Identity and Access Management (IAM) Market Size By Solution (Provisioning, Password Management, Directory Services, Advanced Authentication, Single Sign-On, Audit, Compliance & Governance), By Deployment Model (On-premise, Cloud), By Application (BFSI, I

Identity and Access Management (IAM) Market Size By Solution (Provisioning, Password Management, Directory Services, Advanced Authentication, Single Sign-On, Audit, Compliance & Governance), By Deployment Model (On-premise, Cloud), By Application (BFSI, IT & Telecom, Healthcare, Education, Public Sector & Utilities, Manufacturing, Retail), COVID-19 Impact Analysis, Growth Potential, Regional Outlook, Competitive Market Share & Forecast, 2023 - 2032

Identity and Access Management (IAM) Market is projected to expand exponentially through 2032. The growth is credited to the rising digitization, which has increased the adoption of connected device technology, including IoT, BYOD, and cloud computing. These devices offer improved productivity, reduced hardware costs, and enhanced employee satisfaction, further augmenting the demand for IAM solutions.

In addition, increased mobile penetration, rising demand for employee mobility software, and the rising importance of mobility service management are also expected to drive the IAM market expansion by 2032.

The IT infrastructure and its operation have undergone a significant change given the expanding digitization and technical breakthroughs. Besides, given the growing mergers and acquisitions or geographic divisions, organizations operating in identity and access management industry are introducing more advanced solutions, enabling them to secure a competitive edge. However, integrating these multiple processes is expensive, time-consuming, and risky, which is expected to act as a barrier for market expansion.

Nevertheless, the rising demand for cloud computing technology has led to minimizing the reliance on network access controls and increased dependence on logical access control solutions provided by IAM, which is further estimated to escalate the market growth by 2032.

Overall, the identity and access management (IAM) market is bifurcated in terms of solution, deployment model, application, and regional outlook.

Considering the solution, the provisioning solution segment is expected to register 11.5% CAGR by 2032. The software offers augmented identity and access management features to clients, employees, and partners, which assists them in attaining the provisioning and de-provisioning of computing resources. Besides, the rising demand for efficient provisioning solutions and the traction of security and risk mitigation solutions are expected to propel market growth.

By deployment model, the on-premises IAM model is expected to grow considerably through 2032, owing to its capability of delivering continuous and secured access to various applications. In addition, the rising demand for deploying on-premises solutions by companies with a strategic approach to identity and access management and demanding flexible functionality will support the segment growth in the future.

Considering the application, the BFSI segment is anticipated to witness massive growth over the forecast period. IAM solutions are critical for creating secure and reliable IT security in the banking sector. The segment held more than 19.5% revenue share in 2022.

Regionally, the North America IAM market share is anticipated to grow by 11% CAGR over 2023-2032. The growth will be attributed to the rising adoption of connected devices including IoT, BYOD, and cloud computing and the increasing use of mobile applications in the region. In addition, stringent programs and investments made by the government in R&D to discover the best practices for protecting user data will be a contributing factor in the regional expansion.