IAM Security Services Market Size, Share, Growth, And Industry Analysis by Type (Identity Cloud, Identity Governance, Access Management, Directory Services) by Application (BFSI, IT & Telecom, Education, Healthcare, Retail, Energy, Manufacturing & Other) and Regional Insights and Forecast to 2031

Updated On: 06 May 2024

IAM SECURITY SERVICES MARKET REPORT OVERVIEW

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The global IAM security services market size was USD 14800 million in 2022 and will reach USD 27980 million by 2028, exhibiting a CAGR of 11.2% during the forecast period.

Identity and Access Management (IAM) security services enable authorized individuals and users to access resources at the right time and for the right reason. The market is driven by growing number of SMEs and industry related threats to curb security breaches. IAM security services are becoming increasingly important in mitigating threats such as cyberattacks and phishing.

The IAM security services market size is estimated to grow significantly in the coming years. This is due to several major demand drivers. Data breaches and cyberattacks involving credential theft expose the risks of poor IAM practices, causing organizations to prioritize these solutions and require access controls rigorous and auditable even under stringent compliance laws. Additionally digital transformation advancements such as cloud migration, proliferation of IoT, and remote work have dramatically increased the levels of access and attacks to defend With more users, devices and businesses users therefore, organizations use IAM to gain access to discovery activity, automate processes, and minimize opportunities implementation policies f IAM implementation Ability to be recognized by in various industries.

COVID-19 Impact: IAM Market Surges Amid Pandemic-Driven Shift to Remote Work

The COVID-19 pandemic has been unprecedented and staggering, with IAM security services market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels once the pandemic is over.

The pandemic and rapid shift to remote work significantly accelerated adoption and growth in the IAM market. As workforces transitioned to working from home nearly overnight, huge numbers of employees suddenly needed remote access to systems and data. This exposed many legacy IAM practices as inadequate for managing access at scale across enterprises. Many organizations realized they lacked visibility into remote user activities or secure protocols like multi-factor authentication for high-risk access. As the pandemic persists, establishing centralized, secure access controls and extending IAM capabilities like single sign-on into cloud apps has become imperative. COVID-19 underscored IAM as foundational to security in the new work-from-anywhere environment. It brought a new level of urgency and commitment to investing in IAM transformation for the long-term.

LATEST TRENDS

"Cloud-Based IAM Services Leading the Evolution in Identity Management"

One major trend is the shift toward cloud-based IAM services as companies embrace cloud and SaaS apps. Leading cloud providers are rapidly innovating with IAM offerings like AWS Identity and Access Management. Okta, a top cloud-based IAM vendor, provides identity management, single sign-on, reporting, and multifactor authentication integrated across cloud apps, portals, and devices. New technologies utilizing AI are also emerging, like machine learning-powered identity governance and administration from SailPoint. Top players like Microsoft Azure AD, Ping Identity, and ForgeRock focus on enhancing IAM capabilities for customer identity, workforce access, and application access. With remote work and BYOD environments now the norm, delivering security without hindering user experience is a priority as companies roll out advanced IAM strategies suited for the distributed digital enterprise.

IAM SECURITY SERVICES MARKET SEGMENTATION

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By type

Depending on IAM security services market given are types: Identity Cloud, Identity Governance, Access Management, Directory Services. The Identity Cloud type will capture the maximum market share through 2028.  

• Identity Cloud: Cloud-based identity-as-a-service solutions for managing user access and enabling single sign-on across cloud apps and services. Growth driven by digital transformation.

• Identity Governance: Automating provisioning and managing user access and entitlement through role-based access control, auditing, and analytical capabilities. Critical for security and compliance.

• Access Management: Controlling user access authorization to resources across an organization's ecosystem. Adoption rising due to mobile, IoT and remote access growth.

• Directory Services: Foundational component using an identity store or directory for systematizing user attributes and privileges. Provides core user directory infrastructure.

By Application

The market is divided into BFSI, IT & Telecom, Education, Healthcare, Retail, Energy, Manufacturing & Other based on application. The global IAM security services market players in cover segment like BFSI will dominate the market share during 2022-2028.

• BFSI: Banks and financial institutions have driven IAM adoption due to high regulatory compliance needs and securing sensitive consumer data from breaches. Growth to continue as mobile/digital transactions rise.

• IT & Telecom: Managing millions of customer identities and provisioning employee access drives IT/telecom to prioritize access controls and governance. Critical infrastructure also necessitates IAM.

• Education: Schools and universities leverage IAM for securing networks and providing appropriate access levels for staff/students across disparate systems. Adoption rising along with connected devices.

• Healthcare: Healthcare Systems containing sensitive patient data require HIPAA compliance controls like access management and patient identity management - a key healthcare IAM driver. Retail: IAM technologies secure customer data, prevent unauthorized access to sensitive information, and facilitate seamless and secure online transactions, vital for the retail sector's success.

• Energy: IAM services support the energy sector by protecting infrastructure, securing sensitive data related to energy production and distribution, and ensuring regulatory compliance.

• Manufacturing: IAM services enhance the cybersecurity in manufacturing by controlling access to sensitive data, protecting (IP) intellectual property, and ensuring operational continuity in the face of cyber threats.

• Other: Various industries beyond the specified sectors also benefit from IAM services, including government, transportation, and entertainment, where securing digital assets and controlling access are paramount for success and compliance.

DRIVING FACTORS

"Digital Transformation and Cloud Migration Driving IAM Market Growth"

One major factor propelling IAM security services market growth is digital transformation and cloud migration across enterprises. As organizations move critical business systems and data into cloud-based software-as-a-service applications, they need to extend identity management, access controls, and governance across these environments. Legacy IAM tools designed for on-premises apps often lack integration with cloud platforms. Implementing robust cloud-based IAM enables seamless access and single sign-on between cloud apps while still securing sensitive data. As multi-cloud and hybrid-IT ecosystems become the norm, identity and access visibility across distributed users, devices, and workloads is imperative. This is making enterprise-grade IAM capabilities foundational for managing and securing cloud transformation.

"Rapid Adoption of Zero Trust Frameworks Driving IAM Market Expansion"

Another key factor fueling IAM market expansion is the rapid adoption of zero trust security frameworks across modern enterprise IT environments. Zero trust principles mandate that all access requests, regardless of source, must be authenticated and authorized while access privileges are precisely tailored to user roles. Implementing zero trust requires robust identity and access management capabilities in areas like multi-factor authentication, access controls, user monitoring, and activity analysis. As hybrid workplaces, BYOD policies, IoT devices, and threat landscapes grow more complex, verifying every access attempt via strong IAM is paramount to zero trust. The prioritization of zero trust strategies is causing organizations to pursue and invest in advanced IAM platforms to enable identity-centric real-time access decisions enterprise-wide.

RESTRAINING FACTORS

"Integration Complexity A Challenge to Further Growth in the IAM Market"

One factor challenging further growth in the identity and access management market is integration complexity. While demand is robust for advanced, consolidated IAM platforms, actual deployment can prove complicated. Legacy IAM systems and processes may be fragmented across siloed business units. Migrating towards an integrated IAM architecture requires coordinating identity repositories, access policies, and governance controls across numerous user directories, applications, devices, and geographic locations enterprise-wide. Significant professional services efforts are often necessary. The cost and lengthy timelines of complex integrations can restrain IAM investment for organizations lacking resources and expertise. However, integration partnerships between IAM vendors and IT service providers help mitigate these hurdles over time.

IAM SECURITY SERVICES MARKET REGIONAL INSIGHTS

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"North America To Dominate The Market With Advanced Cybersecurity Measures, And Strong IAM Development"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America and Middle East & Africa.

North America is positioned as a dominant region in the IAM security services market share. High adoption of cloud computing, advanced cybersecurity measures, and strong IAM development presence have made North America a leader. The United States in particular is expected drive growth due to rapid digital transformation across enterprises, robust regulatory requirements, and heavy investment in sophisticated IT security tools. Many top IAM vendors like Microsoft, Okta, IBM, and ForgeRock originated in North America and leverage regional expertise. In addition, government initiatives and policies prioritizing IAM education, research, and workforce development reinforce regional strength in the global market. Though percentage share cannot be disclosed, North American leadership in pioneering, delivering, and consuming advanced IAM capabilities will ensure the region remains an epicenter for the industry’s continued expansion.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

The IAM security services market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of wardrobe options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features in cloth wardrobes, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• IBM (U.S.)
• Oracle (U.S.)
• Broadcom (U.S.)
• Microsoft (U.S.)
• Amazon Web Services (U.S.)
• Centrify (U.S.)
• Okta (U.S.)
• SailPoint Technologies (U.S.)
• HID Global (U.S.)
• NetIQ (U.S.)
• Symantec (U.S.)

INDUSTRIAL DEVELOPMENT

September 2022: Microsoft announced a major development in its Azure Active Directory identity and access management offering the general availability of Azure AD External Identities. This capability enables companies to securely manage access and identities for external partners, contractors, vendors, customers, and more that reside outside of their traditional Active Directory environment. Features include self-service sign-up and access requests, customizable user journeys, governance controls, and options to federate non-AD identities from social media and email platforms. The introduction of Azure AD External Identities further cements Microsoft’s position as a leader in delivering integrated cloud-based identity solutions tailored for the unique collaboration needs of modern enterprises with distributed workforces and complex partner ecosystems.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.