Identity and Access Management (IAM) has the attention of cybersecurity professionals around the world. The IAM market growth has roughly quadrupled over just the last three years, and shows no signs of slowing down any time soon.
This identity access management market analysis report will cover market value, factors contributing to growth, challenges, trends, news, industry leaders and more.
Identity and Access Management Industry Overview
How fast is the identity and access management industry growing? Various IAM market reports and projections offer different views, however most agree that IAM is more robust than ever.
Researchers at MarketsandMarkets and Fortune Business Insights project that IAM’s global market size, at around $12.3 billion in 2020, will nearly double to over $24 billion by 2025. That’s a compound annual growth rate of 14.5 percent. By comparison, global market size stood at $3.4 billion in 2017 and at $9.5 billion in 2018. According to the Identity Management Institute analysis, there has been a significant uptick in the Asia-Pacific region.
In 2021, the industry’s worth may increase by around 15 percent, and throughout the next five years, the value of the industry could rise by more than 65 percent. Many businesses may install systems that can verify the identities of users, evaluate the access privileges of various users to protect a large amount of data, and improve security in organizations.
IAM is driven in part by ever-changing compliance and governance regulations. Identity Management Institute expects the greatest growth to occur in the auditing and compliance sector. North America still accounts for about a third of the global market. In the U.S. and Puerto Rico alone, around 300 pieces of legislation pertaining to cybersecurity were considered in 2019. Some were new while others overlapped existing rules. IAM is good at navigating the labyrinth of regulations and streamline compliance.
In fact, IAM goes far beyond just providing a vital layer of security. It expands functionality across a range of technologies like cloud computing and the Internet of Things. Companies of all sizes are becoming quicker to embrace such solutions for their efficiency, flexibility and scalability. Business owners who want to save man-hours, reduce costs and minimize errors are finding that an investment in identity management solutions quickly pays off.
Even certain business risks drive growth. The greatest is the threat of data breaches. Protecting employee access credentials has become a priority rather than a “just in case” option. For most companies, it’s not a matter of if they’ll get breached; it’s a matter of when. Hackers are savvier than ever. They’re organized. They employ innovations and strategies that are every bit as sophisticated as those in major corporations. Some identity management market analysis suggests that successful hacks will cost companies a whopping $5 trillion by 2024. That gives business owners every incentive to double down on security and IAM.
Employers don’t just fear external breaches. Ninety percent of breaches can be traced to user errors or stolen passwords. Inside jobs are sometimes even more devastating, and a lot can go wrong during the process of on-boarding or off-boarding employees. If the boss terminates a troublemaker and forgets to restrict access, the person can wreak all kinds of havoc.
Also, some employers who are generous with developmental opportunities essentially allow job hopping within the company. Access limitations on certain information could change daily or even hourly for dozens of users across several different devices. Even in a zero-trust environment, loopholes and lapses expose a world of highly tempting data. Vulnerability is only heightened when vendors, customers and other parties are allowed access to company networks.
Password based authentication doesn’t cut it these days any longer. As recently as 2016, 1 in 5 employees still kept their passwords in plain sight on sticky notes. Even if that ratio improves to 1 in 50 or 1 in 100, lax security environments could still prove catastrophic to employers.
IAM has been improved to address a few pressing challenges and risks. In addition to verifying credentials and passwords, IAM now helps monitor unique behaviors and “gets to know” users. It questions, so to speak, unfamiliar devices. It raises the red flag on a rare 3 a.m. login. Increasingly sophisticated capabilities continue to spur industry growth.
It’s worth mentioning that the coronavirus pandemic has had significant and perhaps long-term impact on the identity management industry.
In the interest of providing flexibility and balance in the workplace, more and more employers were already offering work-from-home options. Now thanks to COVID-19, remote work is a necessity for some companies. As demand for mobile and remote IAM has grown, employers have scrambled to come up with security solutions. To further complicate things, there’s a growing trend toward “bring-your-own-device,” or BYOD. Authentication management is especially challenging when sensitive data is scattered across desktops, laptops, tablets and cellphones.
Challenges to IAM Growth
IAM continually improves to meet challenges as they arise. However, there are a couple of roadblocks that keep organizations from going all in. They involve implementation rather than the technology itself. A successful IAM program is a long-term project and ongoing service that’s closely monitored and tweaked according to changing business needs.
First, IAM specialists are tough to find. A search for “identity access management” on the Bureau of Labor Statistics website turns up zero results. Even information technology experts don’t necessarily have the skills to implement an IAM system, and across all aspects of cybersecurity, experienced professionals are in hot demand. According to a recent survey by the Center for Strategic & International Studies, more than 80 percent of employers lamented the lack of available talent and blamed the gap for direct harm to their companies. In 2019, the U.S. found itself around 314,000 cybersecurity experts short. The number of unfilled positions has increased by 50 percent over the last five years.
Another deterrent is lack of knowledge about IAM. Many struggle to explain how IAM works and can benefit organizations. In a 2020 report published by Cybersecurity Insiders, lack of automation and failure to leverage available technologies were also mentioned as hindrances to growth.
Projected Spending on Identity and Access Management in 2021
The report cited above revealed that almost 90 percent of the organizations surveyed include access management in their overall risk management strategy. Indeed, more than 70 percent consider security more important than operational efficiency. They plan to invest heavily in multi-factor authentication and identity management.
More than 4,200 security operations officers in another survey agreed that it is crucial to spend big on IAM technology. According to InformationWeek, companies spent approximately $15 billion extra per week in the early months of the pandemic to equip employees for secure remote work. That could well be the highest surge of spending on technology in history.
It seems that no one is making IAM budget cuts for 2021. In a study sponsored by JumpCloud, 97 percent of businesses surveyed plan to increase spending or maintain existing levels, and seventy-seven percent plan to invest more. IT officers hope to consolidate all the random extensions and IAM tools for greater security and consistency across networks, apps and end user devices.
The JumpCloud report anticipates that the IAM market will reach $13 billion in 2021. That’s just one of many positive identity and access management industry predictions.
Examining the Identity and Access Management Industry Trends
Currently, some companies utilize cutting-edge systems that can allow employees to access specific information, yet these software programs could consistently prevent certain users from viewing secure data. According to multiple reports, many companies are seeking solutions that could significantly improve security, and when specialists evaluated an identity management market analysis, they examined new regulations, the risk of cyber threats, the needs of many businesses and the opinions of customers.
Studying Factors That Could Influence the Market
Upon the evaluation of identity management trends, researchers indicated that many companies have installed systems that can substantially improve security governance, and these systems may help businesses to enforce numerous types of policies. Generally, the software programs could also allow companies to control a distributed workforce. If the businesses install these systems, the companies can examine each user’s permissions, the accessibility of data, the behaviors of many users and the security of each network.
Several reports have suggested that at least 70 percent of companies utilize security systems that are inadequate. These insufficient systems could affect the reputation of a business, cause a data breach or influence the decisions of customers. During the next five years, these businesses may require advanced systems that comply with numerous regulations, and these companies could consistently stimulate the growth of the industry.
According to multiple experts, many security breaches may occur because some individuals can steal the passwords of users. If a person acquires the password of a registered user, the individual could easily access sensitive data, modify various settings, share various types of data and affect a company’s reputation. Some experts have also suggested that the data breaches may reduce the number of customers who patronize companies which experience a publicized data breach.
Utilizing Mobile Devices and Managing Large Networks
Many businesses encourage employees to use smartphones, and generally, the mobile devices can substantially increase the efficiency of each company, reduce long-term expenses, optimize communication and improve the cohesiveness of each team. However, the smartphones could considerably increase the likelihood of security breaches. If an unauthorized individual accesses an employee’s smartphone, the person could easily view important data, change the user’s password or share many types of information.
When companies create identity management solutions, they consider products that can protect employees who are utilizing smartphones. These products could effectively verify the identity of each employee, manage passwords, control various types of accounts and send important alerts. While users remotely access the networks, the products can also examine the activities of each individual, and typically, the systems could significantly reduce the risk of data breaches.
To protect employees’ smartphones, IT specialists can install a cutting-edge software program that could safeguard the company’s network. When a user accesses an account, the user can enter a password, answer various questions and provide an email address. Likewise, the systems could feature tools that may prevent software programs from accessing the accounts. These systems can decrease the risk of data breaches, improve the efficiency of large networks and protect sizable enterprises.
Understanding Regulations That Could Consistently Affect the Growth of the Industry
Since 2015, many countries have created rules and guidelines that can influence thousands of businesses to ensure that enterprises will protect the information of customers. Thus some organizations purchased software programs that could help the businesses improve compliance. These software programs can effectively manage sensitive data and allow certain employees to access specific types of information.
Choosing Automated Systems
During the last five years, many enterprises have installed innovative systems that can automatically protect data, control the privileges of employees, validate the identity of each user and evaluate the accessibility of information. Typically, these automated systems could consistently improve the efficiency of a business, reduce the likelihood of security breaches and increase the trustworthiness of a company. According to several reports, the automated systems can also decrease a company’s expenses by more than 17 percent.
Additional IAM Trends to Consider
Like all cutting-edge technology, IAM systems evolve at lightning speed. Decision makers find that remaining flexible and willing to adapt makes good business sense. Each new improvement makes IAM more efficient and organizations more secure while enhancing user and customer experience.
Here are some identity management trends to keep an eye on:
User access management software for cloud environments
The cloud isn’t going away anytime soon. Many companies rely on public, third-party cloud services. Business owners love cloud services because they’re efficient, cost effective, versatile and scalable, but hackers like them too. The cloud identity and access management risks can’t be ignored.
User access management software, or UAM, is a more nuanced offspring of IAM. Traditional IAM tools were designed to manage specific users, devices and app environments. Organizations typically needed multiple solutions for different circumstances. UAM provides a secure digital entity across numerous apps and devices whether they’re on-premise or cloud-based. Administrators can manage access to resources and services for all users within a system.
Decrypting passwords is child’s play for the best hackers. Cyberthieves have learned to leverage machine learning and artificial intelligence, and passwords just can’t stand up to them.
That’s why biometric tools like fingerprinting, face recognition and retinal scans are on the rise.
Heightened focus on customer experience
Consumers don’t mind providing personal information if it results in discounts or loyalty rewards. They don’t mind, that is, if they feel safe sharing it.
Customer identity and access management, or CIAM, is a branch of IAM that prioritizes customer security and privacy. It utilizes single sign-on, multi-factor authentication and other security tools while also allowing users to manage their app preferences. All this adds up to a better customer experience. Learn more about customer identity management here.
IAM in connected devices
It’s nice to have light bulbs, thermostats and security cameras connected to the internet — and even to each other — but the Internet of Things can make a hacker’s job much easier. Devices and objects in the IoT are made much more secure with IAM. Microsoft projects that 94 percent of organizations will use IoT in 2021.
Privileged access management
In any business, some accounts contain more sensitive or valuable data than others. Understandably, those accounts are especially prone to cyberattack.
Privileged access management, or PAM, uses far more stringent security protocols and monitors account activity around the clock 365 days a year.
These tools restrict lateral movement within networks. Users’ access is limited to only the apps and data that they need in a certain time frame. You can learn more about zero trust here.
Blockchain technology has been around for a while. It’s most closely associated with cryptocurrency, but many organizations find it useful in IAM.
Simply put, it’s designed to give users complete control over their identity and personal information. In self-sovereign identity, name, address, biometric details and other sensitive data can be encrypted for privacy. Users can decide which of their documents can be accessed by others in the system. An audit trail is generated when users enroll, alter information or ask for certain permissions.
Blockchain IAM is basically a digital rights overseer without a centralized provider. It has some drawbacks, but many companies use it because the networked infrastructure makes it more difficult to attack.
Understanding the Needs of Users and Evaluating Many Types of Businesses
The IAM industry isn’t just confined to banking and insurance anymore. Organizations across a wide range of sectors rely on identity management solutions to protect their sensitive data.
MarketsandMarkets predicts that the health care vertical will grow faster than others through 2025. However, IAM serves a lengthy list of other sectors such as retail, manufacturing, utilities, telecom, education, government, law, and transportation and logistics.
Even small-business owners are jumping on the bandwagon, and they’re wise to do so. CNBC reports that each instance of data breach sets business owners back $200,000 on average. Sadly, most victims don’t have the means to recover. Sixty percent close up shop within six months of a cyberattack.
When researchers examined identity management product users, the experts suggested that many companies may purchase systems that can considerably increase security. According to multiple Cybersecurity Insiders report, 72 percent of entrepreneurs believe that security is more important than efficiency, and recently, many companies have installed systems that can enhance multi-factor authentication, monitor the behaviors of users, control the settings of every account and increase the security of each network.
Improving the Efficiency of a Business
Numerous reports have indicated that 52 percent of businesses may purchase products that could significantly increase efficiency. Once companies install these systems, managers will not manually verify the identity of each user or their access, and the companies could eliminate outdated systems, modify certain policies, improve the satisfaction of each employee and optimize integration. Typically, the cutting-edge systems can also reduce long-term expenses, and the software programs may decrease the duration of each project, improve oversight and optimize communication.
Preventing Data Breaches
Recently, a survey indicated that 47 percent of entrepreneurs prefer innovative systems that could prevent data breaches. Many companies have installed systems that utilize multi-factor authentication, and when users access these networks, the individuals must provide various types of authenticating information. If many representatives are using smartphones, these systems can effectively increase the security of each mobile device.
Controlling the Privileges of Users
Before 2023, many companies may install systems that can effectively control the permissions of each user. Once a business purchases the system, the network may allow each user to access certain data, and the managers can modify each account, examine the accessibility of certain files and evaluate the credentials of every user.
Some businesses could purchase cutting-edge systems that may consistently monitor many users. The supervisors may evaluate the behaviors of each user, the duration of every session, the status of each task, various types of messages and the location of each mobile device. When users access a network, managers can also view charts that examine relevant trends, statistical outliers and new updates, and the systems can help supervisors compare numerous types of reports.
Improving Automation and Increasing the Efficiency of Each Business
Since 2013, many companies have developed advanced systems that can substantially improve automation, enhance teamwork, reduce the difficulty of certain tasks and decrease the duration of each project. However, more than 57 percent of businesses do not utilize automated technology. Recently, a report indicated that at least 43 percent of entrepreneurs are searching for innovative systems that can improve automation.
Studying the Effects of Cloud Computing
Throughout the last 10 years, many businesses have consistently utilized cloud for computing and storing large amounts of data. Generally, this technique could optimize the efficiency of a company, reduce numerous types of costs, increase convenience and improve the accessibility of data.
Many experts have suggested that cloud computing could considerably increase the likelihood of security breaches. When remote servers store data, some individuals can easily access those servers, and subsequently, these individuals may share data that could be associated with millions of customers. While businesses utilize cloud computing, many companies may install products that can verify the identities of users, manage access, and receive customized alerts. According to an identity and access management market analysis report, these businesses could consistently stimulate the growth of the industry. Moreover, cloud users can increase the value of the IAM systems, boost the overall demand and improve innovation.
Increasing Security and Protecting Important Data
Since October 2017, the number of data breaches increased substantially, and during the last three years, many companies have implemented innovative strategies that could effectively improve security. When a security breach affects a business, an individual could access sensitive data, modify certain files or affect numerous types of servers. If an individual shares a customer’s information, a client may file a lawsuit, or the customer could privately request additional compensation. Sometimes, a security breach can considerably affect a company’s reputation, and according to many reports, a security breach could reduce an enterprise’s revenue, dissuade customers, affect the price of the stock and decrease conversion rates.
Cyber threats can consistently stimulate the growth of the market. Many businesses have preemptively implemented strategies that could prevent a data breach, and some surveys have indicated that the secure systems can positively affect the values of many companies.
Leading IAM Vendors, Products, and Industry News
Throughout the last eight years, many businesses have designed products that offer multi-factor authentication, verify each user’s identity, manage system access, monitor the behaviors of users, and improve transparency. Some companies could also utilize biometrics, and these businesses have developed systems that may examine a user’s hand, an individual’s eye or a person’s voice.
Dell, ForgeRock, IBM, Idaptive/CyberArk, Microsoft, Okta, OneLogin, Oracle, Ping and Symantec are among some of the top vendors. Here are some noteworthy products:
Salesforce is a large business that provides a customer relationship management system, and the company has more than 49,000 employees. Once a business installs the system, representatives can review orders, customers’ information, numerous messages, every client’s preferences and several types of trends.
Many experts believe that the system can significantly increase productivity and reduce downtime. The software program could also improve the experiences of customers, enhance the reputation of a business, reduce the number of refunds and increase the values of many orders. Likewise, the software program may help businesses to retain customers, and the system could considerably increase conversion rates.
During February 2020, Salesforce acquired Vlocity Inc. which provides industry-specific solutions across sectors that include health care, insurance, energy, government, media and entertainment. The business offers solutions that could increase the profitability of each marketing campaign, and the software programs may enhance productivity, optimize communication, reduce identity management risks, offer many types of statistics and improve the satisfaction of clients.
This business offers innovative solutions that can significantly decrease identity management risks, and the company’s system could considerably improve integration, enhance communication, benefit many employees and decrease the costs of large projects. The company is based in Redwood City, California, yet the business manages many offices that are located in various regions. Currently, the company employs more than 135,000 individuals, and some reports have indicated that the business may hire more than 5,000 new employees during the next three years. The suite of IAM products integrates well with a range of apps, servers and systems. It’s easy to customize. In August 2020, Oracle used Sourcepoint’s platform to maximize customer privacy and enhance overall user experience.
According to the identity and access management market analysis and report, the company has created a system that can help businesses manage large databases. Once a business installs the system, the company will also comply with various regulations, and the business could reduce expenses, protect mobile applications and enhance the security of smartphones.
Established in 2009, Okta Inc. is a large business that provides multiple products, and these systems can enable multi-factor authentication, verify the identity of each user and examine biometrics. The business provides solutions that can benefit the health care industry, educational organizations, technology companies and business that offer financial services. The company has also helped many non-profit organizations, and the systems can protect financial information, personal data, and files.
Okta was a pioneer in zero-trust security, which has gained traction. The product is easy to manage and offers numerous authentication options.
This product is known for strong capabilities, endpoint functionality and 6,000 app integrations. It is a cloud-based identity and access management product that helps facilitate access management for large businesses and organizations.
Fans appreciate Ping’s versatility. The product line includes cloud-based, hybrid, password-less, enterprise-grade and software solutions. It keeps employees, customers and partners connected. Ping Identity recently acquired digital identity provider ShoCard. The partnership is expected to result in the new standard for privacy and customer engagement.
Established in 1996, Core Security is a well-known business that offers multiple software programs, which can substantially reduce the vulnerability of many networks. These innovative systems could evaluate the effectiveness of security software, provide multifaceted solutions and examine the cause of each data breach. The software programs could also help companies to verify the identity of every user, and once a business installs the unique system, a company’s supervisors may monitor sizable networks, control every user’s settings, examine various threats and review many types of statistics.
Symantec by Broadcom
This is one of the rare products that stands out for both zero-trust and privileged access management. Not all vendors have mastered reporting, but Symantec seems to have gotten it right.
Idaptive gets high marks for behavior analytics that adapt to odd behavior and trigger alerts. It was acquired by CyberArk in May of 2020, so zero-trust products could be up next.
CHOOSING SYSTEMS THAT EVALUATE BIOMETRICS
If a system examines biometrics, the device could evaluate an individual’s fingerprint, the user’s voice, the person’s retina or an earlobe. Some businesses can also provide systems that could examine the geometry of a hand, and these software programs may evaluate the configuration of each finger, the palm and the bones of the hand. Additionally, certain businesses created cutting-edge systems that could quickly examine deoxyribonucleic acid.
Identity and Access Management Industry News
In 2020 news, ForgeRock, known for developments in biometric authentication, was named a leader in customer IAM by Forrester Research.
IBM collaborated with Wipro in June 2020 to help Wipro develop better hybrid cloud solutions.
Microsoft collaborated with Citrix to streamline the transition of on-premise Citrix customers to Microsoft Azure.
Evaluating Predictive Forecasts and Many Types of Trends
Increasing the Profits and Attracting New Investors
Some reports have suggested that many individuals may invest in businesses that develop identity management solutions, and these companies could consistently create new technology, manage marketing campaigns, hire innovative experts and examine the efficacy of many systems. Once businesses receive these investments, the companies could also purchase innovative equipment, manage larger offices and acquire other businesses.
Understanding the Interests of Customers and Stimulating the Growth of the Industry
Several reports have indicated that these unique software programs can significantly increase the confidence of customers and improve the reputations of many businesses. According to various identity and access management industry reports, the IAM software programs could substantially reduce the risk of data breaches, and once a business installs an advanced system, the software program could improve the company’s reputation, increase the trustworthiness of the company and enhance the growth of the business. Many surveys have indicated that most customers prefer companies that utilize security software, and during the next year, these customers could encourage many businesses to install systems that can protect valuable data.
Offering Services That Could Benefit the Health Care Industry
In 2021, many companies may provide advanced systems that could improve the efficiency of large hospitals, and some software programs could benefit small clinics, dental offices, pharmaceutical companies and businesses that research biotechnology. Various specialists have suggested that the health care industry could affect identity and access management industry trends, and these trends may consistently stimulate the growth of the identity management industry.
Identity and Access Management Industry Outlook
Will IAM really be valued at $24 billion just five years from now? Spending is bound to stabilize somewhat now that the frenzy to equip remote workers has died down. Still, most experts suspect that the pandemic has forever changed how and where people work. Sean Gilligan, president of tech recruitment at Harvey Nash Group, thinks the extra $15 billion a week that employers spent early on was an investment that will pay off for years to come. Of the executives Gilligan surveyed, more than 40 percent believe that at least half of their employees will continue to work at home in more normal circumstances. “Right now,” he told InformationWeek, “technology is the most important part of these businesses.”
The numbers may be eye-popping in this identity and access management market analysis report. Even so, give or take a billion, most experts agree with them. If they’re right, the future of IAM looks rosy for 2021 and beyond.