Identity Access Management Market Analysis

Identity And Access Management (IAM) Market Overview

Identity and Access Management (IAM) Market size is projected to grow from USD 19658.33 Million in 2024 to USD 71,650.5 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 17.55% during the forecast period (2024 - 2032). Additionally, the market size for identity and access management (IAM) was valued at USD 16,730.5 Million in 2023.

The Identity and Access Management (IAM) Market is experiencing unprecedented growth driven by the escalating need for robust security solutions in the digital era. IAM solutions play a pivotal role in safeguarding sensitive data and ensuring secure access to resources across organizations. The market is witnessing a surge in demand due to the rising frequency of cyber threats, stringent regulatory compliance requirements, and the proliferation of cloud-based services. Key drivers include the adoption of advanced technologies such as artificial intelligence and biometrics to enhance authentication processes. 

As businesses recognize the importance of efficient IAM systems in preventing unauthorized access, the market is poised for substantial expansion. Major players are focusing on innovation and strategic partnerships to capitalize on this burgeoning market, catering to diverse industries including finance, healthcare, and government sectors. The global IAM market is anticipated to maintain its upward trajectory, driven by the increasing digitalization of business processes and the imperative to fortify cybersecurity measures.

FIGURE 1: IDENTITY AND ACCESS MANAGEMENT (IAM) MARKET SIZE 2022-2032 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Identity And Access Management (IAM) Market Trends

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  INCREASING CYBERSECURITY THREATS AND DATA BREACHES

  
  

The growth of the Identity and Access Management (IAM) market is significantly driven by the increasing cybersecurity threats and the alarming frequency of data breaches in today's digital landscape. Organizations across various industries are facing sophisticated cyberattacks that target sensitive information, intellectual property, and personal data. As a result, the demand for robust IAM solutions has surged, as businesses recognize the critical role of identity management in fortifying their cybersecurity defenses.

Cybersecurity threats have evolved in complexity, with hackers employing advanced techniques to exploit vulnerabilities and gain unauthorized access to systems and networks. Traditional methods of protecting sensitive information, such as relying solely on usernames and passwords, have proven inadequate in the face of these sophisticated attacks. IAM solutions play a crucial role in mitigating these risks by implementing multi-layered authentication mechanisms, such as biometrics, smart cards, and one-time passwords. This enhanced security posture ensures that even if one layer is compromised, additional layers act as formidable barriers, thwarting unauthorized access attempts.

Moreover, the rising frequency and severity of data breaches have heightened awareness among businesses and individuals about the importance of securing digital identities. High-profile breaches have exposed the vulnerabilities of organizations, leading to financial losses, reputational damage, and legal consequences. Consequently, businesses are increasingly investing in IAM solutions to strengthen their cybersecurity infrastructure and protect against unauthorized access and data breaches.

In addition to the direct financial and reputational risks associated with data breaches, regulatory bodies and governments worldwide have implemented stringent data protection laws and compliance standards. Organizations are compelled to adhere to these regulations, such as the General Data Protection Regulation (GDPR) in Europe or the Health Insurance Portability and Accountability Act (HIPAA) in the United States. IAM solutions help businesses achieve and maintain compliance by ensuring secure access, proper user authentication, and detailed audit trails, which are essential components of regulatory requirements.

Furthermore, the evolving threat landscape has prompted organizations to adopt a proactive approach to cybersecurity. IAM solutions not only provide reactive measures to prevent unauthorized access but also incorporate advanced technologies like artificial intelligence (AI) and machine learning (ML) to anticipate and respond to emerging threats in real-time. These technologies enable IAM systems to analyze user behavior, detect anomalies, and automatically adapt security measures to evolving risks. This proactive stance is crucial in a dynamic cybersecurity environment, where threats continuously evolve, and organizations need adaptive solutions to stay ahead of malicious actors.

Identity And Access Management (IAM) Market Platform Segment Insights

Identity And Access Management (IAM) Component Insights

Based on Component, the Identity and Access Management (IAM) Market segmentation includes Solutions and Services. Solutions holds the majority share in 2022, contributing around 71% to the market revenue. This is because businesses prioritize investing in IAM solutions to enhance cybersecurity, streamline access control, and comply with regulatory requirements. The demand for comprehensive and effective IAM solutions to safeguard digital identities drives their majority share in the market.

FIGURE 2: IDENTITY AND ACCESS MANAGEMENT (IAM) MARKET, BY COMPONENT, 2022 VS 2032 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Identity And Access Management (IAM) Deployment Insights

Based on the Deployment, the Identity and Access Management (IAM) Market segmentation is Cloud and On-premises. On-premises dominated the market in 2022. This dominance is attributed to the continued preference of businesses for on-premises solutions, ensuring direct control over security infrastructure and compliance measures. The perceived need for data control and regulatory compliance drives the majority share of on-premises deployment in the IAM market.

Identity And Access Management (IAM) Organization Size Insights

Based on the Organization Size, the Identity and Access Management (IAM) Market segmentation is Small & Medium Enterprises (SMEs) and Large Enterprises. Large Enterprises dominated the market in 2022. This is a result of the complex security needs and scalability requirements of large organizations, prompting a higher adoption of IAM solutions. The prevalence of sophisticated cyber threats and the necessity for robust access control contribute to the majority share of Large Enterprises in the IAM market.

Identity And Access Management (IAM) Vertical Insights

Based on the Vertical, the Identity and Access Management (IAM) Market segmentation is BFSI, Hospitality, Healthcare and Life Science, Retail and CPG, Public Sector, Manufacturing, Education, IT & Telecommunication, Transportation and Logistics, and Others. BFSI dominated the market in 2022. This dominance is driven by the sector's heightened focus on cybersecurity, compliance requirements, and the protection of sensitive financial data. The stringent regulatory landscape and the need for secure access control contribute to BFSI's majority share in the IAM market. 

Identity And Access Management (IAM) Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East and Africa and South America. In 2022, the North America Identity and Access Management (IAM) market commands a significant share of the global market at approximately 35%, highlighting its pivotal role in driving IAM adoption. This dominance is attributed to the strong cybersecurity focus and proactive technology adoption within North American businesses.

Similarly, Europe plays a key role in the global IAM market, contributing significantly in 2022. European organizations prioritize IAM solutions to enhance data security and comply with regulatory standards.

Meanwhile, the Asia-Pacific (APAC) region emerges as a noteworthy contender, holding substantial market potential in 2022. APAC's IAM market growth is fuelled by rapid digital transformation, heightened cyber threats, and a growing awareness of the importance of robust identity and access management practices.

FIGURE 3: IDENTITY AND ACCESS MANAGEMENT (IAM) MARKET SIZE, BY REGION 2022 VS 2032

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Identity And Access Management (IAM) Key Market Players & Competitive Insights

The global identity & access management market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive, with all the players competing to gain maximum market share. Intense competition, frequent changes in government policies, and regulations are key factors that impact market growth. The vendors compete based on cost, product quality, reliability, and aftermarket services. The vendors must provide cost-efficient and high-quality identity & access management solutions to sustain their presence in an intensely competitive market environment.

Key Companies in the Identity And Access Management (IAM) market include.

• IBM


• HID Global


• Oracle Corporation


• Broadcom Inc.


• Okta, Inc.


• Identiv


• WSO2


• ForgeRock, Inc.


• Idcube


• Convergint Technologies


• AlertEnterprise


• Rightcrowd


• Soloinsight Inc.


• Microsoft


• Salesforce


• Ping Identity Corporation


• Ubisecure


• OneLogin, Inc.


• CyberArk Software, Inc.


• SAP


• Amazon Web Services (AWS)


• SailPoint Technologies Inc.

Identity And Access Management (IAM) Industry Developments

In the year of April 2023, Saviynt declared that it partnered with IBM and other major technology and consulting companies in the world to introduce several new Saviynt Solution Exchanges. Hospitality shops for ready-to-grow solutions to scale cloud identity security in organizations are finally available.

CyberArk unveiled its improved Workforce Password Management Software in March 2023. For instance, there are additional newly developed features, such as access control of high-risk, high-value business applications. Web Application Firewalls can assist in securing business and reducing risk.

Okta released its Workforce Identity Cloud Innovations for Business Security, Productivity, and Resilience this past November 2022. The latest addition will, therefore, strengthen single SCP governing identities for all assets and employees across businesses.

Ping Identity launched PingOne DaVinci in February 2022; a novel no-code identity orchestration service that helps integrate multiple vendor's identity services.

UK-based device identity solution provider Device Authority has raised $7m in Series A funding led by Ten Eleven Ventures in February 2024. The company's KeyScaler platform provides capabilities, including automated device provisioning, PKI, identity lifecycle management, continuous assurance, threat validation, data privacy, and HSM access control capabilities.

Cisco plans to introduce new AI and security features to its Security Cloud; the cloud platform secures on-premise systems as well as hybrid cloud infrastructure. These features include Cisco's Visibility graph about an organization's identity and related access management tools.

In January 2024, Cross Identity officially rolled out a Privileged Identity and Access Management (PIAM) solution targeted at financial institutions aimed at tightening loopholes, especially where privileged users are concerned. This protection against cyber threats extends to hybrid setups on-premises or in any cloud deployment model.

Yesterday, November 18th, FusionAuth secured $65m from Updata Partners into their customer IAM system for developers who want user security without disturbing their main application. It is possible to use FusionAuth to authenticate, authorize, and manage user access on web, mobile, and desktop devices.

Identity And Access Management (IAM) Market Segmentation:

Identity And Access Management (IAM) Component Outlook

• Solutions
  
  
  
  • Data Directory
  
  
  • Identity Lifecycle Management
  
  
  • Authentication
  
  
  • Verification
  
  
  • Password Management
  
  
  • Access Management, and authorization
  
  
  • Audit, Compliance, and Governance
  
  
  
  


• Services
  
  
  
  • Integration and Deployment
  
  
  • Support and Maintenance
  
  
  • Consulting
  
  
  
  

Identity And Access Management (IAM) Deployment Outlook

• Cloud


• On-premises

Identity And Access Management (IAM) Organization Size Outlook

• Small & Medium Enterprises (SMEs)


• Large Enterprises

Identity And Access Management (IAM) Vertical Outlook

• BFSI


• Hospitality


• Healthcare and Life Science


• Retail and CPG


• Public Sector


• Manufacturing


• Education


• IT & Telecommunication


• Transportation and Logistics


• Others

Identity And Access Management (IAM) Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East & Africa
  
  
  • South Ameria