Global Identity and Access Management Market (by Sub Category, Deployment Type, Solution, Enterprise Size, End User, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)

Identity and Access Management (IAM) refers to the systems and procedures that enable IT managers to issue a single digital identity to each user, authenticate users when they log in, and authorize users to access specific resources, as well as monitor and manage those identities. Because of the increase in the number of apps and cloud usage, the increased danger of data threats and security breaches, and the transition to remote work, identity has become the most crucial layer of an organization's security.

Factors such as an increase in acceptance of increased regulatory compliances and security concerns, particularly following COVID, as well as a rise in demand for multifactor authentication in firms and organizations all over the world, are projected to boost overall market growth. The global identity and access management market is likely to reach US$17.31 billion in 2023, witnessing growth at a CAGR of 14.10%, during the forecasted period.

Segment Covered

By Sub Category: On the basis of the sub-category, the report provides the bifurcation of the global identity and access management market into four segments: Access Management, User Authentication, Identity Governance and Administration (IGA), and Privileged Access Management (PAM). The access management segment held maximum share of the market. Also, access management is expected to be the fastest-growing segment in the forecasted period, owing to an increase in awareness about security concerns and loss related to data theft. Access management includes tools for both workforce identity and customer identity to manage identity authorization for internal users (employees) and external users (customers), respectively.

By Deployment Type: In terms of deployment type, the report identifies four segments of the global identity and access management market: On-Premise and Cloud. The on-premise segment held the highest share of the market. On-premise IAM is the largest deployment type of identity and access management market. Whereas, cloud segment is anticipated to exhibit the highest CAGR during the forecast period, because of easy and fast deployment, multifactor authentication and great flexibility and scalability as these solutions adjusts quickly to the company’s current needs, saving time and money for the company. The global cloud identity and access management market can be further divided into three segments namely, public, hybrid and private, with hybrid being the fastest-growing segment in the forecasted period.

By Solution: The report offers a glimpse of the market based on solutions, namely, Provisioning, Single Sign On, Multifactor Authentication, Audit, Compliance and Governance, Password Management, and Directory Services. Audit, Compliance & Governance is the fastest growing segment as it facilitates compliance with regulatory requirements or internal security policies. Network and system administrators use directory services to onboard users, manage access privileges and monitor and control access to applications and infrastructure resources.

By Enterprise Size: The market has further been assessed according to the enterprise size: Large Enterprises and SMEs. Large enterprises held the highest share of the market as large enterprises have a lot of valuable and sensitive data which makes them targets for data theft and cyber threats.

By End-User: The report provides an analysis of the market based on end-user: Public Sector & Utilities, Telecom & IT, BFSI, Manufacturing, Healthcare, Education, Energy, Oil & Gas, and Others. The telecom and IT segment is expected to be the highest-growing segment in the forecasted period. Telecom and IT companies essentially work with a large user base that spans across national boundaries and these users use system for various transactions, and because of many possible cyber attacks and data breaches of the digital identities created, it becomes challenging for IT departments in telecom organizations to tackle security issues, so organizations demand IAM solutions to preserve company’s reputation and business loss.

Geographic Coverage

According to this report, the global the identity and access management market is divided into five regions, namely North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. The countries covered in North America region are the US, Canada, and Mexico, while Europe includes Germany, UK, France, Italy, Spain and Rest of Europe. Moreover, China, Japan, India, South Korea and Rest of Asia Pacific are included in the Asia Pacific region. North America held the largest share in the market. Within North America, the US is leading the market owing to the increasing adoption of work-from-home culture, digitalization, and increasing applications of IAM in various end-use industries such as healthcare, BFSI, etc. The US identity and access management market is further divided into six segments based on solution, namely, Provisioning, Single Sign On, Multifactor Authentication, Password Management, Directory Services, and Audit, Compliance & Governance, with the provisioning segment accounting for the highest share in the market. Within Europe, Germany held the maximum share of the market, whereas Spain is expected to be the fastest-growing IAM market in the forecasted period. Furthermore, Asia Pacific's identity and access management market is divided into six regions based on geographical operation, namely, China, Japan, India, South Korea, and the Rest of Asia Pacific, where China held the largest share of the Asia pacific IAM market owing to high income and well developed AI ecosystems.

Top Impacting Factors

Growth Drivers

• Rising Information Technology (IT) Spending
• Shift towards Adoption of Cloud
• Increase in Data Thefts
• Digital Transformation

Challenges

• Security Breach
• Lack Of Identity Standards And Budgetary Constraints

Trends

• Introduction of AI and Robotics
• Bring Your Own Device (BYOD) Policies
• Multifactor Authentication
• Zero Trust Security

Driver: Rising Information Technology (IT) Spending

Companies are now more focused on improving and modernizing their IT security systems as represented by rising trend in global IT spending and with the right IAM services, IT can authorize access and grant the necessary privileges to both internal and external stakeholders. So, there has been an increase in demand for IAM Services as they have become an important part of IT planning and strategies. Therefore, with the increasing trend in IT spending, IAM professionals would be able to carry out IT security operations more effectively. Thus, rising IT spending has positively impacted the identity and access management (IAM) market in recent times.

Challenge: Lack Of Identity Standards And Budgetary Constraints

The lack of identity standards and insufficient resources in terms of budget, coupled with the high installation costs of IAM solutions, is restraining the growth of the identity & access management market as the initial investment and maintenance costs are very high due to the need to integrate robust security technologies. Also, small and medium enterprises (SMEs) focus more on resources that are required for business survival and hence, they neglect IAM and instead tend to focus on security only after a breach has occurred. These enterprises prioritize the security of critical servers and pay little attention to the data stored in databases. Therefore, inadequate budgets continue to be a crucial challenge for IAM professionals to carry out IT security operations effectively. Budgetary constraints have been observed in major economies, such as some parts of APAC, MEA, and Latin America, where companies are either bootstrapped or operating with small capital.

Trend: Introduction of AI and Robotics

Nonhuman identities is defined as assisted and unassisted bots, service accounts, cloud automation and APIs, internet-of-things (IoT) devices, and robots. The number of nonhuman identities across are predicted to grow more than human identities as many other public cloud platforms rely extensively on machine identities to perform tasks. These software bots are expanding across customer service, finance, and IT departments for automation. This would lead to increase in demand for providing IAM services for digital identities across organizations. Therefore, Artificial intelligence is likely to contribute to the growth of the overall IAM market in coming years.

The COVID-19 Analysis

COVID-19 brought in many changes in the world in terms of reduced productivity, loss of life, business closures, closing down of factories and organizations, and shift to an online mode of work. With the increase in digitalization because of COVID-19, there was a shift towards online working platforms, which has increased both the adoption of cloud-based technology and the risk of security breaches and cyber-attacks creating heavy workloads on IT professionals for managing user identities. So, COVID-19 has had a positive effect on growth in the IAM market across all regions.

Analysis of Key Players

The market for identity and access management has typically been fragmented. The key players of the identity and access management market are International Business Machines Corporation (IBM), Okta Inc., Broadcom Inc., Oracle Corporation, Cisco Systems Inc., Microsoft Corporation, Amazon.com, Inc. (Amazon Web Services, Inc.), Hewlett Packard Enterprise Co. (HPE), Thales S.A., Ping Identity Holding Corp. (Ping Identity Corporation), Avatier Corporation, Core Security Technologies Inc., Fisher International Systems Corporation (Fisher International Identity, LLC), ForgeRock, Inc., and CyberArk Software Ltd. (CYBR).