Cloud Identity and Access Management Software Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Cloud Identity and Access Management Software Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Over the next few years, the market for cloud identity and access management software is expected to register a CAGR of 18.6%. Cloud identity and access management (IAM) technology creates, captures, stores, and manages multiple user identities and access permissions. All users are checked out, given permission, and judged based on their roles and the company's rules.

• Due to cost savings and economies of scale, cloud technology is revolutionizing how businesses operate. However, the lack of proper security measures can undermine the benefits of cloud computing. This calls for a fundamental need for security solutions, including security for identity-related crimes, and hence drives the market for cloud identity and access management.
• The public cloud is the most popular type of cloud deployment on the market. This is because it is being used more and more in many different industries. However, hybrid cloud deployment is expected to register the highest CAGR over the forecast period because of growing adoption among small and medium-sized enterprises.
• As mobile phones and tablets become more popular, employees can connect their phones and laptops to the business network. Instead of using their old office desktops, employees like to use their own devices in enterprises, which increases the need for cloud identity and access management software and hence drives the market studied.

During the COVID-19 impact period, cloud identity and access management (IAM) software was expected to have a positive impact on the market and contribute significantly to its growth over the forecast period. IAM vendors came forward to assist the enterprises. For instance, during the pandemic, IBM announced that it would make critical technologies such as IBM Security MAss360 with Watson and IBM Cloud Identity available at no charge for new clients for 90 days.

• Single sign-on (SSO) is the most recent innovation in identity access management. The compact and highly flexible nature of this solution is attracting a wide range of end-users, ranging from IT companies to the manufacturing sector.
• In the case of federated provisioning, the solution is a mix of two separate systems called federated identity and provisioning. Federated identity refers to the standards that allow different policy domains to share identity management responsibilities. Provisioning, on the other hand, is the automation of all the steps in the lifecycle that are needed to manage user or system access entitlements.
• The capability of retaining in-house control of user accounts while leveraging cloud applications and data is the significant advantage that federated provisioning solutions offer and is driving the immense growth of these solutions in the market.
• Furthermore, the increasing number of social engineering attacks and identity thefts is driving the growth of both single sign-on and federated provisioning, especially in the developed countries of North America and Europe.
• The Identity Theft Resource Center thinks that in the United States in 2022, there were 1802 times when data was stolen. In the same year, data intrusions such as data breaches, data leaks, and data exposure also had an impact on over 422 million people. Even though these are three distinct events, they all share a similar trait. All three instances result in an unauthorized threat actor accessing the sensitive data.

• Most of the cloud-advanced organizations in the world are from the North American region, along with a high number of startups whose most preferred mode of solution deployment is in the cloud.
• Along with the highest adoption of cloud-based software services, it is also reported by the ITU that the North American region is very proactive and committed to cybersecurity.
• Moreover, benefits like reduced CAPEX and faster rollouts of updates are some of the major reasons for the adoption of cloud-based identity management solutions in the North American region.
• Major adoption of cloud-based IAM in the region is seen in the BFSI sector, and it may continue to rise, as credit card frauds and breaches accounted for a major share of the total number of identity thefts, as reported by the US consumer sentinel network.
• The region is highly affected by cyberattacks and has one of the highest cybersecurity incidents in the world. Therefore, the region has also implemented its countermeasures and has become one of the most advanced regions with respect to cybersecurity, technology, and its adoption. Therefore, rising cybersecurity needs will also drive the cloud identity and access management software market in the region.

The cloud identity and access management market comprises several global and regional players and is a moderately contested market space. However, the market is shifting toward the consolidation of various smaller players. Several market players are gaining a sustainable competitive advantage in the market through innovations. Some of the major players in the market are IBM Corporation, Microsoft Corporation, and Oracle Corporation, among others.

CloudIBN announced the introduction of Identity and Access Management services in December 2022. With the help of this IAM solution suite, businesses can effectively manage user access control across their whole organization and keep their data safe.

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