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2023

Cloud Identity and Access Management Market

Cloud Identity and Access Management Market Size, Share, Competitive Landscape and Trend Analysis Report by Component, by Offering, by Deployment Mode, by Industry Vertical : Global Opportunity Analysis and Industry Forecast, 2023-2032

IC : Information, Infrastructure & Network Security

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Author's: Shubham Vardam | Onkar Sumant
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Cloud Identity and Access Management Market Statistics: 2032

The global cloud identity and access management market was valued at $6.2 billion in 2022, and is projected to reach $34.1 billion by 2032, growing at a CAGR of 18.8% from 2023 to 2032.

Cloud Identity and Access Management (IAM) is a framework of business processes, policies and technologies that facilitates the management of electronic or digital identities. With an IAM framework in place, information technology (IT) managers can control user access to critical or personal information within their organizations. Systems used for IAM include single sign-on systems, two-factor authentication, multifactor authentication, and privileged access management. These technologies also provide the ability to securely store identity and profile data as well as data governance functions to ensure that only data that is necessary and relevant is shared.  

Cloud Identity and Access Management Market

The global cloud identity and access management market is currently experiencing significant growth, primarily driven by the growing number of cybersecurity breaches and identity-related fraud. The outbreak of COVID-19 prompted a considerable proportion of routine activities and businesses to shift their operations online. This resulted in organizations and individuals throughout the world beginning to rely increasingly on digital media and communication networks. Cybercriminals started taking advantage of the situation to cause damage around the globe. The adoption of cloud identity and access management solutions for compliance is further fueled by the increasing adoption of cloud computing and other connected technologies.

However, a significant challenge in this market is the lack of awareness regarding IAM solutions. The shortage of trained and well-observed employee force in the organizations is mostly viewed in small & medium size organizations. In addition, concerns regarding the unavailability of skilled professionals and minimizing the ability of organizations to implement and maintain effective cybersecurity solutions, these measures are likely to limit cloud IAM market growth. Consequently, the expertise factor impedes the wider adoption of these solutions, particularly among organizations with limited labor means.

Additionally, the major challenge for the growth of the global cloud identity and access management market is the complexity of advanced threats and the fluctuating regulatory landscape. The increasing employment of advanced techniques such as polymorphic malware, zero-day exploits, and social engineering, is certainly restraining the adoption of cloud identity and access management solutions across the globe. However, the growing popularity of cloud-based IAM solutions and services and the rising adoption of emerging technologies such as AI, biometrics, and others are anticipated to emerge as a lucrative opportunity for the growth of the cloud identity and access management market. 

The report focuses on growth prospects, restraints, and trends of the cloud identity and access management market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the cloud identity and access management market.

Segment Review

The cloud identity and access management market is segmented on the basis of component, offering, deployment mode, industry vertical, and region. On the basis of component, the market is segmented into solution and service. As per offering, the market is segmented into user provisioning, single sign-on, access management, multi-factor authentication, password management, and others. Depending on deployment mode, the market is segmented into public, hybrid, and private. On the basis of industry vertical, the market is segmented into BFSI, healthcare, IT and telecom, retail and e-commerce, government and defense, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Cloud Identity and Access Management Market by Component

On the basis of component, the global cloud identity and access management market share was dominated by the solution segment in 2022 and is expected to maintain its dominance in the upcoming years, as the growing need for a high level of personalization is one of the primary reasons enterprises are increasing their investment in the market.

Cloud Identity and Access Management Market by Region

By region, North America dominated the cloud identity and access management market size in 2022. This region is more focused on regulatory compliance solutions for data privacy and security which is further anticipated to propel the growth of the  market. However, Asia-Pacific is expected to exhibit the highest growth during the forecast period. This is attributed to the increase in penetration of digitalization and higher adoption of advanced technology which are expected to provide lucrative growth opportunities for the market in this region.  

Top Impacting Factors

Increasing Adoption of Cloud Computing and Other Connected Technologies   

The rising trend of cloud-based solutions for improving security and optimizing operations is directly influencing the global cloud identity and access management market growth. The need for secure and efficient cloud-based solutions for security is increasing, due to the growing interconnection between operational technology systems and information technology (IT) systems, and the internet. Cloud-based security solutions offer benefits such as scalability, flexibility, and cost-effectiveness and help organizations manage security systems in a more streamlined and centralized manner. Thus, these factors are likely to contribute to the increased installation of cloud identity and access management market globally.  

Furthermore, the integration of cloud-based solutions allows organizations to collect and analyze security data from several IT systems, including logs, network traffic, and security alerts, in a centralized cloud-based platform. Cloud-based security solutions provide real-time visibility and threat detection and can help organizations respond to security incidents more quickly and effectively. Hence, these multiple benefits offered by cloud-based security solutions will boost demand for the cloud IAM market. Moreover, private and public companies are continuously involved in promoting digitalization in security operations and maintenance.

For instance, in October 2021, Orca Security raised $550 million in fundraising led by Temasek. The investment further focused on extending the transformation of the cloud security industry. Such investment pooling in the digitalization of the security solution will fuel the demand for cloud-based security solutions, which in turn will augment cloud IAM market growth on a global scale.  

Lack of Awareness Regarding IAM Solutions     

The lack of skilled cyber security experts and strategic planning can limit the growth of the cloud identity and access management market, owing to the shortage of trained and well-observed employee force in the organizations mostly viewed in small & medium size organizations. In addition, concerns regarding the unavailability of skilled professionals, and minimizing the ability of organizations to implement and maintain effective cybersecurity solutions, these measures are likely to limit the market growth.

The deficiency of skilled professionals and strategic planning can lead organizations to struggle in identifying and moderating cyber threats, which can be the major restraining factor for the growth of the cloud identity and access management industry on a global scale. Further, the lack of awareness of the cyber security needs in the businesses, and consequently inferior investment strategies in security solutions and services can lead businesses vulnerable to attacks and slow the growth of the cloud IAM market.  

However, to address these challenges, organizations can take several steps such as investing in cybersecurity training programs to help develop a pipeline of skilled professionals. Organizations can also work with cybersecurity vendors and consultants to develop strategic security plans that are aligned with the business objectives and risk profile. Thus, along with the restraining factors, the potential of organizations proactive approaches to cyber security are expected to recover the growth of the cloud identity and access management market.   

Growing Popularity of Cloud-based IAM Solutions and Services

Increasing adoption of several technologies such as cloud-based IAM solutions and services indeed creates new opportunities for the global cloud identity and access management market. Cloud IAM market consists of a suite of practices, policies, and technological tools devised to regulate and oversee user access to a wide range of cloud resources, including data, applications, and services. Such advantages allow vendors to combine individual products and technologies to create more comprehensive cloud identity and access management solutions.

Increasing integration of complementary capabilities, such as threat intelligence, endpoint protection, network monitoring, and behavior analytics, may offer customers a holistic security approach that addresses multiple layers of the security stack. These aforementioned factors are likely to create lucrative opportunities to propel the market growth globally.

Furthermore, several public and private businesses are adopting investment strategies to enhance their portfolio by integrating cloud identity and access management solutions. For instance, in July 2022, Delinea partnered with Authomize to provide the comprehensive security necessary to enforce least privilege across cloud environments. Thus, such strategies are further expected to propel numerous growth opportunities for the global cloud identity and access management industry.  

Competition Analysis:

Competitive analysis and profiles of the major players mentioned in the report are Accenture plc, Amazon Web Services Inc., Cognizant Technology Solutions Corporation, Google Inc., IBM Corporation, Microsoft Corporation, NTT Data Corporation, Okta Inc., Oracle Corporation, and Ping Identity. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the cloud identity and access management market globally.

Recent Partnerships in the Market:

In July 2022, Delinea partnered with Authomize to provide the comprehensive security necessary to enforce least privilege across cloud environments. Thus, such strategies are further expected to propel numerous growth opportunities for the global cloud identity and access management market. 

Recent Product Launches in the Market:

For instance, in December 2022, CloudIBN launched its Cloud Identity and Access Management offerings. This suite of IAM products is expected to help businesses ensure that the data remains secure, while also providing an efficient way to manage user access control across the organization. Therefore, such strategies adopted by market players are increasing market competition and leading to the growth of the cloud IAM market.

Market landscape and trends

The COVID-19 outbreak had a major effect on national economies, societal norms, and overall health. To facilitate this transformation, businesses rushed to swiftly purchase and implement new technologies, which created new security concerns and demanded a change in how security providers conducted tests in their widely distributed settings. Moreover, the pandemic compelled businesses globally to implement remote work policies and thoroughly rely on digital communication strategies. With the rise in remote work, the volume of confidential data being transmitted by communication channels has increased, leading to a surge in demand for cloud identity and access management solutions to ensure the security and privacy of remote communications. Consequently, businesses have adopted various strategies to expand their product offering in the cloud identity and access management market.

For instance, in July 2023, Infisign launched its Cloud Identity and Access Management (IAM) platform, a unique solution for passwordless authentication using the zero-trust approach. The zero-trust framework eliminates the reliance on traditional perimeter-based security measures and implements robust authentication and access control mechanisms at every level of the network infrastructure. Therefore, such developments after the pandemic are expected to boost the growth of the cloud identity and access management market.      

Key Benefits for Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the cloud identity and access management market forecast from 2022 to 2032 to identify the prevailing market opportunities.
  • Cloud IAM market research is offered along with information related to key drivers, restraints, and opportunities of the cloud identity and access management market outlook.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
  •  In-depth analysis of the cloud identity and access management market segmentation assists in determining the prevailing cloud identity and access management market opportunity.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes an analysis of the regional as well as global cloud identity and access management market trends, key players, market segments, application areas, and market growth strategies.

Cloud Identity and Access Management Market Report Highlights

Aspects Details
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Market Size By 2032

USD 34.1 billion

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Growth Rate

CAGR of 18.8%

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Forecast period

2022 - 2032

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Report Pages

280

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By Component
  • Solution
  • Service
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By Offering
  • User Provisioning
  • Single Sign-on
  • Access Management
  • Multi-Factor Authentication
  • Password Management
  • Others
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By Deployment Mode
  • Public
  • Hybrid
  • Private
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By Industry Vertical
  • BFSI
  • Healthcare
  • IT and telecom
  • Retail and e-commerce
  • Government and defense
  • Others
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By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Italy, Spain, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

NTT DATA CORPORATION, Ping Identity Corporation, Amazon Web Services Inc., Google Inc., Okta Inc., Microsoft Corporation, IBM Corporation, Oracle Corporation, Cognizant Technology Solutions Corporation, Accenture plc

Analyst Review

The cloud identity and access management market are characterized by intense competition, which can be attributed to the strong presence of established vendors. It is expected that cloud identity and access management solution and service providers, who possess extensive technical and financial resources, will have a competitive advantage over their competitors due to their ability to meet the global market needs. Furthermore, the competitive landscape within the market is anticipated to become even more intense as a consequence of technological advancements, product expansions, and various strategies employed by key vendors. 

The cloud identity and access management market is anticipated to grow significantly during the forecast period. There are few major trends in the cloud identity and access management market such as growing adoption of cloud-based cloud identity and access management solutions and surging emphasis on real-time cloud identity and access management information. These trends are positively impacting the overall cloud identity and access management market.

Moreover, managed cloud identity and access management services are witnessing an increase in popularity across diverse industry verticals and enterprises. These service operators help large enterprises manage their information technology infrastructure with the addition of advanced security frameworks. This is also expected to fuel competition in the cloud identity and access management market. In addition, continuous developments in cloud-based cloud identity and access management platforms to cater diverse customer requirements are expected to support the overall market growth.

By region, the cloud identity and access management market trends have been analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America contributed maximum revenue in 2022 and is expected to grow at a significant growth rate as compared to other regions. Factors such as the presence of prominent technology companies and industry consortiums focusing on cybersecurity infrastructure have contributed to the demand for advanced cloud identity and access management solutions and services. Asia-Pacific is the fastest-growing region in the market, which is mainly attributed to the growing focus of the market players to address the demands for advanced security frameworks with cost-effectiveness.

Major companies operating in the cloud identity and access management market are focusing on strategic partnerships to develop advanced cloud identity and access management solutions. For instance, in October 2023, ManageEngine launched Identity360, its cloud-native identity management platform that addresses cloud identity and access management (IAM) complexities arising within enterprise workforces. Similar strategies by the market players operating at a global and regional level will help the market to grow significantly during the forecast period.

Some of the key players profiled in the report include Accenture plc, Amazon Web Services Inc., Cognizant Technology Solutions Corporation, Google Inc., IBM Corporation, Microsoft Corporation, NTT Data Corporation, Okta inc., Oracle Corporation, and Ping Identity. These players have adopted various strategies to increase their market penetration and strengthen their position in the cloud identity and access management market.

Author Name(s) : Shubham Vardam | Onkar Sumant
Frequently Asked Questions?

The adoption of zero trust security approach and integration of biometric authentication methods are among few upcoming trends of cloud identity and access management market in the world.

BFSI is the leading application of cloud identity and access management market.

North America is the largest regional market for cloud identity and access management.

The cloud identity and access management industry generated $6,214.3 million in 2022.

Accenture plc, Amazon Web Services Inc., Google Inc., IBM Corporation and Microsoft Corporation are the top companies to hold the market share in cloud identity and access management.

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Cloud Identity and Access Management Market

Global Opportunity Analysis and Industry Forecast, 2023-2032