Identity and Access Management Market

Identity and Access Management Market Outlook for 2024 to 2034

The identity and access management market is projected to reach USD 16.1 billion in 2024. Adoption of identity and access management is expected to develop at a CAGR of 15.9% between 2024 and 2034, and by 2034, the market is expected to be worth USD 70.0 billion.

Attributes	Details
Estimated Identity and Access Management Market Value in 2024	USD 16.1 billion
Forecasted Market Value by 2034	USD 70.0 billion
Projected CAGR from 2024 to 2034	15.9%

Identity and Access Management Market Overview

Identity and access management, or IAM, plays a crucial role in ensuring that individuals in specific roles have the appropriate access to resources necessary for their tasks. With the continuous evolution of technologies such as IoT, AI, digital platforms, automation, and cloud computing, the global IAM market is anticipated to witness significant growth.

The surge in cloud services and mobile devices has created a demand for resilient IAM solutions that ensure secure user access across diverse platforms. Organizations strategically invest in these solutions not only to safeguard sensitive information but also to meet stringent regulatory requirements.

Consumption Analysis of Identity and Access Management

• The increasing frequency of cyber threats and data breaches prompts organizations to allocate resources toward identity and access management solutions, which safeguard sensitive information and ensure compliance with regulatory requirements.
• The rise of remote work has greatly impacted business operations and Bring Your Own Device (BYOD) policies. As a result, identity and access management solutions have become essential to ensuring the safety and security of corporate resources, reducing risks, and facilitating secure access to sensitive data.
• Identity and access management solutions are desperately needed to provide safe user access management across various platforms, given the widespread usage of cloud services and mobile devices. For businesses to continue operating with a high level of security and compliance, strong IAM solutions are essential.
• Market players are strengthening identity and access management processes by enhancing threat detection and access control systems via the use of artificial intelligence (AI) and machine learning (ML).
• The identity and access management solutions market is expanding due to regulatory compliance, security concerns, cloud adoption, and the integration of advanced technologies like Blockchain and AI; these technological advancements are anticipated to propel the market growth of identity and access management solutions.

Historical Performance and Future Growth of the Identity and Access Management Market

With an emphasis on the anticipated advancements in the identity and access management market, this part offers a thorough study of the sector during the previous five years. The market's historical CAGR has been a strong 19.6%. However, it is likely to become increasingly limited. Up to 2034, the industry is expected to grow persistently at a 15.9% CAGR.

Historical CAGR (2019 to 2023)	19.6%
Forecast CAGR (2024 to 2034)	15.6%

The slight decrease from the historical CAGR to the forecasted CAGR suggests that the market could encounter constraints due to challenging deployment procedures and concerns regarding user privacy. Other fundamental factors that could affect the demand for identity and access management through 2034 include:

• Traditional IAM solutions may lose credibility due to constantly changing cyber threats and sophisticated attack methods.
• Effective IAM system implementation and maintenance may be challenging for enterprises due to regulatory changes and compliance requirements.
• Complicated integration with new and legacy technology may hinder the implementation of identity and access management solutions without incident.
• Organizations may be reluctant to implement identity and access management solutions due to security lapses and data privacy concerns.
• Budget and resource restrictions limiting investment in identity and access management efforts may impact long-term demand.

Market players are going to need to be agile and flexible over the anticipated period, as these challenging attributes position the industry for success in the foreseeable future.

Key Trends Influencing the Identity and Access Management Market

Emphasis on Zero Trust Security Models Thrusts Demand for IAM Solutions

Robust identity and access management solutions are in high demand as enterprises increasingly move toward zero-trust security models, prioritizing continuous verification and least privileged access. By deploying these solutions, companies are likely to gain greater control over their critical data and resources while minimizing the risk of unauthorized access and data breaches.

Organizations currently have access to a wide selection of cutting-edge tools and technologies to match their unique security demands and requirements, thanks to the growth of the identity and access management solution market.

Biometric Authentication Impels Demand for Identity and Access Management Solutions

The increasing use of biometric authentication methods, such as fingerprint, facial recognition, and iris scans, enhances security by providing unique and irrefutable identity verification. This heightened security and user convenience, as biometric authentication eliminates the need for passwords or tokens, boosts the demand for identity and access management solutions.

Organizations seek IAM systems that integrate biometric authentication capabilities seamlessly to ensure robust identity verification while streamlining access controls. As biometrics become more pervasive across various industries, the demand for IAM solutions that support these authentication methods is expected to continue rising in the forthcoming decade.

Rise of IDaaS Solutions Skyrockets the Demand for Identity and Access Management

The client base of identity and access management solutions is growing owing to the emergence of Identity as a Service (IDaaS) solutions, which offer cloud-based IAM features and scalable, adaptable, and affordable identity management alternatives. Regardless of size or infrastructure, IDaaS solutions allow enterprises to consolidate and streamline user authentication, permission, and provisioning operations.

Organizations looking for flexible and scalable solutions are drawn to the availability of comprehensive IAM capabilities without making substantial upfront expenditures in hardware or software infrastructure. Therefore, by meeting the changing demands of contemporary enterprises for safely and effectively managing digital identities, the use of IDaaS solutions propels the growth of the identity and access management (IAM) market.

Category-wise Insights

This section provides comprehensive studies of certain identity and access management market segments. The primary areas of study are the provisioning solutions and On-premises deployment segments. Through a thorough analysis, this section aims to better understand these segments and their significance within the broader identity and access management industry framework.

Provisioning Solutions Upswings in the Identity and Access Management Industry

Attributes	Details
Top Solution	Provisioning
Forecasted CAGR from 2024 to 2034	15.7%

The provisioning solutions segment is expected to dominate the identity and access management market, exhibiting a significant CAGR of 15.7% between 2024 and 2034. However, it is noteworthy that the previously projected CAGR for provisioning solutions for the IAM process was a remarkable 19.4%. The development of provisioning for identity and access management can be attributed to several factors:

• Automating user provisioning is becoming increasingly important to streamline the onboarding and deactivation procedures for new users.
• Provisioning solutions are integrated with identity governance and lifecycle management platforms to provide comprehensive IAM capabilities.
• Cloud-based provisioning solutions are becoming popular due to their scalability, flexibility, and cost-effectiveness.
• Role-based access control (RBAC) and entitlement management are gaining importance to ensure granular access permissions.
• Self-service provisioning portals are being emphasized to enable users to manage their access rights efficiently in the identity and access management market.

On-premise Deployment Overpowers the Identity and Access Management Industry

Attributes	Details
Top Deployment	On-premises
Forecasted CAGR from 2024 to 2034	15.5%

The on-premise deployment was the industry's most widespread type from 2024 to 2034, with a notable CAGR of 15.5%. This marks a decrease from the prior CAGR of the on-premise deployment, which was 19.2% from 2019 to 2023. The following drivers describe the development of the on-premise segment:

• IAM technology is expected to advance as businesses adopt strategic approaches and require flexible capabilities, with on-premise systems influencing their ability to function without external networks or the Internet.
• Organizations with strict security and regulatory requirements continue to favor on-premise implementations.
• On-premise IAM solutions provide more control over data and infrastructure management.
• Legacy systems and legal restrictions may hamper the adoption of cloud-based IAM solutions, thus favoring on-premise deployment.
• In the identity and access management market, customization options and integration capabilities are frequently preferred in on-premise implementations.

Country-wise Insights

This section anticipates examining the identity and access management markets in some of the most important countries on the global stage, such as the United States, China, South Korea, Japan, and the United Kingdom. Through in-depth research, the section aims to explore several aspects influencing these countries' acceptance and demand for IAM solutions.

Countries	CAGR from 2024 to 2034
United States	16.1%
United Kingdom	17.0%
China	16.6%
Japan	17.1%
South Korea	16.9%

Demand for the Identity and Access Management Hangs in the United States

The identity and access management market in the United States is expected to grow steadily, registering a CAGR of 16.1% until 2034. This growth rate is lower compared to the CAGR of 20.5% observed between 2019 and 2023. Despite the moderate growth, the industry is projected to reach a valuation of USD 12.6 billion by 2034. The following factors are driving the demand for consumer identity and access management, which is likely to play a crucial role in the growth of the industry:

• The IAM market in the United States is expanding due to the region's advanced technology and well-established workforce infrastructure.
• Several reasons contribute to market growth, including changing workforce expectations, BYOD trends, increased usage of cloud applications, the requirement to guarantee regulatory compliance, and the drive for enterprises to implement IAM solutions.
• The United States is home to various large enterprises as well as small and medium-sized businesses, and due to its enormous workforce, it emphasizes the protection of customer data.

The United Kingdom Intensifying the Identity and Access Management Growth

The IAM sector in the United Kingdom is expected to witness substantial growth in the coming years, recording an estimated CAGR of 17.0% until 2034. The industry has already shown significant potential, with a CAGR of 23.5% between 2019 and 2023. The market is projected to be valued at USD 2.8 billion by 2034, indicating vast potential for growth and investment in this sector. Here are a few of the key trends:

• Identity and access management solutions are becoming increasingly popular among companies in the United Kingdom to strengthen their cybersecurity defenses against evolving cyber threats.
• Integration of identity and access management technologies with the United Kingdom's current IT infrastructure to improve operational effectiveness and optimize identity management procedures.
• The market in the United Kingdom is expanding due to rising awareness of identity and access management, which is important for securing sensitive data and thwarting internal threats.

China’s Industries Develops the High Demand for Consumer Identity and Access Management

China's cloud identity and access management industry is witnessing a significant surge in demand, with a predicted CAGR of 16.6%. Experts anticipate the sector to reach a valuation of USD 11.3 billion by 2034. The Chinese IAM industry is expected to experience a significant CAGR of 22.6% between 2019 and 2023. Among the main trends are:

• China-based market players are investing heavily in innovative solutions to combat identity fraud and cyberattacks, aiming to establish a strong foothold in the Asia Pacific market.
• Compliance with stringent data protection regulations, such as GDPR, drives the implementation of IAM solutions to ensure regulatory compliance, contributing to market growth in China.
• The increasing internet use, widespread adoption of smartphones, and the need to comply with regulations all contribute to China's growing adoption of IAM solutions.

Advancements in Identity Security Management Skyrocket in Japan

The demand for identity security management in Japan is soaring dramatically, and the industry is anticipated to grow at a CAGR of 17.1% through 2034, meaning that by that year, it is set to be valued at around USD 7.8 billion. It is noteworthy that the Japan IAM industry's prior CAGR was around 22.5%. Among the main motivators are:

• Technological advancements in identity security management, including biometric authentication and behavioral analytics, propel adoption in Japan.
• Collaboration between industry participants and Japanese government initiatives can solve cybersecurity issues and encourage the use of cutting-edge identity security solutions.
• Rising awareness of the importance of identity security in mitigating cyber threats and protecting critical assets drives market growth in Japan.

South Korea’s Industrial Sector Booms Identity and Access Management Demand

Expected to develop at a potential CAGR of 16.9%, the identity and access management market in South Korea is expected to reach a worth of USD 4.4 billion by 2034. It is important to note that the nation previously saw a higher CAGR of 26.5% between 2019 and 2023. The following are some of the main trends:

• Organizations are investing in sophisticated identity security solutions due to a growing focus on data privacy and protection, fueling the expansion of the market in South Korea.
• IAM development in South Korea is driven by integrating AI and machine learning technologies to improve threat detection and identity verification capabilities.
• In order to reduce the risks of unauthorized access and data breaches and to increase demand for identity and access management in South Korea, secure access controls and identity governance are prioritized.

Establishments Shaping the Outlook of the Identity and Access Management Market

Market participants play a pivotal role in shaping the trajectory of the identity and access management (IAM) industry, employing a myriad of strategic maneuvers, inventive solutions, and market progressions. Okta, Inc.

stands out as a frontrunner in IAM solutions, furnishing a comprehensive platform for identity administration, single sign-on, and access control. Through unwavering dedication to product evolution and strategic collaborations, Okta has solidified its leadership position.

Microsoft Corporation boasts Azure Active Directory (Azure AD), a widely embraced cloud-based IAM offering renowned for its robust identity management features catering to businesses of all scales. Microsoft's continuous investment in Azure AD and seamless integration with its product suite have bolstered its significant market presence.

IBM Corporation provides IAM solutions, including IBM Security Identity Governance and Intelligence, to help organizations manage identities and access rights. ForgeRock offers a modern IAM platform focusing on IoT and API security, and SailPoint Technologies Holdings, Inc. specializes in identity governance solutions for efficient user access and compliance management.

These companies focus on identity-centric security and risk-based access controls, making them the preferred choice for enterprises seeking robust IAM solutions.

The IAM sector's trajectory is significantly influenced by the strategic initiatives and inventive endeavors of industry players such as Okta, Microsoft, IBM, ForgeRock, and SailPoint. These efforts drive developments in identity security and access management capabilities.

In conclusion, it is expected that businesses that prioritize innovation, sustainability, and market expansion are likely to significantly impact the growth of the identity and access management industry throughout the subsequent decade.

Recent Developments in the Identity and Access Management Market

• In February 2024, Device Authority, a United Kingdom-based device identity solutions provider, raised USD 7 million in a Series A funding round led by Ten Eleven Ventures. The company's KeyScaler platform offers automated device provisioning, PKI, identity lifecycle management, continuous assurance, threat validation, data privacy, and HSM access control capabilities.
• In February 2024, Cisco plans to integrate new security and AI capabilities into its Security Cloud, a cloud-based platform for securing on-premise, cloud, and hybrid environments. The new features include Cisco Identity Intelligence, a visibility graph on an organization's identity, and access management tools.
• In January 2024, Cross Identity introduced a Privileged Identity and Access Management (PIAM) solution to improve the security of financial institutions, specifically focusing on privileged users. The solution offers protection against cyber threats in on-premises, cloud, and hybrid setups.
• In November 2023, FusionAuth, a customer identity and access management platform, secured a USD 65 million investment from Updata Partners. The platform aims to assist developers in user security without affecting their primary application development. FusionAuth allows administrators to authenticate, authorize, and manage user access across web, mobile, and desktop devices.

Key Companies in the Identity and Access Management Market

• Okta, Inc.
• Microsoft Corporation (Azure Active Directory)
• IBM Corporation (IBM Security Identity Governance and Intelligence)
• Oracle Corporation (Oracle Identity Management)
• Ping Identity Corporation
• ForgeRock
• SailPoint Technologies Holdings, Inc.
• CA Technologies (now part of Broadcom)
• RSA Security LLC (a subsidiary of Dell Technologies)
• OneLogin, Inc.
• Broadcom Inc.
• Salesforce.com, Inc.
• Identity Automation Holdings, LLC
• HID Global Corporation
• CyberArk Software Ltd.

Key Coverage in the Identity and Access Management Market Report

• Demand Assessment for Consumer Identity and Access Management Market
• Top 10 Identity Verification Industry Trends
• Recent Developments in the Identity Lifecycle Management Market
• Global Average Pricing Analysis Benchmark for Multi-factor Authentication in Market
• Rising Prevalence of Security Breaches in the Government Agencies

Table of Content

• 1. Executive Summary
• 2. Market Overview
• 3. Market Background
• 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034
• 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Solution
  • 5.1. Provisioning
  • 5.2. Password Management
  • 5.3. Directory Service
  • 5.4. Advanced Authentication
  • 5.5. Single Sign-On (SSO)
  • 5.6. Audit
  • 5.7. Compliance
  • 5.8. Governance
• 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Deployment
  • 6.1. On-premises
  • 6.2. Cloud
• 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Organization Size
  • 7.1. SME
  • 7.2. Large Organization
• 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use Industry
  • 8.1. Government and Defense
  • 8.2. BFSI
  • 8.3. Consumer Electronics
  • 8.4. IT and Telecom
  • 8.5. Healthcare and Lifesciences
  • 8.6. Retail and E-commerce
  • 8.7. Others
• 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
  • 9.1. North America
  • 9.2. Latin America
  • 9.3. Western Europe
  • 9.4. Eastern Europe
  • 9.5. South Asia and Pacific
  • 9.6. East Asia
  • 9.7. Middle East and Africa
• 10. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 11. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 12. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 13. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 14. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 15. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 16. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 17. Key Countries Market Analysis
• 18. Market Structure Analysis
• 19. Competition Analysis
  • 19.1. IBM Corporation
  • 19.2. Microsoft Corporation
  • 19.3. Oracle Corporation
  • 19.4. CA Technologies
  • 19.5. Dell EMC
  • 19.6. Centrify Corporation
  • 19.7. Hewlett-Packard Company
  • 19.8. Hitachi ID Systems Inc.
  • 19.9. NetIQ Corporation
  • 19.10. Okta, Inc
• 20. Assumptions & Acronyms Used
• 21. Research Methodology