Consumer Identity and Access Management (IAM) Market

Market Overview

The Global consumer identity and access management market size was valued at USD 13.56 Billion in 2017 and is expected to grow at a CAGR of 10.6% during the forecast period, 2019–2026.

Customer identity and access management (CIAM) is a system that enables organizations to securely capture and manage customer identity and profile data, and control customer access to applications and services. Identity and access management systems provide a combination of features including customer registration, multi-factor authentication (MFA), self-service account management, management, and single sign-on (SSO). They secure seamless customer experience at extreme scales and performance through channels such as web, and mobile.

IAM systems help organizations in the management of identities of employees, consumers, partners, contractors, and others to ensure secure and seamless services. Increasing demand in security governance, enforcement concerns, distributed systems, and workforce, as well as lower quality of security services within organizations, are collectively expected to boost the growth of the consumer identity and access management market.

Market Dynamics

The demand for consumer IAM systems has been rising as older systems lack the proper settings to be configured in accordance with the stated security policies and standards. In addition, growing popularity of mobiles, and the increasing adoption of IoT technology are some of the key factors driving the growth of the customer IAM market. IoT is creating a variety of opportunities for the consumer IAM market. Many service providers have started incorporating various device identity and access technologies into IoT platforms to simplify security designs in IoT deployments. This situation is likely to accelerate the growth of the consumer IAM market in the coming years.

Increasing incidences of cyber-attacks are significantly driving the growth of the consumer IAM market. For instance, in 2016, Uber reported that hackers stole information of over 57 million riders and drivers. Moreover, the cost associated with cybersecurity has been increasing over the years. For instance, in 2016, the U.S government spent USD 28 billion on cyber-security. Therefore, the demand for consumer IAM technology has been rising to prevent cyber-attacks by limiting access to sensitive data for unauthorized persons.

Regional Analysis

Geographically, the global consumer IAM market has been segmented into North America, Europe, Asia Pacific, and LAMEA.

North America is expected to hold the largest share in the consumer IAM market during the forecast period, owing to increased identity thefts through cyber-attacks on businesses. In addition, regulatory compliance is another driver for the IAM market growth In North America as many organizations are implementing a variety of regulations with an aim to eliminate redundancy and automate assessments, communication, and reporting.

Europe is one of the prominent regions in the consumer IAM market with the region’s customer base becoming increasingly sophisticated. The desire to streamline processes relating to employee, contractor, partner, and customer access by large and medium size enterprises is further driving the growth of the consumer IAM market in the region.

Asia Pacific is anticipated to be the fastest growing region in the consumer IAM market during the forecast period, owing to the significant trend in consumer identity and access management (IAM) across countries such as India, China, and Japan. In addition, enhanced focus of prominent cloud service providing companies on emerging economies is driving investments in the Asia Pacific cloud consumer IAM market.

The Middle East consumer IAM market is expected to register a steady growth rate as numerous business organizations are adopting consumer IAM systems to secure enterprise information in a compliant and cost-effective manner while providing adequate protection and optimal user experience.

Segmental Analysis

The consumer identity and access management (IAM) market can be segmented by service type, solution, deployment type, industry vertical, and geography.

On the basis of service type, the global consumer IAM market can be segmented into professional services, and managed services, while by solution, the market can be segmented into advanced authentication, identity proofing services, data governance, directory service, and others. On the basis of deployment, the consumer IAM market can be segmented into on-premise and cloud. Based on the industry vertical, the market can be segmented into BFSI, healthcare, IT & telecom, retail, and others.

Recent Developments

General Data Protection Regulation (GDPR) is an EU regulation that will come into effect on 25 May, 2019. Customer IAM solutions enable compliance with GDPR while also providing a unified view of the customer, thereby enabling personalised customer engagement.