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The physical IAM market size is forecast to increase by USD 1.31 billion at a CAGR of 16.5% between 2023 and 2028. The market is experiencing significant growth, driven by several key trends. The rapid expansion of Internet of Things (IoT) networks is one major factor, as IoT devices require strong IAM solutions to ensure secure access and prevent unauthorized entry. Another trend is the increasing need for Multi-Factor Authentication (MFA) in physical IAM, as organizations seek to enhance security and mitigate the risk of password breaches. Additionally, poor handling of data has become a major concern, leading to a growing demand for IAM solutions that can effectively manage and protect sensitive information. Overall, the market is poised for continued growth as organizations prioritize security and compliance in their digital transformation initiatives.
The market refers to the security solutions that manage access to physical spaces, buildings, and rooms. This market is witnessing significant growth due to the increasing number of networked devices and compliance mandates. PIAM solutions provide authentication and authorization to individuals for secure access to physical spaces. Insider threats and cyberattacks are major concerns for organizations, leading to a heightened focus on physical security. PIAM solutions offer real-time monitoring and maintenance services to mitigate these risks. Airports and other public authorities are major adopters of PIAM solutions to ensure security and customer service. PIAM solutions are future-proof as they can be integrated with various hardware and software systems.
Furthermore, they provide authorization and monitoring for on-premises visitors and help prevent data breaches. PIAM solutions are essential for organizations to ensure compliance with various security regulations. PIAM solutions include hardware such as access control readers, turnstiles, and biometric devices. They offer features such as authentication, authorization, and monitoring to ensure secure access to physical spaces. The market for PIAM solutions is expected to grow significantly in the coming years due to the increasing need for secure physical access to buildings and rooms.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The solutions segment is estimated to witness significant growth during the forecast period. Physical Identity and Access Management (IAM) solutions play a crucial role in safeguarding the physical security of organizations, particularly in the face of increasing incidents of intrusions, theft, and vandalism. Regulatory organizations impose strict regulations, such as HIPAA for healthcare, PCI DSS for finance, and FISMA for government entities, mandating compliance with specific standards for access control mechanisms. Technological advancements, including biometrics, cloud computing, and mobile access solutions, offer innovative ways to enhance security and improve operational effectiveness. The mobile workforce trend and the need to lower security concerns necessitate flexible and cost-effective IAM solutions. Centralized platforms enable the management of physical identities, access privileges, and authentication methods.
Furthermore, integrated security solutions encompass IT and physical security, including video surveillance, intrusion detection, and identity verification technologies. Implementation services ensure compatibility and interoperability, addressing complexity and security and privacy concerns related to sensitive personal information and data protection measures. Despite the benefits, challenges such as the implementation costs, upgrades, maintenance, and deployment remain. Organizations must carefully consider the legal standards and their specific requirements when selecting and implementing IAM solutions.
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The Solutions segment was valued at USD 503.30 million in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market is governed by regulatory organizations that enforce strict compliance standards, such as the Health Insurance Portability and Accountability Act (HIPAA) in healthcare, the Payment Card Industry Data Security Standard (PCI DSS) in finance, and the Federal Information Security Management Act (FISMA) in government. With the increasing trend of technological advancements, innovation in biometrics, cloud computing, and mobile access solutions, organizations are focusing on increasing operational effectiveness while lowering security concerns. Centralized platforms that manage physical identities and access privileges through authentication methods like multi-factor authentication and identity verification technologies are becoming increasingly popular. Cost-effectiveness, scalability, and flexibility are key benefits of these solutions, enabling seamless deployment and upgrades.
However, the implementation of these systems can be complex due to compatibility problems and interoperability difficulties. Integrated security solutions that address IT and physical security, video surveillance, intrusion detection, and data protection measures are essential for legal compliance and the protection of sensitive personal information. Implementation services and customization options are also crucial to ensure a smooth transition and adherence to security and privacy standards.
Our researchers analyzed the data with 2023 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.
The rapid growth of Internet of Things (IoT) networks is the key driver of the market. The Internet of Things (IoT) represents a network of interconnected objects, including vehicles and household appliances, equipped with software, actuators, and sensors for data exchange. As the demand for IoT technologies continues to escalate, IoT providers are faced with the challenge of introducing new products, such as doorbell cameras and smart locks, into the market. However, some providers are neglecting the investment in strong backend systems necessary for secure IoT implementation.
Furthermore, this oversight can result in the omission of crucial data management features, such as access control, security, and privacy protection. Consequently, IoT consumers may be susceptible to privacy breaches, security vulnerabilities, and suboptimal user experiences. Organizational culture and resistance to change may hinder the prioritization of maintenance and upkeep in IoT development, ultimately jeopardizing the trust and satisfaction of customers.
The need for MFA with physical IAM is the upcoming trend in the market. Organizational culture plays a significant role in the adoption of Identity and Access Management (IAM) solutions, particularly those involving multi-factor authentication (MFA). Resistance to change within enterprises can hinder the implementation of new security measures, despite the potential benefits. However, the importance of maintaining and upkeeping strong security systems cannot be overstated, especially in the face of increasing cyber threats. Multi-factor authentication provides an additional layer of security by requiring users to provide two or more forms of identification to access sensitive data.
Moreover, by enabling only one MFA device per IAM user and restricting its use to the specified user, enterprises can significantly reduce the risk of data breaches and cyberattacks. This approach enhances the overall user experience by providing an extra level of protection while ensuring that only authorized individuals have access to critical information.
The poor handling of data is a key challenge affecting market growth. Physical Identity and Access Management (IAM) solutions play a crucial role in enterprises by securing access to organizational systems, applications, and resources for authorized users. These solutions enable the creation of authenticated user accounts for logging into various enterprise platforms, granting access based on the user's authorization level.
Furthermore, the effectiveness of a Physical IAM solution relies on the accuracy and completeness of the source data it receives to determine authorization levels. Any inconsistencies or inaccuracies in this data can negatively impact the authentication process, potentially leading to resistance to change within the organization. Proper maintenance and upkeep of the IAM solution and its underlying data are essential to ensure a positive user experience and adherence to organizational security policies.
The market forecasting 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 market growth analysis strategies.
Customer Landscape
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.
AlertEnterpise Inc. - The key offerings of the company include physical IAM solutions.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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.
Physical Identity and Access Management (PIAM) solutions have become essential in today's digital world, where security concerns extend beyond virtual spaces to physical ones. PIAM solutions help manage access to physical spaces and assets, ensuring only authorized individuals can enter sensitive areas in buildings, rooms, and other physical spaces. With the increasing number of networked devices and digital transformation, compliance mandates have become stricter. PIAM solutions play a crucial role in meeting these mandates, providing real-time monitoring and fraud prevention. They also help airport authorities and other organizations mitigate insider threats and cyberattacks, which can lead to data breaches and illegal access to sensitive data.
Furthermore, PIAM solutions offer advanced technologies such as decentralized identity and digital identities, ensuring future-proof security. They also provide maintenance services to keep hardware authentication and authorization systems up-to-date. In the banking and healthcare industries, where security is paramount, PIAM solutions offer a compliance standpoint, ensuring that only authorized personnel have access to sensitive areas and data. MSPs (Managed Security Service Providers) offer PIAM solutions to businesses, providing customer service and advanced technologies to monitor and manage access to physical spaces and digital identities. With the increasing number of data compromises, PIAM solutions have become an essential part of any organization's security strategy.
Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.5% |
Market growth 2024-2028 |
USD 1.31 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
13.79 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 38% |
Key countries |
US, China, Germany, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AlertEnterpise Inc., Alfred Net, Atos SE, Convergint Technologies LLC, CyberArk Software Ltd., Dell Technologies Inc., HID Global Corp., Identification Systems P Ltd., Identiv Inc., Intellisoft, International Business Machines Corp., Open Text Corporation, MTI Technology, Okta Inc., Oracle Corp., Ping Identity Corp., SecureAuth Corp., Technology Nexus Secured Business Solutions AB, Thales Group, and WSO2 Inc. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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