PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1355036
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1355036
Global consumer identity access management market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years. With projected revenue of approximately USD 9.01 billion in 2022, the market is forecasted to reach a value of USD 29.3 billion by 2030, displaying a robust CAGR of 15.9% from 2023 to 2030.
Consumer IAM provides a wide range of significant benefits to enterprises. It is a strong solution that provides greater security, better user experience, regulatory compliance, and valuable consumer information. Consumer IAM promotes trust, cultivates client loyalty, and allows individualized interactions by offering a secure and user-friendly gateway to digital services, while adhering the data protection rules. As a result, consumer IAM market growth and competitiveness are expected to rise.
The increasing spread of digital services emphasizes the need for powerful CIAM systems. These solutions ensure safe access, a better user experience, and broaden commercial potential. The growing complexity in hybrid and multi-cloud environments drives the adoption of advanced CIAM for secure and predictive identity and access management. Furthermore, the fundamentally client-centric approach of CIAM enables businesses to get priceless insights, personalize their offerings, and build consumer trust. As a result, this strategy encourages client loyalty while providing a competitive advantage in the dynamic and growing digital arena.
The growing complexity to identity and access management requirements in hybrid and multi-cloud environments, combined with the need for predictive and proactive security measures, is driving organizations in the Consumer IAM market to deploy advanced Consumer IAM solutions to secure and manage user identities effectively.
For instance, in May 2023, Health Vision selected LoginRadius for authentication and access management, enhancing security and user experiences while supporting digital transformation initiatives .
The expansion of the digital economy has increased cyberattacks, with potential yearly losses exceeding USD 10.5 trillion by 2025. Despite a USD 150 billion cybersecurity business, emerging threats and unsatisfied consumer expectations create a USD 1.5 trillion to USD 2.0 trillion potential market opportunity. Consumer IAM systems are at the forefront of addressing these growing risks. With digital services becoming universal and personal data being a valuable target, the CIAM market faces challenges like identity theft, phishing attacks, and credential stuffing. These threats involve hackers stealing login information, impersonating trusted sources, and using stolen credentials to access multiple accounts.
CIAM systems have evolved to incorporate advanced security measures such as multi-factor authentication and risk assessment to combat these risks. They continuously monitor for unusual activity and respond swiftly to protect user information. Strong security in CIAM is pivotal for data protection, trust-building, and compliance with privacy regulations.
For example, in May 2023, CyberArk launched the CyberArk Secure Browser, which improves identity-based online surfing security to guard against cyber-attacks and data breaches in remote work settings.
The thriving growth of e-commerce serves as a potent catalyst for the global consumer IAM market. E-commerce's success hinges on its ability to deliver a seamless and secure online shopping experience, with customer identity and data security at its core. Within this context, CIAM solutions are pivotal, ensuring robust authentication, identity verification, and access control.
CIAM's significance in e-commerce is underscored by its role in facilitating user registration, streamlining login processes, and fortifying payment authentication procedures. Notably, it safeguards sensitive customer data and elevates the overall user experience by simplifying access while enabling tailored interactions. Additionally, CIAM contributes to fraud prevention, reducing cart abandonment rates, and nurturing customer trust, driving the sustained expansion and prosperity of e-commerce enterprises in an increasingly competitive digital landscape.
For example, in May 2023, CyberArk extended its identity security platform with artificial intelligence (AI), automation, and cloud security technologies to give a unified approach to identity security, allowing Zero Trust, and least privilege controls.
Authentication dominates the consumer IAM market due to its critical security and access control role. It is the primary protection against illegal access, identity theft, and data breaches. In an era of increasing cyber threats and increased security concerns, enterprises prefer robust authentication solutions such as multi-factor and adaptive authentication. Aside from data security, secure authentication builds consumer trust, and enhances the entire user experience. It serves as the foundation for additional CIAM solutions, such as data governance, user management, and consumer insights, reinforcing its position as the consumer IAM market's leading and driving force.
For instance, in March 2021, LoginRadius introduced Authentication API Analytics, which provides organizations and developers with insights into the performance of their LoginRadius CIAM, allowing them to optimize consumer identity and access management strategies.
Due to several critical factors, North America holds a commanding position in the consumer IAM market. The region has a robust digital ecosystem with significant technology adoption, leading to an increase in online services and e-commerce. This digital transition demands robust CIAM solutions to enable secure user identities and data security. North America is home to important tech titans, worldwide companies, and inventive startups, which have played critical roles in pushing CIAM acceptance and innovation. Furthermore, strict data privacy and cybersecurity requirements, such as GDPR and CCPA, have increased the demand for CIAM compliance, pushing proactive investments in these solutions. These characteristics, when combined, establish North America as the CIAM industry leader.
For instance, in July 2023, RapidLEI collaborated with VerifyVASP to supply Legal Entity Identifiers (LEIs) to Virtual Asset Service Providers (VASPs) to achieve Travel Rule compliance, potentially influencing the CIAM market through enhanced identity verification
Consumer IAM government activities are largely focused on ensuring the use of safe, privacy-oriented, and interoperable solutions. Typically, these initiatives involve the development of identity management standards, guidelines, and best practices to protect sensitive citizen and government information. Governments play a crucial role in fostering compliance with data privacy and cybersecurity rules, such as the GDPR and NIST recommendations. Furthermore, they may invest in R&D to promote CIAM technology and create cooperation between the public and commercial sectors to improve digital identity security. These efforts aim to develop a strong and trustworthy CIAM framework that safeguards citizen rights and government interests in the digital age by supporting the growth of the consumer IAM market.
For example, in March 2023, Okta received FedRAMP High Authorization for Okta for Government High, their secure identity solution optimized for federal agencies. This accomplishment demonstrates Okta's dedication to offering high-security identification solutions, adhering to over 420 baseline security measures, and assisting government agencies with zero-trust programs.
Before COVID-19, the consumer IAM market steadily grew due to the rapid digital revolution in numerous industries. Businesses embraced CIAM systems to manage and secure consumer identities, emphasizing improving user experiences and maintaining compliance. After COVID-19, the pandemic served as a catalyst and accelerated the acceptance of CIAM solutions. The demand for strong CIAM systems has increased as distant work, internet purchasing, and digital interactions have become the norm. The demand for improved authentication and identity verification techniques grew as security and regulatory compliance gained center stage. CIAM solutions are designed to suit increased security demands while prioritizing user privacy and smooth user experiences. COVID-19 emphasized the importance of the consumer IAM market in protecting digital identities and providing secure, user-friendly access to online services in an increasingly digital society.
The adoption of centralized biometrics for customer authentication is predicted to play a vital role in the future consumer IAM market, providing a safe, device-independent, and simplified authentication experience that matches the increasing expectations of consumers and companies alike.
Blockchain identity management is poised to revolutionize the consumer IAM market, offering enhanced security, privacy, and data integrity. As global spending on blockchain technology continues to rise, it is expected to play a significant role in the future of CIAM solutions.
Integration of IoT and IoE devices into CIAM systems will become increasingly vital as these devices increase, providing greater security and access management for both users and connected devices.
Key companies in the consumer IAM market include: Amazon.com, IBM Corp., Okta, Salesforce, and CyberArk Software. These industry experts offer complete CIAM solutions to fulfill the rising demand for safe and smooth consumer access across digital platforms. The consumer IAM market growth appears to be positive, owing to the growing significance of consumer data protection, regulatory compliance, and the requirement for individualized user experiences. As businesses continue to digitalize and increase their online presence, CIAM solutions will be critical in protecting client identities and enabling businesses to provide personalized services while maintaining privacy and security.
In June 2023, RapidLEI partnered with LEI.INFO to enhance LEI data accessibility, potentially benefiting the CIAM market by improving identity verification and data access for regulatory compliance. In July 2022, CyberArk announced many identity security enhancements, including automation and orchestration via Identity Flows, increased identity compliance, cloud privilege security, and secrets management. These advances are in line with the Zero Trust concept and attempt to solve the rising complexity of identity management and security .
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.