Cloud IAM Market Size, Share, Industry, Trends | Report 2031

Report Description

Cloud IAM Market Outlook 2031

The global cloud IAM market size was USD 3.11 Billion in 2022 and is likely to reach USD 20.73 Billion by 2031, expanding at a CAGR of 21.3% during the forecast period, 2023–2031. The market growth is attributed to the increasing need to secure consumer identity data.

Cloud IAM (Identity and Access Management) is essential for cloud computing. This technology is used to initiate, capture, record, and manage various other user profiles and access permissions. Only when the user is evaluated and authenticated by the organization according to their norms then and then only, they are provided access according to their respective roles.

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Cloud access management systems assisted in defining roles and granting rights to users to access resources at various granularity levels as more individuals began working remotely. It prevents data breaches, malware, and identity-based attacks.

A clear and consistent access control interface is offered by cloud identity and access management (IAM) solutions for all cloud platform services. All cloud services may be accessed using the same interface. User identities and associated access rights may be created, captured, recorded, and managed using IAM technology.

All users are also verified, given permission, and graded in accordance with the regulations and duties. It supports keeping processes and procedures compliant. The fact that permissions are given based on employee requirements and duties rather than being removed when they are no longer required has the significant disadvantage of giving users a lot of unused rights.

The COVID-19 pandemic offers potential opportunities in the market, due to the rise in demand for cloud services during the pandemic as individuals began using cloud access control management systems for staff authentication through cloud services and preserving data.

The vendors are stepping front to offer their services to the enterprises. For instance, IBM announced their new technologies such as IBM security MaaS360 along with Watson and IBM Cloud Identity which contributing significantly in the market growth.

Cloud IAM Market Dynamics

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Key Trends

Increasing adoption of bring your own device (BYOD) is a major trend. Growing digitization encouraged consumers to carry their own devices. However, the rising adoption of own devices by several government offices, owing to the strict cyber security policies, and the extensive research & development activities are projected to boost the market.

Major Drivers

Growing acceptance of cloud-based data recovery systems is a major factor driving the market during the projected period. Cloud-based technology offers access to storage, software, and enhanced security. Rising digitization and the rapid expansion of the IT industry demand for cloud-based service as it increases the flexibility of an individual or organization.

Rising use of desktops and increased penetration of IoT are expected to propel the market growth. Employees are comfortable with using their own devices rather than office devices, and thus it increases the need for cloud identity and access management software.

Increasing cyber threats activities due to burgeoning digitalization are anticipated to drive the market. According to the identity theft resource center, data theft cases have increased, due to the lack of security to protect financial & corporate data and the increase in digital content.

This in turn increases security concerns, which raised the demand for cloud identity and access management solutions. Furthermore, the rising number of mobile devices for consumer identity and access management solutions is projected to propel the market during the forecast period.

Existing Restraints

Lack of identity standards and insufficient resources in terms of budgets are expected to hamper the market in the coming years. Moreover, the Risk associated with data theft and the lack of awareness & trust regarding the benefits of cloud IAM solutions are projected to restrain market growth at a certain limit.

Emerging Opportunities

Increasing adoption of IoT and smart devices is projected to create lucrative opportunities for market players. The demand for the cloud IAM market increased due to the opportunity to spend less on corporate security by relying on the centralized trust architecture to handle identity management across third parties and own apps.

Scope of Cloud IAM Market Report

The market report includes research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Cloud IAM Market Segment Insights

Deployment Mode Segment Analysis

On the basis of deployment mode, the cloud IAM market is segmented into private, hybrid, and public. The public segment is projected to expand at a considerable CAGR during the forecast period, owing to the low cost. On the other hand, the private segment is anticipated to account for a major market share during the projection period, due to the high adoption in many firms.

Several enterprises and organizations face maximum breaches of data security due to weak credentials. To counter this, enterprises shifted their interest towards the adoption of cloud IAM solutions to provide an unbreachable wall for credentials along with better business productivity.

Service Segment Analysis

Based on service, the market is divided into multi-factor authentication, password management, directory services, governance & compliance management, user provisioning, single sign-on, and access management.

The single sign-on segment is expected to hold a significant share of the market in the coming years. Users may securely log in to several different apps and websites with just one set of credentials, with single sign-on (SSO).

The multi-factor authentication segment is anticipated to expand at a rapid pace. In order to access a resource including an online account, an application, or a VPN, the user must submit two or more verification factors. This authentication technique is known as multi-factor authentication (MFA).

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Industry Vertical Segment Analysis

On the basis of industry vertical, the cloud IAM market is segregated into healthcare, media & entertainment, retail, education, BFSI, IT & telecommunication, and others. The BFSI segment is anticipated to expand at a substantial CAGR during the forecast period.

The banking sector uses cyber solutions for monitoring, detecting, and countering cyber threats. The demand for cloud IAM is expected to increase in the BFSI industry as it enhances cloud security.

The healthcare segment is expected to hold a significant share of the market. Cloud IAM solutions are increasingly being utilized in the healthcare industry, where they are primarily employed to secure patients' sensitive data and facilitate simple access to the services of medical institutions.

Furthermore, the growing penetration of the internet of thing (IoT) in healthcare is expected to boost the demand for cloud IAM during the projection period.

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Regional Analysis

In terms of region, the global cloud IAM market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to dominate the market during the forecast period, due to the higher adoption of sophisticated technologies such as IoT and IP-based devices in well-developed economies.

The regional market growth is further attributed to the wide presence of software companies and increasing digital crime. The market in Asia Pacific is expected to grow at a significant growth rate during the projection period, owing to factors such as the adoption of cloud by SMEs in the region and the development of enterprise IT infrastructure.

This growth is attributed to the increasing penetration of IoT, extensive use of desktops and laptops, and employees’ preference for using their own devices rather than office devices.

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