Identity and Access Management Market

Market Overview

The global identity and access management market was valued at USD 12.85 billion in 2022 and is projected to reach USD 36.96 billion by 2030 at a CAGR of 14.12% from 2022 to 2030.

As the number of applications, systems, and data has increased, businesses have realized that requiring a username and password for validating the identities of individuals accessing resources is insufficient.

In order to secure access and prevent data breaches, IAM tools were developed. The IAM technology is employed to initiate, capture, manage, and record user identities, as well as to grant authorized access to various enterprise resources to the staff of an organization. IAM is the management of individual identities, their authorization, and the provision of access according to predefined rules.

Market Dynamics

Market Drivers

• Security Breaches Are Driving the Market

As the world continues on its path toward digitalization, the data uploaded to the web are becoming increasingly exposed. Each consumer's personal information is stored on hundreds of servers around the world, which has led to an increase in identity theft. According to industry experts, there was a slight decline in identity theft cases in 2019, which unfortunately reversed in 2020 and 2021 due primarily to the pandemic's effects. According to the Federal Trade Commission (FTC), identity fraud incidents increased by approximately 45 percent in 2020, resulting in enormous financial losses. Javelin Strategy & Research estimates that this trend will continue in 2021, costing North America a total of USD 56 billion. In addition, the FTC reported that more than one million children were victims of identity theft in 2020 and that losses from identity theft increased from USD 1.8 billion in 2019 to USD 3.3 billion in 2020. Forty percent of account takeovers occurred within 24 hours of criminal gaining access to a victim's account, according to Javelin Strategy & Research 2020 research on identity fraud. Instances of cyberattacks, particularly identity-related frauds, have increased over the past few years, as evidenced by the statistics presented here. The increase in these cyberattacks can be attributed to technologies such as machine learning, which enable attackers to generate multiple variants of malicious code every day. Constantly evolving cyberattacks have a negative impact on the reputations of businesses, their assets, and their bottom lines. Consequently, protecting against cyber threats has become a necessity for the development of businesses. In order to prevent security breaches and cyberattacks, this has prompted businesses to adopt IAM.

• Cloud-Based Solutions Are Driving the Market

Organizations today are extremely diverse and receptive to newer trends that improve employee productivity. Companies offer a variety of roles to their employees, have offices in various locations, and require a resource-ready environment for new hires; thus, in order to secure their data, they are focusing on adopting IAM solutions on a large scale. The cloud-based IAM solutions provide increased security and remote access with two-step authentication and verification based on a variety of policies. Moreover, enforcement concerns, security governance, and a decline in the quality of security services within organizations will accelerate the adoption of Identity and access management solutions.

Market Restraints

• Low Budget and Lack Of Identity Standards Are Hindering The Market

The expanding cyber threat landscape is one of the most pressing concerns for organizations across all industry verticals. The lack of identity standards and inadequate budgetary resources, coupled with the high installation costs of consumer IAM solutions, are impeding the expansion of the consumer Identity and access management market. Due to the necessity of integrating robust security technologies, initial investment and maintenance expenses for consumer IAM systems are high. SMBs place a greater emphasis on the resources necessary for business survival; as a result, they disregard IAM. After a security breach has occurred, they typically prioritize security. In addition, businesses only prioritize the security of their most important servers and pay little attention to the data stored in databases. Inadequate budgets continue to be a significant obstacle for consumer IAM professionals attempting to conduct effective IT security operations. Budgetary constraints have been observed in major economies, such as certain regions of APAC, MEA, and Latin America, where companies are bootstrapped or operate with limited capital.

Market Opportunities

• The Hybrid Cloud Model Is Expected To Bring In New Opportunities

As the cloud market expands, the need to secure and manage multiple accounts that can be accessed via the cloud by employees also increases, resulting in a rise in the adoption of IAM solutions. Historically, organizations viewed IAM technologies as capital expenditures, and they had to be purchased and implemented on-premises. There was a significant cost structure associated with the successful implementation of IAM projects, which required months of intensive labor. With the proliferation of the cloud, this trend is now changing, making implementation and access to cloud-based IAM services simpler. Hybrid deployments of IAM solutions aid end-users in selecting between IAM technologies that can be deployed on-premises and technologies that can be accessed in the cloud. This transition in the market, coupled with attractive pricing options such as a monthly subscription model and pay-as-you-go, affords IAM service providers the opportunity to expand their market presence. Additionally, cloud-based IAM solutions for consumers require fewer capital expenditures and less implementation time. This factor, along with the growth of SMEs, is anticipated to increase the adoption of consumer IAM solutions across all sizes of organizations.

Segmental Analysis

This market can be segmented on the basis of components, deployment, end-users, competitors, and regions. In 2021, the provisioning component segment dominated the identity and access management market with a revenue share of over 30%. With a rise in the number of users accessing systems and applications, it is essential for a business to have a suitable IT infrastructure process for managing user identities. By creating, modifying, disabling, and deleting user accounts and their profiles across IT infrastructure and business applications, user provisioning plays a critical role in the implementation of an identity lifecycle.

The multifactor authentication market is expected to grow at a rate of 17.0 percent per year over the forecast period. Compliance and policies requiring self-generated passwords and one-time password (OTP) tokens for internet banking are potential growth drivers for multifactor authentication applications. In addition, the integration of physical and logical security, such as the use of traditional passwords in conjunction with newer technologies such as biometrics and smart cards, is anticipated to increase the segment's adoption.

On the Basis of Deployment

The market is categorized as cloud, hybrid, and on-premise. Large businesses are saving money due to automated user provisioning and enhanced auditing and compliance of their entire portfolio of Software as a Service (SaaS) applications, such as Yammer, WebEx, Google Apps, and Box.net. By 2025, however, the segment will likely lose market share to the other two segments.

Over the forecast period, the cloud segment is expected to experience tremendous growth. One of the primary contributors to the segment's growth is the increasing adoption of the cloud model by various organizations due to its cost-effectiveness and economies of scale. A growing number of IT, sales, and business functions are migrating to the cloud in order to take advantage of its benefits. With no deployment of software or hardware, cloud-based IAM services and products offer a variety of advantages, including simplified management and lower costs.

On the Basis of End-Use

The market for identity and access management is segmented as follows: BFSI, telecom and IT, energy, oil and gas, education, public sector and utilities, healthcare, and manufacturing. Defense, logistics, and home safety and security are additional applications.

Multiple regulatory reforms and stringent government regulations are prompting businesses and organizations to assess their internal control infrastructure. For instance, under the Health Insurance Portability and Accountability Act of 1996 (HIPAA), healthcare organizations are required to ensure the portability of healthcare coverage and the confidentiality of patient records. It mandates that organizations train their employees to effectively adhere to privacy measures, appoint a single individual within the organization to oversee HIPPA compliance and implementation, and take extensive steps to limit the disclosure of patient information, including securing electronic access to patient records.

Regional Analysis

In terms of revenue, North America dominated the market with a 40 percent market share. Regarding the adoption of cyber technology and its infrastructure, North America is regarded as the most developed region. In North America, cyber security is regarded as a serious economic and national security challenge due to the increasing number of security threats and data breaches in this region. The changing needs of the workforce, BYOD trends, the increasing adoption of cloud applications, the need to ensure compliance with regulations, and the push for organizations in this region to adopt IAM solutions are expected to fuel the market's growth. The region also contains a number of large corporations and small and medium-sized businesses, making the protection of the consumer data of the large labor force the organization's top priority. All of these factors augur well for market demand in identity access management during the forecast period.

From 2022 to 2030, it is anticipated that the Asia-Pacific market will have the highest CAGR. The region includes emerging economies including China, India, Japan, and Australia. Numerous small and medium-sized businesses are located in these nations. It is difficult for SMEs to adopt identity access management due to the high investment required; nevertheless, the region is undergoing a transition, and factors such as rising Internet usage, rising smartphone adoption, and compliance regulations are driving the market.

Recent Developments

• Microsoft acquired Nuance in March 2022 to enable organizations across industries to accelerate their business goals using conversational AI and ambient intelligence in conjunction with Microsoft's trusted industry cloud offerings.
• In February 2022, Ping Identity introduced PingOne DaVinci, a new no-code identity orchestration service that enables organizations to integrate and orchestrate identity services from multiple vendors.
• IBM acquired SXiQ, an Australian digital transformation services company that specializes in cloud applications, cloud platforms, and cloud cybersecurity, in November 2021.
• Okta launched Okta Identity Governance in April 2021, which provides a modern, cloud-first approach to IGA. Okta Identity Governance provides the most important capabilities of identity governance and administration in a cloud-first solution.
• Broadcom partnered with Google Cloud in April 2021 to accelerate innovation and strengthen cloud services integration in order to provide enterprises with secure access to cloud applications and enhanced performance.
• Oracle released the proactive Enterprise Single Sign-On Suite Plus (ESSO) terminal patch for 11.1.2.3.2 in July 2020. This update is known as 31071051 Patch.

Identity and Access Management Market Segmentation

By Component

• Audit, Compliance & Governance
• Directory Service
• Multifactor Authentication
• Provisioning
• Password Management
• Single Sign-On

By Deployment

• Cloud
• Hybrid
• On-Premise

By End-Users

• BFSI
• Energy, Oil & Gas
• Telecom & IT
• Education
• Healthcare
• Public sector & utilities
• Manufacturing
• Others

By Regions

• North America
• Asia Pacific
• Europe
• LAMEA