Identity as a Service Market Size, Share & COVID-19 Impact Analysis, By Solution (Single Sign-on (SSO), Multi-factor Authentication (MFA), Provisioning, Privacy Management, Password Management, Advanced Authentication, Others), By Deployment (Public Cloud, Private Cloud, Hybrid Cloud), By Enterprise Size (SMEs, Large Enterprise), By End User (IT & Telecom, BFSI, Retail, Healthcare, Government, Education, Others), and Regional Forecast, 2022-2029

Global identity as a service market size was valued at USD 3.99 billion in 2021 and is projected to grow from USD 4.92 billion in 2022 to USD 23.88 billion by 2029, exhibiting a CAGR of 25.3% during the forecast period (2022-2029). North America accounted for a market value of USD 1.44 billion in 2021. Based on our analysis, the global market exhibited a decline of 21.8% in 2020 as compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with identity as a service experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.

The solutions considered in the scope include Atos Evidian, PingOne Cloud Platform, Salesforce Identity, and NetIQ Identity Cloud Services.

IDaaS for enterprise is a cloud-based subscription model of identity and access management system. Rapid digitalization and cloud adoption is likely to fuel the demand for identity management solution across industries. Also, stringent government compliances for consumer data protection will support the market expansion in future. Similarly, increasing data breach attacks across industries drive the identity as a service IDaaS market growth. For instance, in April 2020, Atos SE expanded its identity services with cybersecurity capabilities to ensure strong data safety.

COVID-19 Impact  

Digital Shift Amid COVID-19 Pandemic to Boost Market Growth

Large, small, and medium enterprises shifted their entire business operation on the online digital platform during the pandemic crisis. Industries such as retail, IT and telecom, healthcare, and BFSI adopted cloud-based solutions and applications to provide personalized services to customers due to the stay-at-home restriction. This factor has significantly increased the personal and sensitive information on online platforms, thus increasing the data security risk.

This data safety risk fuels the demand for identity as a service across the industries. The demand for data privacy compliance with identity framework is growing post-pandemic. For instance, amid pandemic, the National Health Service of England is adopting digital IDs to check health care professional. Thus, the pandemic has opened the doors for controlled and monitored solutions, offering access to sensitive data. This factor is expected to fuel the identity as a service market growth post-pandemic.

LATEST TRENDS

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Blockchain-based Identity Management to Expand Market Opportunities 

Blockchain offers security, transparency, and more features that add value to several industries' businesses. The technology also offers promising capabilities for identity as a service through its decentralized network. The radical shift to digital platforms and growing data breaching risk are likely to fuel the demand for blockchain technology in identity management. As per the Identity Fraud Study report of 2021, identity fraud scams accounted for USD 43 billion losses in 2021.

Along with providing encrypted and immutable data maintenance cryptographic security, the technology offers traceable digital identity security. It also improves the vulnerabilities of weak password protection. By adopting blockchain-based identity management, the analytical data scandals related to Facebook and Google can be recognized. The Self-Sovereign Identity and the technology can benefit from the control and complete ownership of one’s own data. Similarly, the non-custodial logins based on the blockchain can control users’ data. For instance, MetaMask offers a blockchain-based application for secure login, token wallet, and digital payments by keeping the user's data secured. Thus, there is more control on personal data to boost blockchain-based identity as a service.

DRIVING FACTORS

Growing Regulatory Compliances for User Data Protection to Drive Market Growth

The countries worldwide are implementing strict regulations on using customer data. Some of the regulations include the General Data Protection Regulation (GDPR), Personal Information Protection and Electronic Documents Act, California Consumer Privacy Act, Act on Protection of Personal Information, and many more. These regulations are more focused on adopting good and ethical practices on utilizing digitally generated data. Thus, this is encouraging customer trust and enhancing the user experience. The growing illicit practices of using clients’ sensitive data for organizational growth have fueled the need to adopt these regulations. For instance, in 2018, under GDPR, Facebook LLC and Google LLC were fined USD 9.3 billion, despite which, some legal cases still run under the violation of GDPR.

The strategically implemented identity as a service is expected to meet these regulation compliances. The solution offers capabilities that ensure authorized and authenticate access to the data. Thus, it helps prevent data breaches externally and misuse of the stored data internally from the organization. As of today, the fine imposed on data breaches is similar to the risk of data protection. Thus, increasing regulatory compliance worldwide is expected to surge the identity as a service market share.

RESTRAINING FACTORS

Sudden Downtime and Technical Error to Hinder Market Expansion

The market expansion faces challenges due to the service outage caused by human or technical error. This service outage locks the access to the data and causes severe losses to the clients operating on it. For instance, in March 2017, due to human error, Amazon Web Services took various servers offline, thus causing inconvenience to the users. Further, the users are concerned about their data as the service provider can also face a data breach. For instance, in June 2017, the U.S.-based OneLogin, an identity management provider, suffered a security breach and compromised the customer’s data. Such technical errors are expected to hamper the market growth.

SEGMENTATION

By Solution Analysis

Minimal Password Requirement is Likely to Drive Single Sign-on Demand

Based on solution, the market is categorized into single sign-on, multi-factor authentication, provisioning, privacy management, password management, advanced authentication, and others. Some of the solutions studied include Okta, Google Identity Platform, IBM Cloud IAM, and SailPoint Identity Platform.

Single sign-on is estimated to gain maximum revenue share owing to its single password capability for multiple or integrated applications. Along with offering a seamless user experience, it helps in lowering the surface attack.

Advanced authentication is likely to witness rapid growth during the forecast period. The solution provides different authentication methods such as through fingerprint, one-time passwords, or cards to ensure secured access to the devices or application. For instance, in 2021, the Netherlands-based care organization, Carante Group, adopted NetIQ advanced authentication to offer seamless and secured access to patient data for its care workers. Its flexibility of adopting multiple authentication systems and support through various operating systems fuels advanced authentication demand.

Privacy management is likely to gain significant growth as more organizations use clients and users' data. To ensure the consent and privacy of the users, the demand for privacy management is likely to surge its demand. Similarly, features such as password-less access with double source authentication boost multi-factor authentication revenue share.

By Deployment Analysis

Higher Data Security Risk in Public Cloud to Fuel IDaaS Demand

By deployment, the market is categorized into public cloud, private cloud, and hybrid cloud.

Public cloud is expected to dominate the market and witness rapid CAGR during the forecast period due to its rich pool of services. Also, increasing data security risk is likely to surge the implementation of the IDaaS platform across organizations. As per the State of Cloud Security 2020 Sophos’ report, 7 out of 10 organizations witnessed public cloud security breaches in 2019.

The private and hybrid cloud is likely to showcase significant growth due to increasing digital cloud-based storage. The flexibility of accessing data at any time from any location is likely to fuel the demand for identity management across industries.

By Enterprise Size Analysis

Growing Digitalization Funds to Fuel Identity Management Services in Large Enterprises

By enterprise size, the market is categorized into large enterprises and small & medium enterprises (SMEs).

Large enterprises capture maximum market share owing to the growing digital transformation. Adopting remote working, bringing your own device or accessing data from any location is likely to fuel the demand for identity management in large enterprises. Also, the concerns for data security have increased significantly. This factor is expected to boost the market growth.

Due to increasing cybersecurity attacks, small and medium enterprises are likely to showcase rapid growth during the forecast period. SMEs are likely to invest in the service to reduce fake users and data breaches.

By End User Analysis

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Increasing Amount of Highly Sensitive Data to Drive Identity Management Solution Demand in BFSI   

By end user, the market is categorized into IT & telecom, BFSI, retail, healthcare, government, education, and others.

BFSI is expected to dominate the segment share during the forecast period. The industry significantly invests in identity management solutions to ensure clients and employees trust and secure transactions. As digital banking is taking pace, so is data protection vulnerabilities. As per the Norton Cybercrime Report, it is estimated that almost 40% of users adopt weak password and do not change it regularly.

IT and telecom to gain significant revenue share being a prime target for fraudulent activities. As per the U.K.’s fraud prevention agency, Cifas, telecom witnessed a significant rise in frauds in 2019.

Healthcare is expected to witness rapid growth during the forecast period as the industry operates with highly sensitive data. With growing strict regulations for data protection for the healthcare industry, the implementation of identity as a service tool is expected to make a genuine impact. Similarly, the demand from customers for personalization, omnichannel experiences, and control over data is growing for the retail industry. Thus, to ensure an easy shopping process across all the platforms without compromising the data security, the adoption of IDaaS is likely to grow significantly.

REGIONAL INSIGHTS

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The global identity as a service market scope is classified across five regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America is expected to gain maximum revenue share with a market size of USD 1.44 billion in 2021. The region's significant shift toward cloud-based technology is likely to surge the demand for IDaaS platforms across enterprises. The United States is likely to witness maximum market share due to increasing demand for user identification solutions to lower security breaches. The exponentially growing personal and important online data boosts the North America market growth.

Asia Pacific is expected to witness rapid growth during the forecast period owing to the digitalization shift. This shift fuels the number of consumers, clients, and employees on digital platforms, thus, compelling in implementing identity as a service to manage data security. India to gain significant CAGR due to continuous government investment in digital portals and consumer data safety solutions. The demand for IDaaS is likely to gain traction with the growing adoption of United Payment Interface and other digital payment systems in the country.

Europe is estimated to showcase significant growth during the forecast period. There is rapid migration of European companies on cloud to boost the market growth. As per the 2020 Accenture Europe Cloud Continuum report, 35% of European workload is already on the cloud and is still growing. Thus, the new cloud-based solution is expected to surge the demand for cloud-based identity management services to reduce fake logins and authentications.

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South America’s growing focus on intellectual property protection strategies is expected to attract various key investments in Brazil, Argentina, and others. For instance, in November 2021, American Films, Inc. expanded its business operation of identity services in Brazil. Similarly, there is steady digital and cloud transformation adoption in the Middle East & Africa to drive the market growth.

KEY INDUSTRY PLAYERS

Focus on Global Expansion with Innovative Solution to Boost Market Share

The key players in the market are focused on offering seamless verification and identity management solutions. The major players are significantly investing in building and developing innovative solutions per the industries' specific requirements. The players are collaborating with organizations across industries to increase the adoption of digitalization and bring your own device policies. The key market players continuously invest in acquisition, partnership, and gaining new customers and expertise to expand market presence.

May 2021 – JumpCloud Inc. announced the launch of a one-touch multi-factor authentication solution, JumpCloud Protect, for iOS and Android devices. It offers seamless employee verification when accessing corporate IT data through its one-touch, time-based, one-time password capabilities.

May 2020 – CyberArk Software Ltd. acquired California-based IDaptive Holdings, Inc. to offer its platform with higher security. The company aims to offer AI-powered solutions with reduced security risks.

List of Key Companies Profiled:

• Ping Identity Corporation (Colorado, U.S.)


• OneLogin Inc. (California, U.S.)


• Atos SE (Bezons, France)


• Microsoft Corporation (Washington, U.S.)


• Oracle Corporation (Texas, U.S.)


• Salesforce Inc. (California, U.S.)


• Google LLC (California, U.S.)


• CA Technologies, Inc. (California, U.S.)


• SailPoint Technologies Inc. (Texas, U.S.)


• IBM Corporation (New York, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2021 – Auth0 released an identity platform with a private cloud-based deployment feature in partnership with Microsoft Azure. The cloud deployment options provide secured and higher control on customer data.


• March 2020 – Ping Identity Corporation launched the Customer360 solution containing multifactor authentication, single sign-on, user directory, and more services. It offers lesser authentication procedures without password requirements and other tailored customer preferences.

REPORT COVERAGE

An Infographic Representation of Identity as-a-Service(IDaaS) Market

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The market research report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and IDaaS market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

REPORT SCOPE & SEGMENTATION