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

Report Overview

The Global Identity and Access Management Market size is expected to be worth around USD 53.1 Billion by 2032, from USD 16.8 Billion in 2023, growing at a CAGR of 13.7% during the forecast period from 2024 to 2033.

Identity and Access Management (IAM) refers to the framework of policies, processes, and technologies that organizations employ to manage digital identities and control user access to critical information within their systems. IAM systems facilitate the right individuals to access the right resources at the right times for the right reasons.

The Identity and Access Management market is experiencing significant growth, driven by the increasing awareness of cybersecurity threats, the rising adoption of cloud-based services, and the stringent regulatory environment demanding robust data protection measures. The market encompasses a variety of solutions catering to the needs of enterprises across different sectors, including healthcare, finance, government, and technology.

The growth of the IAM market can be attributed to the escalating demand for advanced security solutions to safeguard sensitive data against unauthorized access and breaches. With organizations undergoing digital transformations and shifting towards more complex IT environments, the adoption of IAM solutions is becoming indispensable. Market analysts project a steady increase in the global demand for IAM solutions, highlighting their critical role in enabling secure and efficient operations in today’s digital age.

Key Takeaways

• Global Identity and Access Management Market size is expected to be worth around USD 53.1 Billion by 2032, from USD 16.8 Billion in 2023, growing at a CAGR of 13.7%.
• By 2024, 60% of large enterprises will choose cloud-delivered Privileged Access Management (PAM) services. This marks a significant increase from 30% in 2022, aiming to reduce risks associated with privileged access.
• Around 70% of organizations are expected to adopt a Zero Trust security model. This approach depends on strong IAM (Identity and Access Management) solutions for safe access control and user authentication.
• 60% of organizations will put in place Enhanced Identity Proofing and Fraud Detection solutions. This step is crucial for reducing the dangers linked to identity theft and account takeover attacks.
• 30% of enterprises will have chosen a Cloud Privilege Access Management (CPAM) solution by 2024. This move is to lessen the risks tied to privileged access in cloud environments.
• In 2023, the banking, financial services, and insurance (BFSI) sector is projected to be the biggest user of IAM solutions, holding a market share of about 26.0%. This is due to strict regulatory demands and the necessity for secure data access.
• A 2022 survey showed that 84% of participants had faced an identity-related security breach in the previous year.
• 37% of all breaches involve stolen login information, highlighting the importance of secure credentials.
• The main advantages of going passwordless include better security (41%), enhanced user experience (24%), higher productivity (19%), and less strain on IT departments (17%).
• Only 28% of IT security workers report their organizations check if remote employees are securely connecting to the network.
• 74% of all breaches involve human actions, such as misuse of privileges, stolen credentials, social engineering, or errors.
• 38% of security leaders believe that development teams pose the highest risk due to unknown, unmanaged identities.
• The average cost of a data breach has reached 4.45 million US dollars, showing a 15% increase over the last three years.
• When investing in IAM solutions, organizations give priority to ease of integration (72%), user experience (62%), and product performance (61%)

Component Analysis

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.

Deployment Analysis

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

Component

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

Deployment Mode

• Cloud-Based
• On-Premise

End-Use Industry

• Education
• Healthcare
• Public Sector and Utilities
• BFSI
• Energy, Oil, & Gas
• IT & Telecommunication
• Manufacturing
• Other End-Use Industries

Driving Factors

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.

Restraining Factors

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.

Growth Opportunity

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.

Latest Trends

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.

Regional Analysis

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
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • 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.
• LLC
• Broadcom Inc.
• One Identity LLC.
• ForgeRock, Inc.
• HID Global Corp.
• Oracle Corporation
• OneLogin, Inc.
• Other Key Players

Recent Developments

• February 2023: Broadcom completed its acquisition of CA Technologies, gaining access to their IAM portfolio, including products like Privileged Access Management and Governance,
• March 2023: Microsoft launched Azure Active Directory (AAD) Passwordless, a new feature enabling passwordless login for various applications and services.
• May 2023: IBM expanded its IAM offerings with the release of IBM Cloud Identity Governance, a solution for managing access controls and user privileges across hybrid cloud environments.
• July 2023: Amazon Web Services (AWS) introduced Amazon Cognito Identity Broker, a service simplifying user authentication and authorization for web and mobile applications.
• September 2023: OneLogin acquired Daon, a company specializing in continuous authentication and identity verification, aiming to strengthen their adaptive multi-factor authentication (MFA) solutions

Report Scope