Identity Governance and Administration Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The Identity Management and Administration market is valued at $ 6,332,977,000 in 2023, and is projected to grow at a CAGR of 13.19% from 2024 to 2032. The high growth of this market reflects the growing importance of identity management solutions in the digital economy, where companies need to increase security, compliance and efficiency. The growing frequency of cyber-attacks and the stricter regulatory requirements are compelling companies to invest in advanced identity and access management solutions, which in turn is driving market growth. There are also a number of technological trends that are driving the growth of this market, such as the increasing adoption of cloud-based identity solutions, the integration of artificial intelligence for advanced analytics, and the growing importance of zero-trust security models. In the midst of this growth, the main players in the market, such as SailPoint, Okta and IBM, are actively pursuing strategic initiatives, such as strategic alliances and product innovations, to strengthen their market positions. Recent strategic alliances to integrate artificial intelligence into identity governance frameworks, for example, are expected to further enhance the effectiveness and efficiency of identity management processes, and thereby attract more companies to invest in these solutions.

Regional Market Size

Regional Deep Dive

The identity governance and administration market is experiencing significant growth in all regions, driven by the growing need to comply with regulatory requirements, the rise in cyber-security threats and the need to effectively manage user identities. In North America, the market is characterized by a high rate of adoption of newer technology and a strong focus on data security. In Europe, strict regulations such as the General Data Protection Regulation are driving organizations to enhance their identity governance frameworks. In Asia-Pacific, digital transformation and cloud solutions are driving the market, while in the Middle East and Africa, there is a high level of investment in security. Latin America, though lagging in some respects, is beginning to realize the importance of identity governance as organizations seek to protect sensitive data and comply with international standards.

Europe

• The General Data Protection Regulation (GDPR) has led to a surge in demand for identity governance solutions, as organizations seek to ensure compliance and protect user data.
• Companies like OneLogin and Okta are expanding their presence in Europe, offering innovative identity management solutions tailored to meet the region's regulatory landscape.

Asia Pacific

• The rapid digital transformation in countries like India and China is driving the adoption of cloud-based identity governance solutions, as organizations seek to streamline their identity management processes.
• Government initiatives, such as Singapore's Smart Nation program, are promoting the use of advanced identity governance technologies to enhance security and user experience in public services.

Latin America

• The rise of cyber threats in Latin America has prompted governments to implement stricter data protection laws, driving demand for identity governance solutions.
• Organizations in Brazil are increasingly adopting identity governance frameworks to comply with the Lei Geral de Proteção de Dados (LGPD), which emphasizes the importance of data privacy.

North America

• The implementation of the Cybersecurity Maturity Model Certification (CMMC) by the U.S. Department of Defense is pushing defense contractors to adopt robust identity governance solutions to meet compliance requirements.
• Major players like Microsoft and IBM are investing heavily in AI-driven identity governance tools, enhancing automation and efficiency in managing user access and compliance.

Middle East And Africa

• The UAE's National Cybersecurity Strategy is encouraging organizations to invest in identity governance solutions to protect critical infrastructure and sensitive data.
• Local companies like DarkMatter are developing innovative identity management solutions tailored to the unique security challenges faced in the region.

Did You Know?

“Approximately 80% of data breaches involve compromised user credentials, highlighting the critical need for effective identity governance solutions.” — Verizon Data Breach Investigations Report 2023

Segmental Market Size

The identity management market plays a crucial role in enhancing the security and compliance of organizations by managing the identities and access rights of their users. This market is growing, pushed by growing regulatory requirements and the need for robust security measures. The increasing trend towards remote working, which requires secure access to company resources, as well as stricter regulations such as the General Data Protection Regulation (GDPR) and HIPAA, which demand stricter identity management, are driving the market. At the moment, identity and access management (IAM) solutions are being deployed in large numbers, with Okta and SailPoint leading the way in industries such as finance and healthcare. The most common use cases are provisioning, access control, and auditing and reporting, which are essential to companies to prevent the risks associated with unauthorized access. Meanwhile, macro-economic trends such as the shift to zero-trust security models and the ongoing digital transformation of all industries are boosting the market. Artificial intelligence and machine learning are also influencing the evolution of the market, enabling more efficient identity analytics and compliance processes.

Future Outlook

The market for identity management and governance is destined for a significant growth from 2023 to 2032, growing from US$6.33 billion to US$19.65 billion, at a CAGR of 13.19%. This growth will be driven by the growing need for effective identity management in the context of increasing security threats and regulatory requirements. And as digitalization spreads across industries, the need for comprehensive IGA solutions to ensure compliance and security will increase. This will result in a higher penetration rate for IGA solutions across various sectors, such as financial services, health care and government. Also, the rise of key technology trends such as artificial intelligence and machine learning will help to shape the IGA market. These technologies will enable organizations to automate identity management processes, enhance risk assessment and improve the user experience. Furthermore, the growing trend towards remote working and the adoption of cloud-based services will further accelerate the demand for a strong identity governance framework. The IGA market will continue to expand as more and more organizations recognize the importance of identity security in their overall cybersecurity strategy. By 2032, the penetration rate of IGA solutions is expected to reach 63.10%, highlighting the critical role of identity governance in protecting digital assets.