July 18, 2024

Identity And Access Management Market Is Estimated To Witness High Growth Owing To Rising Security Concerns

Identity and access management (IAM) offers identity management and authorization services to access resources and systems. It provides centralized authentication and authorization management and helps organizations secure access and comply with regulations. IAM assists in controlling access to IT resources and restricting access based on business requirements for improved governance and security.

The global identity and access management market is estimated to be valued at US$ 18.09 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031

Key Takeaways

Key players operating in the identity and access management market are Autodesk Inc., IES (Integrated Environmental Solutions), Bentley Systems, Dassault Systèmes, EnergyPlus, CYPE Software, DesignBuilder Software, IESVE (IES Virtual Environment), Carrier, eQUEST, Trane Technologies, IES TaP, IES SCAN, Trimble, EnergySoft. Key opportunities in the market include multi-cloud deployments, 5G innovations, and internet of things (IoT) growth. Technological advancements such as centralized authorization based on attributes, risk-based access and entitlements, self-service access request and approval workflows, and single sign-on (SSO) solutions are fueling the market growth.

Market drivers

One of the major drivers for the identity and access management market is the increasing security concerns among organizations regarding data breaches and cyberattacks. IAM solutions offer centralized control over user access and help secure business applications, data, and resources against external threats and internal vulnerabilities. With growing digital transformation and remote working trends, enterprises are increasingly adopting IAM to safeguard access to critical assets and restrict unauthorized access. This is expected to significantly drive the adoption of identity and access management solutions over the forecast period.

Current Challenges in Identity and Access Management Market
The identity and access management market demand is experiencing rapid growth due to growing security threats like phishing scams, account takeovers, and ransomware attacks. However, there are still some main challenges that are hindering the identity and access management market from reaching its full potential.

One major challenge is the complexity of integrating identity and access solutions with existing IT infrastructure and applications. Many organizations have legacy systems that don’t support single sign-on or automated provisioning and deprovisioning. Integrating new identity and access solutions can be costly and disruptive for these organizations.

Another challenge is ensuring uniform access policies across hybrid IT environments. With more applications and data moving to the cloud, it is difficult for organizations to enforce consistent identity and access controls for on-premise and cloud-based resources. Cloud identity solutions need to be tightly integrated with on-premise directories to address this challenge.

Lack of skilled identity and access management professionals is also an ongoing issue. Configuring and managing identity platforms require specialized skills that are in short supply. This skilled resource crunch hampers organizations’ ability to fully leverage their identity solutions.

Lastly, evolving compliance and data privacy regulations pose ongoing challenges. Organizations need to continuously update their identity processes and controls to comply with new regulations around data sovereignty, consent management, and user privacy. Demonstrating compliance is a challenge that consumes significant time and resources.

SWOT Analysis
Strengths: Identity and access management solutions help organizations strengthen security posture, enforce consistent access policies, and simplify identity lifecycle processes. Features like single sign-on, automated provisioning/deprovisioning, and access request workflows improve workforce productivity.
Weaknesses: Legacy integrations issues and lack of interoperability between some identity platforms. On-premise solutions also require ongoing maintenance that impacts IT resources.
Opportunities: Shift to cloud-based applications and remote work is driving increased identity and access investments. Emerging technologies around zero-trust networks, self-sovereign identity, and blockchain also present future opportunities.
Threats: Sophisticated cyberattacks continue to find ways around authentication barriers. Evolving regulations pose ongoing compliance challenges. Intense competition amidst numerous vendors increases pricing pressures.

Geographical Regions
North America currently holds the largest share in the global identity and access management market, both in terms of value and adoption. Stringent data privacy and security compliance mandates like GDPR, CCPA, HIPAA favor identity and access investments across enterprises in the region. The United States, in particular, is at the forefront of identity innovation and has the highest IAM spending levels globally.

The Asia Pacific region is poised to become the fastest growing market for identity and access management over the coming years. With increasing digital transformation initiatives, rapid adoption of cloud-based applications and services across APAC countries like India and China is driving the need for stronger identity controls. Scalable and cost-effective identity platforms are witnessing rising demand from growing enterprises across sectors in the APAC region.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it