Identity as a Service Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Identity as a Service Market Is Segmented By Deployment Type(Public Cloud, Private Cloud, Hybrid Cloud), By Component Type(Provisioning, Single sign-on, Advanced authentication, Audit, compliance, and governance, Directory services, Password management), By Organization Size(Small and Medium-Sized Enterprises (SMEs), Large enterprises), By Service-types(On-site, In-house),  By End-User(Public sector, Banking, Financial Services, and Insurance (BFSI), Telecom and IT, Retail and consumer goods, Healthcare, Education, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031 

Identity as a Service Market Overview

 The Global Identity as a Service Market report analyzes the global market size, shares, recent trends, competitive intelligence, and future market outlook. Identity as a Service (IDaaS) refers to cloud-based identity management solutions that provide secure and convenient access to digital resources. The market is driven by the increasing adoption of cloud-based services, the need for enhanced cybersecurity measures, and the growing emphasis on user identity and access management. In the American region, the Global Identity as a Service Market is witnessing significant growth. Key players in the market include Company A, Company B, Company C, and other prominent players operating in the market.

Identity as a Service Market Scope and Summary

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Identity as a service (IaaS) combines solutions that primarily provide cloud-based identity management solutions. It also allows for data collection and is used in private, public, and hybrid networks. It has extended across many businesses that require the monitoring and management of sensitive data, and user identities and aids in understanding or improving end-user behavior.

The fundamental goal of IDaaS is to provide the necessary software applications, file access, or other resources to authorized individuals at the right moment. Provisioning, improved authentication, directory services, single sign-on, password management, and other factors drive the industry. One of the most important aspects of the Identity Service Market is multi-factor authentication, including biometrics. It is a crucial aspect of confirming a consumer's identity. It necessitates using many sources to authenticate the user—for instance, Google and Microsoft, which have 2-step verification. IDaaS use is not limited to commercial companies; government bodies are now adopting it.

Identity as a Service Market Dynamics and Trends

Improving demand for cloud-based security solutions and services across various IT infrastructures is promoting the market for IDaaS. Increasing government investment in security solutions and corporate governance to stand along by regulatory compliance and restrain identity theft is expected to create immense opportunities for IDaaS to grow in the forecast period.

Improving demand for cloud-based security solutions and services across various IT infrastructures is promoting the demand for IDaaS.

In the global scenario, Cloud-Based Security Services are rising at a rapid speed. Security threats can now be detected and mitigated via cloud-based security solutions. In front of their private infrastructure and the line between remote users and their websites and applications, agencies utilize a third-party cloud platform. The cloud security provider can inspect network traffic for known attack patterns and only allow valid traffic to reach the application. It enables the solution to prevent attacks in the Cloud before they reach the data center or applications of the target agency. The market is being driven by escalating adoption in small and medium-sized businesses, benefits in network traffic management, and the ability to detect and mitigate security threats for businesses. Cloud-based security services provide several advantages, including protection against distributed denial of service attacks, data security, and industry regulation by managing and maintaining upgraded infrastructure to secure personal and financial data. These advantages are driving up demand for cloud-based security services all around the world. Thus improving cloud-based security and service across the globe has created a big market share for identity as a service and is expected to maintain the growth momentum in the forecast period.

Increasing government investment in security solutions and corporate governance to stand along by regulatory compliance and restrain identity theft is expected to create immense opportunities for IDaaS to grow in the forecast period.

The expansion of the product market is being fueled by an increase in government agencies and business spending on security solutions to comply with regulatory compliance and prevent identity theft. Identity management, which enables precise and effective control over usage, and the expanding requirement for cloud-based authentication are driving demand for IDaaS. Its system is currently used by several government agencies as well as huge multinational, and national corporations. Uncertain ROI, integration, and security with existing technology are hurdles to integrating IoT in the global Identity As A Service Market. Furthermore, many governments and financial institutions support digital payments to reduce operating expenses and increase transaction visibility. As a result, integrating digitalized payment systems into banking and government services will likely increase demand for identity-as-a-service in the future.

For instance, In July 2019, Google partnered with Atos to expand its strategic partnership. According to the agreement, both companies will deliver identity management, access control, governance, and administration services to clients across several.

The high cost of adoption of identity as a service is hurdling the growth of the market.

One of the major impediments to the growth of the Identity Service Market is the complexities and high cost of deploying identity-as-a-service. Thus with the rise in security breaches and data volumes in most enterprises and government agencies, the cost of implementing data solutions is one of the reasons limiting the global growth of the Identity As A Service market. Concerns about the adoption of cloud security solutions and a lack of understanding are major issues restricting the market's growth. As a result, governments and financial institutions support digital payment services to reduce operating costs and increase transaction visibility.

COVID-19 Impact on Identity as a Service Market Growth

Covid-19 has severely impacted the Identity of the Service sector. The covid-19 pandemic has affected people throughout the world. Because of the government's restrictions, the increasing trend of working remotely can be witnessed in countries where the government authorities have imposed the lockdown. As a result, to protect enterprises' essential data, many private and government agencies are improving the IDaaS architecture by adding a comprehensive security layer to prevent data theft and identity theft.

Furthermore, various organizations began migrating their business activities to the Cloud and adopting Bring your device (BYOD) trend due to the implementation of global lockdown which has increased the chances of cybercrime, thus creating immense opportunity for the IDaaS market to grow during the pandemic phase. For instance, in April 2020, a team called Maze targeted Cognizant Technology Solution corporation with ransomware. The attackers threatened the company to disclose the company details if the ransomware was not paid.

In addition, various key players across the globe have decided to permanently keep their business remote and have expected to create lucrative opportunities for the ideas market to grow in the forecast period.

Identity as a Service Market Segment and Shares

The global Identity as a Service Market can be segmented on deployment type, component type, organization, service type, end-user, and region.

The public Cloud is the largest market shareholder as cybercriminals routinely target government agencies to access sensitive government data.

The global Identity as a Service market based on deployment type is segmented into public, private, and hybrid clouds. The public Cloud is the largest market shareholder of the mentioned deployment types as cybercriminals routinely target government agencies to access sensitive government data. As a result, governments in emerging markets are deploying web and mobile applications to serve their residents better. As a result, the public sector and government institutions may more efficiently handle important data and consumer identities. Furthermore, cybercriminals are increasingly targeting these applications to gain access to sensitive data. Misappropriation of assets,  bribery and corruption, data thefts, identity thefts, accounting frauds, and money laundering are all examples of identity fraud in the government/public sector vertical. To get access to confidential government data, identity theft is on the rise, resulting in a growth in IDaaS solutions by government organizations. Apart from security issues, the public Cloud offers various advantages over other types of deployment available in the market, including No investments, high scalability, flexibility, affordability, and cost agility, allowing organizations to follow lean growth strategies and focus their investments on innovation projects. Thus the mentioned advantages are accelerating the market share for the segment in recent times.

Identity as a Service Market Geographical Analysis

The growing adoption of advanced technology and the presence of key players for identity as a service market is boosting the market share for the North American region

North America holds a dominating position in terms of technology adoption and infrastructure development. Due to the sheer increasing number of data breaches and security concerns is the most significant cybersecurity market. Furthermore, important IDaaS solution providers such as Okta, Idaptive LLC, Ping Identity, and OneLogin are in the region. Organizations in North America are adopting IDaaS solutions in response to an increase in cyberattacks aimed at gaining access to confidential consumer data, changing workforce needs, and adopting cloud applications, bringing your device (BYOD), and mobile practices, as well as the need to comply with stringent compliance regulations. As the public's knowledge of IDaaS grows, numerous companies collaborate to explore and create better IDaaS solutions.

Furthermore, Asia-Pacific, on the other side is expected to grow at the fastest rate in the identity as a service market in the forecast period. Organizations in the region are changing and adopting mobile, Cloud, and next-generation technology. Securing apps, authenticating users, and maintaining control over business-critical information have become necessary to reduce the danger of a data breach. Due to the region's increasing IT infrastructure, the Middle East and Africa region are also likely to gain traction in the future years.

Identity as a Service Companies and Competitive Landscape

The Identity as a Service market is highly competitive with the presence of local and global companies. Some prime companies contributing to the market's growth are Ping Identity, OneLogin, CA Technologies, SailPoint Technologies, Microsoft Corporation, Okta, Inc., IDaptive, LLC, Oracle Corporation, IBM Corporation, Google, Salesforce, HCL, Capgemini, Gemalto, Simeio Solutions, Jumio, Connectis, Auth0, One Identity, and others.

The major companies are adopting several growth strategies such as acquisitions, product launches, and collaborations, contributing to the market growth of Identity as a Service globally.

• For instance, In July 2019, IBM acquired Red Hat, a global provider of open-source software products. With Red Hat's identity management solutions, such as Red Hat Identity Manager and Identity Management Active Directory, IBM will increase its identity management capabilities.

Google

Overview: Google supplies its cloud products and services under 16 categories, including databases, API management, AI and machine learning, AI infrastructure, API management, data analytics, and various others. Google generates revenues mainly from advertising, in-app purchases, sales of apps, digital content products, hardware, licensing, and service fees, including fees received from subscription-based products and cloud offerings. Its parent company 'Alphabet Inc.' manages the revenues obtained from Google. The company has more than 70 offices in 50 countries, expanded in North America, Latin America, Asia Pacific, Europe, Africa, and the Middle East regions

Product Portfolio: The Company has a product portfolio of Identity as a Service that includes:

• Google’s identity service: Google’s identity services are included in Google Apps for Work at no additional charge. Google Apps for Work has a basic plan that costs US$5 per user per month. A premium plan costs US$10 per user per month and includes unlimited storage, advanced audit and reporting tools, and Google Apps Vault for eDiscovery and retention. The Google for Work Security and Compliance Whitepaper explains how Google safeguards data, complies with regulatory requirements, and empowers users and administrators.

Key Development

• In July 2019, Google teamed up with Atos to expand its strategic partnership. According to the agreement, both companies will deliver identity management, access control, governance, and administration services to clients across several settings.