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The physical IAM market size is projected to reach a value of USD 1.31 billion at a CAGR of 16.5% between 2023 and 2028. The expansion of the market hinges on various factors, notably the swift proliferation of Internet of Things networks, necessitating compliance with regulatory mandates, and the increasing uptake of Identity as a Service solutions. With IoT networks experiencing rapid growth, businesses are compelled to ensure adherence to regulatory standards, driving demand for IDaaS offerings. The rising adoption of IDaaS solutions further propels market growth, as organizations seek efficient and secure identity management solutions. Consequently, the convergence of these factors shapes a dynamic landscape poised for continued expansion in the IDaaS market.
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The Government and Defense sector, along with the Maintenance and Support Services segment, is pivotal in ensuring robust physical and logical security infrastructure. With the increasing sophistication of cyberattacks and insider threats, organizations are emphasizing real-time monitoring and access control systems. PIAM systems play a crucial role in managing identities and access across various sectors, including healthcare, banking, and manufacturing. Entrust and CyberKnight are prominent players offering innovative access control solutions.
The market is experiencing notable growth, driven by various factors such as government regulations, particularly in the government and defense segment. The demand for maintenance and support services, including scheduled backups and upgradations, is on the rise to ensure efficient operations. With the increasing prevalence of cyber threats like insider threats and data breaches, organizations are prioritizing security operations. PIAM software plays a crucial role in real-time monitoring, access control systems, and safeguarding digital assets. Microsoft and Entra are among the key players offering innovative solutions in this rapidly evolving market. The Physical IAM (Identity and Access Management) market is witnessing significant growth, particularly in the government and defense vertical, where ensuring high-level security is paramount. Physical IAM solutions offer real-time monitoring and control over on-premises visitors, providing an additional layer of security to traditional IT security measures. One of the key benefits of Physical IAM systems is the reduction in operational costs. By automating access control processes, organizations can eliminate the need for manual checks and the associated labor costs. Additionally, these systems provide a scalable and flexible solution, allowing for easy integration with existing security infrastructure.
Physical IAM solutions offer future-proof security for government and defense organizations. With advanced features like real-time monitoring, access control, and incident reporting, these systems can help prevent unauthorized access to sensitive areas and protect against insider threats. Moreover, Physical IAM systems can be integrated with other security technologies, such as CCTV cameras and biometric readers, to create a comprehensive security solution. In conclusion, Physical IAM market offers advanced physical security systems tailored to the unique needs of the government and defense vertical. These solutions provide real-time monitoring, reduce operational costs, and offer a future-proof security solution for on-premises visitors and rooms. The Physical IAM (Identity and Access Management) market is witnessing significant growth, particularly in the government and defense vertical, where ensuring high-level security is paramount. Physical IAM solutions offer real-time monitoring and control over on-premises visitors, providing an additional layer of security to traditional IT security measures.
One of the key benefits of Physical IAM systems is the reduction in operational costs. By automating access control processes, organizations can eliminate the need for manual checks and the associated labor costs. Additionally, these systems provide a scalable and flexible solution, allowing for easy integration with existing security infrastructure. Physical IAM solutions offer future-proof security for government and defense organizations. With advanced features like real-time monitoring, access control, and incident reporting, these systems can help prevent unauthorized access to sensitive areas and protect against insider threats. Moreover, Physical IAM systems can be integrated with other security technologies, such as CCTV cameras and biometric readers, to create a comprehensive security solution. In conclusion, Physical IAM market offers advanced physical security systems tailored to the unique needs of the government and defense vertical. These solutions provide real-time monitoring, reduce operational costs, and offer a future-proof security solution for on-premises visitors and rooms.
The rapid growth of Internet of Things networks is notably driving market growth. The IoT is the network of objects, such as vehicles and home appliances, that are embedded with software, actuators, and sensors. This enables objects to connect and exchange data. Owing to the growing demand for IoT, IoT providers are under intense pressure to launch IoT products such as doorbell cameras and smart locks in the market. Hence, some IoT providers are not investing in backend systems that are required to support IoT securely. This is leading to the negligence of important data management features, such as access governance, security, and privacy management. Hence, it leaves IoT customers vulnerable to privacy violations, security attacks, and poor customer experiences.
Physical IAM offers adaptive authentication, end-to-end data encryption, overload detection, and automatic load balancing to IoT devices, thus providing them with robust security capabilities. An IAM solution enables biometrics, single sign-on, and social login capabilities that are important for delivering positive customer experiences. It offers self-service account management workflows, prebuilt registration templates, and best-practice password management features for IoT devices, which help in enhancing user experiences with strong and effective authentication methods, such as MFA. Another key capability of IoT IAM is aggregating customer profile and preference data captured from different interaction points into a unified profile. Therefore, such factors are expected to propel the growth of the global PIAM market during the forecast period.
The need for MFA with physical IAM is one of the major emerging market trends. Passwords are the weakest links in enterprise security. Many enterprises feel that passwords do not adequately protect their data and assets from data breaches, cyberattacks, and fraud. Companies are providing multi-factor authentication across enterprises to increase the security of data. For instance, Amazon.com offers virtual Multi-Factor Authentication (MFA) devices that can run on mobile hardware devices, including smartphones. Enterprises can enable only one MFA device per IAM user, and the device can only be used by the specified user. This solution provides an additional layer of security to enterprises, thus helping them to protect credentials and data from breaches and attacks.
MFA is one of the most trusted authentication methods for preventing unauthorized users from accessing corporate data. This is because the process uses multiple methods for identification and authentication. MFA effectively provides complete authentication to users and ensures the security of the enterprise's data. Therefore, these factors will drive the growth of the global PIAM market during the forecast period.
Poor handling of data is a major challenge impeding market growth. To determine the authorization level, the solution must be provided with certain source data, which should be consistent, clean, and complete. Any irregularities in data can have an impact on the authentication provided by the physical IAM solution. If the data is corrupted or there is a change in the source data, the solution incorrectly processes the data, thus resulting in an authentication issue for applications and systems.
An enterprise has a huge amount of data about its users in many different systems. However, only a small part of that information is required by enterprise solutions for identity management purposes. Hence, when enterprises include non-identity data in their identity system, the solution is pushed away from its core competency. This forces the solution to become a data processing system instead of an identity management solution. Thus, it leads to poor performance of solutions, leading to a reduction in the adoption of solutions among enterprises. Such factors are expected to hinder the growth of the PIAM market during the forecast period.
The market growth analysis 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 market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth 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 growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market 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.
In today's dynamic landscape, scheduled backup and consulting services are crucial for ensuring data integrity and optimal performance, especially in sectors like the healthcare industry and banking. As organizations embrace digital transformation, efficiency and automation become paramount, driving the adoption of advanced technologies such as cloud-based systems and biometric authentication. Compliance with regulatory standards like BASEL II and GLBA is essential for financial institutes and banks, with video surveillance capabilities and mobile-based access control enhancing security measures. Embracing cloud-based PIAM solutions and robust risk management strategies ensure resilience in the face of evolving technological breakthroughs and industry-specific requirements.In sectors like banking and finance, protecting sensitive information is paramount to maintaining trust and security. Ensuring the integrity of vital infrastructure and adherence to compliance standards are critical components of regulatory requirements. The proliferation of mobile devices necessitates robust measures for data security, often employing biometric technologies for enhanced authentication. Physical security measures are essential for safeguarding both digital and physical assets. Adhering to regulatory compliance standards and data protection laws helps organizations mitigate risks and maintain integrity in an ever-evolving landscape of cyber threats.
The market share growth by the solutions segment will be significant during the forecast period. On-premises segment requires end-users to have a software license and is more expensive than cloud-based IAM, as it requires in-house hardware and huge capital investment in software licenses. However, on-premises IAM is highly secure, as there is no third-party interference. Customization and higher data security offered in the on-premises deployment model are some factors responsible for the growth of the global market.
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The solutions segment was valued at USD 503.30 million in 2018. Currently, many large enterprises are giving prominence to on-premises solutions, as they receive a high level of protection with their implementation. Also, confidential information of the organizations is not managed by third-party service providers and is under the control of the organization's IT administration staff. Companies operating in the market offer a comprehensive suite of on-premises solutions, which can be customized as per client requirements. They are focusing on providing custom IAM solutions to meet the specific needs of an organization. In addition, customized solutions are helping organizations maintain great control, safety, and security over their data. Such factors are expected to drive the growth of the solutions segment of the global physical identity and access management (PIAM) market during the forecast period.
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North America is estimated to contribute 38% to the growth of the 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 availability of adequate IT and business infrastructure, IT security compliance and governance regulations, and the high adoption of cloud-based IT security solutions and services are some major factors driving the adoption of solutions in North America. The demand for solutions is further enhanced owing to growing cyberattacks by malicious practitioners on enterprises to gain access to confidential data. An increase in the number of cyberattacks can negatively affect the economies of countries. Thus, it will encourage the governments of North American countries to adopt physical IAM solutions. In addition, solutions are preferred by industry verticals in the region, especially services and industrial sectors, to enhance the quality of delivery systems.
New and emerging technologies are encouraged in this region. The intense competition in the regional market is expected to compel established companies to increase their market presence through strategic alliances. Physical IAM providers are investing extensively in joint ventures and acquisitions to capture a major share of the global physical identity and access management (PIAM) market and expand their presence in new regions. The alliances of these providers have helped them successfully launch their joint ventures.
Because of North America's strong financial position, significant investments are made in implementing the most innovative and cutting-edge technology and tools to guarantee efficient corporate operations. These benefits give companies in this area a competitive edge. When it comes to the adoption of advanced technology such as cloud platforms, physical IAM software, and smartphones, North America enjoys the first-mover advantage. Several major corporations have their headquarters in North America, which also serves as the host of various global events. North America is receiving huge investments from businesses with a growing economy. Thus, the market in North America is anticipated to witness growth because of the stable economy, technological advancements, and advanced infrastructure during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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The market addresses security operations and compliance mandates, especially in government and defense sectors. With increasing insider threats, robust access control systems and real-time monitoring become imperative. PIAM software manages identities for employees, contractors, and alternative user populations, ensuring compliance with regulations. Services like maintenance, upgrades, and security advisory aid in safeguarding digital assets against hackers and unauthorized access. Notably, in high-footfall areas like airports, real-time management of identities reduces security concerns and operational costs, enhancing customer service and continuity. Key players like Microsoft offer innovative solutions like the Entra product family and Azure AD for secure identity management in multi-cloud environments, catering to sectors like healthcare, banking, and legal firms, prioritizing data protection and fraud prevention amidst increasing data compromises and leakage.
In the realm of government and defense verticals, maintenance services play a vital role in ensuring the operational readiness of critical infrastructure. Consulting services offer valuable insights for optimizing processes, while scheduled backup protocols safeguard sensitive data. For airports and their governing bodies, like the airport authority, investing in solutions that are future-proof ensures adaptability to evolving security challenges. Additionally, providing assistance to commuters enhances the overall travel experience, reinforcing the importance of seamless operations in high-traffic environments.
The Physical IAM (Identity and Access Management) market is a rapidly growing sector that focuses on securing networks and digital assets in both physical spaces and buildings. This market caters to the needs of various industries, including banks and financial institutions, MSPs (Managed Service Providers), and businesses with on-premises visitors. The Physical IAM solution offers real-time monitoring of networked devices and individuals, ensuring timely and secure access to digital identities. This is crucial for compliance with various regulatory frameworks and maintaining a future-proof infrastructure. The market also provides cloud infrastructure entitlement management, enabling seamless access to third-party cloud sources. Decentralized identity solutions offer an added layer of security, ensuring that digital identities are secure and tamper-evident.
Physical IAM solutions help in reducing operational costs by automating access control and eliminating the need for physical keys or access cards. These systems are designed to securing networks and digital assets, providing banks and financial institutions with an added layer of security. In conclusion, the Physical IAM market offers a comprehensive solution for securing physical spaces, buildings, and networked devices, ensuring timely and secure access, reducing operational costs, and maintaining compliance with regulatory frameworks.
The Physical IAM (Identity and Access Management) market is a rapidly growing sector that focuses on securing networks and digital assets in both physical spaces and buildings. This market caters to the needs of various industries, including banks and financial institutions, MSPs (Managed Service Providers), and businesses with on-premises visitors. The Physical IAM solution offers real-time monitoring of networked devices and individuals, ensuring timely and secure access to digital identities. This is crucial for compliance with various regulatory frameworks and maintaining a future-proof infrastructure. The market also provides cloud infrastructure entitlement management, enabling seamless access to third-party cloud sources. Decentralized identity solutions offer an added layer of security, ensuring that digital identities are secure and tamper-evident. Physical IAM solutions help in reducing operational costs by automating access control and eliminating the need for physical keys or access cards. These systems are designed to securing networks and digital assets, providing banks and financial institutions with an added layer of security. In conclusion, the Physical IAM market offers a comprehensive solution for securing physical spaces, buildings, and networked devices, ensuring timely and secure access, reducing operational costs, and maintaining compliance with regulatory frameworks.
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 Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market 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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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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