Identity and Access Management Market Size, Share, Growth & Industry Analysis, By Deployment Mode (Services, Solution), By Component (Cloud-based, On-premises), By Organization Size (Large Enterprises, Small and Medium-Sized Enterprises), By Industry Vertical (BFSI, Healthcare, IT and Telecom, Retail, Others) and Regional Analysis, 2024-2031

Identity and Access Management Market Size

The global Identity and Access Management Market size was valued at USD 18.64 billion in 2023 and is projected to grow from USD 20.68 billion in 2024 to USD 47.29 billion by 2031, exhibiting a CAGR of 12.55% during the forecast period. The growth of the market is driven by increasing cybersecurity threats, regulatory compliance requirements, and the growing need for secure and scalable digital access solutions.

In the scope of work, the report includes solutions and services offered by companies such as Akamai Technologies, Entrust Corporation, HID Global Corporation, Microfocus, Microsoft Corporation, Okta, Oracle, Ping Identity, Salesforce, Thales, and others.

The expansion of identity and access management market is propelled by the increasing demand for secure and seamless digital experiences. The rise in cyber threats and data breaches has underscored the need for robust security measures, prompting organizations to adopt identity and access management (IAM) solutions. Additionally, regulatory requirements, such as GDPR and HIPAA, compel enterprises to implement comprehensive identity management systems.

• For instance, in October 2023, CISA and the NSA released new guidance on IAM, authored by the Enduring Security Framework (ESF) titled "Identity and Access Management: Developer and Vendor Challenges." This publication addressed risks associated with critical infrastructure and national security systems, highlighting technology gaps impacting the adoption of multifactor authentication (MFA) and single sign-on (SSO). It offered recommendations for organizations of all sizes and advised cybersecurity professionals to engage with their vendors to implement these guidelines effectively.

The growing shift toward cloud computing and remote work has further fueled the demand, as organizations seek to ensure secure access to resources from any location. Moreover, the growing emphasis on zero-trust security models is leading to increased investments in IAM technologies to enhance authentication and authorization processes.

The identity and access management market is experiencing significant growth, largely attributed to ongoing technological advancements and the increasing need for security in digital ecosystems. As organizations increasingly adopt digital transformation, the need to manage and secure user identities across various platforms has become crucial. The market encompasses solutions such as single sign-on (SSO), multi-factor authentication (MFA), and privileged access management (PAM), each designed to address different security needs. Major industries, including healthcare, finance, and government, are increasingly implementing IAM solutions. The market is characterized by intense competitive, with vendors offering a range of solutions tailored to specific business requirements.

The market includes the framework of policies and technologies designed to ensure that the right individuals have access to the appropriate resources within an organization. It involves the management of user identities and their associated access permissions, safeguarding sensitive information from unauthorized access. IAM systems provide authentication, authorization, and access control, enabling organizations to enforce security protocols across various applications and data environments. These solutions play a critical role in mitigating risks, ensuring compliance with regulatory standards, and enhancing operational efficiency by automating identity-related processes. IAM is essential for maintaining the security and integrity of an organization's digital assets.

Analyst’s Review

The identity and access management market is witnessing significant efforts from key players to enhance their product offerings and expand their market presence. Manufacturers are actively focusing on integrating advanced technologies such as artificial intelligence and machine learning to improve identity verification and threat detection capabilities.

• For instance, in October 2023, ManageEngine launched a cloud-native identity management platform viz. Identity360, to address IAM complexities for enterprise workforces. The platform was introduced at ManageEngine's User Conference in Dallas, Texas. Additionally, ManageEngine enhanced ADManager Plus by incorporating access certification and identity risk assessment functions, thereby improving security risk management and compliance.

New products that offer seamless integration with cloud platforms are being introduced to the market, addressing the growing demand for flexible and scalable solutions. To maintain competitiveness, vendors are investing heavily in research and development to innovate and meet evolving security needs. It is recommended that organizations prioritize the adoption of these advanced IAM solutions to strengthen their security frameworks and ensure compliance with regulatory standards, particularly in increasingly digital environments.

Identity and Access Management Market Growth Factors

The growing emphasis on regulatory compliance is a key factor propelling the expansion of the identity and access management market. Organizations are progressively prioritizing the adoption of IAM solutions to meet stringent data protection regulations such as GDPR, HIPAA, and CCPA. These regulations mandate that companies implement robust security measures to safeguard user data and ensure privacy.

Due to this, businesses are increasingly integrating IAM technologies to streamline compliance processes, reduce the risk of penalties, and protect their reputation. The continuous evolution of regulatory landscapes is highlighting the importance of IAM, making it a critical component of enterprise security strategies.

A significant challenge impeding the progress of the identity and access management market is the complexity of integrating IAM solutions with existing IT infrastructure. Organizations often face difficulties in aligning new IAM systems with legacy applications, leading to operational disruptions. This challenge is being addressed by adopting a phased implementation approach, wherein IAM solutions are integrated gradually to minimize the impact on business operations.

Additionally, leveraging Identity-as-a-Service (IDaaS) platforms is reducing integration complexities by offering scalable and flexible solutions that easily align with existing systems. By investing in comprehensive planning and collaboration with experienced vendors, businesses are overcoming integration challenges and successfully implementing IAM solutions.

Identity and Access Management Market Trends

The adoption of cloud-based IAM solutions is emerging as a significant trend in the market. Businesses are increasingly shifting toward cloud environments, underscoring the need for IAM systems that offer seamless integration and scalability. Cloud-based IAM solutions are providing organizations with the flexibility to manage identities across diverse and dispersed digital ecosystems. This trend is further fueled by the pressing need for remote work capabilities and the surging demand for cost-effective, scalable security solutions.

The ability of cloud-based IAM to offer real-time access management, lower upfront costs, and simplified deployment is making it an attractive option for enterprises looking to enhance their security posture.

The rise of artificial intelligence (AI) and machine learning (ML) in IAM solutions is reshaping the landscape of the market. IAM vendors are increasingly incorporating AI and ML technologies to enhance identity management processes, including real-time threat detection and predictive analytics. These technologies are enabling organizations to automate identity verification, monitor user behaviors, and quickly respond to potential security threats.

AI-driven IAM solutions are improving the accuracy and efficiency of authentication processes, thereby reducing the risk of human error. As businesses increasingly prioritize advanced security measures, the integration of AI and ML in IAM is emerging as a key market trend.

Segmentation Analysis

The global market is segmented based on deployment mode, component, organization size, industry vertical, and geography.

By Deployment Mode

Based on deployment mode, the market is categorized into solution and services. The solution segment led the identity and access management market in 2023, reaching a valuation of USD 10.54 billion. This expansion is largely attributed to the increasing need for comprehensive security solutions that successfully addresses diverse identity management challenges.

Organizations are focusing on deploying integrated IAM solutions to streamline user access, enforce security policies, and comply with regulatory standards. The demand for robust and scalable IAM solutions is supporting the growth of the segment, as businesses seek to enhance their security frameworks without compromising operational efficiency. The continuous evolution of cyber threats is further underscoring the importance of solution-based IAM deployments, thereby aiding segmental expansion.

By Component

Based on component, the market is classified into cloud-based and on-premises. The cloud-based segment is poised to witness significant growth at a robust CAGR of 13.06% through the forecast period (2024-2031). This notable expansion is stimulated by the increasing adoption of cloud computing across various industries. Organizations are increasingly prioritizing cloud-based IAM solutions due to their scalability, cost-effectiveness, and ease of deployment.

The growing shift toward remote work and digital transformation initiatives is fueling the demand for cloud-based IAM solutions, as these systems offer flexible and secure access to resources from any location. The ability to integrate seamlessly with other cloud services is further contributing to the rapid growth of the segment, making it a preferred choice for businesses.

By Organization Size

Based on organization size, the market is segmented into large enterprises, small and medium-sized enterprises (SMEs). The large enterprises segment secured the largest identity and access management market share of 58.65% in 2023. Large enterprises are increasing their investments in IAM to effectively manage complex and vast user bases across multiple geographies. The rising need for enhanced security measures to protect sensitive data and comply with stringent regulatory requirements is aiding segmental growth.

Additionally, large enterprises are increasingly focusing on implementing advanced IAM solutions to support digital transformation initiatives and improve operational efficiency. The ability to allocate substantial resources toward comprehensive IAM strategies is contributing significantly to the expansion of the large enterprises segment.

Identity and Access Management Market Regional Analysis

Based on region, the global market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

North America identity and access management market held a notable share of around 36.55% in 2023, with a valuation of USD 6.81 billion. This dominance is attributed to the region's advanced technological infrastructure and the early adoption of IAM solutions. Organizations in North America are actively focusing on strengthening their cybersecurity measures due to the high incidence of cyber threats and stringent regulatory requirements.

The presence of key IAM vendors and the availability of skilled professionals are further supporting regional market growth. Additionally, the growing emphasis on data privacy and security in sectors such as healthcare and finance is boosting the demand for IAM solutions in the region.

Asia-Pacific is poised to experience substantial growth at a robust CAGR of 13.28% through the projection period. This rapid expansion is augmented by the increasing digitalization across diverse industries and the growing awareness of cybersecurity risks in the region. Governments and enterprises are focusing on enhancing their security frameworks to protect sensitive data and comply with emerging regulations. The rising adoption of cloud computing, along with the expansion of small and medium-sized enterprises (SMEs), is fueling the demand for IAM solutions. Additionally, the region's significant investments in IT infrastructure and the growth of the e-commerce sector are contributing to the growth of the market.

Competitive Landscape

The global identity and access management market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Expansion & investments are the major strategic initiatives adopted by companies in this sector. Industry players are investing extensively in R&D activities, building new manufacturing facilities, and supply chain optimization.

List of Key Companies in Identity and Access Management Market

• Akamai Technologies
• Entrust Corporation
• HID Global Corporation
• Microfocus
• Microsoft Corporation
• Okta
• Oracle
• Ping Identity
• Salesforce
• Thales

Key Industry Development

• June 2024 (Launch): net launched a new identity and access management (IAM) system, replacing the old WHMCS setup. The updated system, which utilizes Auth0, incorporates features such as third-party service integration, Two-Factor Authentication (2FA), and enhanced password encryption with Argon2id. This upgrade has improved security by employing advanced password protection and prepared the platform for SAML-based SSO and finer access control for enterprise clients.

The global identity and access management market is segmented as:

By Deployment Mode

• Solution
  • Multifactor Authentication
  • Password Management
  • Single Sign-On
  • Others (Audit, Compliance, and Governance)
• Services
  • Directory Services
  • IAM Consulting and Implementation Services
  • Others

By Component

• Cloud-based
• On-premises

By Organization Size

• Large Enterprises
• Small and Medium-Sized Enterprises (SMEs)

By Industry Vertical

• BFSI
• Healthcare
• Government
• IT and Telecom
• Retail
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America