Identity Access Management Market – By Component , By Organization Size, By Deployment Model , By Deployment Type , By Authentication Type , By Industry Vertical and By Geography - Global Opportunity Analysis & Industry Forecast, 2023-2030

Identity Access Management Market Overview

Identity Access Management market size is forecast to reach US$48 billion by 2030, after growing at a CAGR of 18.4% during 2024-2030. Identity and access management (IAM) deals user access to files as well as the level of permissions for each user with a goal to securely and effectively manage users' digital identities and related access privileges. With the rise in security breaches and there has been a significant demand to ensure that organization data is safe and secure. Therefore, the increasing focus on security and compliance drive the growth of the IAM management. The increased threat of identity theft combined with the growing trend toward digitization will drive market expansion. Furthermore, growing popularity of remote work and Bring Your Own Device (BYOD) will have a beneficial impact on market growth. A significant trend in the Identity Access Management Market is the use of biometric authentication. Biometric methods such as facial recognition, fingerprint scanning and voice recognition are gaining traction as secure and user-friendly authentication solutions. In October 2024, Badge announced integrations with products from Thales and CyberArk. The integration will allow multiple users to authenticate themselves on the same device more easily. Badge’s technology allows organizations to use face and fingerprint biometrics, PIN, device characteristics, contextual and other factors for authentication. It relies on fuzzy extraction, a cryptographic method that derives a secure key from biometric data, meaning it doesn’t need to store passwords or personal information. Another trend in the market is AI & ML integration. Advanced IAM systems incorporate AI to analyze user behavior, detect anomalies and predict potential security threats in real time.

Identity Access Management Report Coverage

The report "Identity Access Management Market Report – Forecast (2024-2030)" by IndustryARC covers an in-depth analysis of the following segments of the Identity Access Management Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

• The COVID-19 pandemic accelerated the adoption of digital technologies as organizations had to work remotely, resulting in a surge in the need for high quality Identity Access Management (IAM) solutions. Poor data protection and secure authentication became particularly important, as employees started accessing corporate systems from different locations, with different devices. It forced investments in multi factor authentication (MFA), single sign on (SSO) and cloud based IAM systems to secure against cyber threats. Beyond that, adoption of IAM was boosted by compliance with the latest regulations regarding remote work in the industry.
• With the Russia-Ukraine war increasing global cybersecurity concerns, there was an increase in state sponsored cyberattacks on critical infrastructure. The IAM solution played a crucial role in limiting risks and ensuring privileged access by mitigating them with security from privileged access and detecting unauthorized activities in this geopolitical conflict. In the wake of this, organizations across the globe prioritized Zero Trust frameworks, IAM with threat intelligence systems and endpoint security. In particular, it was the need for resilient IAM systems to respond to sophisticated cyber threats that was a focal point for enterprises as well as governments.

Key Takeaways

Cloud is the Largest Segment

Cloud-based IAM deployment is the largest segment due to its scalability, cost-effectiveness and seamless integration with modern IT systems. Enterprises across industries increasingly prefer cloud IAM solutions for their ability to provide real-time access control and monitoring without the need for extensive on-premises infrastructure. It also provides enhanced scalability by making it simple to increase the storage limit. The pay-as-you-go concept aids in the cost-effectiveness of companies of all sizes. Cloud-based deployment is preferred by SMEs since it is cost effective and simple to use. In recent years, cloud services have seen a fast increase in their expansion across a variety of businesses.  In November 2024, Eviden launched Evidian Orbion, a next-generation, comprehensive cloud-based Identity and Access Management solution. 

BFSI is the Largest Segment

The Banking, Financial Services, and Insurance (BFSI) sector accounts for the largest share in the Identity and Access Management market due to its critical need for data security and compliance. This sector handles sensitive customer data including personal and financial information which is highly targeted by cybercriminals. Nearly one-fifth of reported cyber incidents have affected the global financial sector, causing $12 billion in direct losses to financial firms in the past 20 years, according to the IMF’s Global Financial Stability Report. Mobile, internet banking frauds, identity and data theft and phishing are currently the biggest concerns for the banks. As per EY and Institute of International Finance (IIF) Bank Risk Management Survey 2024, 82% of European CROs rank cybersecurity risk as the biggest threat to their business over the next 12 months (relative to 73% globally), and 71% believe cyber warfare between nation-states is becoming an increasingly real threat. Therefore, there is dire need for employment of IAM in this vertical.

North America Leads the Market

North America occupies the largest market share in the Identity Access Management Market % in 2023 due to a combination of factors such as technological infrastructure, high digital adoption rates and a proactive cybersecurity landscape. The prevalence of sophisticated cyber threats and the awareness of potential risks drive the demand for IAM solutions. According to a report by Apple Inc., for US organizations, data breaches are at an all-time high. In just the first nine months of 2023, data breaches in the US increased by nearly 20% compared to all of 2022. Additionally, North America’s stringent regulatory environment and a growing emphasis on data protection and privacy further contribute to the widespread adoption of IAM. 

Rising Demand for BYOD Drives the Market

Ever since the pandemic there has been a rising demand for Bring Your Own Device (BYOD). As the world quickly had to adapt to remote work, organizations allowed employees to use their personal devices. Sensitive corporate data can be exposed to potential threats if not properly protected on personal devices. IAM solutions help mitigate these risks by providing centralized control over access to corporate resources regardless of the device used. The shift to remote work intensified the need for secure remote access to corporate systems and data. 58% of Indian employees prefer remote work even at a lesser salary, the preference significantly increases to 70% for the same salary level, and 95% at a higher salary, as per a survey conducted by the Uplers published in October 2023. As remote work and flexible working models become more prevalent the demand for IAM solutions to address BYOD challenges is set to grow further. The growing demand for BYOD significantly increased the complexity of managing access to enterprise systems. IAM solutions help organizations secure access from personal devices by enforcing policies, monitoring usage and enabling multi-factor authentication

Integration Complexity to Hamper the Market

Integration complexity is a significant challenge in implementing and managing effective Identity and Access Management (IAM) solutions. The problem arises from the diverse technological landscape of modern organizations which often involves a multitude of legacy systems, cloud applications and on-premise infrastructure. Integrating various systems, such as legacy applications, cloud services, and on-premises infrastructure, requires dealing with different protocols, APIs and data formats. User attributes, roles and permissions can change frequently, necessitating real-time synchronization between IAM systems and other IT resources.

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Identity Access Management Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Identity Access Management Market. Global Identity Access Management top 10 companies include:

1. IBM
2. Cisco Systems
3. Microsoft Corporation
4. Oracle Corporation
5. Okta
6. Thales
7. CyberArk
8. Palo Alto Networks
9. Google Inc.
10. Ping Identity

Scope of the Report:

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