Identity and Access Management Market Size, Share, and Trends 2024 to 2033

Identity and Access Management Market Size and Growth

The global identity and access management market size was USD 18.12 billion in 2023, calculated at USD 20.41 billion in 2024 and is expected to reach around USD 59.52 billion by 2033. The market is expanding at a solid CAGR of 12.63% over the forecast period 2024 to 2033.

Identity and Access Management Market Key Takeaways

• 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.
• 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.

U.S. Identity and Access Management Market Size and Growth 2024 to 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.

North America dominated the global identity and access management market in 2023. The region is home to numerous enterprises with sophisticated IT infrastructures. The rapid evolution of complex IT infrastructures, including work-from-home or hybrid in-office structures demanding remote access, has significantly increased the significance of robust IAM solutions. The region’s growth is driven by the rising cases of cyber-attacks, growing awareness of security concerns, rising adoption of cloud-based services, and stringent regulatory compliance requirements.

North America is also a hub for several small and medium-sized businesses and large corporations, which increases the need for the protection of consumer data of the employees in the organization. Furthermore, the key market players in the region are focusing on several strategic initiatives such as partnerships or collaborations, mergers & acquisitions, and new products or technology development. Thus, this is expected to propel the growth of the identity and access management market’s growth in the region during the forecast period.

• 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.

Asia Pacific is expected to witness the fastest growth in the identity and access management market during the forecast period. The region’s growth is attributed to the increasing number of security threats and data breaches in emerging nations, including India, Japan, and China. Several MNCs, as well as small and medium-sized businesses, are in these countries, which increases the need for cybersecurity management and data protection and, in turn, spurs the demand for identity and access management (IAM).

IAM solutions help ensure that the right individuals are provided with appropriate access privileges to systems, applications, and data, and maintain security and compliance standards. Other factors such as the surge in digitization of operations, hybrid or work-from-home model, rapid development of digital infrastructure, rising internet penetration, and supportive government framework are fuelling the identity and access management market growth.

• In January 2024, Cross Identity, an industry leader in Identity and Access Management solutions, announced the launch of Privileged identity and access management (PIAM), an industry-first software offering a unified platform for access management, access governance, and administration for privileged users. PIAM offers protection against cyber threats by securing privileged access in on-premises, cloud, and hybrid setups.
• In January 2024, Tuebora, a leading provider of knowledgeable and interactive Identity governance administration (IGA) solutions, announced the availability of Ask Tuebora, a natural language query engine designed to simplify complex workflows and automate repetitive Identity Access Management (IAM) tasks. Ask Tuebora is a generative AI tool that simulates human interaction and adapts its functionality to align with user thought processes, incorporating feedback and improving cognition with each query.

Market Overview

With the surge in digital workspaces and marketplaces, identity and access management play an integral part in every business. Identity and access management (IAM) encompasses the processes and technologies utilized to monitor and control access to a company's digital resources, such as applications, networks, and organizational and user data. IAM deals with the user's access to digital resources and what the user can do with those resources. IAM systems assist in keeping the hackers out while ensuring that each user is offered the exact permissions, they need to do their assigned task and not more than that. Identity and access management solutions assist in assuring that cloud, on-premises, and hybrid systems provide the right roles and individuals the right access at the right time.

Identity and Access Management Market Growth Factors

• Rising privacy concerns in numerous industries for cybersecurity management and data safety are anticipated to boost market demand during the forecast period.
• The increasing presence of a large number of SMEs adopting IAM solutions is expected to fuel the identity and access management market growth.
• The emerging trend of hybrid work patterns among employees increases the need for secure access to company resources while operating on-site or remotely, bolstering the identity and access management market.
• The emerging trend of digitalization, along with stringent government regulations, is estimated to accelerate the market for identity and access management systems.
• The market has observed the increasing adoption of cloud-based solutions and IoT and the rise in remote working culture, which is projected to offer significant opportunities for the identity and access management market.

Identity and Access Management Market Scope

Identity and Access Management Market Dynamics

Driver

Rapid adoption of cloud-based services

The increasing adoption of cloud-based solutions is projected to boost the expansion of the identity and access management market in the coming years. The massive shift towards cloud-delivered IAM and PAM solutions is increasingly becoming popular. Cloud-based solutions have positively impacted digital transformation in several organizations, including BFSI, manufacturing, healthcare, retail, healthcare, IT & Telecom, and others. These solutions provide flexibility, scalability, and cost-effectiveness, which makes them gain popularity among businesses to improve their security posture within a cloud-centric environment. Thus, it is expected to fuel the market’s growth during the forecast period.

• In February 2023, Procyon, the industry's first Privilege Access Management platform built for multi-cloud environments, announced a $6.5 million equity financing to help organizations harness the growing identity and access management sprawl in cloud environments. The new investment was led by Lobby Capital with participation from GTM Capital and First Rays Venture Partners.
• In October 2023, ManageEngine, the enterprise IT management division of Zoho Corporation, announced the launch of Identity360, its cloud-native identity management platform that addresses identity and access management (IAM) complexities arising within enterprise workforces. ManageEngine also announced the addition of access certification and identity risk assessment functions to ADManager Plus, its on-premises identity governance and administration (IGA) solution.

Restraint

High costs

The high cost associated with the identity and access management market is anticipated to hamper the market's growth. High capital investment is required for the installation of the IAM system. Identity and access management solutions require expensive IT infrastructure investment to operate effectively. Several small and medium-sized companies are often discouraged from adopting these technologies due to budget constraints. In addition, the need for IT infrastructure and awareness regarding advanced security solutions in lower and middle-income countries is likely to limit the expansion of the global market.

Opportunity

Surge in cybersecurity cases

The rise in cybersecurity cases is expected to boost the growth of the identity and access management market during the forecast period. The market has witnessed a substantial surge in cyberattacks, which has compelled companies to invest in sophisticated IAM systems for data security and controlled access. Cyberattack escalation is attributed to modern technologies, including machine learning, which often enable attackers or hackers to generate multiple variants of malicious code daily. Safeguarding businesses against cyber threats has become a necessity, which has prompted businesses to use IAM solutions.

In today’s IT environment, IAM plays an integral role in efficiently authorizing geographically dispersed workforces as they are connected to various internal resources, cloud resources, and especially software-as-a-service (SaaS) applications. IAM assists businesses in managing digital identities and controlling access to resources within their networks. This has greatly accelerated the usage of IAM systems in different sectors, bolstering the identity and access management market growth.

• In May 2023, BT (British Telecommunications), the London-based telecom carrier, launched a privileged identity-managed security service purpose-built on CyberArk’s identity security platform. The collaboration, which has produced BT’s global Managed Identity Privileged Access Management, is being called by BT the ‘first-of-its-kind' for its customers in that it delivers ‘scalable and effective’ cybersecurity risk reduction.

Component Insights

The provisioning segment held the largest share of the identity and access management market in 2023. Identity management as a service offers an additional layer of security by verifying and offering access to individuals to a secured company's systems and applications. Companies are aggressively seeking to adopt cloud-based solutions that manage security and risk management and manage remote working.

The multifactor authentication segment is expected to grow rapidly in the identity and access management market over the forecast period. The growth of the segment is driven by the rising adoption of multifactor authentication in several businesses to enhance overall security. The sub-segment adds an additional layer of security, and users are required to provide multiple credentials and a user ID to access a wide range of the company’s applications. Therefore, considering these factors, the deployment of the market contributes to the growth of the market.

Deployment Insights

The cloud segment accounted for the dominating share of the identity and access management market in 2023 and is projected to continue its dominance over the forecast period owing to the efficient functionality of the system without requiring an external network connection and access through WAN. In the era of the evolving digital landscape, the cases of data breaches and cyber threats are increasing. Businesses prioritize securing access to the company’s resources and protecting sensitive information. Identity and access management (IAM) on-premise is the implementation of solutions within an organization's infrastructure. It involves the deployment of software, hardware, and servers on-site to manage the unique identities of users, authentication, and access privileges for establishing effective security measures.

The on-premise segment is expected to witness considerable growth in the global identity and access management market over the forecast period. IAM solutions in the cloud involve leveraging cloud-based services to manage user identities, access controls, and authentication. Cloud deployment is when resources such as software, servers, and data are accessed as services delivered over the internet. Cloud-based IAM solutions assist in eliminating the requirement for upfront infrastructure investments and reduce hardware and maintenance costs. Businesses pay for the resources and services they use. Therefore, the increasing adoption of cloud-based solutions accelerates the segment growth.

Cloud-based technology allows firms to back up critical company data for a longer period.  IT workers are now mostly working in a multi-cloud environment, with nearly 1 out of every ten firms employing five or more clouds.

• 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 public sector & utilities segment held the largest share of the identity and access management market in 2023. The public sector & utilities sector deal with large amounts of public data that are to be stored securely. Moreover, the increasing investment in public sector applications is one of the major factors that are boosting the segment’s growth.

The BFSI segment is expected to witness considerable growth in the identity and access management market over the forecast period. The rapid digitalization and increasing popularity of online payments, e-wallets, and others are anticipated to enhance the adoption of IAM solutions across the BFSI sector to ensure access to the right individuals and comply with stringent security regulations. The BFSI sector deals include critical information such as account numbers, details of credit/debit cards, passwords, and other important customer details. Such critical data emphasizes the significance of data security, and several measures have been taken to safeguard data against cyberattacks.

• According to the Data Breach Investigations Report 2023, the DBIR team analyzed 16,312 security incidents, of which 5,199 were confirmed data breaches. To secure their IT processes and systems, and secure customer data coupled with government regulations, the BFSI sector is implementing sophisticated technology to prevent fraudulent or cyber-attacks.

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

Segments Covered in the Report

By Component

• Audit, Compliance & Governance
• Directory Service
• Multifactor Authentication
• Provisioning
• Password Management
• Single Sign-on

By Deployment

• Cloud
• Hybrid
• On-premise

By End-use

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

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa