The evolving cybersecurity landscape is presenting many security threats in the current data-driven world.
Rapid digital transformation and increasing cloud space have further proliferated the risk vulnerabilities.
According to a recent survey, the cost of data breaches is predicted to increase from USD 3 trillion each year to over USD 5 trillion in 2024, with an average annual growth of 11%.
Thus, securing information has become the business imperative for organizations across all verticals.
That’s when Identity and Access Management (IAM) comes into play.
Organizations and businesses across the world are leveraging IAM solutions and services to control access to their applications, devices and digital resources.
With IAM, businesses can address the mission-critical need to ensure the right access to the right resources at the right time. An effective IAM solution creates streamlined and secured day-to-day operations across the enterprise through a suite of tools and capabilities.
Given these aspects, IAM adoption is gaining huge traction with time.
As per market estimates, the global Identity and Access Management (IAM) market is anticipated to grow from USD 9.90 billion in 2018 to USD 24.76 billion by 2026.
The demand for IAM implementation is expected to rise at a CAGR of 13.2% from 2019 to 2026.
The increasing need to curb identity breaches and growing emphasis on regulatory compliance are the prominent factors fuelling the growth of the IAM market.
The proliferation of Bring Your Own Devices (BYOD), Internet of Things (IoT), mobility, and remote workforce is expected to drive the adoption of IAM solutions in the forecast period.
Moreover, the adoption of blockchain technology, Artificial Intelligence (AI) and Machine Learning (ML) in IAM is anticipated to boost the global IAM market growth.
Multifactor Authentication (MFA) Segment Registers Highest CAGR
Based on components, the IAM market is categorized into provisioning, single sign-on, multifactor authentication, directory services, password management, and audit, compliance and governance.
Among them, the multifactor authentication segment is expected to grow at the highest CAGR of 17% over the forecast period.
The increased need for a robust authentication mechanism is considered to be the key factor in boosting the growth of the MFA application.
Moreover, the adoption of innovative authentication technologies such as biometrics and smart cards is anticipated to boost the multifactor authentication segment.
Cloud Adoption Set to Drive IAM Market
Based on deployment, the IAM market is bifurcated into cloud, hybrid and on-premise. Among them, the cloud segment is expected to be the fastest-growing segment during the forecast period.
The increasing demand for cloud migration among different organizations is the key factor contributing to the segment growth. The cloud-based IAM solutions provide various benefits such as simplified management, single access control interface, enhanced security, resource-level access control, and reduced operational costs.
North America Leads By Region
Regionally, North America led the global IAM market with a market share of over 38% in terms of revenue in 2018 and is expected to continue during the forecast period. The emergence of federal-level and state-level data privacy laws such as CCPA and New York Privacy Act is the prime factor stimulating the regional market growth.
Currently, all 50 states in the US have their own data regulatory laws to address cybersecurity concerns.
However, the Asia Pacific IAM market is poised to be the most promising region over the forecast period, with an estimated CAGR of 15%.
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