Market Dynamics
Identity and access management 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.
Identity and access management 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.
Identity and access management 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 based on components, deployment, end-users, competitors, and regions.
Based on type, the market is categorized as Workforce IAM and Consumer IAM
Workforce IAM segment focuses on solutions designed to manage and secure access for employees within an organization. These solutions often include features such as single sign-on (SSO), multi-factor authentication (MFA), and identity governance and administration. The goal is to streamline user access management, enhance security, and ensure compliance with regulatory requirements. This segment is driven by the need for organizations to protect sensitive information from unauthorized access while improving operational efficiency and user experience
Consumer IAM Consumer IAM solutions meet the requirements of personal identity management through authentication, authorization, and user account management for persons across a variety of online services and platforms. This segment includes technologies that can ensure a fine user experience by single sign-on, multifactor authentication, and self-service password management. These solutions are of paramount importance for consumer-facing applications and enable safe, secure access to protected information while keeping the information of the user himself safe from unauthorized access and cyber threats.
Based on component, the market is categorized as Audit, Compliance, and Governance, Directory Service, Password management, Single Sign-On, Provisioning
This segment encompasses tools and technologies that provide comprehensive audit trails, compliance reporting, and governance frameworks. These components are crucial for organizations aiming to maintain control over access permissions, monitor user activities, and address security and compliance concerns effectively. Audit tools track and record user interactions with systems and data, facilitating forensic investigations and ensuring transparency.
Directory services play a major role in maintaining a central repository of all identity data, such as usernames, passwords, roles, and access permissions. They provide structured access to various resources of IT, which in turn performs the role of authentication and authorization processes.These are important services in ensuring efficient user management and perfect security through centralized identity management, especially in the case of large enterprises with large numbers of users and complex IT environments.
This segment includes various tools and technologies that facilitate the creation, storage, and management of passwords across an organization's network. Key components within this segment often include password vaults, which securely store passwords and credentials; password generators, which create complex passwords to enhance security; and password reset tools that enable users to recover or change their passwords securely.
Single Sign-On segment of the Identity and Access Management market is related to technology that allows users to access several applications or systems with a single set of login credentials. SSO solutions manage authentication through a single log-on, hence eliminating the need for the end-user to log in at various points. This includes both software and underlying infrastructure that support SSO functionalities. This segment is mainly propelled by the increasing demand for sophisticated security, enhanced user experience, and operational efficiency.
Provisioning is a vital concept within IAM, and it involves the creation, management, and removal of user accounts and access permissions from a variety of systems and applications. This segment comprises solutions that support onboard new users, the role-specific rights of access, and removal of access once users leave or change role. An efficient provisioning system helps an organization automate the activities that touch users' management, at the same time, mitigating the risk of unauthorized access within compliance to rules and regulations.
Based on Deployment the market is categorized as cloud, hybrid, and on-premise.
Cloud section covers IAM solutions that are deployed via cloud computing platforms. This model of deployment has several advantages associated with it, such as scalability, flexibility, and cost-effectiveness. Cloud-based IAM solutions are more attractive to any business looking to reduce the complexities and costs associated with on-premise infrastructure. The above solutions help in managing user identities, access controls, and security policies from a single, cloud-based console, which easily caters to the needs of today's dynamic and geographically dispersed workforces.
Hybrid deployment models merge both on-premise and cloud-based IAM solutions to provide flexibility, and with that, the accrued advantages associated with the use of the two different environments. This model can let organizations integrate existing on-premise systems with the cloud-based services and offers enhanced scalability, flexibility, and cost-efficiency. Hybrid deployments are especially useful either for organizations with complex IT infrastructures or for those moving to the cloud but still maintaining part of their infrastructure with legacy systems.
These on-premise systems provide more control to businesses over their security policies, data management, and compliance requirements. The on-premise model is usually opted for by organizations looking to cater to specific regulatory or data privacy concerns, or in tightly coupling integration with already existing IT systems and infrastructure. Although this on-premise IAM solution involves high up-front spending on hardware and software, not mentioning the continuous time and effort needed for maintenance and management, it provides a very high level of flexibility and control over the security environment.
Based on End-Use the market is categorized as BFSI, Energy, Telecom and IT, Education, Healthcare, Public sector and utilities, Manufacturing, Government and Defense Travel, Oil and Gas, Tourism and Hospitality, and Others
This industry places a high premium on security and regulatory compliance, making IAM solutions crucial for safeguarding sensitive financial data and ensuring secure access to systems and information. BFSI institutions use IAM systems to manage and monitor user identities, enforce authentication protocols, and control access to critical financial applications. These solutions help in preventing unauthorized access, mitigating fraud risks, and complying with stringent regulations such as GDPR and SOX.
Telecom and IT companies use IAM systems to safeguard sensitive data, ensure compliance with regulatory requirements, and streamline user management across diverse and often complex IT environments. These solutions help in mitigating security risks associated with unauthorized access and data breaches, thus enhancing the overall security posture of telecom and IT organizations.
IAM solutions are critical for managing access to a multitude of digital resources and systems used by students, faculty, and administrative staff. These solutions help in safeguarding sensitive student and staff data, ensuring compliance with educational regulations, and simplifying user management across campus networks.
IAM systems in this sector are designed to manage and secure user identities, streamline authentication processes, and enforce access policies to safeguard electronic health records (EHRs) and other confidential information. The increasing digitization of health records, coupled with the growing prevalence of telemedicine and mobile health applications, drives the demand for advanced IAM solutions in healthcare. These systems help healthcare providers mitigate the risk of data breaches, ensure compliance with regulatory standards, and enhance operational efficiency by automating user management and access controls. help in preventing unauthorized access, ensuring that only authorized personnel can view or modify sensitive health information.
Manufacturers require IAM solutions to manage access to sensitive systems, intellectual property, and operational technology. With the increasing complexity of manufacturing processes and the integration of Internet of Things (IoT) devices, IAM systems help ensure that only authorized personnel can access critical infrastructure and data. This is essential for protecting against industrial espionage, ensuring compliance with regulatory standards, and maintaining operational integrity.
