Identity and Access Management Market Size & Share Analysis Report by Component (Solution, Service), Deployment Model (Cloud, Hybrid, On-Premise), Enterprise Size (Large, SMEs), Industry Vertical (BFSI, Energy, Oil & Gas, Telecom & IT, Education, Healthcare, Public Sector, Manufacturing) – Revenue Forecast Through 2030

Market Overview

The global identity and access management market size in 2021 was $12,762.3 million, and it is expected to advance at a CAGR of 13.3% during the forecast period, to reach $39,184.4 million by 2030. Identity and access management is a security discipline that enables authorized users to access proper resources at appropriate times and for apt reasons. This solution enables end users to ensure that access to various technical environments is only allowed to the appropriate personnel. The solution also enables safe, identity-based access to a wide range of applications, systems, and data from any place.

It has a large client base throughout the world, owing to its low cost and the presence of a large number of suppliers. The increased desire for technical developments, as well as emerging trends such as bring-your-own-device (BYOD) and identity management tools, will boost buyer power even further. Due to these industry trends, the market has seen continuous growth in expenditure on security solutions and enterprise mobility. Moreover, various SMEs are predicted to involve in these initiatives, as old cost structures are being replaced by appealing pricing offers such as usage-based pricing and a monthly subscription to IAM solutions and services.

The market is characterized by fierce competition, with the presence of a large number of key players. To stay ahead of competitors, the players’ priorities are on R&D investments and vertical integration. They are attempting to distinguish their products by developing new programs that cater to the clients’ needs. This factor also drives the market growth.

In the identity and access management market, the threat of internal replacements is medium. Because of technical breakthroughs, changing standards, and changes in client expectations, the sector is constantly evolving. Furthermore, supply chain management is becoming an increasingly important skill for material providers. The rising demand for greater safety and security gives market suppliers tremendous bargaining power. Their solutions, products, and services provide customers with a cost-effective, secure, and scalable infrastructure.

Solution Will Contribute the Highest To the Market

The solution category leads the market, as it assists organizations in implementing proper security policies across all systems, platforms, and applications. The surge in data breaches is encouraging businesses to implement centralized security solutions, which results in the increasing demand for IAM solutions.

Demand for Cloud-Based Solutions Will Grow in Coming Years

The demand for cloud-based IAM solutions, such as cloud identity as a service (IDaaS), is expected to increase rapidly in the coming years, due to their manageability and affordability, and the surging usage of these solutions by SMEs. Furthermore, these solutions require smaller capital inputs and less time to implement. Moreover, the hybrid deployment model aids end users in selecting these technologies that can be implemented on-premises as well as accessible via the cloud. As a result, it has the ability to drive the market in the coming years.

Large Enterprises Dominate the Market

Single sign-on password solutions assist enterprises in managing security across multiple systems. These solutions can detect and prevent forged activities, thereby preventing data abuse. As a result, large enterprises are widely implementing these solutions.

On the other hand, the SMEs category is expected to grow at a higher CAGR, of more than 14%, in the coming years. This can be ascribed to the significant growth across various industries and SMEs are the budding consumers of IAM solutions. Due to low lucrative pricing offers such as usage-based pricing and monthly subscription provided by service providers, SMEs around the world are expected to invest in these security management projects in the near future.

BFSI Industry Contributes the Most to the Market

The BFSI sector has expanded dramatically in recent years, as people's disposable income has increased. Customers' sensitive information is saved by BFSI organizations, which necessitates a high level of security. The organizations are implementing IAM solutions to boost productivity, ensure compliance, lower IT management costs, and improve security. Also, logical and physical security are joined into unified solutions in the face of a mobile banking transformation. The move to EMV debit and credit cards, as well as biometric authentication at ATMs, is expected to be a key factor driving the identity and access management market over the forecast period.

In addition, various financial institutions have recognized the need for increased security and have made a variety of investments in their IT infrastructure and solutions for protecting customer data and assets from cyber and security breaches.

Regional Analysis

The North American identity and access management market accounted for the largest revenue share, of around 40%, in 2021. This is due to the presence of many federal agencies, including the Department of the Interior, Transportation, and Veteran Affairs, across the region, particularly in the U.S., whose employees are required to use a form of strong authentication solutions or a hardware-based personal identification verification card when accessing government IT networks and infrastructure. Moreover, the surging cases of data breaches drive the regional market growth. For instance, according to a source, the number of data breaches in the U.S. exceeded 1,000 in 2020.

Moreover, Europe is one of the largest revenue-generating regions in the market, due to the rising regulatory and security compliance concerns in nations like Italy, Germany, the U.K., France, and Spain. The requirements of the European Union's General Data Protection Regulation (GDPR) drive the need for IAM solutions to comply with regulations in Europe.

On the other hand, during the forecast period, the APAC market is expected to grow at the highest rate, as key players in the region are investing in the development of advanced solutions to prevent identity fraud and cyberattacks. The regional countries, including Japan, India, Australia, and China, are home to several SMEs, which employ more than 70% of the workforce. Moreover, the rising internet usage, smartphone adoption, and compliance regulations are boosting the adoption of IAM solutions in the region.

Furthermore, the surging digital transformation in MEA is projected to increase the need for IT and security solutions, specifically access management solutions. Also, governments in several countries, including Saudi Arabia, have begun to implement data protection laws, which create opportunities for market players in the coming years. Similarly, the LATAM market will experience moderate growth, as a result of the rising number of cybercrimes, technological advancements, and the implementation of data protection and privacy regulations in the region.

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Companies Focus on Launching New Solutions

To enhance the capabilities of IAM solutions, market companies are investing in advanced technologies, such as cloud computing, artificial intelligence, and machine learning. Furthermore, the major players are engaged in several strategic developments, such as product launches, in order to increase their market presence. For instance:

In May 2022, Microsoft introduced Entra, a new product family of security solutions. Entra is intended to secure access to any resource or application by allowing security teams to manage and discover authorizations in multi-cloud environments, enabling them to secure digital characteristics from end to end.

In January 2022, ALcor, a cloud solution provider, launched AccessFlow, which is an access management product. Developed on the ServiceNow platform, it is a self-service automated enterprise access management solution that assists companies in achieving centralized, automated, and compliant access management.

Top Players in Identity and Access Management Market Are:

• Oracle Corporation
• IBM Corporation
• CA Technologies
• NetIQ Corporation
• HID Global Corporation
• Dell
• ForgeRock
• Bomgar-BeyondTrust
• SAP SE
• Okta
• Microsoft

Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Component

• Solution
  • Provisioning
  • Directory Service
  • Single Sign-On
  • Password Management
  • Advanced Authentication
  • Audit, Compliance and Governance
• Service
  • Integration and Deployment
  • Support and Maintenance
  • Consulting

Based on Deployment Model

• Cloud
• Hybrid
• On-Premise

Based on Enterprise Size

• Large
• SMEs

Based on Industry Vertical

• BFSI
• Energy, Oil & Gas
• Telecom & IT
• Education
• Healthcare
• Public Sector
• Manufacturing

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • China
  • Japan
  • India
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • U.A.E