IDaaS Market Growth Size, Opportunities, Future Scope, Business Scenario, Share, Key Segments And Forecast To 2028
The global Identity-as-a-Service (IDaaS) market is expected to increase from USD 7.0 billion in 2023 to USD 21.4 billion by 2028, registering a Compound Annual Growth Rate (CAGR) of 25.0% over the forecast period. This growth is largely driven by the escalating incidents of identity and authentication-related fraud.
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Based on component, the single sign-on is expected to grow at a highest CAGR during the forecasted period.
Single Sign-on (SSO) is a form of authentication by which users can access multiple computer platforms or applications present on-premises of an organization or through the cloud by logging in only once. The process saves a lot of time for users by authenticating users for all the applications they have been entitled to. SSO enables them to focus on a required task without remembering multiple usernames and password combinations. ? SSO lowers IT costs by saving time on password resets. When apps require a different username and password for every employee, there is a high chance that employees will forget passwords—which means help tickets for password reset pile up. Technologies like AI enable SSO systems to track user activity constantly during a session, guaranteeing that only authorized users can access secured resources.
By deployment type, private cloud segment is expected to grow at a highest CAGR during the forecast period.
Private cloud refers to computing wherein the computing resource is accessed by a single organization and restricted to external entities. Organizations that invest in their on-premises data centers can also use it as a private deployment type. Private Cloud enables a company to have better control over its data and reduce risks, such as data loss and issues related to regulatory compliance. The flexibility allows businesses to adapt identity management services to their unique workflows and compliance requirements, ensuring that the solution aligns precisely with their operational goals. Private cloud IDaaS solutions provide organizations with a greater degree of control and data sovereignty. It is particularly appealing to businesses operating in highly regulated industries or regions with strict data privacy requirements.
By region, Asia Pacific is expected to grow at the highest CAGR during the forecast period.
Asia Pacific region consists of some of the fastest growing economies like India and China. Asia Pacific has seen cutting-edge technology’s advanced and rapid adoption as a profitable security product and service market. Even though the area implements the most recent security solutions, it is frequently the target of attacks. Developing countries such as India are moving towards the rapid digitalization of processes through different initiatives taken by governments to increase the use of mobile applications and web-based applications across sectors such as BFSI, retail, and IT. The growing digitization in the Asia Pacific is driving IDaaS demand.
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Unique Features in the IDaaS Market
One of the defining features of IDaaS solutions is their cloud-native design. Unlike traditional identity management systems that require on-premises infrastructure, IDaaS platforms are built to operate entirely in the cloud. This allows for greater scalability, faster deployment, and reduced maintenance costs, making them highly attractive for organizations of all sizes.
IDaaS platforms offer broad compatibility with a wide range of applications, services, and IT environments—both cloud-based and on-premises. Through APIs and connectors, these services can integrate with third-party platforms like Microsoft 365, Google Workspace, and popular HR and CRM systems, enabling centralized identity governance across diverse digital ecosystems.
Modern IDaaS solutions support advanced and adaptive authentication mechanisms, including multi-factor authentication (MFA), biometrics, single sign-on (SSO), and risk-based access. These methods enhance security while maintaining user convenience, crucial for protecting sensitive data in an increasingly threat-prone digital landscape.
IDaaS platforms go beyond basic access management to include governance features such as role-based access control (RBAC), automated provisioning/deprovisioning, and compliance auditing. These capabilities help organizations adhere to regulatory standards like GDPR, HIPAA, and SOC 2 by offering visibility and control over identity-related activities.
Major Highlights of the IDaaS Market
With the increasing frequency and sophistication of cyberattacks, particularly identity and authentication-related frauds, organizations are turning to IDaaS to enhance their security frameworks. The need for robust identity verification and access management has become a critical factor in digital transformation strategies.
The global shift to remote and hybrid work models has intensified the demand for secure, flexible, and scalable access solutions. IDaaS enables organizations to manage user identities and secure access to resources from any location, supporting workforce mobility without compromising security.
While large enterprises have traditionally led the adoption of IDaaS, small and medium-sized businesses (SMEs) are increasingly recognizing its value. The scalability and cost-effectiveness of cloud-based identity solutions make them accessible to smaller organizations looking to enhance their cybersecurity posture.
The IDaaS market is witnessing strong traction across multiple sectors, including BFSI (Banking, Financial Services, and Insurance), healthcare, IT and telecom, retail, and government. Each of these verticals has unique regulatory and security requirements, which IDaaS platforms are increasingly tailored to meet.
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Top Companies in the IDaaS Market
The IDaaS market is led by some of the globally established players, such as Okta (US), Microsoft (US), Thales (France), Ping Identity (US), IBM (US), Atos (France), Oracle (US), Salesforce (US). Partnerships, agreements, collaborations, product developments, and acquisitions are some of the various growth strategies by these players to increase their market presence.
Okta is the leading independent identity provider. It offers several products and solutions for IDaaS, including single sign-on, universal directory, advanced server access, API access management, adaptive, multi-factor authentication, and access gateway, and solutions including workforce identity and customer identity. Some of its capabilities are integrating multiple apps, adding account takeover protection, modernizing, and building a platform. Okta offers its solutions to SMEs and large enterprises across different industry verticals, including government, BFSI, IT, education, life sciences, manufacturing, media and entertainment, retail, and transportation.
The company uses Software-as-a-Service (SaaS) business model and generates revenue primarily by selling multi-year subscriptions for its cloud-based offerings. Okta sells its products directly through its field and inside sales teams and indirectly through its network of channel partners, including resellers, system integrators, and other distribution partners. The company has a large customer base across North America, Europe, Asia Pacific, the Middle East, Africa, and Latin America.
Microsoft, a company renowned for developing and supporting a wide spectrum of software, services, devices, and solutions, boasts a product portfolio encompassing Operating Systems (OS), cross-device productivity applications, server applications, business solution applications, desktop and server management tools, software development tools, and video games. Furthermore, in the realm of DaaS, Microsoft Entra offers a diverse array of products and services, including Microsoft Entra, ID, Microsoft Entra Governance, and Microsoft Entra Permissions Management. These solutions are complemented by robust zero-trust security measures, ensuring a comprehensive identity and access management approach. Microsoft also designs, manufactures, and sells an array of devices such as PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories.
Thales Group is a French multinational company that designs and builds electrical systems and provides services for the aerospace, defense, transportation, and security markets. The French government partially owns the company, and it operates in more than 56 countries. Thales Group entered the digital security business after acquiring Gemalto, an international security company. Gemalto majorly operates through various business segments, such as payment and identity, IoT, software monetization, enterprise security, and mobile. Thales has acquired OneWelcome. With the acquisition, Thales will offer a comprehensive Identity Platform enabling organizations of all sizes to manage internal and external identities. The new platform will enable them to bring new businesses online quickly while improving operational efficiency and customer experience, meeting or exceeding regulatory compliance.
Ping Identity headquartered in Denver, Colorado, is a leading provider of identity and access management (IAM) solutions. The company focuses on enabling secure access to applications and services for enterprises. Ping Identity’s platform includes a comprehensive suite of tools such as single sign-on (SSO), multi-factor authentication (MFA), adaptive authentication, and API security. These solutions are designed to provide seamless and secure user experiences while ensuring robust security and compliance. Ping Identity is known for its ability to integrate with a wide range of enterprise applications and IT environments, making it a preferred choice for large organizations looking to enhance their IAM capabilities.
Atos headquartered in Bezons, France, is a global leader in digital transformation, providing a wide range of IT services and solutions, including identity and access management. Atos offers comprehensive IAM solutions that cover identity governance, access management, and privileged access management. Their services are designed to help organizations secure digital identities and manage access across complex IT environments. Atos leverages advanced technologies such as artificial intelligence (AI) and machine learning (ML) to enhance security and efficiency in IAM processes. The company’s deep expertise in cybersecurity and IT services positions it as a trusted partner for enterprises undergoing digital transformation and seeking robust identity management solutions.
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