U.S. Identity as a Service (IDaaS) Market – Industry Trends and Forecast to 2031

U.S. Identity as a Service (IDaaS) Market, By Access Type (Single Sign-On, Multi-Factor Authentication, Directory Services, Compliance Management, Provisioning, Password Management, and Others), Deployment (Hybrid, Public, and Private), Service Type (On-Site, and In-House), Enterprise Size (Large Enterprise, and Small and Medium Enterprises), Function (Authentication/Identification, Document Verification, and Screening), End-Use (BFSI, Government, Healthcare, IT and Telecom, Manufacturing, Retail, Aerospace and Defense,  Energy and Utilities, and Others) – Industry Trends and Forecast to 2031.

U.S. Identity as a Service (IDaaS) Market Analysis and Size

Identity as a Service (IDaaS) market offers secure and convenient identity management solutions across various sectors. Its applications include streamlined user authentication for cloud-based services, enhanced security for digital transactions, seamless access control for enterprise applications, and simplified compliance with regulatory requirements, fostering efficient and agile business operations.

Data Bridge Market Research analyses that the U.S. identity as a service (IDaaS) market, which was USD 2.42 billion in 2023, is expected to reach USD 11.71 billion by 2031, at a CAGR of 21.80% during the forecast period 2024 to 2031. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

U.S. Identity as a Service (IDaaS) Market Scope and Segmentation  

Market Definition

Identity as a Service (IDaaS) is a cloud-based identity management solution that provides centralized control and authentication for users across multiple applications and devices. It offers features such as single sign-on, multi-factor authentication, and user provisioning, enhancing security and simplifying access management for organizations.

U.S. Identity as a Service (IDaaS) Market Dynamics

Drivers

• Rising Cyber-Attacks and Frauds in Public and Private Sectors

Rising cyber-attacks prompt heightened demand for identity as a service (IDaaS) solutions, essential across public and private sectors to combat fraud and security breaches effectively. With cyber threats ranked among the top risks, and IoT attacks expected to surge by 2025, the industry is poised for further growth, despite a minimal 0.05 percent detection rate in the U.S.

• Growing Cloud Adoption Offering Accessibility

The surge in cloud adoption is fueling the need for cloud-based identity solutions such as IDaaS. Offering flexibility, scalability, and accessibility, IDaaS aligns perfectly with businesses transitioning to the cloud. Its streamlined approach to identity management addresses the evolving needs of modern enterprises, facilitating secure access to resources and enabling seamless integration within cloud environments.

Opportunities

• Enhanced User Experience and Productivity

IDaaS prioritizes seamless user experiences, vital for productivity and satisfaction. Through features such as single sign-on (SSO), multi-factor authentication (MFA), and self-service options, users enjoy convenient access while maintaining robust security. This blend of ease and protection reflects the commitment of IDaaS solutions to optimizing user interactions in both employee and customer contexts.

• Focus on Digital Transformation Leads to Efficiency

As organizations embrace digital transformation, identity plays a pivotal role in enabling secure access to digital resources and fostering innovation. Identity as a service (IDaaS) solutions streamline authentication processes, allowing businesses to adopt new technologies and business models effortlessly. This facilitates agility and efficiency in navigating the evolving digital landscape.

Restraints/Challenges

• Rising Competition for New Players

Rising competition in the IDaaS market intensifies the pressure on companies to differentiate their offerings, innovate rapidly, and invest heavily in marketing and sales efforts to stand out. Smaller or newer players struggle to compete with established providers who already have brand recognition, customer trust, and economies of scale.

• High Implementation and Maintenance Cost

High costs associated with subscription fees, implementation, and ongoing maintenance create a barrier for organizations considering identity as a service (IDaaS). This financial burden discourages adoption, limiting the market reach and preventing businesses from leveraging the benefits of IDaaS solutions for secure and efficient identity management.    

This U.S. identity as a service (IDaaS) market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the U.S. identity as a service (IDaaS) market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Developments

• In June 2021, IBM Corporation launched IBM Security Identity Governance and Intelligence (IGI), addressing security vulnerabilities. This launch enhances their offerings, aligning with market demands
• In April 2021, Okta launched Okta Identity Governance, a cloud-first solution providing self-service identity governance and administration, strengthening Okta's market presence
• In February 2021, Ping Identity launched PingOne Verify, a cloud-based identity verification service utilizing facial recognition for secure customer identity verification, aiding rapid onboarding, authentication, and fraud prevention
• In March 2021, Microsoft launched Azure AD my app and new risk detections for identity protection, streamlining Identity and Access Management. Enhanced customization and controls bolster the company's offerings, fostering market growth

U.S. Identity as a Service (IDaaS) Market Scope

The U.S. identity as a service (IDaaS) market is segmented on the basis of access type, deployment, service type, enterprise size, function, and end-use. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Access Type

• Single Sign-On
• Multi-Factor Authentication
• Directory Services
• Compliance Management
• Provisioning
• Password Management
• Others

 Deployment

• Hybrid
• Public
• Private

 Service Type

• On-Site
• In-House

 Enterprise Size

• Large Enterprise
• Small and Medium Enterprises

 Function

• Authentication/Identification
• Document Verification
• Screening

 End-Use

• BFSI
• Government
• Healthcare
• IT and Telecom
• Manufacturing
• Retail
• Aerospace and Defense
• Energy and Utilities
• Others

U.S. Identity as a Service (IDaaS) Market Regional Analysis/Insights

The U.S. identity as a service (IDaaS) market is analysed and market size insights and trends are provided by country, access type, deployment, service type, enterprise size, function, and end-use as referenced above.

The countries covered in the U.S. identity as a service (IDaaS) market report is U.S.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and U.S. Identity as a Service (IDaaS) Market Share Analysis

The U.S. identity as a service (IDaaS) market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to U.S. identity as a service (IDaaS) market.

Some of the major players operating in the U.S. identity as a service (IDaaS) market are:

• Broadcom (U.S.)
•  Delinea (U.S.)
•  Ilantus Services (India)
•  Exostar (U.S.)
• iWelcome (Netherlands)
•  JumpCloud, Inc. (U.S.)
•  Okta (U.S.)
•  OneLogin (U.S.)
• Oracle (U.S.)
•  Ping Identity. (U.S.)
•  Microsoft  (U.S.)
•  Connectis (U.S.)
•  Thales (France)
• Capgemini (France)
• One Identity LLC (U.S.)