In 2022, the global identity and access management (IAM) market was valued at USD 15.93 billion, and it is projected to grow at a compound annual growth rate (CAGR) of 12.6% from 2023 to 2030. IAM solutions help organizations control and manage who has access to resources, ensuring that each employee and role within a company has appropriate permissions to perform their duties effectively. By implementing IAM systems, businesses can streamline the process of managing applications for employees, avoiding the need for administrators to individually log in to each app. The increasing integration of IoT, AI advancements, greater awareness of regulatory compliance, and widespread adoption of cloud technologies are key factors expected to fuel the growth of IAM over the forecast period.
With the rise in cybercrime and fraudulent activities, the need for secure and efficient IAM solutions has become more urgent. As organizations adopt cloud computing and embrace new technologies, IAM solutions are evolving to meet the demand for enhanced security. IAM systems use identity analytics and intelligence to monitor and flag unusual user account activities. These systems can identify and remove inactive accounts, detect any violations of company policies, and revoke access rights that are inappropriate for a user’s role. In this way, IAM solutions address enterprise security concerns and mitigate risks associated with unauthorized access.
The centralization that IAM provides is another driver for adoption. With IAM, companies can administer access rights across applications and manage authentication processes more efficiently, making tasks like signing up, signing in, and managing user credentials more streamlined for employees. This system of centralized control reduces costs associated with application management, as it provides reliable connectivity, standardizes processes, and implements user policies. IAM also ensures consistent identity verification and access protocols, enhancing user trust and reliability.
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An important development in IAM is its integration with mobile device management (MDM) solutions. MDM enables companies to manage and control user access on mobile devices, which is crucial as employees increasingly rely on smartphones and tablets for work. MDM and IAM work together to enhance security across devices and safeguard user information. MDM can provision applications securely, complementing IAM’s authentication processes, so organizations maintain full control over device access while protecting data integrity. This synergy between IAM and MDM is critical, as it extends the security and control offered by IAM to mobile devices and supports the increased mobility needs of modern workplaces.
End-use Segmentation Insights:
IAM solutions serve a range of industries, including BFSI (banking, financial services, and insurance); energy, oil & gas; telecom & IT; education; healthcare; public sector & utilities; manufacturing; and others. In 2022, the public sector and utilities segment held the largest revenue share, accounting for over 25% of the market. This segment’s growth is driven by increased digitalization efforts within the public sector, substantial investments in digital applications, and the management of large amounts of public data. As public entities adopt digital processes, they require IAM solutions to ensure secure access to sensitive data, making IAM critical in safeguarding public sector information systems.
The BFSI segment is expected to witness the fastest growth over the forecast period. As online transactions, e-wallets, and digital banking become increasingly popular, the BFSI industry is adopting IAM solutions to secure access rights, minimize security risks, and comply with regulatory standards. IAM provides this sector with the ability to authenticate users, control access to financial data, and protect customers from fraud. As financial services become more digitally driven, IAM systems help safeguard sensitive data and manage risks associated with unauthorized access to financial resources.
Other sectors, including manufacturing, education, IT & telecom, retail & consumer packaged goods, and energy & utilities, are also expected to experience significant growth in IAM adoption. For instance, the manufacturing sector uses IAM to control access to proprietary data and manage IoT-enabled equipment securely. The education sector benefits from IAM by managing secure access to educational resources and student data, while IT & telecom companies rely on IAM to control data access across complex, large-scale infrastructures. Similarly, energy and utility companies adopt IAM to safeguard critical infrastructure, managing employee access and monitoring systems to prevent unauthorized access.
In summary, the IAM market is growing rapidly as organizations across industries increasingly rely on IAM to protect data, ensure regulatory compliance, and optimize access control. The integration of IAM with emerging technologies like AI, IoT, and cloud computing is enhancing the scope of IAM solutions, making them essential for secure digital transformation. Despite challenges such as high implementation costs and the complexity of integrating IAM with existing systems, the expanding need for data security, particularly in public and BFSI sectors, is expected to drive sustained growth in the IAM market.
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