Global IDaaS market to reach $16.8B by 2027 as digital identity evolves
The global identity as a service (IDaaS) market is projected to reach $16.8 billion by 2027, driven by government initiatives and regulations supporting digital identity transformation.
The new figures from ResearchAndMarkets represent a compound annual growth rate (CAGR) of 24.7 percent from 2022, when the IDaaS market is estimated at $5.6 billion.
Beyond digital identity initiatives, other factors behind the adoption of IDaaS technologies include increasing government regulations and the need for compliance, as well as the rise in identity and authentication fraud.
At the same time, the latest ResearchAndMarkets report suggests that companies’ reluctance to adopt cloud-based security, alongside the lack of information security of consumer data, is expected to hinder market growth.
When looking at the market growth by organization size, the new data suggests small and medium-sized businesses (SMEs) are to grow at the highest CAGR over the forecasted period, as they are using cloud computing to achieve low operational costs, increase mobility, and capital expenditure advantages. They are then deploying IDaaS-based solutions to secure their infrastructure.
By the same token, large enterprises are estimated to grow by the highest overall amount during the forecasted period due to substantial budgets they have to implement innovative security solutions.
Sector-wise, banking, financial services and insurance (BFSI) are at the forefront of the IDaaS market growth due to firms in this sector deploying security solutions like IDaaS to protect systems from cyberattacks, and fraud attempts, in particular.
BIO-key adds three new IDaaS customers
A digital identity provider having success with customers adopting IDaaS solutions is BIO-key, which recently announced three separate customer wins.
The first one is with the California Community College System, which deployed PortalGuard IDaaS to eliminate the costs and resources of on-premise hosting.
The company’s platform will provide flexible options, including biometrics, for single sign-on (SSO), multi-factor authentication (MFA), adaptive authentication, and self-service password reset.
BIO-key’s PortalGuard IDaaS was also recently deployed by six county governments in KS, VA, NM, FL, SD, and NY, respectively, to guard against ransomware attacks targeting the public sector.
Finally, the company has announced that an unnamed, large auto group in the Southwestern U.S., which supports multiple dealerships, has selected its PortalGuard to protect its critical corporate data.
PortalGuard will help the company meet its cybersecurity compliance requirements related to the Federal Trade Commission’s (FTC) Safeguards Rule by mandating the protection of consumer financial information while strengthening access security with biometric MFA and improving user satisfaction and productivity by eliminating password fatigue.
The new client wins come weeks after BIO-key announced a distribution partnership for its ‘Identity-Bound Biometrics’ and multi-factor access control with Israel-based Multipoint GROUP.