Identity And Access Management (IAM) Market Size, Share & Trends Analysis Report By Component, By Deployment (Cloud, Hybrid, On-Premise), By End Use, By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global Identity and Access Management (IAM) market size was valued at USD 9.90 billion in 2018 and is expected to expand at a CAGR of 13.1% from 2019 to 2025. Increase 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 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.

Component Insights

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.

Deployment Insights

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.

End-Use Insights

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.

Regional Insights

North America led the market with a market share of over 38% in terms of revenue. Favorable regulatory scenario is the primary factor stimulating regional growth. For instance, according to the National Conference of State Legislatures, in 2017, around 240 bills related to cybersecurity were introduced by 42 states in the U.S. to address cybersecurity issues. Through this regulatory bill, states in the country will address cybersecurity concerns by taking different initiatives.

These initiatives include combating threats to critical infrastructure, providing more funding for improved security measures, and enforcing regulations to implement specific types of security practices in government agencies as well as a private business. Several federal agencies in U.S. have incorporated strong authentication requirements, such as hardware-based personal identification verification cards, for their employees for accessing government IT infrastructure and networks.

However, Asia Pacific is poised to be the most promising region over the forecast period, due to high deployment of IAM solutions and increasing cyber threats on critical infrastructure. MEA is also projected to gain traction over the coming years owing to improving IT infrastructure in the region.

Identity and Access Management Market Share Insights

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 Scope

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 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