Identity As A Service Market growing at a CAGR of 25.3% from 2024 to 2030

Request Free Sample Report: https://www.grandviewresearch.com/industry-analysis/identity-as-a-service-market/request/rs1

The growing number of routine activities and businesses moving online is causing organizations and individuals worldwide to depend more on digital media and communication networks. Cybercriminals began exploiting the situation to wreak havoc worldwide. The growing use of cloud computing and other connected technologies is driving the adoption of IDaaS for compliance even more.   

IDaaS (Identity as a Service)is a structure that enables the cloud service provider to provide identity and access management within a public cloud. Due to its cloud capabilities, such as flexibility and usage-based payment, IDaaS is suitable for various sectors and companies. Organizations and industry players are increasingly aware of the importance of digital identity management due to the significant increase in the digital labor force. Remote employees working from outside the company’s network can access various business processes, increasing the potential risks for organizations.

Incorporating cutting-edge technologies such as blockchain, AI, and machine learning is a trend that is gaining popularity. Automated systems are increasingly replacing human workers, mitigating potential drawbacks. These advancements allow computers to discover undisclosed insights without specific programming and automatically generate analytical models. Identity-as-a-service (IDaaS) solution providers can utilize analytics based on machine learning to evaluate vast amounts of data and behaviors related to access. Observing and documenting users, accounts, applications, departments, and organizational risk levels can reduce vulnerability to identity attacks. Implementing risk-based access certificates is simplified by identifying and detecting unusual activities during identification and authentication procedures.

The shift towards remote and hybrid work models, accelerated by the COVID-19 pandemic, has also played a crucial role in the growing demand for (Identity as a Service)IDaaS. As employees access company resources from various locations and devices, ensuring secure and convenient access becomes more challenging. IDaaS enables organizations to provide their workforce with secure access to applications and data, regardless of location, while maintaining strict security protocols. This flexibility and scalability make IDaaS a suitable solution for organizations looking to support their remote workforce without compromising security.

Additionally, the rise of digital transformation initiatives across industries is driving the adoption of IDaaS. As businesses increasingly embrace digital technologies to enhance their operations and customer experiences, the need for secure and efficient identity management becomes paramount. IDaaS supports digital transformation by enabling organizations to integrate identity management seamlessly into their digital ecosystems, ensuring users have secure access to the tools and services they need to drive innovation and growth.

Type Insights

The single sign-on segment held the largest market revenue share of 28.0% in 2023. The increasing need for enhanced security and simplified access management in organizations drives segment growth. SSO allows users to access multiple applications with a single set of credentials, reducing the burden of password management and lowering the risk of phishing and other cyber threats. As businesses continue to adopt cloud-based services and remote work becomes more prevalent, the efficiency and security provided by SSO solutions are becoming increasingly critical. Furthermore, integrating SSO with multi-factor authentication (MFA) enhances security, driving its adoption across various sectors, including finance, healthcare, and education. This growing reliance on digital platforms and the necessity for secure, seamless access propels the demand for SSO.

The multifactor authentication (MFA) segment is expected to grow at the fastest CAGR over the forecast period. The growing need for enhanced security measures in response to the rising frequency and sophistication of cyber threats drives segment growth. As organizations across various industries migrate to cloud-based services and remote work environments, the risk of unauthorized access to sensitive data has escalated. MFA offers an additional layer of protection by requiring multiple forms of verification, such as a password and a fingerprint or a one-time code, making it significantly harder for attackers to breach systems. This added security is crucial for businesses to protect their digital assets, comply with regulatory requirements, and maintain customer trust, driving the widespread adoption of MFA within the market.

Identity as a Service Market Report Scope