Identity Governance and Administration Market Share

Identity Governance and Administration Market Overview

Identity Governance and Administration Market Size was valued at USD 5.5 Billion in 2022. The identity governance and administration market industry is projected to expand from USD 6.33 Billion in 2023 to USD 19.65 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15.20% during the forecast period (2023 - 2032). The growing demand to improve the operational effectiveness of identity procedures and organizations' demands to comply with compliance requirements, growing data usage, and globalization are the primary market drivers fostering the market's expansion.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Identity Governance and Administration Market Trends

• Growing awareness about regulatory compliances is driving the market growth

Market CAGR for identity governance and administration is being driven by the strict nature of various regulations. In today's data-driven world, businesses need identity governance and administration solutions to spot fraudulent activity, stop cyberattacks, and guarantee the security and privacy of customer data. Identity governance and administration solutions assist organizations in meeting compliance obligations. For instance, organizations with identity governance and administration solutions can demonstrate during audits that they have suitable safeguards to reduce the risk of a data breach or misuse. The Gramm-Leach-Bliley Act (GBLA), Sarbanes-Oxley Act (SOX), Payment Card Industry Data Security Standard (PCI), Health Insurance Portability and Accountability Act (HIPAA), and North American Electric Reliability Corporation (NERC) are just a few of the regulations that identity governance and administration solutions aid in meeting specific requirements for. This industry is anticipated to grow due to these compliance requirements and corporate governance issues.

Identity governance and administration systems have become increasingly important due to increased cybercrimes and fraudulent activities brought on by the quick adoption of the cloud and other developing technologies within organizations. Identity governance and administration use identity analytics and intelligence to monitor suspicious user account activity. It makes it possible to spot policy infractions, delete inactive accounts, and take away rights for unauthorized access. This market's expansion is projected to be fueled by companies' growing identification and security concerns.

Figure 1: Global percentage of organizations compromised by a successful cyberattack

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

The introduction of blockchain technology makes it possible for secure and transparent identity management services to safeguard individual and corporate identities from fraud and cyberattacks. Governments and organizations are investing in adopting solutions to take advantage of the advantages of identity authentication and secure access afforded by Blockchain-linked identity governance and administration systems.  In addition, by eliminating middlemen, data, and duplicate identity repositories, blockchain-based identity governance and administration solutions help lower costs and operational hazards. The demand for such systems is anticipated to rise over the next years as blockchain technology becomes more widely used. Thus, driving the identity governance and administration market revenue.

Identity Governance and Administration Market Segment Insights

Identity Governance and Administration Component Insights

The Identity Governance and Administration Market segmentation, based on components, includes solutions and services. The services segment dominated the market, accounting for 69.9% of market revenue (3.8 Billion). Identity governance and administration services are the help solution providers provide to customers so they may effectively use and manage identity governance and administration solutions. Identity management uses various services to proactively identify the issues and suggest the best action to fix them. Additionally, in 2022, the solution sector witnessed the fastest growth rate. Different vendors offer digital identity solutions as a platform or tool integrated with an enterprise's infrastructure. To help organizations deploy the desired solution in their current infrastructure, vendors also offer hardware and services.

Figure 2: Identity Governance and Administration Market, by Component, 2022 & 2032 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Identity Governance and Administration Deployment Insights

The Identity Governance and Administration Market segmentation, based on deployment, includes cloud and on-premises. The on-premise sub-segment dominated the market in 2022 and accounted for the greatest share of more than 50.45% of the total revenue due to the solution's functionality without requiring an external network connection and access through Wide-Area Network (WAN). Over the forecast period, the cloud-based sub-segment is anticipated to have the highest CAGR. Any business can benefit from cloud computing in various ways, including managing IT systems and reducing repair costs, providing quicker access to data so that regular business operations can continue with fewer interruptions and productivity losses, and ensuring data backup and storage in a secure location.

Identity Governance and Administration Industry Vertical Insights

The Identity Governance and Administration Market segmentation, based on industry vertical, includes BFSI, government and defense, and healthcare. The healthcare category is anticipated to experience the largest growth due to the growing adoption of these kinds of solutions. The demand for identity governance and administration systems is anticipated to increase as healthcare becomes more digitalized, including telemedicine, electronic medical records, and other e-health applications. Identity governance and administration systems are needed to secure these identities, patients' sensitive data, etc., and adhere to laws such as the Health Insurance Portability and Accountability Act (HIPAA), among others. Over the predicted period, the BFSI segment will grow at the fastest CAGR. It is anticipated that the BFSI industry will adopt more of these solutions to assure proper access to the right individuals, manage risks, and adhere to security laws such as online payments, e-wallets, and digital/retail banking to gain popularity.

Identity Governance and Administration Regional Insights

By region, the report offers market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American identity governance and administration market area will dominate this market. The use of remote work, cloud technologies, and increased cyberattacks contribute to this region's rise.  In 2022, there were 1802 instances of data compromise in the US. During the same year, data compromises, including data breaches, leaks, and exposure, impacted over 422 million people. The presence of major corporations in the area, including Amazon Web Services Inc., Akamai Technologies, HP Development Company L.P., Microsoft Corporation, Oracle Corporation, IBM Corporation, and others, is another factor driving market expansion.

Further, the leading countries studied in the market report are US, Canada, France, German, Italy, UK, Spain, Japan, China, Australia, India, South Korea, and Brazil.

Figure 3: GLOBAL IDENTITY GOVERNANCE AND ADMINISTRATIONMARKET SHARE BY REGION 2022 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Europe’s identity governance and administration market accounts for the second-largest market share due to security and legal compliance worries in nations like Germany, Italy, Spain, and others. The market for identity governance and administration systems in this region is driven by the General Data Protection Regulation (GDPR) rules for the entire European Union. Further, the German identity governance and administration market held the major market share, and the UK identity governance and administration market was the fastest-growing market in the region.

The Asia-Pacific Identity Governance and Administration Market is estimated to expand at a rapid rate from 2023 to 2032. Growing operational digitization, a high number of SMEs implementing such systems, increasing internet penetration, and the rapid development of digital infrastructure are all factors in developing the identity governance and administration market in the Asia Pacific region. Moreover, China’s identity governance and administration market held the largest market share, and the Indian identity governance and administration market was the fastest-growing market in the region.

Identity Governance and Administration Key Market Players & Competitive Insights

Leading market players are largely investing in research and development to grow their product lines, which will help the identity governance and administration market, grow even more. The launch of new products, larger-scale mergers and acquisitions, contractual agreements, and collaboration with other organizations are significant market developments in which market participants engage to increase their global presence. The identity governance and administration industry must provide affordable products to grow and thrive in a more competitive and challenging market environment.

One of the primary business strategies manufacturers use in the global identity governance and administration industry to increase market sector and benefit customers is local manufacturing to lower operational costs. In recent years, the identity governance and administration industry has stipulated some of the most important medicinal benefits. Major players in the identity governance and administration market, including SailPoint, Microsoft, IBM, Oracle, and others, are investing in research and development operations to improve market demand.

Okta is a cloud-native security firm specializing in identity and access management. The San Francisco-based company went public in 2017 and focuses on two core client stakeholder groups: employees and customers. Okta's workforce solutions enable employees to access a company's cloud-based and on-premises resources securely. In May 2020, Okta, Inc. announced the debut of New Native Identity Integration with Amazon Web Services to improve security, simplify the user experience, and increase automation possibilities for large, complex organizations. The new capability, immediately available through the Okta Integration Network, allows Okta clients to furnish identities to AWS SSO for permission management, offering automatic synchronization of user identities and groups to avoid significant complexity.

ForgeRock Inc is a cloud identification firm of the future. Its solutions include Identity Management, Access Management, Identity Governance, and AI-powered Autonomous Identity. Its revenue comprises subscription revenue, which is recurring revenue from term licenses, SaaS, and maintenance and support. Its revenue comes from the Americas, EMEA, and APAC. In November 2022, ForgeRock launched its new ForgeRock Identity Governance solution, a comprehensive cloud-native governance product designed to help major companies handle security and compliance concerns at scale. By integrating ForgeRock Identity Governance with the company's industry-leading Identity and Access Management platform, companies realize efficiencies and cost savings by managing, securing, and governing identities across their entire lifetime from a single platform.

Key Companies in the identity governance and administration market include

• SecureAuth


• Oracle


• Omada


• IBM


• AlertEnterprise


• SailPoint


• Hitachi ID


• Microsoft


• NetIQ


• Evidian

Identity Governance and Administration Industry Developments

August 2022 Fastpath Solutions, a provider of access control and Separation of Duties (SoD) solutions for business applications, has announced the acquisition of Ideiio, a supplier of identity governance and administration (IGA) solutions. According to the company, the integrated capabilities will help organizations safeguard identification and avoid fraud across business apps by strengthening the capacity to follow the principles of least privilege.

May 2022 Microsoft has announced the debut of the Entra IAM family. Entra's new offering, Decentralised Identity and Cloud Infrastructure Entitlement Management (CIEM) incorporates existing tools such as Azure AD. Entra is designed to protect access to any resource or application by enabling security professionals to detect and manage rights in multi-cloud settings, allowing them to secure digital identities from start to finish.

Identity Governance and Administration Market Segmentation

Identity Governance and Administration Component Outlook

• Solution


• Services

Identity Governance and Administration Deployment Outlook

• Cloud


• On-premises

Identity Governance and Administration Industry Vertical Outlook

• BFSI


• Government and Defense


• Healthcare

Identity Governance and Administration Regional Outlook

• 
  North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America