Identity and Access Management Market Size, Share, Report by 2033

The global identity and access management market size was valued at USD 18.12 billion in 2023 and is predicted to reach around USD 59.52 billion by 2033. at a solid CAGR of 12.63% from 2024 to 2033. The Identity and Access Management (IAM) market is experiencing robust growth driven by increasing cybersecurity threats, stringent regulatory requirements, and the adoption of cloud-based solutions. IAM solutions help organizations manage and secure digital identities and access rights across various systems, ensuring only authorized users have appropriate access to resources. Key components of IAM include authentication, authorization, identity governance, and privileged access management (PAM).

Identity and Access Management Market Statistics

• North America dominated the identity and access management market with the largest revenue share of 37% in 2023.
• Asia Pacific is expected to witness the fastest growth in the market during the forecast period.
• By component, the provisioning segment held the largest revenue share of 31% in 2023.
• By component, the multifactor authentication segment is expected to grow rapidly in the market over the forecast period.
• By deployment, the cloud segment accounted for the highest revenue share of 52% in 2023.
• By deployment, the on-premise segment is expected to witness considerable growth in the global market over the forecast period.
• By end-use, the public sector & utilities segment has generated more than 27% of revenue share in 2023.
• By end-use, the BFSI segment is expected to witness considerable growth in the market over the forecast period.

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Regional Insights

• The North America identity and access management market size reached USD 6.70 billion in 2023 and is expected to attain around USD 22.32 billion by 2033, poised to grow at a CAGR of 12.78% between 2024 and 2033.
• The U.S. identity and access management market size was exhibited at USD 4.69 billion in 2023 and is projected to be worth around USD 15.74 billion by 2033, poised to grow at a CAGR of 12.87% from 2024 to 2033.

The Identity and Access Management (IAM) market is experiencing robust growth globally, with North America and Europe leading in adoption and investment. North America, particularly the United States, dominates the market due to stringent regulatory requirements and a high concentration of large enterprises adopting IAM solutions to secure their digital assets. Europe follows closely, driven by similar regulatory pressures and increasing awareness of cybersecurity threats among businesses across various sectors. Asia-Pacific is witnessing rapid growth, fueled by expanding IT infrastructure and rising digital transformation initiatives in countries like China, India, and Japan. The region’s increasing adoption of cloud-based IAM solutions is contributing significantly to market expansion. Latin America and the Middle East & Africa regions are also experiencing steady growth, albeit from a smaller base, with enterprises increasingly prioritizing IAM solutions to enhance security measures amid evolving cyber threats.

• In 2023, 3 in 4 companies in the US were at risk of a material cyberattack, according to chief information security officers (CISO). Their concerns are since the number of cyberattacks has been increasing in recent years, amounting to 480 thousand in 2022. Thus, cybercrime remains one of the primary risks that companies in the United States face. Cyberattacks, if successful, have serious consequences, the main one being financial damage.
• In May 2024, Microsoft announced that multi-factor authentication (MFA) will be mandatory for all Azure users starting in July 2024. This change is part of the Secure Future Initiative, which aims to strengthen security and prevent data breaches.
• In January 2024, Stack Identity, a Silicon Valley-based company pioneering identity security, announced the expansion of the Identity Access Risk Management Platform with identity threat detection and response (ITDR) to tackle shadow access and shadow identities.

Identity and Access Management Market Trends

• Cloud IAM Adoption: Organizations are increasingly moving towards cloud-based IAM solutions to manage identities across diverse environments and provide secure access from anywhere. This trend is driven by scalability, cost-efficiency, and improved user experience.
• Zero Trust Architecture: IAM is pivotal in implementing Zero Trust frameworks, which focus on verifying every access request regardless of location or user. This approach enhances security by minimizing trust assumptions and reducing the attack surface.
• Multi-factor Authentication (MFA): MFA adoption is growing as a critical IAM component, adding layers of security beyond passwords. Biometric authentication methods such as fingerprint or facial recognition are becoming more common.
• Identity Governance and Administration (IGA): IGA solutions are gaining traction for managing user identities, entitlements, and access rights across on-premises and cloud environments. This trend addresses compliance, audit requirements, and minimizing insider threats.
• AI and Machine Learning in IAM: AI and ML technologies are being integrated into IAM solutions to enhance threat detection, anomaly identification, and adaptive access controls. These technologies help organizations respond to dynamic security threats in real-time.

Identity and Access Management Market Scope

Component

The Identity and Access Management (IAM) market revolves around several key components that form the backbone of its functionality. These components typically include authentication, authorization, user provisioning, single sign-on (SSO), directory services, and identity governance. Authentication ensures secure access by verifying user identities through methods like passwords, biometrics, or multifactor authentication (MFA). Authorization controls what authenticated users can access based on their roles and permissions. User provisioning manages the lifecycle of user accounts, ensuring timely creation, modification, and deletion based on organizational needs. Single sign-on simplifies user access by enabling seamless login across multiple applications with a single set of credentials. Directory services centralize user information and access rights, often through LDAP (Lightweight Directory Access Protocol). Lastly, identity governance ensures compliance and security by enforcing policies and auditing access activities.

Deployment Insights

IAM solutions can be deployed through various modes tailored to organizational requirements and IT infrastructures. On-premises deployments involve installing IAM software within the organization’s data center, providing full control over security and customization but requiring substantial maintenance and upfront costs. Cloud-based IAM solutions offer scalability, flexibility, and rapid deployment by hosting IAM services on cloud platforms like AWS, Azure, or Google Cloud. This mode is ideal for organizations seeking agility and cost-efficiency, as it reduces hardware investments and allows for easier integration with cloud applications. Hybrid deployments combine on-premises and cloud IAM solutions, enabling organizations to leverage existing investments while transitioning to cloud services gradually. This approach offers flexibility in managing different types of workloads and data sensitivity levels across hybrid IT environments.

• In May 2023, IBM unveiled IBM Hybrid Cloud Mesh, a SaaS offering that is designed to enable enterprises to bring management to their hybrid multi-cloud infrastructure. Driven by “Application-Centric Connectivity,” IBM Hybrid Cloud Mesh is engineered to automate the process, management, and observability of application connectivity in and between public and private clouds to help modern enterprises operate their infrastructure across hybrid multi-cloud and heterogeneous environments.
• In May 2022, Microsoft announced the launch of Entra, a new product family of identity and access management solutions. The family includes existing tools like Azure AD alongside two new product categories: Cloud Infrastructure Entitlement Management (CIEM) and Decentralized Identity.

End-use Insights

The end-use of IAM solutions spans across diverse industries and organizational sizes, addressing critical security and compliance needs while enhancing user productivity. In enterprise settings, IAM is essential for safeguarding sensitive corporate data and intellectual property from unauthorized access, supporting seamless access to applications and resources across global operations. Healthcare organizations rely on IAM to secure electronic health records (EHRs) and comply with regulatory standards like HIPAA, ensuring patient data privacy. Government agencies deploy IAM to protect national security information and manage access to citizen services securely. In the financial sector, IAM solutions mitigate risks associated with fraud and data breaches, ensuring compliance with stringent regulations such as GDPR and PCI-DSS. Educational institutions use IAM to manage access to learning resources and protect student data. IAM’s role continues to evolve, driven by increasing digital transformation efforts and cybersecurity challenges across various sectors globally.

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Identity and Access Management Market Dynamics

Drivers

Several factors are driving the growth of the IAM market. Firstly, the rising frequency and sophistication of cyberattacks have heightened the demand for robust identity and access management solutions to protect sensitive data and digital assets. Secondly, regulatory compliance mandates such as GDPR and CCPA require organizations to implement stringent access controls and data protection measures, boosting the adoption of IAM solutions. Additionally, the shift towards hybrid IT environments and the proliferation of mobile devices and IoT further underscore the need for effective IAM solutions to manage access across diverse platforms securely.

Opportunities

The IAM market presents significant opportunities fueled by advancements in technology and evolving business needs. Cloud-based IAM solutions are gaining traction due to their scalability, flexibility, and cost-efficiency, particularly appealing to enterprises undergoing digital transformation. Moreover, the integration of AI and machine learning capabilities into IAM solutions enhances threat detection and identity verification processes, providing proactive security measures. Furthermore, the increasing adoption of IAM-as-a-Service (IDaaS) models by SMEs and large enterprises alike offers vendors opportunities to expand their market reach and service offerings globally.

Challenges

Despite its growth prospects, the IAM market faces several challenges. Interoperability issues arise when integrating IAM solutions with existing IT infrastructure and legacy systems, leading to complexities and potential disruptions. Moreover, managing identities across multiple platforms and ensuring seamless user experience while maintaining security poses a significant challenge. Addressing these challenges requires continuous innovation, collaboration with ecosystem partners, and adherence to evolving regulatory frameworks to enhance interoperability and user-centric IAM solutions.

Recent Developments

• In December 2023, GuidePoint Security, a cybersecurity solutions leader enabling organizations to make smarter decisions and minimize risk, announced the launch of its Identity as a Service, which will help organizations address the complex challenges of identity management by optimizing resources, enhancing user experience, and ensuring security.
• In December 2022, CloudIBN announced the launch of its Identity and Access Management offerings. This suite of IAM products will help businesses ensure that their data remains secure while providing an efficient way to manage user access control across the organization.
• In July 2023, Infisign announced the launch of its Identity and access management (IAM) platform, a unique solution to offer passwordless authentication using the ground-breaking Zero trust approach. The Zero trust framework eliminates the reliance on traditional perimeter-based security measures and implements robust authentication and access control mechanisms at every level of the network infrastructure.
• In March 2023, as part of the Enduring Security Framework (ESF), the National Security Agency (NSA) and the Cybersecurity and Infrastructure Security Agency (CISA) published the ‘Recommended Best Practices Guide for Administrators’ to provide system administrators with actionable recommendations to better secure their systems from threats to identity and access management (IAM).
• In March 2024, Securden, Inc., a leading provider of privileged access and identity security solutions, announced the launch of Unified PAM MSP, a first-in-class, unique offering for Managed service providers. Built on a scalable, multi-tenant architecture with complete data segregation, the Unified PAM MSP delivers all critical Privileged access management (PAM) functionalities in a single package.

Identity and Access Management Market Companies

• Microsoft
• Micro Focus
• Thales
• RSA Security
• Avatier
• Broadcom
• SailPoint Technologies
• IBM Corporation
• Microsoft Corporation
• Okta, Inc.
• NetIQ Corporation
• Oracle Corporation
• Dell EMC
• Hitachi ID Systems, Inc.
• ManageEngine
• SecureAuth
• EmpowerID
• SAP
• Okta
• Salesforce Inc
• Ping Identity
• HID Global
• ForgeRock
• CyberArk
• Simeio
• One Identity
• FusionAuth

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Prathamesh

I have completed my education in Bachelors in Computer Application. A focused learner having a keen interest in the field of digital marketing, SEO, SMM, and Google Analytics enthusiastic to learn new things along with building leadership skills.

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