Identity & Access Management

Ensuring the right people access the right resources at the right time

Overview

Increasingly complex corporate infrastructure demands an additional layer of protection

Traditionally, enterprise applications and data sit behind an on-premise firewall, with employees logging in locally to directly access the resources they require. As the modern workplace grows more complex with the adoption of cloud computing tech and the growth of remote work, it has become difficult for organizations to ensure their employees have easy and secure access to necessary resources. Additionally, this process can be further complicated when external parties such as vendors, customers, and partners need to be given access to those resources. 

Data breaches and cyberattacks have become a growing concern over the years and various solutions have emerged across the enterprise IT sector. However, one layer of preventive security—identity and access management (IAM)—has been growing in popularity, helping users avoid cyber incidents and streamline processes like employee onboarding and granting access to enterprise IT resources. 

Industry Updates

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Market Sizing

The US Identity & Access Management market could reach USD 16.8 billion–27.6 billion by 2028

Conservative case

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Base case

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Expansion case

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Use cases


The increasingly interconnected nature of corporate infrastructure has led to a spike in the number of cyberattacks in recent years. With a significant proportion of these being identity-based intrusions, enterprises across the technology, manufacturing, financial services, telecommunications, and healthcare sectors have begun to use IAM solutions across use cases such as scaling, consolidating identities, access management, and compliance.

Besides the typical use of IAM solutions to secure the boundaries of the corporate network, organizations have found numerous benefits through various implementations of an identity security stack, ranging from time saved to reduced overheads to increased productivity. 

We have identified key IAM use cases below:

Market Mapping


IAM solutions can be divided into several categories, including the base subdivisions of “identity” and “access.” “Identity” management comprises the databases that contain user information as well as supporting tools such as user analytics and audit and identity lifecycle management platforms. On the other hand, “access” management products typically include systems, such as MFA, which involve token-based authentication, behavioral authentication, and risk-based authentication. Capabilities such as single sign-on (SSO) are also within this category.

Companies offering end-to-end IAM solutions to manage customer identities raised the most funding —nearly USD 4.4 billion in funding as of June 2024.

The Disruptors


The IAM space is dominated largely by expansion-stage disruptors, indicating its relative maturity; nearly half were founded after 2017. Most startups focus on providing end-to-end IAM solutions to manage employee or customer identities, differentiating themselves by product features such as AI and biometrics or focus industries such as financial services or online businesses.

Customer identity management vendor Socure is the highest-funded private startup in this space, with over USD 740 million in funding as of June 2024.

Funding History

Competitive Analysis


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Product Overview
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Incumbents


Incumbents in the IAM space include major technology firms such as Microsoft, Amazon, Cisco, Oracle, IBM, and Salesforce. Amazon is integrating IAM solutions into its broader cloud computing ecosystems in order to enhance security and user management. For example, Cisco enhances network access and authentication with Cisco Identity Service Engine and Duo Security, while Oracle focuses on compliance and access management with Oracle Access Governance and Oracle Identity Governance. These companies are actively expanding their IAM capabilities through acquisitions and partnerships.

In addition, incumbents include established security vendors offering targeted solutions or blending IAM with other cybersecurity products.

In House Development
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Notable Investors


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Market sizing

The TAM for Identity & Access Management solutions in the US is estimated at USD 54.3 billion

The total addressable market (TAM) refers to the total revenue opportunity available for a product or service, while the actual market is the market size based on revenue projections.
The aggregate TAM for Identity & Access Management in the US is estimated at USD 54.3 billion. Our market sizing includes estimates for the 1) Access management and governance, 2) Multi-factor authentication (MFA) solutions, and 3) Single sign-on (SSO) infrastructure and credential management segments. We have not estimated the market size for the End-to-end employee IAM and End-to-end customer IAM segments given these are aggregated products that combine the previously mentioned solutions.
Access management and governance accounted for the largest share of the TAM at USD 35.7 billion (~66% of the aggregate TAM), with the MFA solutions and SSO infrastructure and credential management segments accounting for USD 15.4 billion (~28%) and USD 3.2 billion (~6%), respectively.
The actual market was estimated at USD 11.9 billion in 2023 and is projected to grow at a CAGR of 13.4% to reach USD 22.2 billion by 2028.

Summary

Our expansion case projects the actual market to grow at a CAGR of 18.4% to USD 27.6 billion by 2028, implying a penetration of 50.9%. This is driven by increased connectivity between devices and the growth of connected infrastructure, leading to a higher risk of identity-based attacks and data breaches as well as regulatory pressure to keep identities and information private.
Conversely, our conservative case projects the actual market to grow slower at a CAGR of 7.2% to USD 16.8 billion, implying a penetration of 30.9%. Growth is expected to be hindered by user perceptions around IAM requiring additional effort and time to implement and manage and a lack of skilled cybersecurity workforce to deploy and maintain IAM infrastructure.
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