IDaaS Market
Report ID: SQMIG45B2298
Report ID: SQMIG45B2298
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Report ID:
SQMIG45B2298 |
Region:
Global |
Published Date: February, 2026
Pages:
191
|Tables:
96
|Figures:
71
Global IDaaS Market size was valued at USD 8.75 Million in 2024 and is poised to grow from USD 10.94 Million in 2025 to USD 65.19 Million by 2033, growing at a CAGR of 25.0% during the forecast period (2026-2033).
The IDaaS market has quickly evolved from being an emerging market to a foundation component for all facets of cyber security and digital identity management.
This growth has been fueled by the increase in cloud computing, an influx of more complex cyber threats, and the ongoing transition to a remote and hybrid workforce. Organizations are now moving to develop large-scale, Cloud-native Identity Platforms to centralize the management of authentication, access control, and governance across many different types of users/devices/applications. These cloud-based IDaaS solutions (e.g., Public Cloud), are dominating global implementations for their scalability, ability to easily integrate with SaaS applications, and capacity to enforce uniform security policies across multi-cloud and hybrid IT environments, thus reducing the complexity of security environments while helping organizations comply with privacy regulations.
Another strong driver of the market is the emergence of zero trust security frameworks. Many enterprises have identified the need for real-time risk-based access controls, single sign-on, and multi-factor authentication to safeguard sensitive resources. The healthcare, BFSI, and manufacturing industries are leading the way in adopting IDaaS (Identity as a Service) due to their high levels of compliance and growing number of applications, making traditional/on-premise identity management models no longer feasible.
How AI Impacts the IDaaS Market?
By using AI, the IDaaS market is shifting to offer better protection and security of identities through more intelligent means to help protect organizations from increasingly automated cyberattacks and improve user experiences with features such as adaptive authentication and passwordless logins.
Through the integration of artificial intelligence (AI) and machine learning into their IDaaS offerings, organizations can leverage advanced analytics that allow them to analyze vast amounts of identity, behavioral, and usage data in real time to detect anomalies, provide predictive capabilities for potential threats, and, ultimately, to dynamically adjust their identity access management policies based on risk scores rather than relying solely on predefined/static identity access rules. As a result, organizations have access to a powerful framework for strengthening their defenses against automated and artificial intelligence (AI) driven attacks.
This new feature highlights a significant shift in how AI-enabled analytics and automated threat responses will differentiate IDaaS offerings and will provide organizations with the ability to shorten their incident response times and strengthen their security posture.
Market snapshot - 2026-2033
Global Market Size
USD 10.94 Billion
Largest Segment
Multifactor Authentication
Fastest Growth
Single Sign-On
Growth Rate
25.00% CAGR
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Global IDaaS Market is segmented by Solutions, Deployment, Organization Size, End-use Verticals and region. Based on Solutions, the market is segmented into Authentication, Provisioning and Privacy Management. Based on Deployment, the market is segmented into Public Cloud, Private Cloud and Hybrid Cloud. Based on Organization Size, the market is segmented into Small and Medium Enterprises and Large Enterprises. Based on End-use Verticals, the market is segmented into Banking, Financial Services & Insurance, Energy & Utilities, Government, Manufacturing, Healthcare, Telecommunications, Retail & E-commerce and Other Verticals. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
How Is Single Sign-On Driving Secure and Seamless Access in IDaaS?
Single sign on is projected to account for a dominant global IDaaS market share. The need for easy and secure access in multiple organizations is increasing rapidly and single sign on identity as a service provide just that, which has helped them gather a substantial share in this market. Single sign-on allows users to access multiple platforms and applications using a single set of secure credentials thereby helping in lowering the risk of phishing significantly for all users. Use of single sign on with multi factor authentication is a key trend that is expected to help this segment maintain its dominance.
As per IDaaS market analysis, multifactor authentication segment is the fastest growing in the market. The growing complexity and sophistication of cyberattacks have led to a high demand for multiple layers of security in the digital world. Rising use of multifactor authentication identity as a service solution in multiple industry verticals to enhance their digital asset security is expected to create robust new opportunities for all market players via this segment going forward. Use of multifactor authentication identity as a service solution also helps in improving customer trust thereby also promoting the brand image.
How Is Public Cloud Driving Scalability and Cost Efficiency in IDaaS?
Public cloud is forecasted to be used extensively for identity as a service around the world, thereby helping it holds a major chunk of global market share. High affordability, ease of deployment, and easy scalability are some key benefits of public cloud-based identity as a service allowing this segment to maintain its dominant market share. Use of public cloud for identity as a service also helps in reducing the initial investment for users as they do not need to invest in the development of a massive infrastructure for the same, another factor helping this segment maintain its high IDaaS market share.
As per IDaaS market outlook, the hybrid cloud segment is the fastest growing in the market. Growing awareness regarding the benefits of hybrid cloud with them offering best public and private cloud deployments is estimated to primarily help this segment create new opportunities for identity as a service provider in the future. Moreover, increasing inclination of organizations to deploy hybrid cloud-based identity as a service model will also help this segment boost revenue generation for the market going forward.
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Why Does North America Lead the Global Market?
The IDaaS (Identity as a Service) sector is at its most significant and sophisticated in North America, where over half of all global revenue comes from North American sources. The fast pace of cloud computing growth, coupled with well-developed cybersecurity systems, and an overall encouraging regulatory environment, has fueled North American investment in IDaaS products and services. Additionally, the presence of numerous technology innovators and initial adopters of Cloud-based identity solutions will help keep North America in the leadership role of IDaaS (Identity as a Service).
IDaaS Market in U.S.
The majority of IDaaS revenues produced in North America is generated by the United States, making up a large percentage of the entire market. This is largely due to the high levels of cloud involvement and cybersecurity expenditure seen in the US. As threats continue to escalate and the regulations regarding identity services continue to tighten, US organizations are investing significant money into the use of advanced identity services, including the use of artificial intelligence in the authentication process, using passwordless access methods, and implementing adaptive risk-based controls.
IDaaS Market in Canada
Cloud-based identity services are becoming increasingly popular in Canada among Enterprises as they adopt secure cloud-based identity frameworks. Growth in the Canada market is particularly evident in regulated sectors such as financial services and healthcare. With data protection standards and business continuity measures that must be in place, organizations in both sectors are turning to IDaaS services to meet their obligations.
What Is Driving Rapid IDaaS Growth in Asia Pacific?
Rapidly growing demand for cloud-based IDaaS solutions in the Asia Pacific region is primarily driven by the increased adoption of cloud technology as well as the need to simplify and make more secure existing business processes through modernization. Businesses now have much more demand for scalable, resilient identity-management services that meet the ever-growing requirements of a digitally connected and automated world. The demand for these services will continue to grow driven by businesses growing their e-commerce, fintech, and mobile wallet/commercial apps business operations.
IDaaS Market in Japan
The growing adoption of IDaaS in Japan is continuing to drive modernization of many Japanese companies’ identity-management systems to integrate advanced security features that support new, streamlined ways for companies to conduct business, such as integrating biometric and multi-factor authentication into their existing identity-management systems. Companies in Japan that require high availability secure cloud identity solutions include large manufacturing and technology companies that dominate most of the market for cloud identity services in Japan.
IDaaS Market in South Korea
In South Korea, the growth of IDaaS is also coming from businesses that are increasingly modernizing how they conduct business in the areas of Finance, Telecommunications and Information Technology and placing an increasing amount of focus on making access easier to customers while simultaneously enhancing overall business security. Local companies are implementing artificial intelligence-enabled identity management tools to help control how they manage the digital identities of high-security environments by reducing dependence on authentication using passwords.
How Are Data Protection Regulations Shaping the Market in Europe?
Data protection and privacy regulations underpin much of Europe’s growing market. The introduction of the General Data Protection Regulation (GDPR) has forced organizations to implement robust identity management solutions hence driving the demand for IDaaS solutions across all sectors of industry and, as a result, organizations are actively seeking to comply with EU privacy regulations, continue to invest in new technologies that will allow them to digitally transform their businesses and improve their customers’ experience when accessing services.
IDaaS Market in Germany
Germany is one of the most prominent European countries for IDaaS, with significant demand coming from its industrial sector, advanced manufacturing companies and enterprise security initiatives. Compliance with European privacy regulations has continued to encourage businesses in Germany to adopt strong authentication methods and make investments in strong identity management solutions.
IDaaS Market in U.K.
The UK is experiencing a high level of IDaaS use specifically in the financial services and public sector where secure authentication and governance of identity are of high importance. Both the regulatory environment concerning GDPR and the increased investment being made into Digital Transformation by UK businesses are driving demand for IDaaS solutions within this region.
IDaaS Market in Italy
Italian SMEs and large enterprises are starting to adopt more Cloud-based identity solutions and thus driving up demand for IDaaS. As Italian businesses adopt Cloud-based identity and access management solutions, many more organizations will be looking to utilize Stable IDaaS solutions to simplify their IT processes.
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IDaaS Market Drivers
Rising Incidence of Cyberattacks
Rapid Cloud Adoption and Remote Workforce Expansion
IDaaS Market Restraints
Complexity in Integration
Lack of Awareness
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Global IDaaS industry offers a number of options for a company. IDaaS is composed of several large established players and emerging specialized companies that compete against one another to deliver safe, scalable, and intelligible identity management services.
IDaaS is being developed at an increasing rate by major organizations such as Okta, and AWS (Amazon Cognito), thus fulfilling market demand through sustained innovation, forming collaborative partnerships, and large-scale use by enterprises in several verticals including Financial Services (BFSI) and the Government sector.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per Skyquest analysis, rising incidence of data breaches and cyberattacks and increasing number of remote workers are forecasted to drive up the demand for identity as a service over the coming years. However, dearth of skilled professionals and challenges in integration are expected to slow down IDaaS market growth potential in the future. Quick adoption of advanced technologies and imposition of strict data privacy and security mandates help North America account for a dominant market share. Use of decentralized and zero trust approaches will help identity as a service companies to stand out from the competition and boost revenue generation in the long run.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 8.75 Million |
| Market size value in 2033 | USD 65.19 Million |
| Growth Rate | 25.0% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Million |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the IDaaS Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the IDaaS Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the IDaaS Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the IDaaS Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Global IDaaS Market size was valued at USD 10.94 Billion in 2025 and is poised to grow from USD 13.67 Billion in 2026 to USD 65.19 Billion by 2033, growing at a CAGR of 25.00% during the forecast period (2026-2033).
Global IDaaS industry offers a number of options for a company. IDaaS is composed of several large established players and emerging specialized companies that compete against one another to deliver safe, scalable, and intelligible identity management services. 'Salesforce Inc.', 'OneLogin', 'Broadcom', 'SecureAuth', 'Microsoft CORPORATION', 'CyberArk', 'Evdian', 'ForgeRock', 'Okta Inc.', 'One Identity LLC', 'IBM CORPORATION', 'ORACLE CORPORATION', 'HID Global', 'McAfee', 'Ping Identity'
High prevalence of data breaches and cyberattacks around the world owing to increasing complications of viruses and threats has led to a high demand for better security. Identity as a service solution helps fend off cyberattacks and improves the security of organization and consumer data. This increase in cyberattacks is primarily promoting identity as a service demand.
Zero Trust Approach: Identity as a service vendors can focus on developing new solutions that utilize the zero trust approach that has been gaining massive popularity in the world of digital security. This approach is highly beneficial for identity as a service companies looking to maximize their business in a remote-first and cloud-driven work environment.
Why Does North America Lead the Global Market?
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