Identity and Access Management Market

Identity and Access Management Market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 12.2% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 18.4 billion and is projected to reach USD 65.5 billion by the completion of 2034.

Product Overview

Identity and access management (IAM) is a set of technologies and regulations that are designed to ensure that the right people can access the right resources at the right times for the right purposes. Identity & access management systems are essential for protecting assets and sensitive data across various businesses. It includes the creation of digital identities, along with authentication and authorization processes. In addition, it provides detailed audit reports and helps companies in addressing several regulatory requirements. Identity and access management improves security by enforcing strong authentication methods, such as multi-factor authentication, and by implementing least-privilege access, thus ensuring that users only have the minimum necessary access to perform their job functions. Therefore, identity and access management is important for reducing the risk of data breaches and ensuring the safety of businesses.

Market Highlights

Identity and Access Management Market is expected to grow at a compound annual growth rate (CAGR) of 12.2% from 2024 to 2034

Identity and access management market is projected to reach USD 65.5 billion over the forecast period, owing to rising security concerns and severe regulatory demands. This growth is attributed to the rise in cyberattacks and the huge adoption of cloud services. In addition, sectors such as BFSI, healthcare, and IT are major adopters of Identity and access management solutions, as they frequently deal with enormous amounts of sensitive data. Moreover, developments in technology like AI and machine learning are improving threat detection and simplifying the process of identity verification. Furthermore, leading players such as IBM, Microsoft, and Okta are constantly innovating new security products to provide user-friendly Identity & access management solutions. Therefore, the growth of the identity & access management market reflects the need for identity security in the modern digital ecosystem, thereby highlighting its importance in safeguarding sensitive information.

Source: Fatpos Global

Identity and Access Management Market Segmentation

Provisioning segment will lead the industry owing to its significance in automating several management processes

Identity & Access Management Market is divided by Component into Provisioning, Directory Service, Single Sign-On, Password Management, Advanced Authentication, Audit, and Others. The provisioning segment is expected to dominate the identity and access management market due to its important role in automating the processes of user lifecycle management. Provisioning ensures that users are granted appropriate access rights and privileges to the necessary applications and systems, based on their responsibilities within an organization. This segment simplifies the onboarding and offboarding of user accounts, thus reducing administrative overhead and security risks associated. With provisioning, organizations can further enforce regular access policies, which leads to better productivity and effective compliance with regulatory requirements. Furthermore, as companies increasingly adopt cloud-based services and hybrid IT environments, the need for provisioning across multiple platforms further displays the significance of this segment in the IAM market.

Cloud segment will dominate the market owing to its affordable costs and easy deployment

Identity and Access Management Market is divided by Deployment Mode into Cloud and On-Premise. The cloud segment is leading the identity & access management market as cloud-based identity & access management solutions are appealing to organizations of all sizes due to their scalability and ease of deployment. By using cloud IAM, companies can use the infrastructure and knowledge of providers, which reduces the need for bulky on-site hardware and maintenance. Besides, cloud IAM solutions allow for distant entry and smooth integration with different cloud apps, thus making it easier for remote teams to collaborate. Therefore, the use of cloud computing, along with the demand for strong security measures, is responsible for increasing the adoption of cloud-based IAM solutions. Furthermore, cloud-based IAM solutions offer centralized management and real-time monitoring, which minimizes the likelihood of breaches.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Increasing Adoption of Cloud Computing and Digital Transformation

Increasing usage of cloud computing and multiple efforts of digital transformation across sectors are promoting the need for strong identity and access management solutions. When businesses move their applications and data to the cloud, they need effective access management to ensure that only authorized users can reach sensitive resources. Thus, identity and access management solutions offer a centralized method for managing the identity of users and regulating access across various cloud platforms and on-premises systems. Therefore, the growing demand for smooth and secure access management in hybrid environments is encouraging companies to adopt identity and access management solutions.

Stringent Regulatory Compliance Requirements Can Act as a Growth Catalyst

Severe regulations such as GDPR, HIPAA, and PCI DSS require strict measures for data privacy, security, and access management across various industries. As a result, not adhering to the rules can lead to harsh consequences and can even damage one's reputation. In a similar way, identity & access management solutions are essential for organizations to comply with regulations. These solutions offer detailed logs for audit, along with strong authentication enforcement and monitoring of user activity to organizations. Also, the increasing focus on data protection and security from regulatory bodies is pushing the need for identity & access management solutions to reduce potential risks, which led to the expansion of the market.

Restraints

Complexity of Integration and Interoperability Will Impact the Growth

Difficulty in integrating IAM solutions with existing IT infrastructure, along with ensuring compatibility with different systems are key challenges within the market. Companies have diverse and mixed IT setups, such as outdated systems, apps on the cloud, and software that are located on-site. Therefore, incorporating IAM solutions into these systems can prove to be challenging, thus demanding a substantial amount of time and resources. Furthermore, achieving smooth compatibility among various IAM solutions from various vendors may present severe challenges. Thus, the complexity of identity and access management solutions can impede their adoption by organizations with complicated IT environments, which can limit market expansion.

Recent Developments

• In June 2021, Microsoft announced Azure Active Directory Verifiable Credentials, enabling organizations to issue and verify tamper-proof digital credentials. More recently, in March 2023, Microsoft introduced enhanced security features for Azure Active Directory, including conditional access policies and real-time risk detection.
• Okta acquired Azuqua, a cloud-based integration platform, in November 2021 to enhance its identity and access management capabilities. In January 2023, Okta launched a new Identity Governance solution, expanding its portfolio of IGA offerings.
• IBM introduced IBM Cloud Identity, a new cloud-based IAM offering designed for hybrid cloud environments, in October 2022. Earlier, in May 2021, IBM announced the integration of its IAM solutions with its Cloud Pak for Security platform.
• In September 2022, Ping Identity announced the acquisition of Singularity, a provider of IAM infrastructure software, to expand its offerings. Back in April 2021, Ping Identity launched the PingCloud Platform, a cloud-hosted version of its identity solution.
• Amazon Web Services (AWS) released Amazon Cognito, a new service for adding user sign-up, sign-in, and access control to web and mobile apps, in July 2022. In March 2023, AWS introduced additional features for Amazon Cognito, such as advanced security controls and user migration capabilities.

Identity and Access Management Market

Key Players:

• Microsoft
• Okta
• IBM
• Ping Identity
• AWS (Amazon Web Services)
• Centrify
• Oracle
• ForgeRock
• CA Technologies
• Sailpoint
• CyberArk
• OneLogin
• Zoho
• RSA Security
• Auth0
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Identity and Access Management Market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The identity & access management market in the Asia Pacific region is leading as a result of digital transformation and growing usage of cloud services in countries such as China, India, and Japan. These elements have created a need for strong IAM solutions to protect and supervise access to cloud-based applications and data.

Simultaneously, North America is the fastest-growing region in the market, due to the existence of leading IAM providers and the early integration of advanced technologies by North American companies. The IT infrastructure in North America is well established, along with the high demand for secure remote access during the pandemic, which has continued to push the growth of the IAM market across the North American region.

Source: Fatpos Global

Impact of COVID-19 on the Identity and Access Management Market

Identity and access management market experienced substantial growth due to the impact of the COVID-19 pandemic. Companies had to transition to remote work setups, owing to which, the demand for secure remote access to company assets became important. Identity and access management solutions were important for allowing workers to securely access applications and systems from any location. In addition, due to the growth in remote work, the danger of cyber threats also increased, which highlighted the importance for organizations to establish strong authentication and access control protocols. IAM solutions, such as MFA and SSO, reduced these risks by allowing only approved users to access sensitive data and applications. Hence, the COVID-19 outbreak highlighted the significance of IAM solutions in providing secure remote access.

Identity and Access Management Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Identity and Access Management Market Scope and Segments:

Frequently Asked Questions (FAQ):