Identity as a Service Market Size

Identity as a Service Market Size

Identity as a Service (IDaaS) Market size was valued at USD 7.2 billion in 2023 and is estimated to register a CAGR of over 24% between 2024 and 2032. The growing adoption of cloud services across various industries has been a significant driver for the market. As organizations migrate their infrastructure, applications, and data to the cloud, there is a heightened need for secure and scalable identity and access management solutions. IDaaS offers a centralized and cloud-based approach to managing user identities, enabling organizations to control access and enhance security in a cloud-centric environment efficiently.

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Against this backdrop, in December 2022, Entrust, a trusted provider of payments, identities, and digital infrastructure, expanded its offerings by making its cloud-based identity and access management (IAM) solution available on AWS Marketplace. The Entrust Identity as a Service is a cloud-based solution featuring passwordless login, multi-factor authentication (MFA), and risk-based adaptive authentication. This comprehensive solution supports the implementation of a zero-trust security approach. More innovations and efforts in this direction will help carve a healthy growth trajectory for the market.
 

Rising concerns about cybersecurity and data privacy will be a key factor strengthening the IDaaS market forecast through 2032. With the escalating frequency and sophistication of cyber threats, organizations are prioritizing cybersecurity and data privacy. In the year 2022, IT Governance identified 1,063 security incidents, leading to the compromise of 480,014,323 records. This indicates a 14.8% reduction in security incidents compared to the previous year, 2021, which recorded 1,243 incidents. IDaaS solutions provide advanced authentication and authorization mechanisms, helping companies bolster their security postures.
 

However, many enterprises have established on-premises legacy systems and applications that may not seamlessly integrate with cloud-based IDaaS solutions. The complexity of integrating IDaaS with existing infrastructure, applications, and directories can be a barrier to adoption. Organizations may face challenges in ensuring a smooth transition without disrupting existing workflows and processes. Integration difficulties can slow down the adoption of IDaaS, especially in large enterprises with complex IT environments, which may impact industry dynamics.