The United Kingdom identity-as-a-service (IDaaS) market reached around USD 234.26 Million in 2025. The market is projected to grow at a CAGR of 18.10% between 2026 and 2035 to reach nearly USD 1236.51 Million by 2035.
Base Year
Historical Period
Forecast Period
In 2020, digital products and services played a crucial role in the UK economy, contributing £392.9 billion.
The United Kingdom was ranked as the second most targeted nation globally for cyber-attacks, following the United States in 2022.
On average, each household in the UK possesses approximately nine smart devices, highlighting the growing need for Identity as a Service (IDaaS).
Compound Annual Growth Rate
18.1%
Value in USD Million
2026-2035
*this image is indicative*
| United Kingdom Identity-as-a-Service (IDaaS) Market Report Summary | Description | Value |
| Base Year | USD Million | 2025 |
| Historical Period | USD Million | 2019-2025 |
| Forecast Period | USD Million | 2026-2035 |
| Market Size 2025 | USD Million | 234.26 |
| Market Size 2035 | USD Million | 1236.51 |
| CAGR 2019-2025 | Percentage | XX% |
| CAGR 2026-2035 | Percentage | 18.10% |
| CAGR 2026-2035 - Market by Region | Scotland | 19.5% |
| CAGR 2026-2035 - Market by Deployment Type | Public | 18.5% |
| CAGR 2026-2035 - Market by End Use | IT & Telecommunication | 21.6% |
| Market Share by Region 2025 | England | 87.8% |
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.
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
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.
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.
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.
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.
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.
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) Market Report and Forecast 2026-2035 offers a detailed analysis of the market based on the following segments:
Breakup by Component
Breakup by Deployment Type
Breakup by Industry Vertical
Breakup by Region
| CAGR 2026-2035 - Market by | Region |
| Scotland | 19.5% |
| England | 18.7% |
| Wales | XX% |
| Northern Ireland | XX% |
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 2026-2035 amid the growing incidences of cyberattacks in the region.
Major players are focusing on the incorporation of cutting-edge technologies to gain a competitive edge in the market.
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 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, 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., 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.
*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 Capgemini SE, Oracle Corp., HCL Technologies Ltd., Exostar LLC, Thales S.A., Atos SE, and Okta Inc., among others.
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In 2025, the market attained a value of nearly USD 234.26 Million.
The market is assessed to grow at a CAGR of 18.10% between 2026 and 2035.
The market is estimated to witness a healthy growth in the forecast period of 2026-2035 to reach about USD 1236.51 Million by 2035.
The market is being driven by the swift digitisation in the economy and rising cyber threats incidences.
The key trends aiding the market expansion include the proliferation of IoT devices and the rise in remote work culture and BYOD trends.
The major deployment types of IDaaS in the market are public cloud, private cloud, and hybrid cloud.
The major regions considered in the market are England, Wales, Northern-Ireland, and Scotland.
The major players in the market are IBM Corp., Microsoft Corp., Broadcom Inc., Google LLC, Capgemini SE, Oracle Corp., HCL Technologies Ltd., Exostar LLC, Thales S.A., Atos SE, and Okta Inc., among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Component |
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| Breakup by Deployment Type |
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| Breakup by Industry Vertical |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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