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Report Overview: Identity as a Service MarketThe global Identity as a Service market size was valued at USD 2.23 billion in 2020 and is anticipated to grow at a compound annual growth rate(CAGR) of 21.9% from 2021 to 2027. Increasing demand for cloud-based security services and solutions owing to the concerns pertaining to data security is anticipated to boost the adoption of Identity as a Service (IDaaS) solutions. Organizations are required to provide access to the employees working remotely while maintaining security compliance and thus need identity and access solutions. Strict regulatory mandates and data protection laws are fuelling the demand for IDaaS solutions. Stringent global regulations and compliance pertaining to identity theft, such as the General Data Protection Regulation (GDPR), Health Insurance Portability and Accountability Act (HIPAA), are forcing the organizations to take extra measures in protecting user accounts of the internal workforce, contractors, and end users. The end-to-end identity and access management functionality would be required to ensure robust security against the rising risks associated with the adoption of cloud services. The rising popularity of the Bring Your Own Device (BYOD) trend in most Telecom and IT companies will also support market growth. The IT divisions of businesses are battling to protect their organization’s informational assets with external devices entering the company’s network. Moreover, the infiltration of multi-cloud computing systems in the modern organizational ecosystem, especially in telecommunication and IT companies are growing significantly. The growing adoption of such multi-cloud computing systems is articulating the need for much more effective identity management services for protecting their public cloud infrastructures. The as-a-service model in the Identity as a Service solutions means some features are being delivered to other organizations through a third-party remote connection. It is opposite to a function being managed on-premises and by in house personnel. The main goal of IDaaS is to provide the right kinds of access to files, software applications, or other resources at an appropriate time to authorized personnel. The IDaaS is much easier to execute as a centralized cloud-based system designed by identity specialists. Many governments and banking organizations are currently promoting digital payments to decrease their operating costs and for improved transaction visibility. Thus, the incorporation of digitalized payment systems in banking and government services is expected to increase the demand for identity-as-a-service in the near future. Moreover, rising spending on security solutions by government agencies and corporate enterprises to stand by regulatory compliance and restrain identity theft is expected to increase the growth. The world economy has been taken aback by the rate at which the COVID 19 crisis has escalated. The pandemic has affected the public health economy and the social well-being of people around the world. In such circumstances, the increasing trend of working remotely can be witnessed in countries where the government authorities have imposed the lockdown. To safeguard the critical organizational data, the enterprises would enhance the identity and access management framework by adding up a more comprehensive security layer in data protection and prevention of identity and data thefts. Single Sign-On (SSO) to cloud applications would be undertaken by the organizations that encourage their employees to work remotely.
Component Type Insights: Identity as a Service MarketThe provisioning component segment led the IDaaS market and held 30% of the overall revenue share. Provisioning refers to the process of creation, deletion, validation, approval, and termination of identities of each user, including clients, partners, and employees in an organization. It is one of the core enforcement initiatives and access rights compliance. Multifactor authentication is anticipated to witness the highest CAGR of 25.6% over the forecast period 2021-2027. As a fundamental requirement of identity and access management, the IDaaS service features all necessary means of password management and authentication, such as multifactor authentication. Stringent policies and compliance for internet banking, such as (One Time Password) OTP and self-created passwords tokens, are prominent factors anticipated to increase the growth of multifactor authentication applications. Moreover, the integration of features, such as biometric, voice recognition, and smart cards, is anticipated to leverage the adoption of multifactor authentication.
The public sector segment lead the market in 2019 and accounted for more than 28% of the total share. The government agencies and institutions are always under the threat of a data breach or potential cyber-attack. Cyber attackers are targeting such institutions to gain access to confidential government data. There has been a decent increase in the identity thefts to access sensitive government data, which is generating the demand for IDaaS solutions in government agencies. The BFSI segment is expected to post the highest CAGR over the forecast period. The banking and finance sector holds critical data requiring a high level of security. The companies in the BFSI sector are adopting IDaaS solutions to ensure compliance, increase productivity, and reduce the cost involved to manage the IT infrastructure. Moreover, the shift towards EMV credit and debit cards and biometric authentication at ATM are anticipated to leverage the demand for such solutions in the BFSI segment.
End-use Insights: Identity as a Service Market
Regional Insights: Identity as a Service MarketNorth America is the dominant regional market and accounted for more than 39% of the global share in 2019. North America is the most significant consumer of cybersecurity solutions owing to the rising incidents of security threats and data breaches. The growing number of cyberattacks to access confidential consumer data, increasing adoption of cloud applications, rising BYOD trend, and changing needs of the workforce to meet regulatory norms are driving the organizations in North America to adopt IDaaS solutions. Moreover, a favorable regulatory scenario is stimulating the growth of the regional market. The Asia Pacific market is expected to register the highest CAGR of 14.4% from 2021 to 2027. The organizations in the region are witnessing transitioning and are adopting mobile, cloud, and new generation technologies. It has become highly essential to secure applications and authenticate users and maintain control over business-critical information to minimize the risk associated with the data breach. The Middle East and Africa region is also expected to achieve traction over the upcoming years owing to developing IT infrastructure in the region.
Key Companies &Market Share Insights: Identity as a Service MarketThe market is highly competitive and focused on the top five companies accounting for the maximum share of the global revenue. Key companies of the market are providing advanced solutions to gain an edge over their competitors. The development of a solution that enables easy scalability, increased real-time assurance, and identity proofing with live biometrics would contribute to market growth. Acquisition, partnership, and R&D investments are the key strategies undertaken by most of the companies to strengthen their market position. For instance, in January 2019, Akamai Technologies announced the acquisition of Janrain, a pioneer in the development of customer identity access management solutions. In May 2018, Avaya announced a partnership with Post Quantum by adding Identity as a Service capability in its portfolio. Some of the prominent players in the Identity as a Service market are:
Key companies Profiled: Identity as a Service Market Report
Component Type Outlook (Revenue, USD Billion, 2016 - 2027)
- Single Sign-On
- Multifactor Authentication
- Password Management
- Directory Services
- Audit, Compliance & Governance
End-use Outlook (Revenue, USD Billion, 2016 - 2027)
- Telecom and IT
- Public Sector
Table of Contents Chapter 1 Methodology and Scope 1.1 Market segmentation & scope 1.2. Market definition 1.3. Information procurement 1.3.1 Purchased Database(Statista, FactSet, Bloomberg, SDC Platinum) 1.3.2. IFF internal database 1.3.3. Secondary sources & third party perspectives 1.3.4. Primary Research 1.4. Information analysis 1.5. Market formulation & data visualization 1.6. Data validation & publishingChap | read more...