Identity and Access Management (IAM) Market Size, Share & Trends Analysis Report By Deployment (Cloud, Hybrid, On-Premise), By End-Use, By Region, And Segment Forecasts, 2012 - 2022

Industry Insights

The global identity and access management (IAM) market size was estimated at USD 11.27 billion in 2016 and is expected to grow at a CAGR of 13.7% from 2015 to 2022. Upsurge in web-based applications, risk management such as policy-based compliance and audit management combined with cost containment are the key factors driving IAM demand. Increased spending by large scale enterprises and government organizations along with stringent regulatory compliances are expected to drive industry growth.

Additionally, growing popularity of connected devices, Bring Your Own Devices (BYOD) and Internet of Things (IoT) are projected to positively impact the market. Surging demand for intensive R&D has led to the development of sophisticated high-end products, which are delivered for ease-of-use and to provide control to meet process requirements.

Earlier, IAM focused on establishing capabilities for supporting access management and related compliance needs. They were poorly adopted and the solutions were focused on provisioning technology, which resulted in limited realized value and high costs. Enterprises struggled to meet compliance demands, and the solutions were deployed to manage very few systems and applications.

IAM solutions are evolving into a risk-based program with capabilities focused on enforcement of logical access control and entitlement management. Enterprises have started achieving benefits 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 inefficient process, excessive access, and higher costs of provisioning and de-provisioning.

Over the years, IAM has evolved into an increasingly vital and complex segment within the IT infrastructure. Various enterprises maintain administrative IAM functions that drive operational costs, professional services, and technology investments. Existing procedures and technologies focus on abilities to restrict access; organizations are more challenged with the need for sharing information and collaborating across organizational borders in a secure manner.

Existing infrastructures offer a coarse-grained and static set of access configurations; enterprises are demanding a more dynamic approach. It led to a shift from a ‘need-to-know’ to ‘need-to-share’ paradigm, which augments the need for methodologies, technologies, and standards to balance the ability for protecting and sharing the information combined with maintaining the privacy rights of individuals.

End-use Insights

On the basis of end-use, the market is segmented into BFSI, energy, oil and gas, telecom & IT, education, healthcare, public sector and utilities, and manufacturing. Other end-uses include defense, logistics and home safety & security. Public sector and utilities dominated the market in 2016, accounting for 25.0% of the overall revenue, whereas BFSI contributed 12.7% to the overall revenue in 2016.

Rising demand from the BFSI sector is estimated to be a key driver for the IAM market. This sector holds crucial customer data which require 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 security is projected to continue converging into unified solutions against the backdrop of a mobile transformation in mobile banking. Biometric authentication at the ATM and the move to EMV debit and credit cards are expected to be the notable trends driving IAM market demand over the forecast period

Several regulatory reforms and stringent government regulations are causing enterprises and organizations to address their internal control infrastructure. For example, the Health Insurance Portability and Accountability Act of 1996 (HIPAA), healthcare organizations are required to ensure the portability of healthcare coverage and the 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 the disclosure of patient information such as securing electronic access to patient records.

Deployment Insights

The industry can be categorized by deployment into cloud, hybrid and on-premise IAM. Identity administration functions continue to be delivered in enterprise silos, leading to users with inefficient process, excessive access, and higher costs of provisioning and de-provisioning. The On-premise IAM solutions dominated the market in 2016, accounting for over 55.5% of the overall revenue, followed by hybrid model which contributed 30.7% to the overall revenue in 2016.

On-premise identity and access management market accounted for over 55.5% of the overall share in 2016 and is expected to experience a drop in market share by 2022. The Cloud identity and access management market is projected to grow significantly against other deployment modules during the forecast period. Cloud-based IAM services and products provide various benefits such as simplified management and reduced costs, with no software or hardware deployment.

Large enterprises are benefitted from cost saving associated with automated user provisioning as well as increased audit ability and compliance of their entire portfolio of SaaS applications such as Yammer, WebEx, Google Apps and Box.net. Greater advantages over on-premise solutions are expected to drive more enterprise IAM solution buyers to the cloud with better IAM capabilities.

Hybrid identity and access management market, also is expected to have growth prospects during the forecast period. Hybrid identity approach allows customers to manage on premise and cloud users with the same process and console. This integration is vital to a mobile enterprise. Hybrid solutions allow customers to manage a single identity for each user across all on premises directories.

Enterprises traditionally used on-premises IAM software; however, with recent advancements cloud-based Identity-as-a-Service (IDaaS) solutions from vendors such as Centrify and Okta have gained traction. They also provide hybrid IAM solutions from vendors such as Amazon and Microsoft that provide cloud-based directories that link on-premises IAM system.

Regional Insights

North America led the market in terms of revenue in 2016, accounting for 37.7% of the overall market in 2014. North America and Europe identity and access management market are expected to contribute considerably to the global share owing to favorable regulatory scenario. The U.S. government has issued 400 regulatory policies related to cyber security, which is expected to propel growth across the region. Many federal agencies across U.S. require employees to use a hardware based personal identification verification card or an alternative form of strong authentication while accessing government IT infrastructure and networks.

Various federal government agencies such as Department of the interior, transportation and veteran affairs are implementing strong authentication measures which are estimated to drive demand across this region.

Asia Pacific accounted for 22.2% of the overall market in 2016. Asia-Pacific identity and access management market is anticipated to grow at a high rate due to high deployment of IAM solutions and increased cyber threats on critical infrastructure. MEA region is also anticipated to gain traction with significant growth over the forecast period.

IAM Market Share Insights

Companies dominating IAM market share include Amazon Web services, CA Technologies, OneLogin, Centrify, Oracle, Net IQ, ForgeRock Inc., Dell Software, HID Global Corporation, EMC Corporation, HP, and IBM.

In August 2014, IBM acquired CrossIdeas, a provider of identity & access governance solutions for on-premise and cloud-based software to strengthen its pitch across highly regulated industries such as banking and the public sector.

IT mega trends such as widespread adoption of cloud and mobile devices, emergence of insider threats combined with strict compliance requirements have led to evolvement of corporate IT security practices and decentralizing and democratizing control of information and communication technologies.

Various competitors prevailing in the market are challenged to provide innovative solutions, which help consumers address changing technologies, business practices, and security needs. Leading players are in advantageous yet vulnerable positions and can lead in the forecast period or lose market share.

Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on industry trends in each of the sub-segments from 2012 to 2022. For the purpose of this study, Grand View Research, Inc. has segmented the global identity & access management market report on the basis of deployment, end-use and region:

• Deployment Outlook (Revenue, USD Million, 2012 - 2022)

  • Cloud

  • Hybrid

  • On-Premise

• End-Use Outlook (Revenue, USD Million, 2012 - 2022)

  • BFSI

  • Energy, Oil & Gas

  • Telecom & IT

  • Education

  • Healthcare

  • Public Sector & Utilities

  • Manufacturing

  • Others

• Regional Outlook (Revenue, USD Million, 2012 - 2022)

  • North America

  • Europe

  • Asia Pacific

  • Latin America

  • MEA