Market Overview

The IAM Security Services Market was valued at USD 11.61?billion in 2019?at a CAGR of 12.9% over the forecast period 2020?- 2025. Demand for identity and access management (IAM) is growing, due to compliance mandates, growing desire to manage alternative user populations, like on-premises visitors, and an emphasis on timely and secure access. It also allows organizations to manage the lifecycle of identities, such as employees, contractors, and vendors. Cloud technology is changing the way businesses work, driven by cost efficiencies and economies of scale. However, the lack of effective security can undermine the benefits of cloud computing. This marks the fundamental need for security solutions, including security for identity-related crimes, and hence, drives the market for identity and access management.

  • Securing networks and digital assets have become an important component of every business. Data breaches are not only committed by hackers, but many are also committed by individuals within an organization who have access to sensitive parts of networks or facilities. According to the Insider Threat Report by CA Technologies in 2018, 90% of organizations feel vulnerable to insider attacks. The main factors include many users with excessive access privileges (37%), rising number of devices with access to sensitive data (36%), and increasing complexity of IT (35%).
  • As per the report, regular employees (56%) and privileged IT users (55%) pose the biggest security risk to organizations, followed by contractors (42%). Companies are shifting their focus on the detection of insider threats (64%), followed by deterrence methods (58%) and analysis and post-breach forensics (49%). Use of user behavior monitoring is growing; 94% of organizations deploy some approach of monitoring users. Companies are increasingly adopting identity and access management solutions to deter insider threats.
  • Furthermore, an immense amount of data and infrastructure is being deployed over the cloud, thus increasing the cost due to these breaches. Accenturesecurity reported the United State’s average annual cost of cybercrime increased by 29% in 2018 to reach USD27.4 million. Since these criminal activities and conspiracies are on the rise and are now effective at duping people into divulging their credentials, IAM solutions are being increasingly deployed.
  • Among the types of cloud deployment being used in the market, public cloud accounted for the largest share, owing to their increased adoption across verticals. However, hybrid cloud deployment is expected to witness the highest CAGR over the forecast period, because of growing adoption among small- and medium-sized enterprises, among others.

Scope of the Report

Identity management, also recognized as identity and access management (IAM) is, in computer security, the security and business regulation that enables the right people to access the right resources at the right times and for the right purposes and goals.

Key Market Trends

The IT & Telecom Segment is Expected to Post a Strong Growth

  • The diverse ecosystem of IT and telecommunication is more prone to data breaches, data thefts as they are highly dependent on their infrastructure, network, and databases to carry out any operation. Furthermore, the growing number of IT out-sourced projects related to supporting mission-critical applications in areas, such as healthcare, business, and transport, demands enhanced IAM solutions.
  • Moreover, a concept of a unified, outsourced solution is alluring for modern IT admins, since the alternative is a mess of partial add-on solutions with an aging on-premise IT infrastructure. Penetration of cloud services is rising day-by-day in the IT industry, as the databases and servers are now being shifted to cloud. Also, growth in cloud spending is expected to drive the cloud-based IAM solution market. The growth in the number of employees in the IT industry has led to the database of personal details being maintained usually over the cloud-based storage. This move is in anticipation with the shifting IAM in the cloud.
  • Telecom businesses mostly work with a huge user base that traverses across national boundaries. The users consider that the telecom system can be relied upon for various transactions that could be financial or sensitive. Within the telecom industry, digital identities and access governance algorithm are very complex, thus driving the demand for IAM solutions.
  • In addition to this, growth in security spending in IT organizations is expected to drive the cloud-based IAM adoption. Prominent telecom organizations have also begun to transform themselves into technology providers by creating mobile applications for the use of VoIP calls and storing data on cloud platforms. The combined mobility and cloud computing are expected to create new frontiers of risks for operators. Thus, driving the adoption of a highly secure and robust IAM.

North America Leads the Market with the Largest Market Share

  • Over the last few years, there have been several data breaches reported in the North America region. Several end-user segments ranging from IT and telecom, healthcare to the energy sector have been affected by these breaches. In a recent case, Desjardins Group (a Canadian company) reported that one of its employees collected information about three million people and businesses and shared it with other financial institutions. The data breach affected around 2.7 million people and 173,000 businesses. The leaked information includes names, addresses, birth dates, email addresses, and information about transaction habits.
  • Apart from this, the region’s healthcare sector’s ability to defend against cyber threats is seriously undermined by its own employees. According to the survey done by the Healthcare Information and Management Systems Society, in 2018, in the United States, around 24% of the respondents stated that their organizations have no insider threat management program. According to a survey done by Unisys Corporation, in 2018, around 64% of the US government IT employees view identity management solutions as critical to addressing the increased cybersecurity threats to agencies. Within the government and critical infrastructure sectors, the need for robust identity protection is growing. This is due to the sensitivity of the data these entities possess. Such factors are expected to impact the growth of the market studied over the forecast period.
  • With the growing incidence of such threats, the Department of Homeland Security Science and Technology Directorate’s Insider Threat project is working on to curtail elements of this problem. This may benefit national security bodies, healthcare, finance, and other critical infrastructure sectors, where keeping sensitive information secure is important. In Canada, for the prevention of attacks on organizations, the IT budgets of the companies increased by 11% between 2014 and 2017. Whereas in the United States, IT spending on security solutions is expected to reach USD 66 billion in 2018. Companies in North America are also shifting toward cloud-based identity and access management solutions, as it offers multiple benefits, like reduced CAPEX and faster rollouts of updates.

Competitive Landscape

The IAM Security Services Market is broadly fragmented, and the vast majority of the players functioning in the global IAM Security Services market are considering steps to raise their market footprint, by focusing on product diversification and development, consequently making them grab a larger share of the market.

  • Mar 2018 - IBM teamed up with Cloudflare, a billion-dollar tech startup headquartered in San Francisco, to provide a new set of cybersecurity offerings to its cloud computing customers. The combination of these two giants will hugely simplify things for end-users.
  • Mar 2018 - CyberArk acquired Vaultive to advance privileged account security for the cloud. With the acquisition of Vaultive, CyberArk extends its leadership to secure privileged access to SaaS, IaaS and PaaS applications by administrators and privileged business users.
  • Feb 2018 - Driven by strong customer demand for its cloud services worldwide, Oracle planned to significantly expand its modern cloud infrastructure footprint. The company’s rapid expansion plans include the opening of 12 new datacenter regions and increase the breadth and depth of Oracle Cloud services available across Asia, Europe, and the Americas.

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