The Japan identity-as-a-service (IDaaS) market reached around USD 147.62 Million in 2025. The market is projected to grow at a CAGR of 18.70% between 2026 and 2035 to reach nearly USD 819.70 Million by 2035.
Base Year
Historical Period
Forecast Period
Japanese companies are identified as the second most frequently targeted victims of ransomware in Asia.
By the end of 2024, it is anticipated that Japan will have 3.5 billion Internet of Things (IoT) devices operational.
Japan ranks as the fourth largest eCommerce market globally, following China, the United States, and the United Kingdom.
Compound Annual Growth Rate
18.7%
Value in USD Million
2026-2035
*this image is indicative*
| Japan 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 | 147.62 |
| Market Size 2035 | USD Million | 819.70 |
| CAGR 2019-2025 | Percentage | XX% |
| CAGR 2026-2035 | Percentage | 18.70% |
| CAGR 2026-2035 - Market by Deployment Type | Hybrid | 20.4% |
| CAGR 2026-2035 - Market by End Use | Retail & Consumer Electronics | 18.9% |
| Market Share by End Use 2025 | Media & Entertainment | 3.5% |
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.
Growing cybersecurity concerns, strict regulatory compliances, rapid digital transformation, and rising remote work culture are the major trends impacting the Japan identity-as-a-service (IDaaS) market expansion
The importance of strengthened regulations related to data protection and privacy has escalated in the current digital environment, characterised by an exponential increase in the amount of personal data that organisations collect, process, and store. In this context, Identity as a Service (IDaaS) plays a vital role in ensuring safety against threats.
As organisations in Japan increasingly embrace digital transformation, they are recognising the critical importance of implementing effective identity management systems. These systems play a vital role in ensuring seamless user experiences across a multitude of platforms, which is essential in today’s fast-paced digital landscape.
The growth of remote work has significantly transformed the landscape of how organisations operate, leading to an increased reliance on digital tools and platforms. As more employees work from various locations, often outside the traditional office environment, the need for secure and efficient identity management solutions has become paramount.
The rapid expansion of e-commerce and online services in Japan has created a pressing demand for advanced identity management solutions. As more consumers turn to digital platforms for shopping, banking, and various services, the volume of sensitive customer information being processed online has surged.
The increasing frequency and sophistication of cyberattacks in recent years have created a pressing need for organisations to bolster their security frameworks. As businesses and institutions become more reliant on digital platforms and cloud-based services, the vulnerabilities associated with inadequate identity management have become more pronounced.
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.
The EMR’s report titled “Japan 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
| CAGR 2026-2035 - Market by | Deployment Type |
| Hybrid | 20.4% |
| Public | XX% |
| Private | XX% |
| CAGR 2026-2035 - Market by | End Use |
| Retail & Consumer Electronics | 18.9% |
| Government | XX% |
| Transportation & Logistics | XX% |
| Automotive | XX% |
| Others | XX% |
| Media & Entertainment | XX% |
| IT & Telecommunication | 22.4% |
| BFSI | 19.3% |
| Energy & Utility | XX% |
| Healthcare | 20.9% |
| 2025 Market Share by | End Use |
| Media & Entertainment | 3.5% |
| Government | XX% |
| Retail & Consumer Electronics | XX% |
| Transportation & Logistics | XX% |
| IT & Telecommunication | XX% |
| BFSI | XX% |
| Energy & Utility | XX% |
| Healthcare | XX% |
| Automotive | XX% |
| Others | XX% |
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 2026-2035 as it offers benefits such as improved security and enhanced user productivity.
Major players are focusing on technological advancements to gain a competitive edge in the market.
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., established in 2000, is based in France. This French multinational corporation specialises in the design, development, and manufacturing of electrical systems, along with devices and equipment tailored for the aerospace, defence, transportation, and security industries.
Oracle Corporation, founded in 1977, is a leading American multinational technology company headquartered in Austin, Texas. It is recognised as the largest database management firm in the world, with reported sales reaching US$100 million.
Microsoft Corporation, established in 1975, is headquartered in Washington, United States. This American multinational corporation operates as a technology firm, focusing on the creation and promotion of software, services, and hardware products that offer innovative solutions and improved convenience.
*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.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the market attained a value of nearly USD 147.62 Million.
The market is assessed to grow at a CAGR of 18.70% between 2026 and 2035.
The market is estimated to witness a healthy growth in the forecast period of 2026-2035 to reach about USD 819.70 Million by 2035.
The market is being driven by the rapid digital transformation and the rising incidence of cyberattacks.
The key trends aiding the market expansion include the expansion of the e-commerce sector and the rising trend of remote work culture.
The major deployment types of IDaaS in the market are public cloud, private cloud, and hybrid cloud.
The major players in the market are NEC Corp., Microsoft Corp., Broadcom Inc., Fujitsu Ltd., Authlete Inc., Oracle Corp., Digital Arts Inc., 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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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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