Identity-as-a-Service (IDaaS) Market, Segmentation by Deployment Type

The Identity-as-a-Service (IDaaS) Market has been segmented by Deployment Type into Public, Private and Hybrid.

Public

The Public deployment model is widely adopted due to its scalability and cost-effectiveness, especially among small and medium enterprises. It supports easy access to identity services over the internet, making it ideal for dynamic business environments. Over 55% of IDaaS deployments are currently hosted on public cloud platforms.

Private

The Private deployment model caters to organizations requiring strict data security and compliance. Often preferred by financial institutions and government bodies, it ensures that identity data remains within a secure infrastructure. Around 25% of IDaaS users opt for private clouds to meet regulatory requirements.

Hybrid

The Hybrid deployment model combines public and private environments, offering both flexibility and control. It enables sensitive data to be processed privately while utilizing public infrastructure for less critical functions. Approximately 20% of enterprises are transitioning to hybrid models for optimized security and agility.

Identity-as-a-Service (IDaaS) Market, Segmentation by Service Type

The Identity-as-a-Service (IDaaS) Market has been segmented by Service Type into On-Site and In-House.

On-Site

The On-Site service model involves deploying IDaaS solutions directly within an organization’s existing infrastructure. It is preferred by enterprises seeking complete control over their identity systems and data privacy. Roughly 40% of organizations opt for on-site services to meet stringent internal IT policies.

In-House

The In-House service model refers to IDaaS managed internally by the organization's IT teams without third-party hosting. It supports customization and tight integration with internal systems but often requires higher resource commitment. Nearly 60% of businesses, especially large enterprises, utilize in-house services to align with their security frameworks.

Identity-as-a-Service (IDaaS) Market, Segmentation by Enterprise Size

The Identity-as-a-Service (IDaaS) Market has been segmented by Enterprise Size into Small & Medium enterprises (SMEs) and Large Enterprises.

Small & Medium Enterprises (SMEs)

SMEs are increasingly adopting IDaaS solutions to enhance their identity management capabilities while reducing IT overhead. The scalability and cost-efficiency of cloud-based IDaaS make it ideal for this segment. Over 45% of SMEs have integrated IDaaS platforms to strengthen security without significant infrastructure investment.

Large Enterprises

Large enterprises leverage IDaaS for managing complex identity ecosystems across global operations. These organizations prioritize advanced access controls, compliance, and seamless integration with existing systems. More than 55% of large organizations have adopted IDaaS to streamline operations and enhance digital trust frameworks.

Identity-as-a-Service (IDaaS) Market, Segmentation by Access Type

The Identity-as-a-Service (IDaaS) Market has been segmented by Access Type into Single Sign-On, Multi-factor Authentication, Compliance Management, Directory Services and Others.

Single Sign-On

Single Sign-On (SSO) enables users to access multiple applications with a single set of credentials, improving user convenience and security. It is widely adopted in enterprise environments to reduce password fatigue and enhance productivity. Around 35% of IDaaS implementations prioritize SSO capabilities.

Multi-Factor Authentication

Multi-Factor Authentication (MFA) adds an extra layer of protection by requiring two or more verification methods. It is a critical component for mitigating identity fraud and securing remote access. Over 30% of businesses integrate MFA into their IDaaS frameworks.

Compliance Management

Compliance management tools in IDaaS help organizations adhere to regulatory standards like GDPR, HIPAA, and SOX. These features automate policy enforcement and auditing processes. Nearly 15% of enterprises choose IDaaS platforms primarily for their compliance functionalities.

Directory Services

Directory services offer centralized management of user identities, roles, and access rights. They ensure consistent identity data across systems and applications. Approximately 10% of IDaaS deployments emphasize robust directory integration.

Others

The Others category includes services like behavioral analytics, privileged access management, and role-based access control. These solutions are adopted by organizations with specialized or evolving security requirements, accounting for about 10% of the market share.

Identity-as-a-Service (IDaaS) Market, Segmentation by Application

The Identity-as-a-Service (IDaaS) Market has been segmented by Application into Document Verification, Authentication/identification and Screening.

Document Verification

Document verification applications in IDaaS are used to validate identity documents such as passports, licenses, and ID cards. This ensures authenticity and minimizes identity fraud during user onboarding or access provisioning. Around 30% of IDaaS solutions incorporate document verification features to enhance trust.

Authentication/Identification

Authentication and identification are core functionalities of IDaaS, allowing secure user access through various methods like passwords, biometrics, or tokens. This segment represents the largest share, with over 50% of platforms offering advanced user verification capabilities.

Screening

Screening functions enable organizations to perform background checks and risk assessments before granting access. These capabilities are essential for high-security environments and regulated industries. Nearly 20% of IDaaS applications feature integrated screening tools for compliance and security assurance.

Identity-as-a-Service (IDaaS) Market, Segmentation by Industry

The Identity-as-a-Service (IDaaS) Market has been segmented by Industry into Government, Retail & Consumer Electronics, Transportation & Logistics, Media & Entertainment, IT & Telecommunication, BFSI, Energy & Utility, Healthcare, Automotive and Others.

Government

The government sector leverages IDaaS to ensure secure identity verification and manage access to sensitive systems. Emphasis on compliance and data privacy makes it a significant adopter, contributing to around 18% of the market demand.

Retail & Consumer Electronics

Retail and consumer electronics companies use IDaaS to enhance customer authentication and enable secure digital transactions. With growing online sales, this sector accounts for approximately 12% of the market share.

Transportation & Logistics

The transportation and logistics sector adopts IDaaS to manage employee identities and safeguard supply chain operations. It also supports compliance with international safety standards. This segment represents about 10% of the market.

Media & Entertainment

Media and entertainment industries implement IDaaS to protect digital content and ensure user access control. With the rise in streaming services, nearly 8% of IDaaS adoption comes from this domain.

IT & Telecommunication

The IT and telecom sector is a leading adopter of IDaaS, driven by the need for scalable identity solutions and cloud-native security. It holds the largest industry share at around 22%.

BFSI

BFSI institutions rely heavily on IDaaS for secure client verification, fraud detection, and compliance with regulations like KYC and AML. This sector comprises approximately 15% of the market.

Energy & Utility

Energy and utility companies use IDaaS to safeguard critical infrastructure and manage remote access for field workers. This sector contributes nearly 5% to the overall IDaaS adoption.

Healthcare

The healthcare industry utilizes IDaaS to protect electronic health records (EHRs) and ensure HIPAA compliance. Identity management is crucial here, accounting for roughly 6% of the market.

Automotive

Automotive companies implement IDaaS to manage employee and partner access across global facilities and to secure connected vehicle platforms. They represent about 2% of the market share.

Others

The Others segment includes industries such as education, hospitality, and real estate that are gradually adopting IDaaS for improved access control and digital identity security.

Identity-as-a-Service (IDaaS) Market, Segmentation by Geography

In this report, the Identity-as-a-Service (IDaaS) Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Identity-as-a-Service (IDaaS) Market Share (%), by Geographical Region

North America

North America leads the IDaaS market due to the presence of major tech firms and high awareness of cybersecurity. The region accounts for over 35% of the global market, driven by strong regulatory frameworks and rapid cloud adoption.

Europe

Europe shows significant growth owing to stringent data protection laws like GDPR and a strong emphasis on identity governance. It contributes around 25% to the global IDaaS revenue.

Asia Pacific

The Asia Pacific region is experiencing rapid IDaaS adoption, fueled by digital transformation in countries like China and India. Rising investments in cybersecurity infrastructure help the region hold a 20% market share.

Middle East and Africa

Middle East and Africa are emerging markets for IDaaS, with growing demand across government and energy sectors. Increased focus on data privacy and cloud integration contributes to a 10% share.

Latin America

Latin America is gradually adopting IDaaS solutions, particularly in the banking and retail sectors. Efforts to modernize IT infrastructure are expected to increase its current 10% share in the coming years.