United Kingdom Identity-as-a-Service (IDaaS) Market Size and Share - Outlook Report, Forecast Trends and Growth Analysis (2025-2034)

The United Kingdom identity-as-a-service (IDaaS) market reached around USD 198.36 Million in 2024. The market is projected to grow at a CAGR of 18.10% between 2025 and 2034 to reach nearly USD 1047.02 Million by 2034.

United Kingdom Identity-as-a-Service (IDaaS) Market Growth

The United Kingdom ranks among the countries most significantly impacted by cyberattacks. Phishing scams represent the predominant form of cyber intrusion, accounting for 84% of all reported incidents. Furthermore, 50% of businesses in the UK have fallen victim to cybercrime, while residents have received more than 208 million fraudulent emails. Additionally, over 69,000 instances of identity theft have been documented in the UK, with projections indicating that 7.78 million cyberattacks targeted UK businesses in 2024.

The increasing demand for Identity-as-a-Service (IDaaS) solutions is a response to the growing threats posed by cyberattacks and data breaches. As these attacks evolve in complexity, organisations are turning to sophisticated IDaaS solutions to enhance their security frameworks. These platforms offer essential features, including multi-factor authentication, real-time threat detection, and adaptive security protocols, which are instrumental in mitigating risks and safeguarding sensitive information. By implementing IDaaS, businesses improve their capacity to manage and protect user identities, thereby fortifying their overall cybersecurity measures.

The typical household in the United Kingdom currently possesses an average of 10.3 internet-connected devices, which translates to over 286 million devices nationwide. During the first half of 2021, there were 1.5 billion attempts to compromise Internet of Things (IoT) devices, a figure that has doubled compared to 2020, and the frequency of such incidents continues to rise. The increasing prevalence of IoT and internet-connected devices is driving the widespread adoption of Identity-as-a-Service (IDaaS). As the number of connected devices expands, IDaaS plays a crucial role in identity management and security, facilitating secure access and authentication across an ever-growing network of devices.

Key Trends and Developments

Strict regulatory compliance, an increase in the incidence of cyber threats, the swift transition towards digitalisation, and a rise in remote work and BYOD trends are the major trends impacting the United Kingdom identity-as-a-service (IDaaS) market growth

October 2022

Atos UK, a leading digital transformation company based in London, expanded its identity security portfolio with IDaaS Access and Governance. This solution added essential identity governance and administration features to the existing access management capabilities of Evidian IDaaS Access, aiming to manage applications hosted on-premises, in the cloud, and as a service.

March 2023

Mastercard was certified as an identity provider under the UK's Digital Identity and Attributes Trust Framework (DIATF). This allows Mastercard to offer its digital identity service, ID, to UK organisations. The ID app, available in major mobile app stores, gives consumers more flexibility in verifying their identity for employment, purchases, rentals, and university applications.

November 2023

Esendex UK, a global leader in conversational business communication, introduced new security measures aimed at protecting organisations and individuals from the growing threats of cyber security. The implementation of multi-factor authentication is intended to analyse login patterns and autonomously determine if additional login credentials are required for user verification.

Strict Regulatory Compliance

Strict regulations, including the General Data Protection Regulation (GDPR) and the Data Protection Act of the United Kingdom, necessitate the implementation of strong identity management solutions to guarantee compliance and safeguard personal information.

Increased Cyber Threats

The increasing prevalence of cyber threats and data breaches compels organisations to implement sophisticated identity management solutions to bolster security and protect sensitive information. By prioritising identity management, organisations can create a more secure digital environment that supports their operational goals while protecting against the ever-evolving landscape of cyber risks.

Rapid Digital Transformation

The transition towards digital transformation in various sectors requires the adoption of scalable and adaptable identity management systems to effectively support contemporary applications and cloud-based environments. As organisations continue to embrace digital technologies, investing in robust identity management solutions will be essential for achieving long-term success and resilience in an increasingly digital world.

Rise in Remote Work and BYOD Trends

The increasing prevalence of remote work and the adoption of Bring Your Own Device (BYOD) policies have heightened the need for secure, cloud-based identity solutions to effectively manage access and ensure security across various environments.

Proliferation of the IoT Devices

The rapid expansion of the Internet of Things (IoT) has led to an unprecedented proliferation of connected devices across various sectors, including healthcare, manufacturing, transportation, and smart homes. This surge in the number of devices, ranging from sensors and wearables to smart appliances and industrial machinery, has created a complex ecosystem where each device can communicate and share data with others.

United Kingdom Identity-as-a-Service (IDaaS) Market Trends

Businesses in the United Kingdom are increasingly embracing cloud-based Identity as a Service (IDaaS) solutions to achieve greater flexibility and scalability. This transition is motivated by the demand for secure and cost-efficient identity management systems that facilitate remote work and digital transformation initiatives. There is an increasing focus on incorporating sophisticated security measures, such as biometric authentication and artificial intelligence-driven threat detection, within IDaaS offerings. This development responds to escalating worries regarding cyber threats and data breaches, thereby providing strong safeguards for sensitive data.

United Kingdom Identity-as-a-Service (IDaaS) Industry Segmentation

United Kingdom Identity-as-a-Service (IDaaS) Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Breakup by Component

• Single Sign-on
• Multi Factor Authentication
• Provisioning
• Password Management
• Directory Services
• Audit, Compliance and Governance

Breakup by Deployment Type

• Public Cloud
• Private Cloud
• Hybrid Cloud

Breakup by Industry Vertical

• BFSI
• Telecom and IT
• Government
• Healthcare
• Energy and Utilities
• Manufacturing
• Others

Breakup by Region

• England
• Wales
• Northern-Ireland
• Scotland

United Kingdom Identity-as-a-Service (IDaaS) Market Share

Based on region, the market is segmented into England, Wales, Scotland, and Northern-Ireland. Scotland is projected to grow at a CAGR of 19.5% during the forecast period of 2025-2034 amid the growing incidences of cyberattacks in the region.

Leading Companies in the United Kingdom Identity-as-a-Service Market

Major players are focusing on the incorporation of cutting-edge technologies to gain a competitive edge in the market.

Microsoft Corp.

Microsoft Corporation was founded in 1975 and is based in Washington, United States. As an American multinational corporation and technology firm, it specialises in the development and marketing of software, services, and hardware devices that provide new opportunities and enhanced convenience.

IBM Corp.

IBM Corporation is a multinational technology company headquartered in Armonk, New York. Founded in 1911, it specialises in delivering global hybrid cloud and artificial intelligence solutions, in addition to offering consulting services.

Google LLC

Google LLC, founded in 1998 has grown to become one of the most influential technology companies in the world. Headquartered in Mountain View, California, within the heart of Silicon Valley, Google has expanded its operations globally, offering a wide range of products and services.

Broadcom Inc.

Broadcom Inc., founded in 1961 and headquartered in California, United States, is a leading global technology firm that focuses on the design, development, and delivery of a diverse range of semiconductor products, enterprise software, and security solutions.

Other major players in the market are Capgemini SE, Oracle Corp., HCL Technologies Ltd., Exostar LLC, Thales S.A., Atos SE, and Okta Inc., among others.