Customer Identity and Access Management (IAM) Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, Japan, UK, Germany - Size and Forecast 2023-2027

Customer Identity Access Management (CIAM) Market Forecast 2023-2027

The customer identity access management (CIAM) market size is forecast to increase by USD 11.89 billion, at a CAGR of 16.78% between 2022 and 2027. Market expansion is contingent on various factors, notably the surge in data theft incidents, the rapid proliferation of Internet of Things (IoT) networks, and the escalating adoption of smart connected devices. The rise in data breaches and cyber threats has heightened the importance of robust cybersecurity solutions, driving investment in protective technologies and strategies. Simultaneously, the widespread deployment of IoT networks across industries has created new avenues for connectivity and data exchange, fueling demand for IoT-enabled solutions and services. Additionally, the increasing prevalence of smart connected devices such as smartphones, wearables, and smart home appliances has transformed consumer lifestyles and business operations, driving innovation and competition in the market for connected technologies.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

This customer identity access management market report extensively covers market segmentation by deployment (on-premise and cloud-based), end-user (large enterprises, government organizations, and SMEs), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Market Dynamics and Customer Landscape

In the market plays a crucial role in safeguarding sensitive data and ensuring regulatory compliance across various industries. With the rise of cyberattacks, identity theft, and security breaches, skilled cybersecurity professionals are in high demand to fortify infrastructure management and enforce governance and compliance measures. The global cybersecurity market, including healthcare, public sector, utilities, manufacturing, financial institutions, and business expansions, is increasingly adopting IAM systems to secure IT infrastructure. Decentralized Identity solutions are gaining traction to mitigate fraud and enhance privacy measures. Mobile security is a significant concern, with cloud deployment, hybrid deployment, and on-premise deployment models requiring robust IAM solutions. Regulatory compliance, infrastructure management, and compliance management are essential components of IAM systems, ensuring secure access to critical data and systems. Microsoft, a leading technology company, offers various IAM solutions to help organizations address their unique security challenges. By investing in skilled cybersecurity professionals and advanced IAM systems, businesses can effectively protect their IT infrastructure and mitigate risks associated with cybersecurity threats. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market Driver

The increase in the number of smart connected devices is notably driving the market growth. In the current digital landscape, the threat of cyberattacks and identity theft is a significant concern for both individuals and organizations. According to recent statistics, there were over 4.8 million identity theft and fraud reports in the US in 2020, marking a 45% increase from the previous year. This surge can be attributed to various cybersecurity incidents, such as the Landry's restaurant conglomerate's point-of-sale malware attack, which compromised customers' payment card data. As the world becomes increasingly reliant on technology, the need for robust identity and access management (IAM) systems has become crucial. IAM systems are essential for regulatory compliance, infrastructure management, and privacy measures in various sectors, including healthcare, mobile security, and the Internet of Things (IoT).

Moreover, skilled cybersecurity professionals are in high demand to enforce governance and compliance management, mitigate fraudulent activities, and secure business technologies such as cloud deployment, hybrid deployment, and on-premise deployment. Moreover, the global cybersecurity landscape is evolving, with emerging technologies like artificial intelligence, automation, and decentralized identity playing a significant role. Hence, these factors will boost the market growth during the forecast period.

Significant Market Trends

Upsurge in cloud IAM is an emerging trend in the market growth. In today's business landscape, the use of consumer Identity and Access Management (IAM) solutions has become essential as organizations adopt bring-your-own-device (BYOD) policies and mobile devices become primary tools for work. With the rise of cybersecurity threats such as identity theft, cyberattacks, and security breaches, there is a growing need for robust IAM systems to ensure regulatory compliance, privacy measures, and governance enforcement. Healthcare organizations, in particular, require stringent security protocols to protect sensitive patient data.

Moreover, mobile security is a critical concern, with the increasing use of smartphones and tablets for professional tasks. Skilled cybersecurity professionals are in high demand to manage infrastructure, enforce multifactor authentication, and provide password management and single sign-on solutions. IAM systems are also crucial for managing access to the Internet of Things (IoT), artificial intelligence, automation, and cloud technologies.  Therefore, the increase in demand for cloud-based IAM solutions is expected to contribute to the growth of the market during the forecast period.

Major Market Challenge

The complexity of network infrastructure is a major challenge impeding market growth. In the market, cybersecurity is a top priority due to the rising threats of identity theft, cyberattacks, and security breaches. Healthcare, mobile security, and other industries face unique challenges in ensuring regulatory compliance and privacy measures while enforcing governance and compliance management. IAM systems must seamlessly integrate with third-party solutions and previous versions to avoid complexity and potential operating or interface issues for end-users.

Moreover, the global cybersecurity landscape is increasingly complex, with the addition of artificial intelligence, automation, cloud technologies, and the Internet of Things. Skilled cybersecurity professionals are essential for managing infrastructure, preventing fraudulent activities, and enforcing multifactor authentication, provisioning, and password management. Business expansions and BYOD policies require IAM systems to support cloud deployment, hybrid deployment, and on-premise deployment. Thus, such factors hamper the market growth during the forecast period.

Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Market Players?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Mitek Systems Inc. - The company offers development, sales, and service of proprietary software solutions related to mobile image capture and identity verification. The key offerings of the company include identity and access management such as Mitek Verified Identity platform. 

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Akamai Technologies Inc.
• Aware Inc.
• Broadcom Inc.
• Cisco Systems Inc.
• Equifax Inc.
• Experian Plc
• GB Group plc
• NortonLifeLock Inc.
• Okta Inc.
• One Identity LLC
• Ping Identity Corp.
• RELX Plc
• Safran SA
• SAP SE
• Sennovate Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segment in the Market?

The market share growth by the on-premises segment will be significant during the forecast period. The market is driven by the need for robust cybersecurity in the face of increasing cyberattacks, identity theft, and security breaches. The healthcare sector, in particular, prioritizes IAM systems due to the sensitive nature of patient data. Mobile security is another key area of focus as BYOD policies become more prevalent in businesses. On-premise IAM deployment remains popular due to its high level of security, as there is no third-party interference.

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The on-premises segment was valued at USD 3.72 billion in 2017 and continued to grow until 2021. However, it requires significant investment in infrastructure management, skilled cybersecurity personnel, and regulatory compliance. In contrast, cloud-based IAM solutions offer greater flexibility and cost savings, making them increasingly popular among SMEs. The Global cybersecurity landscape is evolving, with the Internet of Things (IoT), Artificial Intelligence (AI), and Automation presenting new challenges. Compliance management and governance enforcement are critical as businesses expand into new markets and sectors, such as education, public sector, utilities, manufacturing, and finance.  As a result, the segment is expected to grow during the forecast period.

Which are the Key Regions for the Market?

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APAC is estimated to contribute 34% to the growth of the global market during the forecast period. Another region offering significant growth opportunities to companies is North America. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

The Consumer Identity and Access Management (CIAM) market in North America is experiencing significant growth due to several key factors. These include the increasing prevalence of fraud and cyberattacks on financial institutions and businesses, resulting in the need for robust IT infrastructure, IT security compliance, and governance regulations. The adoption of cloud-based CIAM solutions and services, such as Single Sign-On (SSO) and social login capabilities, is also on the rise in sectors like logistics, energy, education, transportation, utilities, and more. Companies of identity and access management are prioritizing CIAM technologies to meet the demands of these industries. Mergers and acquisitions, as well as the implementation of mission-critical workloads on hybrid clouds, are also driving the market. Notable companies in this space include Microsoft Corporation, SAP SE, Okta, and Akamai Technologies. Legal and regulatory cybersecurity frameworks are also influencing the market's development. Hence, such factors are driving the market in North America during the forecast period.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Deployment Outlook 
  • On-premise
  • Cloud-based

• End-user Outlook 
  • Large enterprises
  • Government organizations
  • SMEs

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

In the market, Cybersecurity and privacy are critical concerns. Companies like IBM, Microsoft, and Google are providing Identity and Access Management solutions to secure customer data. These solutions include multi-factor authentication, passwordless login, and risk-based authentication. The use of biometrics, such as facial recognition and fingerprint scanning, adds an extra layer of security. Moreover, mobile applications and connectivity have become essential in CIAM. Passwordless authentication and secure session management are key features for mobile apps. The use of cookies and device fingerprinting for identification and tracking is a concern for privacy. Direct marketing and personalization are essential in CIAM. Infrastructures like Customer Data Platforms (CDPs) and Customer Identity and Access Management (CIAM) solutions help companies manage customer data and deliver personalized experiences. However, data privacy and security are crucial in these scenarios. The use of Artificial Intelligence and Machine Learning in CIAM is increasing. These technologies help in risk assessment, fraud detection, and personalization. However, ethical considerations and transparency are necessary to maintain trust with consumers. In summary, CIAM is a crucial aspect of modern business, focusing on securing consumer data while delivering personalized experiences. Companies must balance security, privacy, and personalization to succeed in this market. Keywords: Cybersecurity, Privacy, Identity and Access Management, Multi-factor authentication, Passwordless login, Risk-based authentication, Biometrics, Mobile applications, Cookies, Device fingerprinting, Customer Data Platforms, Customer Identity and Access Management, Artificial Intelligence, Machine Learning.

Market Scope
Report Coverage	Details
Page number	172
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 16.78%
Market growth 2023-2027	USD 11.89 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	15.95
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	APAC at 34%
Key countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Akamai Technologies Inc., Aware Inc., Broadcom Inc., Cisco Systems Inc., Equifax Inc., Experian Plc, GB Group plc, Mitek Systems Inc., NortonLifeLock Inc., Okta Inc., One Identity LLC, Ping Identity Corp., RELX Plc, Safran SA, SAP SE, Sennovate Inc., Swiss IT Security AG, Thales Group, TransUnion, and Verizon Communications Inc.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, APAC, Middle East and Africa, and South America
• A thorough market research and growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market growth and forecasting analysis of factors that will challenge the growth of market companies

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