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UK Privileged Identity Management Market

ID: MRFR/ICT/62148-HCR
200 Pages
Aarti Dhapte
October 2025

UK Privileged Identity Management Market Research Report By Deployment Type (On-Premises, Cloud-Based, Hybrid), By Application (Access Management, Identity Governance, Credential Management, Privileged Session Management), By End User (BFSI, Government, Healthcare, IT and Telecom, Retail) and By Component (Solutions, Services)-Forecast to 2035

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UK Privileged Identity Management Market Summary

As per MRFR analysis, the UK privileged identity-management market size was estimated at 19.2 USD Million in 2024.. The UK privileged identity-management market is projected to grow from 24.15 USD Million in 2025 to 239.25 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 25.77% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The UK privileged identity-management market is experiencing robust growth driven by regulatory compliance and technological advancements.

  • The market is witnessing increased regulatory compliance as organizations prioritize adherence to data protection laws.
  • Integration of AI and automation is becoming prevalent, enhancing efficiency in identity management processes.
  • User experience is gaining focus, with solutions designed to streamline access and improve customer satisfaction.
  • Rising cybersecurity threats and digital transformation initiatives are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 19.2 (USD Million)
2035 Market Size 239.25 (USD Million)
CAGR (2025 - 2035) 25.77%

Major Players

CyberArk (IL), BeyondTrust (US), Thycotic (US), SailPoint (US), IBM (US), Microsoft (US), Okta (US), One Identity (US)

UK Privileged Identity Management Market Trends

The privileged identity-management market is currently experiencing notable evolution. This is driven by the increasing need for organizations to secure sensitive information and manage access to critical systems. As cyber threats continue to escalate, businesses are prioritizing the implementation of robust identity management solutions. This shift is largely influenced by regulatory requirements and the growing awareness of the potential risks associated with inadequate identity governance. Organizations are now more inclined to invest in advanced technologies that facilitate secure access and streamline user management processes. In addition, the rise of remote work has further emphasized the importance of effective identity management. With employees accessing systems from various locations, the demand for secure and efficient identity solutions has surged. Companies are exploring innovative approaches to ensure that only authorized personnel can access sensitive data. This trend indicates a broader recognition of the role that privileged identity management plays in safeguarding organizational assets and maintaining compliance with industry standards. As the market continues to mature, it is likely that new technologies and strategies will emerge to address the evolving challenges faced by businesses in this domain.

Increased Regulatory Compliance

Organizations are increasingly focusing on meeting regulatory requirements related to data protection and privacy. This trend is driving the adoption of privileged identity-management solutions that help ensure compliance with various laws and standards. Companies are recognizing the importance of maintaining secure access controls to avoid potential penalties and reputational damage.

Integration of AI and Automation

The integration of artificial intelligence and automation into privileged identity-management solutions is becoming more prevalent. These technologies enhance the efficiency of identity governance processes, enabling organizations to quickly respond to security incidents and manage user access more effectively. This trend suggests a shift towards more proactive identity management strategies.

Focus on User Experience

There is a growing emphasis on improving user experience within privileged identity-management systems. Organizations are seeking solutions that not only enhance security but also provide a seamless experience for users. This focus on usability indicates a recognition that effective identity management must balance security needs with user convenience.

UK Privileged Identity Management Market Drivers

Growing Remote Work Culture

The shift towards remote work in the UK has created new challenges for identity management, thereby driving the privileged identity-management market. As more employees work from home, organisations must ensure secure access to their systems and data. This trend has led to an increased reliance on privileged identity-management solutions that can provide secure remote access while maintaining control over sensitive information. The market is expected to see a growth rate of approximately 14% as businesses adapt to this new work environment. The need for effective identity management in remote settings is thus a significant factor influencing the privileged identity-management market.

Rising Cybersecurity Threats

The privileged identity-management market is experiencing growth due to the increasing frequency and sophistication of cyber threats. In the UK, organisations are recognising the necessity of robust identity management solutions to safeguard sensitive data and critical systems. Reports indicate that cybercrime costs the UK economy approximately £27 billion annually, prompting businesses to invest in advanced security measures. This trend is likely to drive demand for privileged identity-management solutions, as they provide essential tools for monitoring and controlling access to sensitive information. As organisations strive to protect their assets, the privileged identity-management market is expected to expand significantly, with a projected growth rate of around 15% over the next five years.

Increased Focus on Data Privacy

the privileged identity-management market significantly responds to the heightened emphasis on data privacy regulations in the UK. With the implementation of the General Data Protection Regulation (GDPR), organisations are compelled to adopt stringent measures to protect personal data. This regulatory environment has led to a surge in demand for identity management solutions that ensure compliance and mitigate risks associated with data breaches. Companies are investing in privileged identity-management systems to enhance their data protection strategies, which is likely to result in a market growth of around 10% over the next few years. The focus on data privacy is thus a critical driver for the privileged identity-management market.

Digital Transformation Initiatives

The ongoing digital transformation across various sectors in the UK is a key driver for the privileged identity-management market. As organisations adopt cloud services and digital platforms, the need for secure access management becomes paramount. The UK government has been promoting digital innovation, which has led to an increase in the adoption of technologies that require stringent identity management protocols. This shift is expected to propel the privileged identity-management market, as businesses seek solutions that can seamlessly integrate with their digital infrastructure. The market is anticipated to grow by approximately 12% annually, reflecting the urgency for effective identity management in a rapidly evolving digital landscape.

Emergence of Advanced Technologies

the privileged identity-management market is propelled by the emergence of advanced technologies such as artificial intelligence and machine learning. These technologies offer enhanced capabilities for monitoring user behaviour and detecting anomalies, which are crucial for effective identity management. In the UK, organisations are increasingly adopting these technologies to bolster their security frameworks. The integration of AI into privileged identity-management solutions is expected to drive market growth by approximately 11% as businesses seek to leverage these innovations for improved security. The potential of advanced technologies to transform identity management practices is a notable driver for the privileged identity-management market.

Market Segment Insights

By Deployment Type: Cloud-Based (Largest) vs. Hybrid (Fastest-Growing)

In the UK privileged identity-management market, the deployment type segment is witnessing varied preferences among businesses. Currently, the Cloud-Based deployment type holds the largest share, appealing to organizations due to its scalability and ease of access. On-Premises solutions, while still relevant, are gradually losing traction to more flexible and cost-effective options like Cloud-Based services. Furthermore, the Hybrid model is emerging as a balanced approach, gaining attention from firms seeking to blend the benefits of both on-premises and cloud functionalities. The growth trends within the deployment types are shaped by increasing digital transformation efforts across sectors. Organizations are increasingly adopting Cloud-Based solutions for their agility and lower maintenance costs, driving significant market adoption and expansion. Additionally, the Hybrid deployment type is seeing rapid growth as firms aim to enhance security while leveraging the cloud's capabilities. Factors such as regulatory compliance, the need for remote access, and an evolving cybersecurity landscape are fueling this trend further.

Cloud-Based (Dominant) vs. Hybrid (Emerging)

Cloud-Based deployment in the UK privileged identity-management market is characterized by its dominant presence, providing essential identity and access management services with a focus on flexibility and user experience. Many organizations prefer this model due to its lower upfront costs, frequent updates, and the ability to scale on demand. On the other hand, the Hybrid deployment type is emerging as a popular choice for businesses aiming to combine the security of on-premises systems with the efficiency of cloud solutions. This segment appeals to organizations that require customization and control over critical data while still enjoying the agility offered by cloud infrastructure. As cybersecurity threats evolve, the Hybrid model is gaining traction, offering the best of both worlds for modern enterprises.

By Application: Access Management (Largest) vs. Credential Management (Fastest-Growing)

In the UK privileged identity-management market, access management holds the largest share among application segments, providing a robust foundation for effective identity control. Credential management is rapidly gaining traction, driven by heightened security concerns and regulatory requirements that prioritize secure access to sensitive data. Growth trends illustrate that businesses are increasingly investing in advanced access and credential management solutions. The rise in cyber threats is compelling companies to deploy comprehensive identity governance frameworks that ensure accountability and mitigate risks. Additionally, the integration of automation and AI technologies is emerging as a key driver, enabling faster, more secure identity verification processes that support the dynamic needs of modern enterprises.

Access Management (Dominant) vs. Credential Management (Emerging)

Access management is recognized as the dominant application segment, characterized by its essential role in securing user access to critical systems while ensuring regulatory compliance. This segment typically incorporates multifactor authentication and role-based access controls, facilitating a streamlined yet secure user experience. On the other hand, credential management is an emerging segment that focuses on managing and protecting user credentials. This area is becoming increasingly vital as organizations seek to enhance their security posture against evolving cyber threats. Credential management solutions provide capabilities like password storage and automated credential updates, aligning with the industry's growing emphasis on enhancing user security and operational efficiency.

By End User: BFSI (Largest) vs. Healthcare (Fastest-Growing)

The market share distribution in the UK privileged identity-management market indicates that the BFSI sector holds the largest segment, reflecting its critical nature in managing sensitive financial data and ensuring compliance with regulations. Government and IT and Telecom sectors also represent significant shares due to increasing security threats and data breaches, while retail shows a growing interest in adopting identity management solutions to improve customer experience and safety. In terms of growth trends, the healthcare sector is emerging as the fastest-growing segment, driven by the need for enhanced security protocols for patient data and compliance with stringent regulations. This growth is fueled by rising cyber threats and the digital transformation of healthcare services. Meanwhile, BFSI demonstrates steady growth due to the continuous demand for robust identity solutions in fraud prevention and regulatory compliance.

BFSI: Dominant vs. Healthcare: Emerging

The BFSI sector in the UK privileged identity-management market stands out as the dominant force, characterized by substantial investments in technology to safeguard against financial fraud and data breaches. This segment prioritizes compliance and risk management, leveraging advanced identity solutions to mitigate vulnerabilities. Conversely, the healthcare segment is emerging rapidly, pushed by the increasing necessity for protecting sensitive patient information and adhering to regulatory frameworks like GDPR. With rising cyber threats and the ongoing digitization of healthcare services, the healthcare industry is rapidly adopting identity-management solutions, positioning itself as a crucial player in the market.

By Component: Solutions (Largest) vs. Services (Fastest-Growing)

In the UK privileged identity-management market, the Solutions segment dominates, commanding a significant share of the total market. This segment includes various software solutions and tools designed to enhance security and manage privileged accounts effectively. In comparison, Services encompasses consulting, implementation, and support services, which, while smaller in market share, are gaining traction as organizations increasingly seek specialized assistance to navigate complex identity management challenges. The growth trends for these segments reveal distinct trajectories. Solutions are expected to maintain their lead driven by ongoing digital transformation initiatives and heightened security awareness. Conversely, Services are emerging as the fastest-growing segment, propelled by the rising demand for tailored solutions and expert guidance. The shift towards hybrid and cloud environments necessitates advanced support services, fueling this growth further, as organizations prioritize comprehensive management strategies.

Solutions (Dominant) vs. Services (Emerging)

The Solutions segment in the UK privileged identity-management market is characterized by a robust array of software offerings that cater to various security and identity management needs. These solutions are designed to automate and streamline the management of privileged accounts, offering organizations enhanced control and security. With the increasing complexities of cyber threats, the demand for such solutions is robust, positioning it as a dominant force. On the other hand, the Services segment is recognized as emerging, focusing on providing critical consulting and support services tailored to specific customer requirements. This segment is becoming integral as organizations seek to address unique challenges associated with identity governance and compliance, indicating a shift towards more specialized service offerings.

Get more detailed insights about UK Privileged Identity Management Market

Key Players and Competitive Insights

The privileged identity-management market is currently characterized by a dynamic competitive landscape, driven by the increasing need for robust security measures in the face of rising cyber threats. Key players are actively pursuing strategies that emphasize innovation, partnerships, and regional expansion to enhance their market positions. Companies such as CyberArk (IL), BeyondTrust (US), and IBM (US) are at the forefront, leveraging their technological expertise to develop advanced solutions that cater to the evolving demands of organizations. Their collective focus on integrating artificial intelligence and machine learning into identity management systems appears to be shaping a more secure and efficient operational environment.

In terms of business tactics, organizations are increasingly localizing their operations to better serve regional markets, which may enhance responsiveness to customer needs. The market structure is moderately fragmented, with several players vying for dominance. However, the influence of major companies like Microsoft (US) and Okta (US) is substantial, as they continue to expand their offerings and capabilities, thereby intensifying competition among smaller firms.

In October 2025, CyberArk (IL) announced a strategic partnership with a leading cloud service provider to enhance its privileged access management solutions. This collaboration is expected to integrate advanced security features into cloud environments, thereby addressing the growing concerns around data breaches and unauthorized access. Such a move not only strengthens CyberArk's product portfolio but also positions it favorably in a market increasingly leaning towards cloud-based solutions.

In September 2025, BeyondTrust (US) launched a new version of its privileged access management software, which incorporates AI-driven analytics to provide real-time insights into user behavior. This innovation is likely to enhance the company's competitive edge by offering clients more sophisticated tools for monitoring and managing privileged accounts, thus reducing the risk of insider threats. The emphasis on AI integration reflects a broader trend within the industry towards leveraging technology for improved security outcomes.

In August 2025, IBM (US) unveiled a comprehensive update to its identity governance platform, focusing on automation and compliance features. This update is significant as it aligns with the increasing regulatory pressures faced by organizations, particularly in sectors such as finance and healthcare. By enhancing compliance capabilities, IBM is not only addressing immediate market needs but also reinforcing its position as a trusted provider in the identity management space.

As of November 2025, the competitive trends within the privileged identity-management market are increasingly defined by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are becoming more prevalent, as companies recognize the value of collaboration in enhancing their service offerings. Looking ahead, it is anticipated that competitive differentiation will increasingly pivot from price-based strategies to a focus on innovation, technological advancement, and the reliability of supply chains. This shift underscores the necessity for companies to adapt and evolve in a rapidly changing landscape.

Key Companies in the UK Privileged Identity Management Market market include

Industry Developments

The UK Privileged Identity Management Market has seen significant developments recently, particularly with firms like CyberArk Software and Thycotic actively enhancing their product capabilities. In September 2023, Micro Focus announced strategic collaborations aimed at integrating advanced analytics into its identity management solutions to address emerging cybersecurity threats. Meanwhile, in August 2023, IBM expanded its identity governance offerings, enhancing interoperability in its systems to better serve businesses in the UK.

Additionally, RSA Security launched new features focused on zero-trust security frameworks, reflecting the market's shift towards more robust identity verification methods. Merger and acquisition activities in this sector include Oracle's acquisition of a UK-based identity management firm in July 2023 to bolster its cloud security services.

The UK government’s increased focus on cybersecurity legislation in recent years has propelled growth in the Privileged Identity Management Market, significantly impacting competitive dynamics among key players like Microsoft, SailPoint Technologies, and BeyondTrust. As of October 2023, the market has enjoyed an estimated growth rate of approximately 15% annually, driven by stringent regulatory requirements and the burgeoning demand for secure identity management solutions in various sectors across the UK.

Future Outlook

UK Privileged Identity Management Market Future Outlook

The Privileged Identity Management Market is projected to grow at a 25.77% CAGR from 2024 to 2035, driven by increasing cybersecurity threats, regulatory compliance, and digital transformation initiatives.

New opportunities lie in:

  • Development of AI-driven identity verification solutions
  • Integration of privileged access management with cloud services
  • Expansion of managed security service offerings for SMEs

By 2035, the market is expected to achieve substantial growth, reflecting robust demand and innovation.

Market Segmentation

UK Privileged Identity Management Market End User Outlook

  • BFSI
  • Government
  • Healthcare
  • IT and Telecom
  • Retail

UK Privileged Identity Management Market Component Outlook

  • Solutions
  • Services

UK Privileged Identity Management Market Application Outlook

  • Access Management
  • Identity Governance
  • Credential Management
  • Privileged Session Management

UK Privileged Identity Management Market Deployment Type Outlook

  • On-Premises
  • Cloud-Based
  • Hybrid

Report Scope

MARKET SIZE 2024 19.2(USD Million)
MARKET SIZE 2025 24.15(USD Million)
MARKET SIZE 2035 239.25(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 25.77% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled CyberArk (IL), BeyondTrust (US), Thycotic (US), SailPoint (US), IBM (US), Microsoft (US), Okta (US), One Identity (US)
Segments Covered Deployment Type, Application, End User, Component
Key Market Opportunities Integration of artificial intelligence enhances security and efficiency in the privileged identity-management market.
Key Market Dynamics Rising regulatory compliance demands drive innovation and competition in the privileged identity-management market.
Countries Covered UK

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FAQs

What is the expected market size of the UK Privileged Identity Management Market in 2024?

The UK Privileged Identity Management Market is expected to be valued at 573.5 million USD in 2024.

What is the projected market size for the UK Privileged Identity Management Market in 2035?

The market is projected to reach a size of 1717.5 million USD by 2035.

What is the expected CAGR for the UK Privileged Identity Management Market from 2025 to 2035?

The expected CAGR for the market from 2025 to 2035 is 10.486 percent.

Which deployment type holds the largest market share in the UK Privileged Identity Management Market?

The On-Premises deployment type holds the largest market share, valued at 229 million USD in 2024.

What will be the market value of the Cloud-Based deployment type by 2035?

The Cloud-Based deployment type is expected to be valued at 682.5 million USD by 2035.

Who are the major players in the UK Privileged Identity Management Market?

Major players in the market include Micro Focus, RSA Security, Oracle, Forcepoint, and CyberArk Software.

What is the anticipated market size for the Hybrid deployment type in 2024?

The Hybrid deployment type is anticipated to be valued at 117 million USD in 2024.

What growth drivers are influencing the UK Privileged Identity Management Market?

Key growth drivers include increasing security threats and the rising adoption of cloud solutions.

What market value will the On-Premises deployment type reach by 2035?

The On-Premises deployment type is expected to reach a market value of 685.5 million USD by 2035.

What challenges are being faced by the UK Privileged Identity Management Market?

Challenges include managing compliance regulations and integrating with existing IT infrastructure.

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