Identity and Access Management Market Growth Analysis - Market Size, Share, Forecast Trends and Outlook Report (2025-2034)

The global identity and access management (IAM) market size reached around USD 16.19 Billion in 2024. The market is projected to grow at a CAGR of 13.20% between 2025 and 2034 to reach nearly USD 55.94 Billion by 2034.

The process of managing users' and devices' digital identities and access permissions within an organisation is known as identity and access management (IAM). It involves verifying, authenticating, and authorising the users and devices based on their credentials and roles and enforcing and auditing the identity and access policies throughout their lifecycle. The creation of a single digital identity for everyone is the main goal of the IAM systems.

The global identity and access management market is driven by the increasing adoption of cloud-based services and applications, the growing demand for cybersecurity and compliance, the rising trend of digital transformation and mobility, and the emergence of new technologies and trends, such as artificial intelligence, blockchain, biometrics, and IoT, which offer new possibilities and use cases for IAM solutions.

Key Trends and Developments

Rising deployment of cloud based IAM solutions, high integration of biometrics, and government regulations are propelling the identity and access management market development

Global Identity and Access Management Market Trends

The key factors that are likely to accelerate the identity and access management (IAM) market development are increasing expenditure on security solutions by government bodies and large companies to curb identity theft and to comply with regulatory compliance. For example, the Health Insurance Portability and Accountability Act of 1996 mandates that businesses in the healthcare industry guarantee the privacy of patient records and the portability of health insurance coverage (HIPAA).

The increasing use of web-based applications, risk management tools like policy-based enforcement, and audit management in conjunction with cost-control measures are the primary drivers of the demand for identity and access management (IAM) solutions. Additionally, the rise of IoT, mobility, Bring Your Own Devices (BYOD), and remote workers necessitated the implementation of IAM solutions by organisations, thereby driving the identity and access management (IAM) market growth.

Market Segmentation

"Global Identity and Access Management Market Report and Forecast 2025-2034" offers a detailed analysis of the market based on the following segments:

Breakup by Type

• Audit, Compliance, and Governance
• Directory Service
• Multifactor Authentication
• Provisioning
• Password Management
• Single Sign-On

Breakup by Deployment Mode

• Cloud
• On-Premise
• Hybrid

Breakup by End Use

• BFSI
• Energy, Oil and Gas
• IT and Telecom
• Healthcare
• Public sector
• Manufacturing
• Others

Breakup by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

Cloud technology is expected to hold a significant market share due to its wide adoption by organisations to store their data

Cloud-based IAM solutions offer scalability, flexibility, and cost-effectiveness for managing user identities and access rights across multiple devices and platforms. The cloud segment is expected to witness the highest growth rate as per the identity and access management (IAM) market analysis, as more organisations are adopting cloud computing and migrating their data and applications to the cloud.

The hybrid segment is expected to have a moderate growth rate in the IAM market as hybrid IAM solutions combine the features and benefits of both cloud-based and on-premises solutions, offering a balance between security, flexibility, and cost-effectiveness. Hybrid IAM solutions allow organisations to manage their user identities and access rights across both cloud and on-premises environments, providing them with more options and customisation. As more organisations are looking for a tailored solution that suits their specific needs, this segment’s share will grow and can result in identity and access management (IAM) market expansion.

BFSI sector contributes to the market growth as IAM solutions help these organisations prevent fraud cases

The banking, financial services, and insurance (BFSI) sector holds the largest identity and access management (IAM) market share and is one of the major adopters of IAM solutions, as it deals with sensitive customer data and transactions. IAM solutions help BFSI organisations to comply with regulatory standards, prevent fraud, enhance customer experience, and improve operational efficiency.

The IT and telecom segment held the second largest identity and access management (IAM) market share as it is another key user of IAM solutions. IT and telecom sector faces various challenges such as cyberattacks, data breaches, identity theft, and unauthorised access. IAM solutions help IT and telecom companies to protect their network infrastructure, devices, applications, and data from malicious actors, as well as to manage the identities and access rights of their employees, customers, and partners.

According to identity and access management (IAM) market insights, the healthcare segment is also witnessing a growing demand for IAM solutions, as it must deal with complex and diverse stakeholders, such as patients, doctors, nurses, staff, insurers, and regulators. IAM solutions help healthcare organisations to ensure the privacy and security of patient data, comply with regulatory standards, improve patient engagement, and streamline workflows.

Competitive Landscape

The market players are engaged in acquisitions and are investing in novel IAM technologies to gain a competitive edge in the market.

Other key players in the identity and access management (IAM) market are Microsoft Corporation, IBM Corporation, Oracle Corporation, Thales Group, Fortra, LLC, Avatier Corporation, Okta, Inc., Assa Abloy, and Quest Software Inc., among others.

Global Identity and Access Management Market Analysis by Region

North America is one of the prominent regions due to the rising levels of cyber threats and high adoption of IAM solutions in various industries

The North American region is anticipated to hold a dominant position in the identity and access management (IAM) market due to the high adoption of IAM solutions among various industries, such as healthcare, banking, government, and retail. The presence of major players, such as IBM, Microsoft, Oracle, and Okta, also contribute to the market growth in the region. The increasing demand for cloud based and mobile IAM solutions, and the rising cyber threats and data breaches, are expected to drive the market further in the future.

According to the identity and access management (IAM) market report the European region is anticipated to experience significant growth because of the strict laws and policies pertaining to privacy and data protection, like the General Data Protection Regulation (GDPR) and the eIDAS regulation. The growing adoption of digital transformation initiatives and cloud computing among enterprises, along with the increasing need for identity verification and authentication, are also expected to boost the identity and access management market value in the region.

Meanwhile, the Asia-Pacific region is projected to be the fastest-growing market for IAM due to the rapid economic development and digitalisation in countries, such as China, India, Japan, and Australia. The rising awareness and demand for IAM solutions among small and medium-sized enterprises (SMEs), and the growing investments in cybersecurity and cloud infrastructure, are also expected to increase the identity and access management (IAM) market size in the region.