GVR Report cover Physical Identity And Access Management Market Size, Share & Trends Report

Physical Identity And Access Management Market Size, Share & Trends Analysis Report By Offering (Software, Services), By Product, By Application (BFSI, Defense & Security, Airports), By Region, And Segment Forecasts, 2019 - 2025

  • Report ID: GVR-4-68038-038-5
  • Number of Pages: 120
  • Format: Electronic (PDF)
  • Historical Range: 2014 - 2017
  • Industry: Technology

Industry Insights

The global physical identity and access management (PIAM) market size were valued at USD 427.0 million in 2018, expanding at a CAGR of 14.6% from 2019 to 2025. The growing demand for access control and management software and increasing investments in corporate security are the key factors anticipated to drive the market growth over the forecast period. Furthermore, the companies are implementing physical identity and access management technology to effectively deal with cyber threats and create better IT strategy for enhanced operational efficiency.

Physical identity and access management solutions offer a comprehensive management platform for the access and authentication of employees, visitors, contractors, and partners to organizational infrastructure. These systems provide a single point of control and offer a completely automated and efficient management option to the corporate and industrial security landscape. The adoption of physical identity and access management is also anticipated to witness a significant increase owing to the high demand for unifying diverse security systems. Furthermore, companies are also focusing on streamlining security management and integrating them into a single platform. These measures are anticipated to drive the adoption of physical identity and access management solutions over the forecast period.

U.S. PIAM Market

The industry growth is fueled by increased government influence in terms of compliance and standard policies in sectors such as energy and utilities and airport security. Government initiatives for standardizing security protocols are shifting from public sectors to private sectors, due to which industries such as pharmaceutical and civilian infrastructure are also expected to come under government purview. This, in turn, is aiding in the adoption of physical identity and access management solutions to a great extent.

Furthermore, there are various regulatory compliances, such as Sarbanes Oxley Act of 2002 (SOX), PCI DSS Credit Card Security, Gramm-Leach-Bliley Financial Modernization Act (GLB), Health Insurance Portability and Accountability Act (HIPAA), Family Educational Rights and Privacy Act of 1974 (FERPA), and North-American Electric Reliability Corporation (NERC), about security for the BFSI, Life Science, Education, Energy and Utilities, and other industries. All these regulations mandate companies to safeguard their data from internal and external threats. This is enabling increased use of physical identity and access management technology by organizations.

An important aspect of the industry is the rapidly changing technology landscape, which is anticipated to be driven by the accelerating adoption of smart cards and other contactless technologies. With a reduction in the installation cost of physical access control systems and the availability of intelligent software solutions, the physical identity, and access management (PIAM) market is set to grow at a rapid pace in the coming years. Furthermore, the growing usage and demand for mobile devices, such as smartphones and tablets, are propelling organizations to develop mobile applications for consumers to access their identity management-related solutions.

The solutions in the industry possess diverse capabilities such as PIV management, entity lifecycle management, predictive analytics, and modeling, and correlation, which hold the key to future developments. With an increased focus on removing disparity between different security systems, including IT, OT, and cyber threats, the unified platform of PIAM solutions offers a technologically sustainable and completely automated solution, which is expected to pave the way for future developments in the security ecosystem. Due to the introduction of PIAM technology, companies are now able to safeguard their employees and assets and improve their business operations by automating security systems.

Offering Insights

Based on offering, the market has been segmented into software and services. While the software segment holds a major part of the market share, the service segment is also witnessing a positive growth rate in the industry. Physical identity and access management solutions offer myriad capabilities, including PIV management, badging solutions, employee lifecycle management, and contractor/partner authentication and authorization. Badging solutions are expected to grow substantially in the coming years owing to the growing demand from airport applications, especially in developing countries.

Europe PIAM Market

The deployment of physical identity and access management solutions is offered with both on-premise installation and deployment via Software as a Service (SaaS) model. While the services segment is driven by standardized application segments, such as airport and defense and security, technologically driven sectors such as IT and telecom, and healthcare are catered by software solutions. An identity solution offers a single source for handling users and permissions throughout the organization. Hence, the physical identity and access management services have enabled users to develop effective systems to improve operational efficiency and reduce their management costs.

Product Insights

Based on the product, the market has been segmented into backend database solutions, credential management, and visitor management. While credential management holds the largest market share, directory management, compliance solutions, and federal PIV solutions are also gaining popularity among enterprise and government clients. The adoption of credential management solutions is expected to witness significant growth owing to the data privacy and security regulations under the EU’s General Data Protection Regulation (GDPR). According to the GDPR guidelines, all major processes for issuing, revoking, and changing identities of individuals and their credentials are to be managed by a centralized system to ensure suitability and traceability.

Regulatory bodies such as the Transportation Security Administration (TSA) and the Federal Aviation Administration (FAA) govern numerous aspects of credential policies and the operations of airports and federal offices. This has created a demand for automated and integrated physical access control systems with capabilities including active directories, Security Threat Assessment (STA), and even Criminal History Records Checks (CHRC). As a result, credential management solutions are expected to rapidly gain traction over the next six years.

Application Insights

The PIAM market is segmented based on applications into Banking, Financial Services and Insurance (BFSI), defense and security, airports, IT and telecom, government and public sector, industrial, and others (logistics, transport, and education). In 2018, the BFSI segment accounted for the largest share in the market owing to the critical nature of organizational data, infrastructure, and assets in the sector. The segment is anticipated to exhibit remarkable growth in the emerging economies of the Asia Pacific such as India and China and is expected to continue to dominate the market in terms of revenue. Furthermore, companies are also offering PIAM solutions via the SaaS model. The SaaS model has enabled Small and Midsize Businesses (SMBs) to reduce the costs associated with system administration, specialized and experienced personnel, and dedicated high-cost computing environments.

The BFSI segment is closely followed by the defense and security segment owing to the stringent authentication and authorization procedures in the industry. However, the defense and security segment is expected to lose considerable share in other application segments over the forecast period. The government and public sector are estimated to witness significant growth in the coming years. This can be attributed to the growing demand for heavy investments in physical identity and access management solutions from emerging economies in the Asia Pacific region such as China and India.

Regional Insights

The North American region accounted for the largest market share in terms of revenue, which is largely attributed to the technological proliferation in the U.S. and Canada. The presence of a large number of solution vendors and greater penetration of physical access control systems and protocols in North America and Europe are also aiding in the growth of physical identity and access management industry in these regions. Furthermore, the rapidly increasing number of data breaches in the U.S. is anticipated to drive the deployment of physical identity and access management solutions over the next six years. Furthermore, the stringent government regulations such as the Gramm-Leach-Bliley (GLB) Act also plays a crucial role in the adoption of PIAM solutions in the U.S. The act requires securities firms and financial institutions to implement strict regulations for protecting the privacy of consumer data by establishing a program, which assessed risks about the data and provides protection against threats.

The Asia Pacific region is predicted to emerge as the fastest-growing regional market over the forecast period. The region’s growth can be attributed to the increasing awareness and availability of physical identity and access management solutions in the emerging economies of the region. Also, the security concerns and standards laid down by international bodies are acting as an external impetus for the adoption of physical identity and access management solutions. China, which is followed by India, accounted for a large part of the regional market and is estimated to retain the dominant position in the industry.

Physical Identity and Access Management (PIAM) Market Share Insights

Key industry players operating in the market include HID Global; Alert Enterprise; NetIQ Corp.; Quantum Secure; Integid GmbH; Avatier Corp; Intellisoft Technologies, Inc.; and ForgeRock. The key players are working on offering advanced PIAM solutions to corporate entities and government agencies to streamline the management of security identities across different physical security systems. There is also an increased focus on the automation of key workflows and processes to optimize security options by integrating advanced features such as AI and facial recognition. For instance, in 2019, AlertEnterprise announced the addition of facial recognition technology to its Visitor Management Kiosk software. The new feature enables companies to deliver superior access security to organizations for check-in processes by visitors, contractors, employees, and guests. The software also provides a complete physical identity and access management solution when combined with Enterprise Guardian software.

The market is highly competitive and fragmented with numerous global and regional active players. Technology integration and new product development are expected to be the key parameters for competition in this market with frequent mergers and acquisitions undertaken as an attempt to diversify the product portfolio and gain market share. In June 2016, Nexus Technology GmbH announced a merger with Integid GmbH whereas HID Global acquired Quantum Secure in 2015.

Report Scope

Attributes

Details

The base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million and CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & Latin America, Middle East & Africa

Country scope

U.S., Canada, Germany, U.K., China, India, Japan, Brazil

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information which is not currently within the scope of the report, we will provide it to you as a part of the customization


Segments
Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global physical identity and access management (PIAM) market report based on offering, product, application, and region:

  • Offering Outlook (Revenue, USD Million, 2014 - 2025)

    • Software

    • Services

  • Product Outlook (Revenue, USD Million, 2014 - 2025)

    • Backend Database Solutions

    • Credential Management

    • Visitor Management

  • Application Outlook (Revenue, USD Million, 2014 - 2025)

    • BFSI

    • Defense & Security

    • Airports

    • IT & Telecom

    • Government & Public Sector

    • Industrial

    • Others

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • The U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • MEA

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