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IAM market demand to multiply with the widening threat spectrum of cyberattacks, IOT proliferation to leave a proportional impact on the industry trends
Published Date: July 5, 2017 Author: Ojaswita Kutepatil
The global identity and access management market size is certain to expand rapidly owing to the ability of this software to manage the identity crisis in major companies. When it comes to the potential risks associated with the loss of control over identity and data breaches, authentication and access control have become a vital necessity. The top two critical concerns for businesses these days are to deliver actionable identity intelligence and to prevent advanced security threats. Of late, the number of incidences of internal fraud and organizations losing their sensitive information are increasingly becoming commonplace, as advanced persistent threats and malware have been able to steal massive amount of confidential data from even the largest and most technically advanced companies across the globe. The recent threat of the infamous WannaCry ransomware attack that spread like wildfire has indeed proved that every organization, despite the deployment of high-grade security software, is prone to cyber-attacks. These hackers prominently rely on the company’s imminent panic to submit any ransom amount to protect their data from violation. The best way to make sure that the organization is prepared to fend off such ransomwares and cyber-attacks is to take the privilege of the solutions offered by identity & access management market.
IAM market is currently at a critical juncture, given that access entitlements and identities are becoming increasingly important to large-sized corporations and SMBs. The U.S. government has recognized cybersecurity as one of the most critical national and economical security challenges faced by any country. In the recent past, U.S. federal agencies have witnessed a string of cyberattacks. One of the most infamous incidents of cyberattacks was the hacking of the former U.S. President Obama’s email correspondence by Russian hackers in a breach of the White House’s unclassified computer system.
Given the escalating pace and complexities of cyber threats, global identity and access management market is bound to witness an exponential growth over the forthcoming years. The full-fledged competitors in the global identity and access management market have been facing the gauntlet to provide new and innovative solutions that will help the security needs and changing business practices. Identity and access management market leaders including Amazon Web Services, OneLogin, HP, IBM, Oracle, Dell Software, and ForgeRock Inc., are currently in an advantageous yet vulnerable position, and are set to lead the identity and access management industry toward a lucrative growth path.
Over the ensuing years, IoT enabled devices sales will grow by billions in terms of volume. In terms of revenue, IoT is expected to reach USD 2 trillion by 2020, with over 20.4 billion connected components in use. As IoT continues to grow, the risk and security needs associated with it will also add to around 2% of the overall project costs. Identity & access management will soon be vital to deliver effective IoT solutions, given the huge business development scope of the latter. IT mega trends and a strict regulatory framework pertaining to IoT have forced an evolution in worldwide identity and access management market trends. As per a report by Global Market Insights, Inc., identity and access management market is set for explosive growth of 15% over the period of 2016-2024.
The top drivers for the growth of IAM market are as follows
Adoption of cloud-based applications to drive global IAM industry
With the advent of cloud computing technology, organisations have been upgrading their current infrastructure to cloud-based services. Strong IAM support has thus become an integral part of enterprise IT. Of late, delivering identity management through cloud services has turned out to be one of the most progressive market trends, and has invariably become a prominent driver of global identity and access management industry growth. The surging need to manage identities over the humongous cloud platform has presented a plethora of challenges for cloud IAM market to meet the ever-changing demands of the dynamically growing IT sector. The rising proliferation of cloud based platforms is expected to redefine the IT security landscape and gain utmost prominence over the next few years, by saving extensively on surging infrastructure costs. As per a leading market research firm, cloud IAM market is projected to attain a double-digit growth of 20% over 2015-2022.
Increased demand from BFSI sector to escalate identity & access management industry growth
IAM market in the BFSI (Banking, Financial services, and Insurance) sector has been gaining considerable traction, since these solutions are used to improve the identity-access management security and integrate multi-factor authentication among their networks and users. Similar to many other businesses, the adoption of IAM solutions is becoming the make-or-break factor for the IT security in the worldwide banking industry. IAM will help this sector to combat threats related to access and password management, compliance, security, provisioning, de-provisioning, and governance. Of late, a significant number of cyberattacks have been aimed at the BFSI sector. As per estimates, the number went up from 11% in 2013 to 17% in 2014, as such malware attacks and phishing threats, for years, have plagued the banking institutions. One such instance reported by the New York times in 2014 was that of JP Morgan Chase. The esteemed financial institution had, back then, suffered a security breach that leaked the banking details of more than 76 million personal accounts and 7 million small-scale business accounts. This instance had considerably shaken the consumer confidence in the digital operations of the banking sectors.
In a bid to avoid such massive threats, the BFSI sector has been extensively deploying IAM solutions, which has led to IAM market witnessing a major upswing. These solutions are likely to prove effective in risk management and in the prevention of frauds related to online transactions, insurance claims, and ATM card related functions.
Growing usage of BYOD to stimulate IAM market demand for mobile security
The massive growth of the BYOD market has led to a growing deployment of IAM solutions, as they allow easy access to corporate resources, e-mails, and sensitive data of organizations using their personal devices from any location. Intel estimates that more than 30,000 employee mobile devices access its systems daily. The rise in the population using smartphones and other electronic devices will subsequently lead to increased security threats. To keep these under control, organisations are pressurizing their IT departments to find unique approaches to identity and access management solutions, which has provided significant impetus to the expansion of IAM market in this sector.
In an increasingly competitive market landscape, the rising deployment of these systems to enhance operational efficiency of organizations has effectively contributed to the growth of the global IAM market. As per a reliable survey conducted in 2016, the top drivers that fueled the identity and access management market were as mentioned below:
- Companies that encountered a security breach: above 25%
- Data hacking and misused credentials: 33.5%
- Implementing IAM solutions due to security breach at other companies: 36%
- Cost saving: more than 43.8%
- Compliance and audit requirements: 49%
Despite IAM market being in an already established position, security challenges and cyber-attacks will continue to breach private networks in an attempt to access confidential information. Companies will have to keep developing advanced network capabilities to help enhance the risk management space of major organizations. As per an identity and access management market forecast, the global revenue generation is expected to reach USD 26.74 billion by 2022 and is also likely to create proprietary customizations for the benefit of the consumers.
Global Market Insights, Inc. has a report titled “Identity and Access Management (IAM) Market Size By End-Use (BFSI, Education, Healthcare, Energy, Oil & Gas, Telecom &IT, Manufacturing Public Sector & Utilities), By Deployment (Hybrid, Cloud, On-Premise), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2015 – 2022” available at https://www.gminsights.com/industry-analysis/identity-and-access-management-market