Identity and Access Management (IAM) Market Analysis Report By Deployment (Cloud, Hybrid, On-Premise), By End Use (BFSI, Telecom & IT, Public Sector, Healthcare), And Segment Forecasts, 2018 - 2025

Industry Insights

In 2017, the global identity and access management (IAM) market size was valued at USD 8.85 billion. It is expected to experience a CAGR of 12.7% from 2018 to 2025. Increasing spending by government organizations and large-scale enterprises owing to security concerns as well as stringent regulatory compliances are anticipated to boost market growth. For instance, as per The Health Insurance Portability and Accountability Act of 1996 (HIPAA), healthcare organizations are required to ensure portability of health care coverage and privacy of patient records.

Increasing influx of risk management solutions such as policy-based compliance and audit management combined with cost control is one of the primary growth stimulants for the market. Moreover, growing trend of Bring Your Own Devices (BYOD), Internet of Things (IoT), and mobility and remote workforce is impelling organizations to implement IAM solutions, which is likely to further drive the market.

Strong investments and rigorous R&D activities are accelerating development of advanced products that can deliver ease of use and provide control to meet process requirements. Previously, IAM focused on forming capabilities for supporting access management and associated compliance needs. However, they were poorly accepted and 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.

Identity and access management solutions are being developed into risk-based programs with competences focused on implementation of logical access control and entitlement management. While enterprises are benefitting from IAM implementation, time-incentive process management including manual approval and provisioning is a challenge.

Over the years, IAM has advanced to become a vital and complex segment of the IT infrastructure. Nowadays, IAM has become an important asset in enterprise landscape. It encompasses processes and information technologies that are correlated and mutually reliant on all business areas. If IAM solution is planned and implemented well, it eventually helps strengthen regulatory compliance, facilitate secure operations, and enhance operational agility within organization. Several enterprises maintain administrative IAM functions that drive operational costs, professional services, and technology investments.

Deployment Insights

On the basis of deployment, the market is divided into cloud, hybrid, and on premise. On-premise solutions dominated the market in 2017, 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 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.

The cloud segment is projected to register tremendous growth during 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 growth of the segment. In order to leverage cloud benefits, more 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 IAM market is segmented into BFSI, telecom & IT, energy, oil and gas, education, public sector and utilities, healthcare, manufacturing, and others, which include defense, logistics, and home safety & security. The public sector and utilities segment accounted for the leading share in the market in 2017. It is estimated to witness a CAGR of 12.8% during the forecast period.

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 during 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 in terms of revenue in 2017, accounting for just over 39.0% of the overall revenue. Favorable regulatory scenario is the primary factor stimulating the growth of the regional market. 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 cyber security 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 at private business. Several federal agencies in the 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 regional market during 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 market has intense completion 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.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of 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 market report on the basis of deployment, end-use, and region:

• 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

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • MEA