From 2025 to 2035, the Identity-as-a-Service (IDaaS) market is likely to show impressive growth due to cloud-based identity security needs, strict regulatory compliance, and zero-trust architectures gaining favor. It is forecast to grow from USD 16.15 billion in 2025 to USD 229.56 billion by 2035, an annual compound growth rate (AAGR) of 30.4%.
As companies move to hybrid or remote work, keeping user identities secure and controlling access to the many digital platforms is a major task. Multi-factor authentication (MFA), AI-based identity verification, and biometric authentication are all driving widespread interest in IDaaS solutions.
Stronger compliance identity management to provide audit protection is popular among firms, with regulations such as GDPR, the California Consumer Privacy Act, and HIPAA (Health Insurance Portability and Accountability Act) making this a must. Identity-as-a-Service (IDaaS) is a cloud-based identity management service that enables organizations to track users, authenticate the user, and enforce different sets of security policies across an application or network.
With IDaaS providing not only a sustainable but centralized approach to scaling security through identity, it does away with the need for on-premises identity infrastructure. By adopting IDaaS platforms, companies are tackling issues such as the increasing sophistication of cyber-attacks and the execution of digital transformation projects to manage user identities, increase operational efficiency, and assure compliance with regulations. The IDaaS industry has a few issues to overcome, despite its strong growth prospects.
When combined with legacy systems, the difficulty of integration could rather smooth adoption. The fear of data privacy and reliance on third-party suppliers associated with IDaaS, which is cloud-based, could hinder organizations' full adoption of cloud identity management. IDaaS security frameworks are also having to evolve continuously in response to increasingly complex forms of cyber-attacks such as credential stuffing and identity theft. Emerging trends and technological advances are opening up a new era for the IDaaS industry.
AI and machine learning are converging to provide real-time threat detection as well as automatic verification of identities. Blockchain-based identity management, which emerges in various guises – such as decentralized authentications and tamper-resistant, easily verifiable solutions – continues along its developmental path.
Increasing employ of password less portions together with flexible access control is also raising user convenience lest security suffer discomfort. As companies continue to focus on digital identity protection and zero-trust architectures, the IDaaS industry will continue to see innovation, wide acceptance and long-term development.
| Metrics | Value |
|---|---|
| Industry Size (2025E) | USD 16.15 billion |
| Industry Value (2035F) | USD 229.56 billion |
| CAGR (2025 to 2035) | 30.4% |
Explore FMI!
Book a free demo
The IDaaS market is expanding rapidly as a result of the increasing incidences of cyber threats, the gradual uptake of cloud-based solutions, and the stringent regulatory demands. The providers of the service to, first and foremost, enhance security, target on multi-factor authentication (MFA), single sign-on (SSO) and adaptive authentication delivery. Enterprises pursue the easy-to-scale and affordable solution that blends in the current IT environment and identity management streamlining.
-market-players.jpg "Identity As A Service (idaas) Market Players")
IT managers mainly maintain workforce and customer identities by means of automation, compliance and role-based access control (RBAC). Users are on demand for easy sign-in, high-level security, and trust in the privacy of their data when they are utilizing different applications on different devices.
The primary determinants of purchasing decisions include compliance with the global data protection laws (GDPR, CCPA), easy-to-installment, compatibility with third party apps, and the use of AI for the detection of threats. In the -a-zero-trust eroding environment, digital identities and the use of IDaaS to mitigate the risk of unauthorized access are gaining prompter necessity as organizations migrate to-cloud.
Contract & Deals Analysis – Identity as a Service (IDaaS) Market
| Company | Contract Value (USD Million) |
|---|---|
| Okta, Inc. | Approximately 110 - 120 |
| Microsoft Azure Active Directory (Entra ID) | Approximately 100 - 110 |
| Ping Identity | Approximately 90 - 100 |
| IBM Security Verify | Approximately 80 - 9 |
From 2020 to 2024, the industry experienced impressive growth rate as cloud computing was embraced and individuals began working from their homes. Secure authentication and multi-factor authentication (MFA) were at the forefront of organizations' lists to protect users' data. Regulatory compliance, such as GDPR and CCPA, also spurred IDaaS adoption, particularly for banking, healthcare, and government institutions.
However, integration problems with legacy infrastructure and third-party ownership of data were concerns for widespread adoption. From 2025 to 2035, there will be a continued expansion as AI-driven identity verification, decentralized Identity, and password-less authentication go mainstream. Self-sovereign identity (SSI) solutions will gain grip. Enhanced biometric authentication capabilities will improve the quality of security. Adaptive authentication and zero-trust security frameworks will gain traction among businesses, with ongoing identity verification to combat evolving cyber threats.
A Comparative Market Shift Analysis 2020 to 2024 vs. 2025 to 2035
| 2020 to 2024 | 2025 to 2035 |
|---|---|
| AI-enhanced IDaaS solutions improved real-time identity verification, reducing identity fraud in banking, healthcare, and e-commerce. | AI-powered, self-learning identity platforms autonomously detect anomalies, dynamically adjust authentication levels, and provide biometric-based fraud prevention for ultra-secure transactions. |
| Organizations shifted to multi-factor authentication (MFA), including facial recognition, fingerprint scans, and behavioral biometrics. | AI-born IDaaS environments do away with passwords altogether, using continuous authentication, behavioral AI, and decentralized biometric identity frameworks for frictionless access control. |
| Companies experimented with blockchain-based identity solutions to provide users with greater control over their digital identities. | AI-enabled decentralized identity (DID) networks give users verifiable credentials, privacy-preserving authentication, and identity portability across metaverse and Web3 applications. |
| Organizations adopted zero-trust security frameworks, imposing stringent identity authentication for all users and devices. | AI-based, context-aware IDaaS solutions dynamically manage user permissions in real-time risk analysis, providing frictionless, adaptive access control in hybrid workspaces. |
| The expansion of interconnected devices grew the demand for identity management in IoT ecosystems. | IDaaS solutions with AI ensure real-time, decentralized identity authentication of IoT devices to secure smart cities, autonomous systems, and industrial edge networks. |
| Businesses adopted cloud-based IDaaS solutions to incorporate authentication across multi-cloud and hybrid environments. | AI-tuned, multi-cloud identity management orchestrates access policies on its own to ensure frictionless authentication across public, private, and edge computing platforms. |
| Companies tested digital avatars and virtual identity solutions for secure online authentication. | AI-infused, metaverse-native identity solutions offer decentralized, interoperable authentication, which allows real-time trust verification and fraud detection in immersive virtual environments. |
| Businesses favored energy-efficient authentication mechanisms to streamline cloud-based identity services. | AI-based, carbon-aware IDaaS solutions utilize blockchain-based energy-efficient authentication, cutting down on computation overhead while being ultra-secure for identity verification. |
The Identity-as-a-Service (IDaaS) market has a concern about the threat of cyber-attacks, regulatory non-compliance, technology failure, absence of competition, and customer adoption issues.
The greatest risk with security is that IDaaS solutions contain sensitive user credentials, multi-factor authentication (MFA), and access management. The risks, such as data breaches, identity fraud, and API vulnerabilities, can result in extensive financial and reputational losses. The key to mitigating these threats is the implementation of zero-trust security models, AI-powered fraud detection, and ongoing monitoring.
Technological disruptive phones such as biometric authentication, decentralized identity (blockchain-based identity management), and AI-powered identity verification pose a threat to traditional IDaaS models. Continuous innovation will be a prerequisite for the providers to back up the latest authentication methods and incorporate changes in the IT ecosystem
The competitive pressure by established brands such as Okta, Microsoft Azure AD, IBM Security Verify, and Google Cloud Identity has led to the lowering of product prices and the search for other differentiating features. New players must present large-scale, feature-rich, and cheap solutions in order to be able to obtain a percent share in the industry.
Customer adoption problems are wreaking havoc as firms are changing the environment from on-perm identity management (IAM) to cloud-based IDaaS. Fear of integration complexity, data migration, and vendor lock-in can decelerate acceptance. Utilizing hybrid IAM solutions, API-driven integrations, and creating better user experiences would indirectly boost the adoption rate.
Single Sign-On (SSO): Reducing Identity Management Complexity
Single Sign-On (SSO) technology revolutionizes identity management through convenient access to various applications with simple authentication. Organizations use SSO-sourced IDaaS solutions for easier convenience, security, and password-malady vulnerability eradication.
With increasing demand for SSO solutions, industries are implementing centralized authentication protocols for simplified access, automated compliance, and enhanced user experience. Companies invest in advanced SSO solutions to counter login convenience, protect against credential-based attacks, and offer secure access in digital spaces.
Public Cloud Deployment: Facilitating Scalable IDaaS Solutions
Public cloud Identity-as-a-Service (IDaaS) solutions revolutionize business security with elastic, cost-effective, install-and-go identity management. Companies increasingly use public cloud IDaaS to secure remote access, optimize operational effectiveness, and safeguard data.
With the popularity of cloud identity solutions, organizations use AI-powered automation, real-time protection against threats, and dynamic security controls. Organizations implement public cloud Identity to enhance cybersecurity, reduce compliance complexity, and enable secure authentication across global networks.
The United States Identity-as-a-Service (IDaaS) market is expanding rapidly, driven by increasing demand for secure authentication, identity governance, and cloud-based access management. The U.S. enterprise sector is leveraging IDaaS platforms to enhance cybersecurity, prevent data breaches, and comply with stringent regulatory requirements. With ongoing investments in AI-powered identity verification, zero-trust security frameworks, and multi-factor authentication (MFA), the demand for IDaaS solutions continues to grow. In 2024, the U.S. corporate and government sectors invested over USD 15 billion in cloud-based identity management solutions.
Growth Factors
| Country | CAGR (2025 to 2035) |
|---|---|
| United States | 10.8% |
China’s Identity-as-a-Service market is growing due to rapid advancements in digital identity solutions, increasing adoption of biometric authentication, and government-backed initiatives promoting data security and cyber resilience. As one of the world’s largest technology markets, China is witnessing a surge in demand for IDaaS solutions across financial services, e-commerce, and enterprise IT. The government’s focus on digital security and data sovereignty has further fueled market growth. In 2024, China invested USD 18 billion in AI-powered identity management and access control solutions.
Growth Factors
| Country | CAGR (2025 to 2035) |
|---|---|
| China | 11.2% |
Germany’s Identity-as-a-Service market is accelerating due to its strong regulatory environment, increasing adoption of GDPR-compliant identity management solutions, and growing emphasis on secure enterprise authentication. As one of Europe’s leading IT hubs, Germany is investing in IDaaS for workforce identity verification, cloud security, and privileged access management. The country’s focus on secure, AI-driven identity governance has also driven adoption in businesses and public institutions.
Growth Factors
| Country | CAGR (2025 to 2035) |
|---|---|
| Germany | 9.9% |
Japan’s Identity-as-a-Service market is expanding due to innovations in biometric authentication, increased adoption of AI-powered identity verification, and advancements in cloud-based identity security. The country’s technology sector is leveraging IDaaS platforms for secure workforce authentication, compliance management, and digital transformation. Japan’s leadership in AI-powered identity analytics and cyber resilience has accelerated adoption across industries.
Growth Factors
| Country | CAGR (2025 to 2035) |
|---|---|
| Japan | 10.2% |
India's Identity-as-a-Service market is witnessing rapid growth, fueled by increasing investments in cloud security, rising demand for digital authentication solutions, and government-led initiatives promoting secure digital identity frameworks. With programs such as ‘Digital India’ and the expansion of AI-driven cybersecurity, India is experiencing high demand for IDaaS platforms in banking, e-commerce, and public services. The rise of domestic cybersecurity startups and government-driven biometric authentication projects is further driving market expansion.
Growth Factors
| Country | CAGR (2025 to 2035) |
|---|---|
| India | 11.5% |
Australia’s Identity-as-a-Service market is steadily growing due to increasing investments in cybersecurity, digital identity management, and secure enterprise authentication solutions. Australian enterprises, including financial institutions, healthcare providers, and government agencies, are adopting IDaaS platforms for identity governance, fraud prevention, and compliance management. The country’s commitment to cloud-first security strategies and digital identity protection is driving demand for advanced IDaaS solutions.
Growth Factors
| Country | CAGR (2025 to 2035) |
|---|---|
| Australia | 10.1% |
The IDaaS market is extremely competitive due to increasing cloud-based identity management, cybersecurity compliance, and frictionless authentication demands. IDaaS platforms allow companies to authenticate identities securely, control access, and minimize data breaches while providing scalability and cost-effectiveness.
Top tech vendors like Microsoft Azure AD, Okta Inc., and IBM Security Verify control the market through AI-based security, multi-cloud integration, and zero-trust models. Companies continuously work on conducting their research. They partner with other companies to strengthen their position in the industry.
As companies emphasize zero-trust security architectures, dynamic authentication, and identity governance, competition becomes sharper. Vendors differentiate based on AI, biometric authentication, and risk-based access controls to meet evolving enterprise security needs.
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| Microsoft Azure AD | 20-25% |
| Okta Inc. | 15-20% |
| IBM Security Verify | 10-15% |
| Google Cloud Identity | 8-12% |
| Ping Identity | 5-10% |
| ForgeRock | 4-8% |
| Other Companies (combined) | 30-38% |
| Company Name | Key Offerings/Activities |
|---|---|
| Microsoft Azure AD | Cloud-based identity as well as access management that has zero-trust security integration. |
| Okta Inc. | AI-driven identity verification, multi-factor authentication, and workforce IAM solutions. |
| IBM Security Verify | Enterprise identity governance, AI-powered risk assessment, and seamless user authentication. |
| Google Cloud Identity | Cloud-native identity and access management with strong Google ecosystem integration. |
| Ping Identity | Secure single sign-on (SSO), adaptive authentication, and zero-trust security frameworks. |
| ForgeRock | Scalable digital identity solutions for enterprises, IoT, and customer IAM. |
Key Company Insights
Microsoft Azure AD (20-25%) – Microsoft has Azure Active Directory, offering enterprise-grade identity management, zero-trust architecture, and AI-powered security monitoring.
Okta Inc. (15-20%) – Expertise in cloud identity verification, multi-factor authentication, and adaptive access management for organizations from multiple industries.
IBM Security Verify (10-15%) – Risk-based authentication that uses AI to drive enterprise security.
Google Cloud Identity (8-12%) – Offers good identity and ability to manage access, utilizing AI-driven security and deep integration with Google Cloud services.
Ping Identity (5-10%) – Emphasizes secure single sign-on (SSO), adaptive authentication, and zero-trust security models to improve identity protection.
ForgeRock (4-8%) – Provides scalable identity solutions that are for enterprise applications, IoT ecosystems, and customer identity management.
Other Key Players (30-38% Combined)
The remaining share is distributed among various global and regional IDaaS technology providers, including:
The industry is projected to reach USD 16.15 billion in 2025.
The industry is expected to grow significantly, reaching USD 229.56 billion by 2035.
India is projected to grow at a CAGR of 11.5% from 2025 to 2035, making it the fastest-growing country in the market.
Leading companies include Okta, Ping Identity, Adaptive, Microsoft, Oracle, OneLogin, Auth0, CA Technologies, JumpCloud, and Capgemini SE.
AI-powered identity-as-a-service solutions are gaining widespread adoption in the market.
The industry is segmented by access type into single sign-on, multi-factor authentication, compliance management, directory services, and others.
The industry is segmented by enterprise size into small & medium enterprises and large enterprises.
The industry is segmented by deployment into public, private, and hybrid.
By service type, the industry is segmented into on-site and in-house.
The industry is segmented by application into document verification, authentication/identification, and screening.
The industry is segmented by industry: government, retail & consumer electronics, transportation & logistics, media & entertainment, IT & telecommunication, BFSI, energy & utility, healthcare, automotive, and others.
The industry is segmented by region into North America, South America, Europe, Asia Pacific, the Middle East, and Africa.
Electrochromic Glass Market Analysis - Growth & Forecast 2025 to 2035
Electrical Fuses Market Analysis – Growth & Forecast 2025 to 2035
E-Learning Solution Market by Solution, Deployment, & Region Forecast till 2035
Unified Communication as a Service (UCaaS) Market by Solution, Enterprise Size, Vertical & Region Forecast till 2035
Portable Monitor Market Analysis by Connectivity Type, Screen Type and Screen Size Through 2035
Contract Lifecycle Management Market by Solution, Business Function, Industry & Region Forecast till 2035
Identity As A Service Market
Thank you!
You will receive an email from our Business Development Manager. Please be sure to check your SPAM/JUNK folder too.
