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

Japan Identity-as-a-Service (IDaaS) Market Growth

In August 2022, Japan's Ministry of Economy, Trade and Industry (METI) published its annual eCommerce Market Survey, revealing that Business-to-Consumer (B2C) eCommerce sales of goods experienced an 8.6% increase in 2021 compared to the prior year, bringing the total B2C eCommerce market to an estimated USD $188.1 billion. The survey also indicated that Japanese consumers participated in cross-border online shopping from U.S. retailers, amounting to USD 3.1 billion in 2021, which marks a 9.3% rise from the previous year. Furthermore, Japan's Business-to-Business (B2B) eCommerce market is projected to reach $3 trillion, encompassing all commercial transactions across various sectors within the country.

The growth of the e-commerce sector in Japan is significantly fuelling the demand for Identity-as-a-Service (IDaaS) solutions. As online transactions increase, businesses necessitate secure and efficient identity management systems to safeguard customer information and enable smooth authentication processes. IDaaS platforms provide scalable solutions that improve user experience while ensuring adherence to data protection laws.

In 2023, Japan ranked sixteenth among countries targeted by ransomware groups, experiencing 45 incidents carried out by 14 different groups. The manufacturing sector was the most frequently attacked, accounting for 31% of incidents, followed by the technology sector at 19% and the services sector at 10%. The increasing frequency of cyberattacks is driving a significant rise in the demand for Identity-as-a-Service (IDaaS) solutions. As organisations confront escalating security threats, they are in search of comprehensive identity management systems to safeguard sensitive information and ensure secure access. IDaaS offers features such as multi-factor authentication, real-time monitoring, and automated threat detection, rendering it an essential tool for risk mitigation. This heightened awareness of cybersecurity vulnerabilities compels businesses to prioritise IDaaS as a fundamental element of their security strategies.

Key Trends and Developments

Japan Identity-as-a-Service (IDaaS) Market Trends

Companies in Japan are placing a high emphasis on privacy and compliance within their identity management systems. This focus is propelling the uptake of IDaaS platforms, which offer comprehensive security features and assist organisations in adhering to regulatory standards while safeguarding user data. Additionally, the incorporation of biometric authentication into IDaaS solutions is increasingly popular in Japan. As consumers demand more secure and user-friendly authentication options, organisations are implementing biometric technologies such as facial recognition and fingerprint scanning, thereby improving security and user experience while diminishing dependence on conventional passwords.

Japan Identity-as-a-Service (IDaaS) Industry Segmentation

Japan Identity-as-a-Service (IDaaS) Market Share

Based on the deployment type, the market is segmented into public, private, and hybrid.Hybrid IDaaS is projected to grow at a CAGR of 20.4% during the forecast period of 2024-2032 as it offers benefits such as improved security and enhanced user productivity.

Leading Companies in the Japan Identity-as-a-Service (IDaaS) Market

Major players are focusing on technological advancements to gain a competitive edge in the market.

NEC Corp.

NEC Corporation, established in 1899, is a Japanese multinational company specialising in information technology and electronics. Its headquarters are located in the NEC Supertower in Minato, Tokyo, Japan. NEC stands at the forefront of integrating IT and network technologies, boasting over a century of experience in technological innovation.

Thales S.A.

Thales S.A., established in 2000, is based in France. This French multinational corporation specialises in the...

Oracle Corporation

Oracle Corporation, founded in 1977, is a leading American multinational technology company headquartered in A...

Microsoft Corp.

Microsoft Corporation, established in 1975, is headquartered in Washington, United States. This American multi...

*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*

Other major players in the market are Broadcom Inc., Fujitsu Ltd., Authlete Inc., Digital Arts Inc., Atos SE, and Okta Inc., among others.