PUBLISHER: TechSci Research | PRODUCT CODE: 1934183
PUBLISHER: TechSci Research | PRODUCT CODE: 1934183
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The Global Identity & Access Management (IAM) Market is projected to expand from USD 23.02 Billion in 2025 to USD 46.69 Billion by 2031, registering a CAGR of 12.51%. Defined as a holistic framework comprising policies, processes, and technologies, IAM is essential for managing digital identities and regulating user access to vital organizational assets. Growth in this sector is largely fueled by the rapid pace of digital transformation, particularly the widespread migration to cloud environments, and the growing requirement for stringent regulatory compliance regarding data privacy. Additionally, the continuous rise in security breaches forces businesses to prioritize identity governance to safeguard sensitive resources. As reported by the Identity Defined Security Alliance in 2024, 90% of organizations encountered at least one identity-related incident within the previous year, highlighting the urgent need for strong security measures.
| Market Overview | |
|---|---|
| Forecast Period | 2027-2031 |
| Market Size 2025 | USD 23.02 Billion |
| Market Size 2031 | USD 46.69 Billion |
| CAGR 2026-2031 | 12.51% |
| Fastest Growing Segment | IT & Telecom |
| Largest Market | North America |
However, the market faces significant hurdles due to the intricacies involved in deploying and integrating IAM solutions across varied IT infrastructures. Companies often grapple with issues like identity sprawl and the high level of technical proficiency needed to configure these systems for both legacy and modern platforms. This operational complexity, combined with significant implementation costs, often places a heavy burden on smaller enterprises, potentially slowing the wider acceptance of comprehensive identity management frameworks.
Market Driver
The rising frequency of cyberattacks and data breaches serves as the main driver for the Global Identity & Access Management (IAM) Market, forcing organizations to fundamentally reassess their security boundaries. Attackers have largely moved away from traditional software vulnerabilities, opting instead for sophisticated identity-based intrusions where stolen credentials allow them to mimic legitimate users. According to the '2025 Global Threat Report' by CrowdStrike in August 2025, 79% of detected cyberattacks in 2024 were malware-free, indicating a clear market trend toward using compromised identities rather than exploits to penetrate networks. This increase in credential-based threats requires robust IAM systems capable of real-time user verification. Reflecting the urgency to modernize security, Zscaler reported in 2025 that 81% of organizations are shifting to implement zero trust strategies by 2026, emphasizing the vital adoption of identity-centric security models globally.
At the same time, the rapid expansion of cloud services and digital transformation efforts is broadening the attack surface, introducing complex challenges in managing access for both human and non-human entities. As businesses move toward hybrid and multi-cloud environments, the number of silicon-based identities requiring authentication has surged, making manual identity governance ineffective. According to CyberArk's '2025 Identity Security Landscape' report from April 2025, machine identities now exceed human identities by a ratio of 82 to 1, highlighting the critical issue of unmanaged access points in modern infrastructure. This massive increase in machine identities-spanning from bots to serverless functions-fuels the demand for automated IAM solutions capable of securing diverse digital assets without hindering operational speed or scalability.
Market Challenge
The operational difficulties linked to deploying and integrating Identity and Access Management (IAM) solutions across varied IT infrastructures serve as a significant constraint on market growth. As enterprises navigate hybrid environments that include both legacy applications and modern cloud services, the technical challenge of unifying these distinct systems generates considerable friction. This integration process requires specialized knowledge and extensive configuration, resulting in high implementation costs that frequently surpass the budgets of small and medium-sized businesses. As a result, prospective buyers often postpone or reduce the scope of their identity modernization initiatives to prevent business interruptions and resource depletion.
This obstacle is underscored by recent industry statistics illustrating the scale of the problem. According to the Cloud Security Alliance in 2024, 65% of organizations pinpointed the management of access controls and policy enforcement across fragmented identity systems as a major operational issue. These integration barriers directly impede market expansion by extending sales cycles and lowering adoption rates among organizations with limited resources, effectively limiting the revenue opportunities for IAM vendors in the current market landscape.
Market Trends
The broad acceptance of passwordless authentication technologies is reshaping the IAM sector by substituting vulnerable static credentials with cryptographic proofs and biometric verification. Companies are actively moving toward FIDO2 standards and WebAuthn protocols to remove the friction and security dangers linked to traditional passwords, such as phishing and credential stuffing. This transition extends beyond user convenience, representing a vital strengthening of the authentication layer against interception attacks. Demonstrating this swift shift, the '2025 Businesses at Work' report by Okta in March 2025 noted that the year-over-year growth of the passwordless Okta Verify FastPass solution hit 69% among Fortune 500 clients, indicating a clear move away from legacy login methods.
Simultaneously, the incorporation of AI and machine learning for adaptive risk analysis is evolving access control from static, rule-based frameworks to dynamic, behavior-focused systems. Contemporary IAM platforms leverage these technologies to analyze vast telemetry streams in real-time, enabling continuous evaluation of user risk scores based on anomalies in location, device status, and access behaviors. This functionality facilitates automated threat response, drastically narrowing the exposure window for identity-related breaches. Highlighting the operational value of these intelligent defenses, the '2025 Cost of a Data Breach Report' by IBM in August 2025 revealed that organizations using extensive security AI and automation reduced their breach lifecycles by 80 days compared to those without such capabilities, emphasizing the importance of automated risk engines in modern security architectures.
Report Scope
In this report, the Global Identity & Access Management (IAM) Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Company Profiles: Detailed analysis of the major companies present in the Global Identity & Access Management (IAM) Market.
Global Identity & Access Management (IAM) Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report: