IoT Identity Access Management Market Share & Growth [2031]

Report Description

IoT Identity Access Management (IAM) Market Outlook 2031

The global IoT Identity Access Management (IAM) Market size was USD 5.5 Billion in 2022 and is likely to reach USD 28.4 billion by 2031, expanding at a CAGR of 20% during 2023–2031. The market is propelled by the rising use of IAM with Internet of Things (IoT) devices in various sectors.

Increasing cybercrimes are propelling the need for robust security solutions for organization’s physical and virtual assets. Rising number of firms are adopting advanced identity access management solutions that enable real-time security measures, before granting access to employees and external users. With the rise of industrialization and worldwide business growth using digital tools, it has become crucial for companies to ensure the safety of their assets from external and internal factors.

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The IT firms are rapidly developing and launching IoT IAM solutions to benefit from the growing demand all over the world. Additionally, increasing integration of technology advances with IAM solutions is likely to fuel opportunities in the market.

• According to the Cisco Annual Internet Report, 2018 – 2023, IoT devices have become highly prevalent solutions through which people, processes, data, and things, are communicating and exchanging information. The report estimates that between 2018 and 2023 the Machine to Machine (M2M) connections are likely to grow 2.4 fold, reaching USD 14.7 billion in 2023, from USD 6.1 Billion in 2018. 

The research report finds that the COVID-19 pandemic fueled the IoT Identity Access Management (IAM) Market. With lockdowns implemented by different governments across the worldwide nations, organizations turned to digital solutions to run the day-to-day operations. During this period, the demand for IoT devices for authentication grew significantly in various end-users, such as healthcare, BFSI, and manufacturing. The rise of cyberattacks and other security breaches triggered the rapid adoption of digital security solutions from enterprises.

Impact of Artificial Intelligence (AI) on IoT Identity Access Management (IAM) Market

AI advances are expected to have transformative effects on the market. With increasing investments and research, intelligent security solutions are emerging, which require less or no manual handling. The AI-powered security devices are expected to help companies enhance security measures with their quick and deep analysis features. Smart IoT gadgets can analyze user behavior patterns in real-time, allowing for quickly recognizing misuse and blocking access to prevent security breaches.

• On September 19, 2023, Venafi, a cybersecurity solution provider company and inventor of machine identity management, introduced Venafi Athena at its fifth annually held Machine Identity Management Summit. The solution integrates powers of machine learning (ML), large language models (LLMs), and Venafi’s industry-leading data capacities, to make machine identity management easy and quick for security & platform teams.

IoT Identity Access Management (IAM) Market Dynamics

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Major Drivers

Rising cybercrime incidences and security breaches are key driving the market. Worldwide, in various sectors, there is rising integration of digital technology tools, such as AI and IoT, to streamline several operations of the organization. However, with the expansion of internet connectivity globally, incidents of cybercrimes are growing multifold, which are increasing concerns of organizations.

For efficient working of digital solutions and ensuring their safety, companies are adopting advanced security solutions, which are fueling the growth of the market.

• According to a study report published in June 2023, around four out of ten internet users fell victim to cybercrime. A survey carried out between November 2022 – December 2022 revealed that Internet users based in India were most affected by cybersecurity issues, as 70% of respondents stated experiencing cybercrime. While, the US ranked second, as almost half of the survey respondents claimed experiencing internet crime.

Existing Restraints

High cost of IoT IAM tools is likely to restrain the market during the forecast period. As digital solutions are increasing across organizations, it has become important to ensure the utmost security of each of them. Companies have increased investments in IoT security solutions for access management, API management, identity management, and other such technologies.

Costs for quality security solutions remain high worldwide, which has raised budget concerns for small and medium enterprises, and in several cases for large enterprises as well. The budget restraints restrict organizations from implementing quality security solutions and services, which is likely to affect the market in the coming years.

Emerging Opportunities

Rising adoption of cloud-based IAM solutions is likely to bring significant growth opportunities for the players in the market. The cloud-first mandate in several organizations is enabling cost saving, flexible access, and scalability benefits. Although the cloud IAM services are accessible through the cloud, they are capable of providing access control across the platforms for an organization.

This, as a result, allows real-time security control over all the assets in an efficient manner. Additionally, the increasing preference to Bring Your Own Identity (BYOI) in many organizations is likely to expand market opportunities.

Scope of The IoT Identity Access Management (IAM) Market Report

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

IoT Identity Access Management (IAM) Market Segment Insights

Product Offering Analysis

Based on product offering, the IoT Identity Access Management (IAM) Market is bifurcated into solutions and services. The solution segment is expected to expand at a major growth rate during the projection period, owing to the growing implementation of IoT IAM tools to protect the IoT infrastructure of an organization.

The IoT IAM solutions offerings cover authentication process, password management, auditing, compliance, governance, and lifecycle management. The adoption of IoT devices is steadily expanding with rising awareness about their benefits. To keep the IoT systems running efficiently, and prevent data breaches, unauthorized access, and other cyber threats, the adoption of IAM solutions is anticipated to expand at a faster rate in the coming years.

The services segment is anticipated to witness rapid growth over the forecast period, owing to increasing acceptance of consulting services for implementing specific security solutions, as per the organization’s need. Opting for professional services and managed services for IoT IAM systems aids in saving unnecessary waste of costs and time. Consultancy services are emerging all over the world, to help companies make efforts in the right direction in their digital transformation journey.

Deployment Analysis

On the basis of deployment, the global market is segregated into cloud-based and on-premise. The on-premise segment is anticipated to lead in terms of revenue, as it provides efficient security cover and lowers the concerns over the privacy of sensitive data. Large and medium enterprises tend to adopt on-premise solutions, owing to the availability of budget and the need to enable the highest security to the business and customer data.

The rise of internet crime is resulting in the implementation of on-premise IoT IAM solutions. The cloud-based segment is projected to register a considerable CAGR during the forecast period, owing to an increasing preference for cloud computing solutions and services from organizations globally. The journey toward digitization and adoption of advanced gadgets is creating and widening opportunities for businesses.

However, each digital tool requires the allocation of costs, which increases the budgetary requirement of the companies. To cut costs, cloud-based tools are emerging favorites among businesses, which in turn is boosting the segment.

• According to the study published in 2023, about 60% of the data of worldwide corporations is stored on the cloud. The total revenue generated yearly by cloud infrastructure services is USD 178 billion/year.

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Security Type Analysis

On the basis of security type, the IoT Identity Access Management (IAM) Market is segmented into network security, application security, cloud security, endpoint security, and others. The network security segment is expected to register a robust growth rate during the forecast period, owing to increasing network hacking incidences with the rise of cybercrimes.

If breached, network hacking puts at risk organizations' resources, which can paralyze the operations of digital solutions, resulting in significant losses. Network hacking can cause the leakage of valuable data and sensitive information, causing a major loss to the reputation.

End-User Industry Analysis

On the basis of end-user Industry, the global market is segregated into government, BFSI, healthcare, défense, IT & telecommunication, education, retail, manufacturing, e-commerce, energy & utilities, automotive & transportation, and others. The healthcare segment is projected to expand at a substantial CAGR during the forecast period, owing to rising concerns about data security with an increase in hacking and security breaches.

The adoption of IoT IAM security solutions is rising in this sector, with the growing acceptance of various medical devices, software, and IoT solutions. As medical data can be misused for commercial reasons and profits, governments in various countries have imposed compliance and security acts on healthcare establishments. One such federal law is the Healthcare Information Probability and Accountability Act (HIPAA) of 1996, which protects the disclosing of patient information without the knowledge or consent.

The BFSI segment is expected to exhibit the fastest growth during the assessment period, owing to increasing security measures getting implemented in digital banking and insurance systems. The surging popularity of electronic payments, mobile wallets, and retail banking is boosting the adoption of IoT IAM solutions in the banking, financial services and insurance sector.

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Regional Outlook

In terms of region, the global IoT Identity Access Management (IAM) Market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the forecast period, with the rising utilization of IoT IAM solutions in different sectors, including BFSI, government, manufacturing, and healthcare sectors, among others.

The region is leading in terms of technology adoption across various industries, with increased reliance on digital technologies to manage a wide range of operations. The IoT IAM solutions enhance the security of organizational assets while providing convenience to authorized users in enabling access. The increasing development and launching of IoT IAM solutions in this region is likely to expand opportunities in the regional market.

The market in Asia Pacific is projected to grow rapidly over the forecast period, owing to the increasing digitization across the sectors. Emerging economies such as India, China, and Japan are witnessing rapid growth in the adoption of digital tools in commercial and industrial sectors. Corporations are expanding machine-to-machine connectivity using industrial Internet of Things (IIoT) devices, with 5G technologies and other connectivity solutions.

This is highly supporting in bringing efficiency and speed to day-to-day operations. Rising demand for cloud-based solutions from SMEs in the region is expected to further propel the market.

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