The global identity and access management market size was valued at USD 9.90 billion in 2018 and is expected to expand at a compound annual growth rate (CAGR) of 13.1% from 2019 to 2025. Increased spending on security solutions by government bodies and large-scale enterprises to curb identity theft and to adhere to regulatory compliance are the prominent factors expected to boost the growth. For instance, in case of the healthcare sector, as per the Health Insurance Portability and Accountability Act of 1996 (HIPAA), organizations are required to ensure portability of healthcare coverage and privacy of patient records.
Increasing web-based applications, risk management solutions such as policy-based compliance, and audit management combined with cost control measures are the key factors driving the IAM demand. Moreover, proliferation of Bring Your Own Devices (BYOD), Internet of Things (IoT), mobility, and remote workforce has necessitated organizations to adopt identity and access management (IAM) solutions, thereby driving growth.
Previously, identity and access management focused on forming capabilities for supporting access management and associated compliance needs. These solutions only focused on provisioning technology, limiting the user to realize the value of the implementation. Moreover, the solutions were restricted to a few systems and applications, resulting in enterprises struggling to meet compliance requirement. However, the growing investment coupled with rigorous R&D activities has accelerated the proliferation of advanced IAM products, that provide flexibility in the ease-of-use and provide necessary control to meet process requirements.
IAM solutions have potentially curbed identity theft through the risk-based program with features that focus on implementing logical access control and entitlement management. With the adoption of IAM, enterprises have started to realize the benefits not only from their IAM costs, but face the challenges to manage time-incentive processes including manual approval and provisioning. Identity administration functions continue to be delivered in enterprise silos, leading to users with an inefficient process, excessive access, and higher costs of provisioning and de-provisioning.
Over the years, identity and access management have advanced to become a vital and complex segment of the IT infrastructure. Nowadays, IAM has become an essential asset in the enterprise landscape. It encompasses processes and information technologies that are correlated and mutually reliant on all business areas. If the IAM solution is planned and implemented well, it eventually helps strengthen regulatory compliance, facilitate secure operations, and enhance operational agility within an organization. Several enterprises maintain administrative IAM functions that drive operational costs, professional services, and technology investments.
Growing demand for cloud-based security services and solutions due to the concerns pertaining to data security is projected to increase the demand for the overall market. Organizations are required to provide access to the employees working remotely, along with which they also need to maintain security compliance and thus need identity and access solutions. Stringent regulations and compliance with data protection laws are propelling the demand for identity and access management. The Health Insurance Portability and Accountability Act (HIPAA) and the General Data Protection Regulation (GDPR) are among the few mandates that compel organizations to take extra measures to protect user accounts of the internal workforce, contractors, and end-users. The end-to-end identity and access management functionality would be essential to ensure robust security against the risks allied with the adoption of cloud services.
Organizations nowadays are highly diversified and accept newer trends to improve employee productivity. Companies offer diverse roles to their employees, they have offices located in various locations, and they need resource ready environment for new employees; thus, to secure the data, companies are focusing on adopting IAM solutions on a large scale. The cloud-based IAM solutions offer greater reliability and remote access with two-step authentication and verification based on a different set of policies. Moreover, enforcement concerns, security governance, as well as lower quality of security services within organizations would drive the increasing adoption of Identity and access management solutions.
Companies with BYOD (Bring Your Own Device) model have a greater risk of data security; thus, they seek a reliable solution for data protection via access control. In recent years, there has been an increase in system hacking cases leading to stolen employee access credentials. According to government reports, stolen employee password accounts for around 90% of cyber-attacks. Moreover, laws mandating the security of customer’s personal data further boost the demand for IAM solutions in the market.
The provisioning component segment led the identity and access management market in 2018 with over 30% revenue share. With an increase in users accessing system and application, it is crucial for an enterprise to have a suitable process in IT infrastructure to manage the identities. Thus, user provisioning plays a pivotal role in the implementation of an identity lifecycle by creating, modifying, disabling, and deleting user accounts and their profiles across IT infrastructure and business applications.
The multifactor authentication is anticipated to witness a high CAGR of 17.0% over the forecast period. Stringent compliance and policies for internet banking such as self-created passwords and OTP tokens are potential factors anticipated to boost the growth of multifactor authentication application. Moreover, integration of physical and logical security such as the use of traditional password along with newer technologies such as biometrics and smart cards is anticipated to boost the adoption of the multifactor authentication segment.
On the basis of deployment, the market is divided into the cloud, hybrid, and on-premise. On-premise solutions led the market in 2018, accounting for over 53.0% of the overall revenue. Large enterprises are benefitting from cost saving associated with automated user provisioning as well as increased audit ability and compliance of their entire portfolio of Software as a Service (SaaS) applications such as Yammer, WebEx, Google Apps, and Box.net. However, by 2025, the segment is poised to lose market share to the other two segments.
Cloud segment is projected to register tremendous growth over the forecast period. Increasing adoption of cloud model among different organization owing to its cost-effectiveness and economies of scale is one of the key factors contributing to the segment growth. In order to leverage cloud benefits, a greater number of IT, sales, and business functions are moving to cloud. Cloud-based IAM services and products provide various benefits such as simplified management and reduced costs, with no software or hardware deployment.
On the basis of end-use, the identity and access management market is segmented into BFSI, telecom and IT, energy, oil and gas, education, public sector and utilities, healthcare, and manufacturing. Other end-uses include defense, logistics, and home safety and security. Public sector and utilities segment led the market valuing at USD 2.49 billion in 2018.
Several regulatory reforms and stringent government norms are causing enterprises and organizations to address their internal control infrastructure. For example, according to Health Insurance Portability and Accountability Act of 1996 (HIPAA), healthcare organizations are required to ensure portability of healthcare coverage and privacy of patient records. It requires organizations to train employees to effectively follow privacy measures, designate one individual in the organization in charge of HIPPA compliance and implementation, and undertake considerable measures for limiting disclosure of patient information such as securing electronic access to patient records.
The BFSI segment is expected to post the highest CAGR over the forecast period. This sector holds crucial customer data that requires a high level of security. Organizations across this sector are adopting IAM solutions to increase productivity, ensure compliance, and reduce IT management costs. Logical and physical securities are likely to continue converging into unified solutions against the backdrop of rapidly advancing mobile banking applications. Biometric authentication at ATM and shift towards EMV debit and credit cards are anticipated to stir up the demand for identity and access management during the same period.
North America led the market with a market share of over 40% in terms of revenue. North America is considered as the most advanced region with regard to adoption of cyber technology and its infrastructure. Rising incidents of security threats and data breaches witnessed in this region and hence, cyber security is considered as a serious economic and national security challenge in North America. The changing needs of the workforce, trends of BYOD, growing adoption of cloud applications, and the requirement to ensure compliance with regulation and promotion to adopt IAM solutions by organization in this region is likely to foster the demand for the market. The region also consists of several large enterprises and SMEs where the protection of the consumer data of the large workforce becomes essential and the prime objective of the organization. All these factors bode the demand for identity access management market in the forecast period.
The Asia Pacific market is expected to register the fastest CAGR from 2019 to 2025. The region comprises emerging economies such as China, India, Japan, and Australia. These countries are home to many small and medium enterprises. The need for high investment is challenging for SMEs to adopt identity access management; however, the region is witnessing transition, and factors such as growing usage of the internet, growing adoption of smartphones, and compliance regulations are major factors driving the market.
The global IAM market has intense competition owing to presence of large as well as niche players offering IAM solution and services. In order to edge over their competitors, companies are providing innovative solutions, which help consumers address changing technologies, security needs, and business practices. IAM providers are using acquisition, partnership, and research and development strategies to broaden their product portfolio and to strengthen their market position. The companies dominating the market include Oracle Corporation, IBM Corporation, CA Technologies, NetIQ Corporation (Micro Focus), HID Global Corporation, and others.
Report Attribute |
Details |
Market size value in 2020 |
USD 13.48 billion |
Revenue forecast in 2025 |
USD 24.12 billion |
Growth Rate |
CAGR of 13.1% from 2019 to 2025 |
Base year for estimation |
2018 |
Historical data |
2015 - 2017 |
Forecast period |
2019 - 2025 |
Quantitative units |
Revenue in USD million and CAGR from 2019 to 2025 |
Report coverage |
Revenue forecast, company share, competitive landscape, growth factors and trends |
Segments covered |
Component, deployment, end-use, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East; Africa |
Country scope |
U.S.; Canada; Germany; U.K.; China; India; Japan; Brazil; Mexico |
Key companies profiled |
Oracle Corporation; IBM Corporation; CA Technologies; NetIQ Corporation (Micro Focus); HID Global Corporation |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global Identity and Access Management (IAM) market report on the basis of component, deployment, end-use, and region:
Component Outlook (Revenue, USD Million, 2015 - 2025)
Audit, Compliance & Governance
Directory Service
Multifactor Authentication
Provisioning
Password Management
Single Sign-On
Deployment Outlook (Revenue, USD Million, 2015 - 2025)
Cloud
Hybrid
On-Premise
End-Use Outlook (Revenue, USD Million, 2015 - 2025)
BFSI
Energy, Oil & Gas
Telecom & IT
Education
Healthcare
Public sector & utilities
Manufacturing
Others
Regional Outlook (Revenue, USD Million 2015 - 2025)
North America
The U.S.
Canada
Europe
Germany
The U.K.
Asia Pacific
China
India
Japan
Latin America
Brazil
Mexico
MEA
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Amidst the COVID-19 crisis, the network security industry is poised for sustainable growth despite the foreseeable economic turbulence. Implementation of remote working policy, due to lockdown is putting unanticipated stress on remote networking technologies and causing operational technology (OT) security risk concerns over the vulnerable home network security. Furthermore, as digital infrastructure becomes a critical aspect of business strategic considerations, network security will become a competitive differentiator for businesses and overhaul their remote working strategies. We are incessantly monitoring the market dynamics and regulations while continuously assessing the impact of Covid-19 with the aim of providing you with actionable market insights. The report will account for Covid19 as a key market contributor.
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