Identity Governance and Administration Market

Growing awareness about regulatory compliances is driving the market growth

Market CAGR for identity governance and administration is being driven by the strict nature of various regulations. In today's data-driven world, businesses need identity governance and administration solutions to spot fraudulent activity, stop cyberattacks, and guarantee the security and privacy of customer data. Identity governance and administration solutions assist organizations in meeting compliance obligations. For instance, organizations with identity governance and administration solutions can demonstrate during audits that they have suitable safeguards to reduce the risk of a data breach or misuse.

The Gramm-Leach-Bliley Act (GBLA), Sarbanes-Oxley Act (SOX), Payment Card Industry Data Security Standard (PCI), Health Insurance Portability and Accountability Act (HIPAA), and North American Electric Reliability Corporation (NERC) are just a few of the regulations that identity governance and administration solutions aid in meeting specific requirements for. This industry is anticipated to grow due to these compliance requirements and corporate governance issues.

Identity governance and administration systems have become increasingly important due to increased cybercrimes and fraudulent activities brought on by the quick adoption of the cloud and other developing technologies within organizations. Identity governance and administration use identity analytics and intelligence to monitor suspicious user account activity. It makes it possible to spot policy infractions, delete inactive accounts, and take away rights for unauthorized access. This market's expansion is projected to be fueled by companies' growing identification and security concerns.

The introduction of blockchain technology makes it possible for secure and transparent identity management services to safeguard individual and corporate identities from fraud and cyberattacks. Governments and organizations are investing in adopting solutions to take advantage of the advantages of identity authentication and secure access afforded by Blockchain-linked identity governance and administration systems.  In addition, by eliminating middlemen, data, and duplicate identity repositories, blockchain-based identity governance and administration solutions help lower costs and operational hazards. The demand for such systems is anticipated to rise over the next years as blockchain technology becomes more widely used.

Thus, driving the identity governance and administration market revenue.

Enhanced user experience is becoming a focal point in the Global Identity Governance and Administration Market Industry. Organizations are recognizing that streamlined identity management processes can significantly improve user satisfaction and productivity. By implementing efficient identity governance solutions, businesses can provide seamless access to applications while maintaining security protocols. This focus on user experience is likely to drive market growth, as companies seek to balance security with usability. The anticipated growth trajectory suggests that identity governance will play a crucial role in shaping user interactions within digital environments.

The Global Identity Governance and Administration Market Industry is poised for substantial growth, with projections indicating a market value of 28.5 USD Billion by 2035. This growth is driven by various factors, including increasing cybersecurity threats, regulatory compliance requirements, and the adoption of cloud services. The market is expected to experience a CAGR of 13.19% from 2025 to 2035, reflecting the growing recognition of the importance of identity governance in organizational strategies. As businesses continue to navigate complex digital landscapes, the demand for effective identity management solutions will likely intensify.

The Global Identity Governance and Administration Market Industry is experiencing heightened demand due to the increasing prevalence of cybersecurity threats. Organizations are compelled to adopt robust identity governance solutions to mitigate risks associated with data breaches and unauthorized access. As cyberattacks become more sophisticated, the need for comprehensive identity management frameworks grows. In 2024, the market is projected to reach 7.29 USD Billion, reflecting a proactive approach by enterprises to safeguard sensitive information. This trend underscores the importance of identity governance in maintaining organizational integrity and compliance in an increasingly digital landscape.

Digital transformation initiatives are reshaping the Global Identity Governance and Administration Market Industry. As organizations transition to cloud-based services and remote work models, the need for effective identity management becomes paramount. Identity governance solutions facilitate secure access to digital resources, ensuring that only authorized users can access sensitive information. This shift is driving market growth, with an anticipated CAGR of 13.19% from 2025 to 2035. Companies are increasingly recognizing the value of integrating identity governance into their digital transformation strategies, thereby enhancing security and operational efficiency.

The growing adoption of cloud services is a significant factor influencing the Global Identity Governance and Administration Market Industry. As businesses migrate to cloud environments, the complexity of managing user identities and access rights escalates. Identity governance solutions provide the necessary tools to manage these challenges effectively, ensuring secure access to cloud applications. This trend is expected to contribute to the market's expansion, with a projected value of 7.29 USD Billion in 2024. Organizations are increasingly prioritizing identity governance to protect their cloud-based assets and maintain compliance with industry standards.

Regulatory compliance is a critical driver for the Global Identity Governance and Administration Market Industry. Organizations are mandated to adhere to various regulations, such as GDPR and HIPAA, which necessitate stringent identity management practices. Failure to comply can result in severe penalties and reputational damage. As a result, businesses are investing in identity governance solutions to ensure compliance and streamline audit processes. The market is expected to grow significantly, with projections indicating a rise to 28.5 USD Billion by 2035. This growth highlights the essential role of identity governance in navigating complex regulatory environments.

By region, the report offers market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American identity governance and administration market area will dominate this market. The use of remote work, cloud technologies, and increased cyberattacks contribute to this region's rise.  In 2022, there were 1802 instances of data compromise in the US. During the same year, data compromises, including data breaches, leaks, and exposure, impacted over 422 million people.

The presence of major corporations in the area, including Amazon Web Services Inc., Akamai Technologies, HP Development Company L.P., Microsoft Corporation, Oracle Corporation, IBM Corporation, and others, is another factor driving market expansion.

Further, the leading countries studied in the market report are US, Canada, France, German, Italy, UK, Spain, Japan, China, Australia, India, South Korea, and Brazil.

Figure 3: GLOBAL IDENTITY GOVERNANCE AND ADMINISTRATIONMARKET SHARE BY REGION 2022 (USD Billion)

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

Europe’s identity governance and administration market accounts for the second-largest market share due to security and legal compliance worries in nations like Germany, Italy, Spain, and others. The market for identity governance and administration systems in this region is driven by the General Data Protection Regulation (GDPR) rules for the entire European Union. Further, the German identity governance and administration market held the major market share, and the UK identity governance and administration market was the fastest-growing market in the region.

The Asia-Pacific Identity Governance and Administration Market is estimated to expand at a rapid rate from 2023 to 2032. Growing operational digitization, a high number of SMEs implementing such systems, increasing internet penetration, and the rapid development of digital infrastructure are all factors in developing the identity governance and administration market in the Asia Pacific region. Moreover, China’s identity governance and administration market held the largest market share, and the Indian identity governance and administration market was the fastest-growing market in the region.

Leading market players are largely investing in research and development to grow their product lines, which will help the identity governance and administration market, grow even more. The launch of new products, larger-scale mergers and acquisitions, contractual agreements, and collaboration with other organizations are significant market developments in which market participants engage to increase their global presence. The identity governance and administration industry must provide affordable products to grow and thrive in a more competitive and challenging market environment.

One of the primary business strategies manufacturers use in the global identity governance and administration industry to increase market sector and benefit customers is local manufacturing to lower operational costs. In recent years, the identity governance and administration industry has stipulated some of the most important medicinal benefits. Major players in the identity governance and administration market, including SailPoint, Microsoft, IBM, Oracle, and others, are investing in research and development operations to improve market demand.

Okta is a cloud-native security firm specializing in identity and access management. The San Francisco-based company went public in 2017 and focuses on two core client stakeholder groups: employees and customers. Okta's workforce solutions enable employees to access a company's cloud-based and on-premises resources securely. In May 2020, Okta, Inc. announced the debut of New Native Identity Integration with Amazon Web Services to improve security, simplify the user experience, and increase automation possibilities for large, complex organizations.

The new capability, immediately available through the Okta Integration Network, allows Okta clients to furnish identities to AWS SSO for permission management, offering automatic synchronization of user identities and groups to avoid significant complexity.

ForgeRock Inc is a cloud identification firm of the future. Its solutions include Identity Management, Access Management, Identity Governance, and AI-powered Autonomous Identity. Its revenue comprises subscription revenue, which is recurring revenue from term licenses, SaaS, and maintenance and support. Its revenue comes from the Americas, EMEA, and APAC. In November 2022, ForgeRock launched its new ForgeRock Identity Governance solution, a comprehensive cloud-native governance product designed to help major companies handle security and compliance concerns at scale.

By integrating ForgeRock Identity Governance with the company's industry-leading Identity and Access Management platform, companies realize efficiencies and cost savings by managing, securing, and governing identities across their entire lifetime from a single platform.