The exuberant pace mainly drives identity and access management (IAM) market in the global acceptance and adoption of innovative technologies that include cloud computing, Bring Your Device (BYOD) and Internet of Things (IoT) in enterprises. Digitalization has profoundly influenced and also encouraged enterprises to develop a front dedicated to data-driven business models, to enhance business processes in terms of agility and scalability. Cloud computing with its lucrative and economic aspects had diverted enterprises such as BFSI, towards storing and running critical customer-centric applications on the cloud, instigating IAM solutions as an immediate deployment to manage authorization and authentication for numerous web applications and customer data. However, such connectivity exposes the devices and data towards security and privacy threats such as unlawful access, local exposure, data leakage, data loss, insecure usage, and insider attacks posing a challenge for organizations. As a consequence, global Identity & Access Management Market is leveraging the dire need of IAM solutions in enterprises to diminish the risk of unauthorized access to valuable data of an organization. The growing trend of BYOD (bring your device) at workplace supplementing workforce mobility, and web-based applications amplify the challenges for enterprises to counter unauthorized access to the corporate resources compromising on security. Hence, the global identity and access management market size is estimated to be $ 11.23 billion as of 2018. As centrally managed comprehensive IAM solutions deliver enterprise mobility along with required visibility and control of access over a distributed workforce in sectors such as BFSI, energy, telecommunication, and retail, market demand is progressing at a global CAGR of 12.06% during the forecast period of 2019-2025.
BFSI (Banking, financial services, and insurance) Sector – Transition towards Cloud-Based Services and Web Bases Applications:
Digitalization has altered the entire façade of the BFSI sector from a physical workplace to a cybernetic platform. Leveraging the cloud-based application services and the internet, banking sector offers transactions to be conducted over connected devices such as smartphones, tablets, and laptops. Apart from customer-centric endeavors, banking enterprises itself process their entire operation on a digital interface amalgamated with cloud-based storage systems constituting voluminous valuable customer-centric data. The global mobile payments market size that is evaluated to be $3.21billion as of 2018 legitimately indicated the digital transition of financial services.
Similarly as per the India Brand Equity Foundation, a substantial US$ 15.28 million was allocated for the regional rural banks in the Indian economy by Reserve Bank of India to launch internet banking facilities. As a consequence, the BFSI sector necessitates the integration of effective IAM solutions to curb identity theft and to adhere to regulatory compliance that is adding substantial impetus to global identity and access management market size. The IAM solution employed by the financial enterprises is Multifactor authentication (MFA) security system. It encompasses several routines of verification that ranges from independent classifications of credentials, to authenticate the user’s identity for a login or other transaction. Some examples of MFA scenario are logging into the internet banking facility with Single sign-on (SSO) and then demanded to enter a new one-time password (OTP) that the website's authentication server directs to the user’s phone or email address. Integration of biometrics with mobile application and gesture recognition are the dominant trend in the IAM solutions designated for financial services. As the BFSI sector has traditionally been in the forefront of harnessing technology, it is estimated to be fastest-growing application segment in the identity and access management market progressing with an application CAGR of 14.27% going through to 2025.
‘New Media’ – Avid Employer of Single sign-on (SSO) Authentication Services:
The number of monthly active users globally on Facebook as of 2019 was estimated to be 2.38 billion by an online release by the social media giant itself. Social networking websites have emerged as an integral constituent of the on-going part of the digital marketing communications program. With such humongous traffic and users, the new media portals stand a fair chance to be breached for an unauthorized accumulation of personal data. As a consequence, these websites employ SSO authentication services that allow an end-user to log into a third-party application with their social media authentication credentials. Running on protocols such as SAML (security assertion markup language) it enables the interchange of user authentication and authorization data across secure domains. This IAM solution is very well leveraged by the heavyweights of social networking, including LinkedIn, Twitter, and Facebook. Tracing the substantial emphasis allocated towards user’s privacy and credentials, as an aftermath of recent legal trials faces by Facebook and Google, social media sites stand out as an avid employer in the identity and access management market.
Apple Claims to Handle Privacy Better than Google and Facebook:
Even though social single sign-on authentication is convenient and user-friendly, it depicts security risk as it builds a single point of failure that can be misused. A breach that attains control over a user's SSO credentials can establish access to every application the user has rights to, eventually augmenting the amount of potential damage. Detecting the technological gap and leverage the need for enhanced IAM solutions surfacing the social media SSO, Apple Inc., in 2019 introduced
‘Sign in with Apple.’ Apple claims that this feature that lets the user use their Apple IDs to sign up for sites and services on the web is more privacy-oriented alternative than traditional social SSO authentication such as ‘Login with Facebook’ and ‘Sign in with Google.’ Considering the not so good reputation, Google and Facebook have in relevance to protecting user data; Apple Inc. has the requisite potential to divert substantial traffic into its pocket.
The Increasing Adoption of Cloud-Based IAM Solutions among the SMEs is expected to Offer Huge Opportunities for the Growth of Identity & Access Management Market Size:
Funding is the most prominent factor; modern small and medium enterprises are taking a substantial portion of their operations towards a digital path with mobile devices and the Internet-driven ecosystem to avoid the outlays of hiring a physical workplace. Moreover, Identity-as-a-Service (IDaaS) platform is witnessing rampant implementation across SMEs. As inexpensive cloud model deliver centralized management for marginal businesses and organizations via numerous amenities such as user provisioning, directory management, access management, and compliance support, their demand in the identity and access management market is substantially increasing. This has created a pool of enterprises to be capitalized by the inexpensive cloud-based IAM solutions providers. The progress in the number of SMEs can be indicated by data by India SME Forum stating that the number of members in the forum increased from 400 in 2011 to more than 76,000 in 2019. These facts very well resonate with the findings by the World Bank that depicts formal SMEs contribution towards total employment to be a substantial 60% along with and up to 40% input in national income (GDP) of emerging economies.
North America – Leading the Identity and Access Management Market Owing to Humongous IT Budget:
Hosting economies such as the United States with impeccable ICT federal budgets, North America accomplished to source 37.75% of global IAM market demand share in 2018. The sheer affluence of North America can be stated via several factors-
· For FY 2018, the United States Federal Government Budget for IT was $95.7 billion, an increase of 1.7% from FY 2017. Such well-funded IT infrastructure is contributing towards the escalating implementation of connected devices such as BYOD at workplaces and cloud computing amalgamated with an increase in the employment of mobile applications.
· As per the National Conference of State Legislatures, the year 2017 witnessed approximately 240 bills relevant to cybersecurity released by 42 states in the U.S. These bills will be propelling initiatives such as providing more funding for improved security measures, combating threats to critical infrastructure, and enforcing regulations to implement specific types of security practices in government agencies as well as a private business. Such enforced security measures will be creating ample scope of opportunities to be leveraged by identity and access management market.
· BFSI sector has a substantial share in the North America IAM market as a consequence of stringent regulations. In the United States, there are provisions for regularly inspecting BFSI enterprises for fraudulent activities. It is creating demand for compliance with rules & regulations to demonstrate that they are managing the risks efficiently, eventually positively influencing the identity and access the market share. The U.S. Security and Exchange Commission (SEC) has set stringent regulations, enabling BFSI institutions to fulfill security requirements.
· Similar to the BFSI sector, legal enforcements are entitled towards the growing telecommunication sector was well. In the year 2015, two of the telecom companies, YourTel America and TerraCom, were penalized with a fine of $ 3.5 million. The step was taken after the Federal Communications Commission of the U.S., detected the companies to be storing the credentials and personal data of their clientele on insecure servers that were easily accessed through the internet causing a risk to the user data. As a consequence, telecom companies are mandated to employ IAM solutions and secure their IT infrastructure to deliver accurate access to respective users, augmenting the IAM market demand.
Identity and Access Management Market Companies:
Some of the major players operating in the global IAM market are CA Technologies, Centrify Corporation, Covisint Corporation, Crossmatch, Dell EMC, IBM Corporation, Micro Focus, Microsoft Corporation, Oracle Corporation, and Pirean Limited. As innovation is paramount to survive in this marketplace, companies are persistently investing in R&D activities to carve a niche for themselves. For instance, in 2016, Dell introduced an innovative IAM solution titled, ‘Dell One Identity Safeguard for Privileged Passwords.’
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