In the MarketsandMarkets taxonomy, we define Identity and Access Management market as – IAM is a business security framework for managing digital identities scattered both inside and outside the enterprises. IAM solutions manage the access to information and applications across enterprises, while taking security and risk under considerations. These solutions facilitate enterprises to create, store, delete, and maintain user identities and their related access permissions automatically, thus enabling the right individuals to access the right resources at the right time. The varied technological environments, strict compliance, and increasing digital identities across enterprises are pressing the need of IAM solutions for information security practices. Enterprises manage their identity management costs and become more agile by adopting IAM competencies.

NA has the maximum market share of the total IAM market in 2014, which is followed by Europe and APAC regions. The European and NA market have already reached the high maturity stage; hence they will grow at a slower pace as compared with other regions. The APAC region is expected to grow faster due to the high number of IAM solution deployments in the region, as a result of increased cyber-attacks on critical infrastructure. This has caused rise in the demand of IAM solutions in the region. The leading security providers in the IAM market have made innovative changes to their solutions and services in the APAC region. The organizations have started deploying next-generation technologies to gain a competitive edge over their competitors in the IAM market. The MEA region is expected to gain traction but the growth would be stable in the coming years. Moreover, the IAM market in LA, on the other hand, is in its introductory phase and is expected to grow rapidly due to a rise in demand for cloud IAM solutions to protect critical infrastructure.

One of the main market restraints are- Currently, a large number of user populations use e-banking applications globally, wherein failure or compromised user’s privacy is not an option. Advanced security solutions for physical and information security have already been adopted by the BFSI industry. However, the rising number of internal and external user population and increased volume and complexity of data-heavy transactions is revealing concerns related to insecure end points. The user’s end points such as desktops, laptops, and mobile devices are the prime targets of cyber attackers, as these end points provide easy access, which can be used for multiple attack vectors. Henceforth, user awareness toward complex threats and system vulnerabilities is very critical. Businesses need to continuously engage customers and educate them about their data security. In addition, more innovation and creativity is required to develop the security infrastructure, so that every security solution is aligned to achieve a common security goal.

One other interesting stats are-

• The IAM market by component is estimated to grow at a CAGR of ~12.52% from 2014 to 2019 to reach ~$1.00 billion by 2019
• The provisioning market has the largest market share of 49% of the overall IAM components market in 2013 and is estimated to witness a CAGR of ~10.48% from 2014 to 2019 as the provisioning lies at the core of access rights compliance and enforcement initiatives,
• The audit, compliance, and governance market is expected to grow with the highest CAGR of ~19.15% from 2014 to 2019 due to stringent regulatory compliances. Both advanced authentication and SSO are expected to witness high traction in the market with double-digit growth of ~16.00% and ~14.00%, respectively, from 2014 to 2019
• The virtual directories market is estimated to grow at a CAGR of ~10.00% from 2014 to 2019 to reach ~$140.0 million by 2019
• Issues related to wide range of identity related data sources and availability of data whenever required by the applications is driving the market for directory technologies.

The APAC region includes emerging economies such as India, China, Australia, Japan and so on. These countries have potential Identity and Access Management Market across BFSI, telecommunication, manufacturing, retail, wholesale distribution, energy, and healthcare industries. The number of enterprises and industries in the APAC region has improved considerably as the economy has started recovering since 2012. Financial institutions are expanding their business operations globally to serve their rising customer base. Moreover, BFSI sector is spearheading the technology implementation in terms of mobility, cloud computing, hosting services for growing branch offices, ATM centers, cash depots and data centers. Increasing number of customer base and internet users is stirring strong requirements for better operation efficiency, low cost to income ratio, and enhanced customer centricity for the industry. However, the organizations in the region are under increasing pressure to contain operational expenses and comply with the expanding list of industrial and government regulations.