particularly for multinational organizations. Overall, tariffs might slow down the market but are unlikely to substantially wreck the market's upward momentum.

Report Scope

“Global Identity as a Service Market Assessment, Opportunities and Forecast, 2018- 2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global identity as a service market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecasts between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Segments Covered	Component, Deployment Mode, End-user Industry
Regions Covered	North America, Europe, Asia-Pacific, South America and Middle East and Africa
Key Companies Profiled	Okta, Inc., Google LLC, Salesforce, Inc., Oracle Corporation, Atos SE, IBM Corporation, Thales S.A., Ping Identity Corporation, CyberArk Software Ltd., Microsoft Corporation
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfill your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, the global identity as a service market has been segmented into the following categories: 

• By Component
  • Single Sign-On
  • Multifactor Authentication
  • Provisioning
  • Password Management
  • Directory Services
  • Audit, Compliance and Governance
• By Deployment Mode
  • Public Cloud
  • Private Cloud
  • Hybrid Cloud
• By End-user Industry
  • Banking, Financial Services, and Insurance (BFSI)
  • Healthcare
  • IT and Telecom
  • Retail
  • Manufacturing
  • Others
• By Region
  • North America
  • Europe
  • Asia-Pacific
  • South America
  • Middle East and Africa

Key Players Landscape and Outlook

The global IDaaS market is a fragmented market with established technology leaders and new entrants from the startup segment competing to offer identity management solutions. The market leaders Okta, Microsoft, and IBM are spearheading efforts with regular product advancements in the form of strategic partnerships, new product launches, and adding advanced AI capabilities. These companies are focusing on developing real-time threat detection, secure authentication, and user-friendly interfaces to cater to growing requirements from cloud and hybrid infrastructure-embracing companies.

The competitive environment is one of persistent innovation and partnership. For instance, in January 2024, Ping Identity partnered with Deloitte to offer converged identity security solutions for global businesses. The partnership was set to help organizations improve lifecycle and access controls more effectively by combining Ping's solutions with Deloitte's consulting expertise. Such partnerships attest to the growing need for end-to-end identity governance solutions that can scale with today's enterprise environments.

Besides that, the IDaaS market will continue to expand steadily, with more emphasis placed on zero-trust architecture, multi-factor authentication, and integration with wider security ecosystems. Startups are also contributing by delivering niche capabilities, frequently designed particularly for SMBs or narrow verticals such as healthcare or finance. Customers need to thoroughly review vendor roadmaps, integration support, and scalability choices while choosing IDaaS partners. Overall, the market is strong, driven by digital transformation, compliance requirements brought on by regulation, and the growing importance of secure and frictionless user identity management.

Key Players Operating in Global Identity as a Service Market are:

• Okta, Inc.
• Google LLC
• Salesforce, Inc.
• Oracle Corporation
• Atos SE
• IBM Corporation
• Thales S.A.
• Ping Identity Corporation
• CyberArk Software Ltd.
• Microsoft Corporation

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