Global Identity and Access Management Market By Component (Password Management, Multifactor Authentication, Provisioning, Directory Service, Single Sign-On, Audit, Compliance, & Governance, and Other Components), By Deployment Mode (On-Premise and Cloud-Based), By End-Use Industry, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Nov. 2023
- Report ID: 49431
- Number of Pages: 322
In 2022, the Global Identity and Access Management Market was valued at USD 14.7 Billion. Between 2023 and 2032, this market is estimated to register the highest CAGR of 13.7% to reach USD 53.1 Billion.
With the rising number of data, systems, and applications, many businesses are identifying that security measures like providing passwords and usernames to verify the identity of an authorized person are not sufficient. Due to this, identity and access management tools are used by businesses to avoid data breaches and secure the access of users.
The applications of IAM technology are used in various businesses to manage, record, and capture the identities of users. IAM manages the authorization and permission of authorized individuals according to the rules, regulations, and protocols set by the businesses. The introduction of advanced technology like artificial intelligence (AI) and the internet of things (IoT) in identity and access management has boosted the growth of the IAM market.
Note: Actual Numbers Might Vary In Final Report
- Market Growth: The Identity and Access Management (IAM) Market is projected to experience rapid expansion by 2032, reaching USD 51.4 billion with an impressive compound annual growth rate of 13.7% between 2023-2032.
- Factors Fueling Growth: The market’s expansion is propelled primarily by factors like cyberattacks and identity fraud, necessitating tightened security measures; as well as growing adoption of cloud-based IAM solutions for remote access security.
- Challenges: However, the continuous advancement of technology poses a challenge for the IAM industry, with cybercriminals leveraging sophisticated techniques like AI and machine learning to infiltrate systems. Additionally, the high initial investment acts as a restraining factor for market growth.
- Component Analysis: Within the IAM market, the provisioning segment leads in terms of revenue, while the multifactor authentication segment is expected to witness the fastest growth, offering enhanced security through multi-layered authentication processes.
- Deployment Analysis: The on-premise deployment segment currently dominates the market, while the cloud-based deployment segment is expected to register significant growth owing to its cost-effectiveness and simplified management.
- End-Use Industry Analysis: The healthcare sector leads the IAM market due to the critical need for data security, followed by the BFSI sector, which is expected to be the fastest-growing segment, driven by the increasing adoption of digital banking and online payment services.
- Growth Opportunities: Integration of advanced technologies such as blockchain and biometrics is identified as a promising growth opportunity for the IAM market, providing enhanced security and access management for organizations.
- Latest Trends: The adoption of blockchain technology within IAM systems is gaining traction, offering transparent and secure identity management platforms, thereby reducing operational risks and costs for organizations.
- Regional Analysis: North America currently holds the largest market share, attributed to the region’s heightened focus on data security and cybersecurity management. However, Asia Pacific is anticipated to witness the fastest growth, with organizations investing in IAM solutions to protect their databases from potential threats.
Increasing Cyberattacks and Identity Fraud
With the increasing adaptation of digitalization, the data uploaded to the database of organizations have raised the threat of data exposure. The data, like users’ personal information, is stored in many servers located across the world, which raises the risk of identity theft. According to reports, cyberattacks and identity fraud cases have increased in the last few years.
This is due to the advanced technology, like machine learning and artificial intelligence, that helps attackers generate new malicious codes regularly. To protect businesses and organizations from such attacks, many organizations are adopting the IAM for the safety and security of the business. This is further driving the growth of the identity and access management market throughout the years.
Many organizations have expanded their business across the world, and they offer various job profiles to employees at various office locations in the world. Therefore, to safely secure their data, companies are moving towards the cloud-based IAM, which offers remote access and high security with multiple verification and authentication process according to the organization’s policies. This is fueling the positive development of cloud-based IAM solutions in the IAM market.
Advancing Technology and Huge Investment
The continuously advancing technology has become a challenging factor for the identity access and management industry. Cybercriminals and attackers are taking advantage of technologies like artificial intelligence and machine learning to infiltrate the techniques and hack the servers of organizations. This has become a big threat to the identity and access management industry.
Cybercriminals and attackers are using these technologies to hack the server and steal data from them, which is negatively affecting the market. Also, the high installation cost and initial investment obstruct the growth of the identity and access management market.
The Provisioning Segment Leads the Market by Offering More Safety Features.
Based on components, the identity, and access management market is divided into password management, multifactor authentication, provisioning, directory service, single sign-on, audit, compliance, governance, and other components. Among these components, the provisioning segment leads the market by accounting for a major revenue share in 2022.
Identity and access management offers extra security and safety by granting, validating, and identifying the authorized individual access to the company’s database. This is boosting the growth of the provisioning segment in the identity and access management market.
The multifactor authentication segment is expected to grow as the fastest-growing segment during the forecast period of 2023 to 2032. Multifactor authentication provides safety by offering multilayer security for users to give various authorized credentials and IDs for the user to access the application. This extra security improves overall security, which many businesses adopt for multifactor authentication. This is expected to drive the growth of this segment during the forecast period.
On-Premise Deployment is Mostly Preferred by the Individuals
By deployment, the identity and access management market is classified into on-premise and cloud-based. From these deployments, the on-premise segment dominated the market in 2022 by accounting for a significant revenue share than the cloud-based deployment. The growth of this segment is attributed to the easy functionality of the solution without access to a wide-area network (WAN) and external network connection.
However, the cloud-based deployment segment is anticipated to register a significant CAGR during the forecast period. The growth of this segment is due to the rising adoption of the cloud-based model from various companies for its low cost and economies of scale. An increasing number of businesses, sales, and IT functions are switching to cloud-based deployment owing to its advantages and benefits.
Note: Actual Numbers Might Vary In Final Report
Cloud-based deployment offers IAM service without any software and hardware with advantages like low cost and simple management. These factors are expected to boost the growth of the cloud-based deployment segment during the forecast period.
End-Use Industry Analysis
Safety of Patient Credentials is Driving the Growth of the Healthcare Segment in the IAM Market
The end-Use industry of IAM is divided into the public sector & utilities, IT & telecommunication, healthcare, education, BFSI, energy, oil, & gas, manufacturing, and other end-use industries. The healthcare industry led the IAM market in 2022 because of its applications in various functions across the healthcare industry.
IAM is used in various health clinics, medicals, hospitals, pharmaceutical companies, biotechnology companies, and other healthcare-related service offering organizations. IAM helps the healthcare sector to provide safety to the healthcare-related database. This is due to the high risk of data breaches and security issues in the healthcare sector for the personal credentials of patients and related users.
After the healthcare industry, the BFSI segment is anticipated to rise as the fastest-growing industry during the forecast period of 2023 to 2032. The growth of this segment is attributed to the increasing popularity of digital banking, online payments, and E-wallets among individuals to confirm access to authorized people, compliance with the protocols and regulations, and manage the risks for the organization.
Key Market Segments
- Password Management
- Multifactor Authentication
- Audit, Compliance, & Governance
- Directory Service
- Single Sign-On
- Other Components
- Public Sector and Utilities
- Energy, Oil, & Gas
- IT & Telecommunication
- Other End-Use Industries
Integration of Advance Technology Like Blockchain and Biometrics
The use of advanced technology like blockchain and biometrics for access has become a trend in identity and access management. To allow access to authorized individuals, many companies are using biometrics for the verification of iris, fingerprints, and facial recognition. This helps the organization deny access to unauthorized individuals. Therefore, its adoption by companies in the coming years is expected to create many opportunities in identity and access management.
Many companies have given data access to third-party organizations, which is posing a threat to the company data. Artificial intelligence and machine learning can be used in identity and access management to avoid problematic situations like these. Technologies like these allow organizations to form simple access to individuals with high safety and security. Therefore, these technologies are expected to create many identity and access management opportunities.
Adoption of Blockchain Technology
The adoption of advanced technology like blockchain is offering transparent and secure identity management platforms to provide a shield to organizational and personal identities from attackers and frauds. By using the advantages of verification and identity authorization from blockchain-integrated identity and access management systems, many organizations and governments across the world are funding and investing in identity and access management solutions.
Moreover, blockchain-integrated identity and access management systems are able to reduce the cost and operational risk by eliminating the data and identity archives with intermediaries. The rising adoption of blockchain-integrated identity and access management systems is anticipated to boost the growth of the market.
North America Leads the Market with Major Share in Account.
North America dominated the global identity and access management market by accounting for a major revenue share of 34.6%. The domination of North America in the identity and access management market is attributed to the increased security breaches and cyber-attacks in the region. These attacks have increased significantly in the last few years due to easy access to the internet. The increasing demand for data safety and cybersecurity management is anticipated to propel the growth of IAM in this region.
Asia Pacific is expected to register the fastest-growing CAGR during the forecast period. The major businesses and organizations in this region are heavily funding and investing in advanced and innovative solutions like identity and access management solutions to avoid attacks on their database by hackers and attackers to steal confidential data.
Note: Actual Numbers Might Vary In Final Report
Key Regions and Countries Covered in this Report
- North America
- The US
- The UK
- Rest of Europe
- South Korea
- New Zealand
- Rest of APAC
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia
- Rest of MEA
Key Players Analysis
Major companies in the identity and access management market are applying various strategies like Product expansion, business expansion, mergers, acquisitions, partnerships, and collaborations to expand their business share in the global identity and access management market. Some of the major players in the global identity and access management market are Intel Corporation, Microsoft Corporation, IBM Corporation, Amazon Web Services Inc., McAfee. LLC, Broadcom Inc., One Identity LLC, ForgeRock, Inc., HID Global Corp., Oracle Corporation, OneLogin, Inc., and Other Key Players.
Market Key Players
- Intel Corporation
- Microsoft Corporation
- IBM Corporation
- Amazon Web Services Inc.
- Broadcom Inc.
- One Identity LLC.
- ForgeRock, Inc.
- HID Global Corp.
- Oracle Corporation
- OneLogin, Inc.
- Other Key Players
- In March 2022, Microsoft acquired Nuance to allow businesses and organizations to propel their business goals by integrating artificial intelligence and ambient intelligence in support through cloud offerings of Microsoft.
- In February 2022, Ping Identity announced PingOne DaVinci. It is a new no-code authorization service that permits businesses to adopt and authorize identity services from any service provider.
Report Features Description Market Value (2022) USD 14.7 Bn Forecast Revenue (2032) USD 51.4 Bn CAGR (2023-2032) 13.7% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Component – Password Management, Multifactor Authentication, Provisioning, Directory Service, Single Sign-On, Audit, Compliance, & Governance, and Other Components; By Deployment Mode – On-Premise and Cloud-Based; By End-Use Industry – Public Sector & Utilities, IT & Telecommunication, Healthcare, Education, BFSI, Energy, Oil, & Gas, Manufacturing, and Other End-Use Industries Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; the Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape Intel Corporation, Microsoft Corporation, IBM Corporation, Amazon Web Services Inc., McAfee. LLC, Broadcom Inc., One Identity LLC, ForgeRock, Inc., HID Global Corp., Oracle Corporation, OneLogin, Inc., and Other Key Players. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)
Frequently Asked Questions (FAQ)What is the Identity and Access Management Market?
The Identity and Access Management (IAM) Market refers to the market for software solutions that enable organizations to manage digital identities and access permissions for their users. IAM solutions help organizations to control access to their sensitive data, systems, and applications by implementing policies and rules for managing user identities and their access to different resources.What are the key factors driving the growth of the Identity and Access Management Market?
The growing need for enhanced security, increasing adoption of cloud-based services, and the rise of Bring Your Own Device (BYOD) culture are some of the key factors driving the growth of the IAM Market. In addition, regulatory compliance requirements such as GDPR and HIPAA are also driving the demand for IAM solutions.What are the different types of Identity and Access Management solutions available in the market?
There are several types of IAM solutions available in the market, including Single Sign-On (SSO), Multi-factor Authentication (MFA), Password Management, Directory Services, Identity Governance and Administration (IGA), and Privileged Access Management (PAM).How does Identity and Access Management help in ensuring security and compliance for organizations?
IAM solutions help organizations to control access to their systems and applications by implementing policies and rules for managing user identities and their access permissions. IAM solutions also help organizations to ensure compliance with regulatory requirements by providing visibility into user access and enforcing access controls to prevent unauthorized access to sensitive data.What are the major challenges faced by organizations in implementing Identity and Access Management solutions?
The major challenges faced by organizations in implementing IAM solutions include integration with existing systems, user adoption, complexity, and cost. Implementing IAM solutions requires integration with various systems and applications, which can be complex and time-consuming. Additionally, users may be resistant to adopting new authentication methods or may not understand the need for enhanced security measures, which can result in lower adoption rates.What are the major players in the Identity and Access Management Market and what are their strategies to stay competitive?
Some of the major players in the IAM Market include IBM Corporation, Microsoft Corporation, Oracle Corporation, CA Technologies, Dell EMC, ForgeRock, Hitachi ID Systems, Okta Inc., SailPoint Technologies, and CyberArk Software. To stay competitive, these players are focusing on developing innovative solutions, expanding their product portfolios through acquisitions and partnerships, and investing in research and development to stay ahead of the curve in terms of technology advancements.
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