The cloud identity and access management market is projected to witness a CAGR of 17.30% during the forecast period to grow to US$39.192 billion in 2027 from US$12.828 billion in 2020.
Cloud managed services are professional services that enhance IT infrastructure and in-house capabilities while being maintained via cloud platforms in partnership with third-party managed providers. A cloud identity and access management (IAM) solution deliver a clear and uniform access control interface for all cloud platform services. As a result, the top impediments to businesses embracing cloud-managed services remain security and privacy concerns. User identities and access rights can be initiated, captured, recorded, and managed using IAM technology. Furthermore, according to regulations and roles, all users are registered, approved, and evaluated. It assists with process and procedure compliance.
Market Trends in Cloud Identity and Access Management (IAM) These cost reductions and efficiencies are driving the adoption of cloud technology in enterprises. However, the advantages of cloud computing may be harmed by a lack of adequate security measures. As a result, the demand for digital identity and access management is driven by a fundamental requirement for security solutions, particularly security for identity-related crimes. Due to its rising use across several sectors, cloud computing accounted for the greatest market share among the various forms of cloud deployment employed in the industry. However, hybrid cloud deployment was predicted to grow at the fastest rate during the forecast period due to increased acceptance among small and medium-sized businesses.
As the cloud market’s growth proceeds, so do the need to encrypt and manage different accounts that employees can access via the cloud, resulting in increased usage of IAM solutions. Traditionally, enterprises viewed IAM solutions as a capital expense that needed to be procured and integrated on-premises. The successful deployment of IAM projects used to come at a high cost, requiring months of arduous labour. However, with the rise of cloud computing, this trend is changing, making cloud-based IAM services easier to accomplish and access.
This shift in the market, combined with attractive pricing choices like a subscription model and pay-as-you-go usage, is allowing IAM service providers to grow their demand. Additionally, cloud-based consumer IAM solutions require less money and deployment time. This aspect, together with the rise of SMEs, is projected to boost the use of user IAM solutions across the board.
The high installation and maintenance expenses of consumer IAM systems are offset by a lack of identification standards and insufficient budgetary resources. Consumer IAM systems must combine sophisticated security technologies. The initial installation and maintenance expenses are substantial. Budgetary restraints have been noticed in large economies, such as areas of Latin America, APAC, and MEA, where businesses are either leveraged or run on a limited budget.
Due to a lack of awareness of modern cyber threats, organisations would not spend that much on their system security and would suffer enormous losses. Furthermore, businesses with critical cybersecurity needs have reported a severe shortage of competent personnel, making them even more vulnerable to cyberattacks. The cybersecurity shortfall has intensified as the world approaches 2022. According to eSecurityPlanet, the demand for competent cybersecurity workers in the United States was over 435,000 in January 2022, up from around 314,000 in 2019.[Ma1]
Workloads for trained IT professionals increased as a result of the COVID-19 epidemic, which, when combined with the increasing prevalence of ransomware attacks, led to burnout among many security professionals. Employers and government representatives are looking for answers to the skills deficit as the need for skilled cybersecurity workers grows.
As the number of dispersed cloud-based applications grows, customers will be able to access significant corporate applications from any location, at any time, on any device. In contrast, the challenges facing user identities have increased as a result of these widespread cloud-based services. Customers are constantly downloading several applications to take advantage of the services provided by enterprises. As a result, they are having difficulty remembering passwords for many accounts. The expanding utilisation of smartphones and tablets, employees can now connect to the workplace network using their personal mobile phones and computers. 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.
Based on the solution type, the market is divided into Provisioning, Single Sign-On, Advanced Authentication, Compliance and Regulation, Password Management, and Others. The provinces sector accounted for dominating the market over the forecast period because of the broad capabilities and user provisioning automation that boost productivity.
Based on the organization size, the market is divided into small, medium, and large enterprises. The large enterprise segment is dominating the market over a forecast period. It helps in providing maximum investment to ensure advanced identity and protect the customer’s privacy.
Based on the vertical type, the market is divided into BFSI, Healthcare, Energy and Power, Manufacturing, Education, Government, Communication and Technology, and Others. The BFSI segment’s dominance is anticipated to grow over the forecast period. To provide appropriate access to the appropriate personnel, manage risks, and adhere to security regulations.
North America is expected to dominate the market over a forecast period. The growth in this region is owing to the adoption of remote work, cloud technology, and increased cyber-attacks. In addition, the presence of key companies such as Amazon Web Services Inc, Akamiai Technologies, HP Development Company L.P., Microsoft Corporation, IBM Corporation, and others in the region drives the market growth.
The COVID-19 pandemic had a positive impact on the market. People began to use cloud access control management systems to manage employee and staff authentication and record storage using cloud services owing to an increase in the desire for cloud services. Moreover, as more individuals began working virtually, cloud access management systems assisted in defining roles and granting authorization to consumers to connect to resources at various degrees of granularity. Moreover, during the COVID-19 epidemic, the opportunity to spend less on security policies by relying on a centralised semi-trusted to cope with identity and access management across third-party and internal apps boosted demand for cloud IAM.
The market is moderately competitive, with multiple global and regional competitors. The market, on the other hand, is turning toward the aggregation of smaller businesses. Several industry participants are using innovations to acquire a long-term competitive position in the industry. Some major key players are IBM, by incorporating artificial intelligence technology, IBM Technology has improved threat detection in identity and access management, Microsoft, Dell, and Intel Corporation.
|Market size value in 2020||US$12.828 billion|
|Market size value in 2027||US$39.192 billion|
|Growth Rate||CAGR of 17.30% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Solution Type, Organization Size, Vertical Type, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||IBM, Microsoft, Dell, Oracle Corporation, Dell Technologies Inc., Broadcom Inc. (CA Technologies), Hewlett Packard Enterprise Development LP, Intel Corporation, SecureWorks Inc.|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global cloud identity and access management (IAM) market?
A1. Cloud Identity And Access Management (IAM) Market was valued at US$12.828 billion in 2020.
Q2. What will be the cloud identity and access management market size by 2027?
A2. The cloud identity and access management market is projected to reach a market size of US$39.192 billion by 2027.
Q3. What are the growth prospects for the cloud identity and access management (IAM) market?
A3. The global cloud identity and access management market is projected to witness a CAGR of 17.30% over the forecast period.
Q4. How is the global cloud identity and access management market segmented?
A4. The cloud identity and access management (IAM) market has been segmented by solution type, organization size, vertical type, and geography.
Q5. Which region holds the largest market share in the cloud identity and access management market?
A5. North America is expected to dominate the cloud IAM market owing to the adoption of remote work, cloud technology, and increased cyber-attacks.
Dell Technologies Inc.
Broadcom Inc. (CA Technologies)
Hewlett Packard Enterprise Development LP
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