Identity and Access Management Market to Hit USD 39.2 Billion by 2030

The identity and access management (IAM) market is set to grow at a CAGR of 13.3% over this decade, reaching a value of USD 39,184.4 million by 2030. IAM is a security framework that ensures authorized users can access the right resources at the right time and for the right reasons. This technology enables organizations to provide secure, identity-based access to applications, systems, and data from any location, ensuring only authorized personnel can access sensitive resources.

The solution segment dominates the IAM industry, as it empowers organizations to implement consistent security policies across platforms, systems, and applications. With the increasing prevalence of data breaches, businesses are turning to centralized security solutions, driving the demand for IAM technologies.

Cloud-based IAM solutions, such as cloud Identity-as-a-Service (IDaaS), are anticipated to grow significantly due to their cost-effectiveness, ease of management, and growing adoption by SMEs. These solutions require minimal capital investment and are quick to implement. Additionally, the hybrid deployment model, which combines on-premises and cloud capabilities, allows end-users to adopt IAM technologies flexibly, further propelling the market.

The BFSI sector has witnessed substantial growth, driven by rising incomes and the need to safeguard sensitive customer data. Banks and financial institutions are increasingly deploying IAM solutions to enhance productivity, ensure regulatory compliance, reduce IT management costs, and improve security.

Regionally, North America has been the leader, holding approximately 40% of the market share in recent years. The dominance is attributed to the presence of numerous federal agencies in the U.S., such as the Department of the Interior and the Department of Transportation, which mandate robust authentication methods for accessing government IT infrastructure.

Europe is another major revenue-generating region, fueled by heightened regulatory and security compliance requirements in nations like Germany, Italy, France, the U.K., and Spain. The enforcement of the EU's General Data Protection Regulation (GDPR) has further increased the adoption of IAM solutions to meet stringent data security standards.

The rising incidence of cyberattacks and data breaches worldwide continues to drive the demand for IAM solutions. This trend is expected to persist, ensuring robust growth for the IAM market in the years ahead.