Identity-as-a-service market seen topping $25 billion by 2030

The identity-as-a-service market is projected to grow 24% annually and pass $25 billion by 2030, driven by cybersecurity threats, cloud adoption and compliance pressure. North America is expected to remain the biggest regional market, with the United States leading global demand.

Why it matters: - Identity-as-a-service is becoming a core layer of enterprise security as companies move more work, data and applications to the cloud. - The market’s projected growth reflects rising pressure to block account takeover, support remote access and satisfy stricter privacy and security rules. - North America is expected to lead the market, signaling where the biggest enterprise buying and security modernization spend is concentrated.

What happened: - The Business Research Company projected that the identity-as-a-service market will exceed $25 billion by 2030. - The market is forecast to grow at a 24% CAGR. - North America is projected to remain the largest regional market at $9.4 billion by 2030, up from $3.2 billion in 2025. - The United States is expected to be the largest country market, reaching $8.5 billion by 2030 from $3.0 billion in 2025.

The details: - The report said the broader cloud services market is forecast to reach about $955 billion by 2030, while the overall information technology market is expected to hit $13,788 billion. - Identity-as-a-service would account for about 3% of cloud services and roughly 0.2% of total IT spending by 2030. - Solutions are expected to dominate the market in 2030, representing about 72% of revenue, or roughly $18 billion. - Key solution categories include single sign-on, adaptive authentication, biometric verification, identity analytics and scalable identity platforms. - Major growth drivers include phishing, ransomware and other identity-focused cyberattacks. - Cloud computing and remote work are also boosting demand for centralized identity management, automated provisioning and stronger access governance. - Compliance requirements under GDPR, HIPAA, CCPA, PCI DSS and SOX are pushing organizations toward stronger authentication, role-based access controls, audit logging and continuous monitoring. - The report identified the top 10 players as accounting for only 12% of revenue in 2025, showing a fragmented market. - Microsoft Corporation led global sales in 2025 with a 3% share. - Other major players named in the report include Okta, AWS Cognito, Google, SailPoint, CyberArk, Ping Identity, Oracle, IBM and Saviynt. - The report highlighted machine learning as an emerging tool for identity governance, access security and lifecycle automation. - Microsoft launched Microsoft Entra Identity Governance in June 2024, combining automated access provisioning with cloud and on-premises integration. - The largest combined growth opportunity through 2030 is expected to come from solutions and services, with more than $17 billion in added value. - Solutions are projected to add $12 billion between 2025 and 2030, while services are expected to add $5 billion.

Between the lines: - The market forecast suggests identity management is shifting from a back-office IT function to a frontline security control. - Fragmentation leaves room for specialized vendors, but compliance, zero-trust architecture and integration demands still favor scaled platform providers. - Growth in passwordless authentication, decentralized digital identity and identity orchestration points to a market moving beyond basic login tools.

What’s next: - Vendors are expected to focus on AI and machine learning, zero-trust security and cloud-based identity platforms. - Adoption should keep rising as organizations modernize identity systems for hybrid workforces and cloud-native applications. - Competition is likely to intensify as companies chase geographic expansion, partnerships and deeper enterprise integrations. - More detail is available in the full market report and the free sample.

The bottom line: - Identity-as-a-service is moving from a niche security product to a fast-growing cloud category, with the biggest gains tied to cyber defense, compliance and remote access.