Global Identity and Access Management Market - 2024-2031

Report Overview

The Global Identity and Access Management Market was worth US$ 22.09 billion in 2023 and is estimated to reach US$ 40.05 million by 2031, growing at a CAGR of 8.31% during the forecast period (2024-2031).

IAM (Identity and Access Management) is a management system that allows businesses to manage their electronic identities. The technology can automatically gather, record, manage and initiate user identities and rights. The identity and access management solution benefits customers by improving security profiles, allowing quick access, increasing productivity, improving user experience and lowering IT expenses.

IAM solutions ensure that the proper roles and individuals have the right access at the right time in on-premises, cloud and hybrid systems. The influence of GDPR has led to the coining of the term "customer identification and access management" (CIAM). Using an IAM architecture, information technology (IT) managers may control user access to critical information within their businesses. IAM systems include single sign-on, two-factor authentication, multifactor authentication and privileged access management.

Market Dynamics

Rising instances of security breaches and expanding cases of identity-related fraud, growing knowledge about compliance management, increasing requirement for IAM for IoT and increased spending on cybersecurity following the COVID-19 pandemic are the primary reasons driving the IAM industry. Furthermore, the cultural shift from traditional IAM to IAM, the proliferation of cloud-based IAM solutions & services and the growing adoption of the hybrid cloud model, as well as the increasing integration of technologies like AI, ML, blockchain and biometrics into identity and access management, will provide lucrative opportunities for IAM vendors.

The increasing security breaches and identity fraud

The data uploaded to the web is becoming increasingly exposed as the globe continues its journey toward digitization. The personal information of each consumer is stored on hundreds of servers throughout the world, increasing the risk of identity theft. According to industry experts, there was a minor decrease in ID theft instances in 2019, but this trend was reversed in the coming years, owing to the pandemic's effects.

As per the Federal Trade Commission (FTC), identity fraud events grew by 45 percent in coming years, resulting in significant financial losses and the trend continued in the years following, resulting in a total loss of US$ 56 billion for North America, according to Javelin Strategy. As per FTC, over one million minors will be victims of ID theft, with losses increasing from US$ 1.8 billion to US$ 3.3 billion in the coming years. According to Javelin Strategy's research on identity fraud, 40% of account takeovers occurred within 24 hours of a criminal gaining access to a victim's account.

The rise in cyberattacks can be linked to machine learning (ML) technology, allowing attackers to build many copies of malicious malware daily. Companies' reputations are being harmed, their assets are being harmed and financial losses are being incurred due to the constant introduction of new cyberattacks. Due to this, protecting against cyber threats has become critical for business growth. As a result, businesses are implementing IAM to defend themselves from security breaches and cyberattacks.

Growing adoption of hybrid cloud model and popularization of cloud-based IAM solutions

As the cloud market expands, so does the need to secure and manage different accounts that employees can access via the cloud, resulting in increased usage of IAM solutions. IAM technologies were viewed as a capital expense, which meant they had to be purchased and implemented on-premises. The successful deployment of IAM projects came at a high cost, requiring months of arduous labor. However, with the increase in cloud computing, the trend changes, making cloud-based IAM services easier to implement and access.

Hybrid deployments of IAM systems aid end-users in deciding between on-premises and cloud-based IAM technologies. The shift in the market, combined with attractive price alternatives like a monthly subscription model and pay-per-use, allows IAM service providers to expand their market share. In addition, cloud-based consumer IAM solutions require less capital and deployment time. As a result of this element and the expansion of SMEs, consumer IAM solutions are projected to become more widely adopted by businesses of all sizes.

Lack of standards for access and identity

One of the major restraining issues for businesses across all industries is the growing cyber threat landscape. The consumer IAM market's growth is hindered by a lack of identification standards and budgetary resources and the high installation costs of consumer IAM systems. Because consumer IAM systems must combine sophisticated security technologies, the initial investment and ongoing maintenance expenses are substantial.

SMEs place a greater emphasis on resources essential for business survival and, as a result, often overlook IAM. They are more likely to concentrate on security after a breach has occurred. Furthermore, businesses primarily pay attention to the security of critical servers and ignore the data contained in databases. Due to this, insufficient budgets continue to be a significant barrier for consumer IAM experts in carrying out successful IT security operations.

Market Segment Analysis

By solutions, the identity and access management market is segmented into the data directory, verification and others.

The rising need for verification

Verification is usually a one-time occurrence when a person interacts with a system for the first time (also called registration or onboarding). Establishing an individual's identity through multilevel analysis is known as identity verification. It is utilized to verify the uniqueness and validity of an individual's identity to facilitate the supply of entitlement or service and relies on various variables, including biometric data, biographic data, identification documents and knowledge of personally relevant data or events.

Due to rapid technological improvements in biometric and high-resolution cameras, identity proofing methods are evolving. A documentary or non-documentary verification can be used. Identity verification is possible both online and in person. IAM is becoming increasingly important as firms grow at a rapid pace. Because identity verification is an important aspect of IAM, this market will likely grow significantly throughout the forecast period. IBM Security Verify, for example, delivers rich context, intelligence and security when deciding which people should have access to your organization's data and applications, whether on-premises or in the cloud.

Market Geographical Analysis

The rising threat of breach of identity and access in Asia-Pacific

Due to the growing threat of identity and access breaches, Asia-Pacific is projected to invest more in security. India, Japan, China and Australia are the region's rising economies. The countries have many small and medium-sized businesses (SMEs), which employ more than 70% of the population. High investment requirements are a hurdle for SMEs to implement big IAM projects on their premises; however, increased internet usage, compliance regulations and smartphone penetration drive the adoption of IAM solutions.

Governments around Asia-Pacific are implementing electronic identity verification programs, according to ForgeRock, to improve internet access, security and trust while reducing identity theft and fraud. It is driving governments in Asia-Pacific to adopt identity management solutions and services. Identity theft has been more common in Asia-Pacific, particularly with the breakout of COVID-19. In Asia-Pacific, COVID-19 has exponential growth in identity fraud and identity theft. Countries such as India, Japan and Australia have modified or implemented new national identity management rules in response to the increasing sophistication of threats.

Market Competitive Landscape

IBM Corporation, Sailpoint Technologies, Inc., Microsoft Corporation, Hitachi Id Systems, Inc., CA Technologies, Micro Focus (NetIQ Corporation), Centrify Corporation oracle Corporation, Okta Inc. and Arctic Wolf are major global identity and access management market players.

COVID-19 Impact Analysis

The issues of managing digital identity had been increased by COVID-19. According to Centrify's research, around 60% of businesses have avoided bankruptcy by implementing cloud technology. Companies have noticed a dramatic increase in the number of users they must manage due to embracing cloud technologies. As a result, IAM solutions are more important than ever before. The World Economic Forum (WEF) estimated that job losses in the G7 varied from 30 million in U.S. to 1.7 million in Japan during the epidemic. According to researchers, 89 percent of employees who leave a company retain access to company data, increasing the danger of a data breach.

The influence of COVID on enterprises has posed unique issues for consumer IAM initiatives. Organizations are looking forward to modifying consumer IAM solutions to overcome the largest business risks that can be vulnerable to attacks, such as weak MFA & SSO, manual onboarding/offboarding orphaned user accounts and privileged account exposure. COVID-19 has boosted consumer need for transparency & visibility of operations and smart linked products as the pandemic has progressed.

Russia-Ukraine War Impact

Russia-Ukraine war has had a significant impact on identity and access management (IAM) systems, highlighting the need for enhanced cybersecurity safeguards. The conflict has resulted in an increase in cyberattacks on critical infrastructure and government agencies, necessitating robust IAM solutions to prevent unauthorized access and data breaches. Organizations have had to strengthen their authentication processes, deploy multi-factor authentication (MFA) and maintain constant monitoring to protect sensitive information against cyber attacks aggravated by geopolitical uncertainty.

Furthermore, the war has demonstrated the significance of secure and resilient IAM systems for displaced people and refugees. With millions of people fleeing the fighting, safe and verifiable identity management has become critical for obtaining humanitarian supplies, financial services and other necessities. Governments and non-governmental organizations (NGOs) are employing IAM technologies to offer refugees with digital IDs, allowing them to authenticate their identification and access essential services despite the chaotic and unstable environment.

By Component

• Solution
• Service

By Solution

• Data Directory
• Verification
• Others

By Organization Size

• Small and Medium Enterprise
• Large Enterprises

By End-User

• BFSI
• Healthcare
• Retail & E-Commerce
• Education
• IT & IT Services
• Government
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In March 2024, Okta Ventures' Series A extension included a strategic investment in Accredify, a Singapore-based provider of verifiable digital credential solutions. Okta Ventures' first investment in a Singaporean firm comes after Accredify's considerable revenue growth and the implementation of important integrations and partnerships.
• In September 2023 oracle announced significant enhancements to Oracle Access Governance at Oracle CloudWorld. These enhancements aim to help IT teams better manage user access to essential digital resources like applications, source code, databases and cloud services.
• In September 2023, Ping Identity announced a new connection with iProov, which would use PingOne DaVinci, a no-code identity orchestration tool. This collaboration enables the integration of iProov's superior biometric technologies into the PingOne DaVinci platform, hence improving digital identity verification using science-based facial biometrics.
• In July 2023, Microsoft improved its offering by changing Azure Active Directory to Microsoft Entra ID as part of a larger attempt to unify its product family names under the Microsoft Entra brand. This change is aimed to simplify the product range and boost recognition of Microsoft's integrated IAM solutions. The rebranding includes all capabilities, licensing plans, sign-in URLs and APIs and all previous setups will continue to function normally.

Why Purchase the Report?

• Visualize the composition of the identity and access management market segmentation by component, solutions, organization size, end-user and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the identity and access management market by analyzing trends and co-development deals.
• Excel data sheet with thousands of identity and access management market-level 4/5 segmentation points.
• Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global identity and access management market report would provide access to an approx. 69 market data table, 64 figures and 215 pages.

Target Audience 2024

• Identity and Access Management Software Providers/ Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Emerging Companies
• Identity and Access Management Manufacturers