Austin, July 31, 2025 (GLOBE NEWSWIRE) -- Identity As A Service Market Size & Growth Analysis:
According to SNS Insider, The Identity as a Service (IDaaS) market was valued at USD 9.0 billion in 2024 and is projected to surge to USD 52.4 billion by 2032, registering a robust CAGR of 24.69% from 2025 to 2032. This significant growth is driven by increasing cybersecurity threats, the rapid adoption of cloud-based applications, and the rising demand for secure digital authentication across enterprises. Organizations are shifting toward IDaaS solutions to ensure secure access management, regulatory compliance, and seamless user experiences. Additionally, the growing trend of remote work and BYOD (bring your own device) policies further fuels the need for scalable identity management platforms.
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The U.S. Identity as a Service (IDaaS) market stood at USD 1.3 billion in 2024 and is anticipated to grow significantly, reaching USD 8.0 billion by 2032, at a CAGR of 26.08%. This growth is fueled by the increasing shift to cloud environments, rising cyber threats, and the need for robust access control solutions. Additionally, strict data privacy regulations and the widespread adoption of remote work are driving enterprises to invest in secure, scalable identity management platforms.
Major Players Analysis Listed in this Report are:
- Okta
- Microsoft
- IBM
- Oracle
- Ping Identity
- OneLogin
- ForgeRock
- CyberArk
- Auth0
- RSA Security and others
Identity As A Service Market Report Scope
| Report Attributes | Details |
| Market Size in 2024 | US$ 9.0 billion |
| Market Size by 2032 | US$ 52.4 billion |
| CAGR (2025–2032) | 24.69% |
| U.S. Market 2024 | USD 1.3 billion |
| U.S. Forecast by 2032 | USD 8.0 billion |
| Base Year | 2024 |
| Forecast Period | 2025–2032 |
| Key Regional Coverage | North America (US, Canada, Mexico), Europe (Germany, France, UK, Italy, Spain, Poland, Turkey, Rest of Europe), Asia Pacific (China, India, Japan, South Korea, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (UAE, Saudi Arabia, Qatar, South Africa, Rest of Middle East & Africa), Latin America (Brazil, Argentina, Rest of Latin America) |
Segment Analysis
By Type, Single Sign-On Leads the Identity as a Service Market Due to Growing Demand for Seamless Access and Reduced Password Fatigue
In 2024, the Single Sign-On (SSO) segment captured 29% of the IDaaS market share, driven by the growing demand for simplified and user-friendly login experiences. As enterprises expand cloud adoption and remote work, centralized access control becomes critical. SSO reduces password fatigue, enhances security, and enables seamless cross-platform access—making it the preferred choice for modern identity management.
By Deployment, Public Cloud Dominates IDaaS Market as Businesses Prioritize Scalability, Cost Efficiency, and Rapid Deployment
In 2024, the Public Cloud segment accounted for 49% of the IDaaS market revenue, driven by its scalability, affordability, and quick setup. Organizations of all sizes prefer public cloud solutions for immediate access to identity services without heavy infrastructure costs. This trend continues to gain momentum, propelled by widespread digital transformation and the growing demand for flexible, scalable identity governance solutions.
By End-Use, BFSI Sector Leads IDaaS Market Growth Driven by Regulatory Needs, Cybersecurity, and Demand for Secure Digital Banking
In 2024, the BFSI segment held a dominant share of the IDaaS market, fueled by the need for secure, compliant, and seamless customer onboarding. With rising cyber threats and fraud risks, banks and financial institutions are rapidly adopting identity solutions. Continued investment in AI-based authentication and zero-trust security models is expected to further strengthen this trend.
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Identity As A Service Market Segmentation
By Type
- Single Sign-On
- Multifactor Authentication
- Provisioning
- Password Management
- Directory Services
- Audit, Compliance & Governance
By Deployment
- Public Cloud
- Private Cloud
- Hybrid Cloud
By End-Use
- BFSI
- IT & ITeS
- Manufacturing
- Government
- Telecom
- Energy and tilities
- Healthcare
- Others
North America Leads IDaaS Market with Strong Tech Presence, Regulatory Compliance, and Focus on Zero-Trust Security
In 2024, North America captured 39% of the IDaaS market share, driven by a robust tech ecosystem, stringent data protection laws, and rising cybersecurity threats. Cloud adoption, AI integration, and zero-trust frameworks are fueling growth. As organizations upgrade security frameworks to comply with evolving regulations, the region is expected to maintain its dominance in scalable, secure identity management solutions.
Identity as a Service (IDaaS) Market USP’s
• USP 1 – Zero Trust Architecture Alignment Matrix
Enables clients to assess IDaaS compatibility with Zero Trust models, ensuring security investments align with modern enterprise frameworks.
• USP 2 – Industry-Specific Adoption Maturity Map
Provides vertical-wise insights on IDaaS deployment levels, helping clients benchmark themselves and prioritize relevant use cases.
• USP 3 – Total Cost of Ownership (TCO) & ROI Modeling
Helps clients evaluate long-term cost implications and value realization when replacing or integrating existing IAM systems with IDaaS.
• USP 4 – Data Residency & Sovereignty Compliance Guide
Supports legal and regulatory decision-making by detailing how IDaaS vendors handle sensitive identity data across jurisdictions.
• USP 5 – Authentication Modality Innovation Tracker
Equips clients with visibility into the latest advancements in passwordless and biometric authentication, enabling future-ready user access strategies.
• USP 6 – Vendor Ecosystem & Integration Depth Assessment
Helps clients identify platforms that seamlessly integrate with existing enterprise tools, reducing deployment friction and increasing scalability.
• USP 7 – Decentralized Identity & Web3 Readiness Index
Offers a forward-looking view into how vendors are preparing for self-sovereign identities and blockchain-enabled trust models.
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