Home > Media & Technology > Next Generation Technologies > Analytics and Business Intelligence > Identity Analytics Market

Identity Analytics Market Size - By Component (Solution, Service), By Deployment Mode (On-premises, Cloud), By Enterprise Size (Large Enterprises, Small & Medium-sized Enterprises), By Industry Vertical, By Application & Forecast, 2024 - 2032

  • Report ID: GMI10132
  • Published Date: Jul 2024
  • Report Format: PDF

Identity Analytics Market Size

Identity Analytics Market size was valued at USD 1.54 billion in 2023 and is expected to grow at a CAGR of over 25% between 2024 and 2032. Identity analytics solutions are anticipated to grow significantly due to the integration of Artificial Intelligence (AI) and Machine Learning (ML) technologies. These technologies enhance identity analytics by enabling real-time monitoring and predictive analytics, which help organizations proactively address security risks before they lead to breaches.
 

Identity Analytics Market

Additionally, AI and ML can minimize false positives and improve the accuracy of identity verification processes, making identity management more dependable and user-friendly. As AI & ML technologies continue to advance, their integration into identity analytics solutions is anticipated to take place.
 

One important factor propelling the identity analytics market expansion is the increasing use of cloud services. Strong identity management solutions are essential as more businesses move their operations, apps, and data to cloud environments. Cloud services provide scalability, flexibility, and cost-effectiveness; however, they also offer new security risks, including controlling access to private information across several platforms and preventing illegal access. By offering improved visibility and control over cloud-based identities, identity analytics solutions help to overcome these difficulties. They help companies to effectively enforce security policies, identify anomalous behavior, and track user activities in real time.
 

Additionally, identity analytics aid in automating compliance with regulatory obligations, ensuring that access restrictions and identity management methods satisfy the relevant criteria. Organizations can manage multiple people and devices in a dynamic cloud environment more conveniently by streamlining identity management procedures & enhancing security through the integration of identity analytics with cloud services. With the increasing use of cloud services, Identity analytics solutions are predicted to witness growing demand.
 

For instance, in August 2022, Gurucul, a provider of identity & access analytics, XDR, UEBA, and next-generation SIEM, announced enhancements for multi-cloud deployments and cross-cloud compatibility with all major cloud stacks including Amazon. It also extended support for poly-cloud architectures. These new cross-cloud features included sophisticated linkage, correlation, and behavior baselines on access & activity across cloud environments, in addition to deployment support.
 

High implementation costs are a major risk for the identity analytics market. High financial investments are frequently required for the deployment of identity analytics solutions, which can be prohibitive, particularly for Small and Medium-sized Enterprises (SMEs). The expenses encompass the procurement of advanced software & essential hardware and the possible requirement for cloud-based infrastructure to facilitate the analytics functionalities.
 

In addition, there are fees for continual maintenance and support, as well as for training staff on how to efficiently utilize and administer these systems. Organizations may be discouraged from implementing identity analytics solutions due to the high initial & ongoing costs, limiting its potential to take advantage of advanced identity management features.
 

Identity Analytics Market Trends

The rising use of ML and AI technology is one of the biggest trends in the identity analytics industry. Identity analytics solutions can now process large amounts of data more precisely and effectively due to this innovative technology. Real-time detection and response are facilitated by the ability of AI and ML to identify trends and anomalies in user behavior, which can indicate potential security risks. With its automatic threat mitigation and predictive analytics, this feature improves the overall efficacy of identity management.
 

The incorporation of AI & ML technologies into identity analytics market is anticipated to influence additional innovations and enhance the precision & dependability of identity verification & security procedures as these technologies advance. This tendency is especially significant as businesses seek more advanced ways to combat increasingly complex cybersecurity threats.
 

The growing integration of blockchain identity management systems with enterprise systems is another significant trend. Big businesses are realizing the potential of blockchain technology to improve security, reduce fraud, and expedite identity verification procedures. By combining blockchain-based identity solutions with current IT infrastructures, organizations may achieve improved levels of data accuracy, transparency, and efficiency. This integration is particularly essential in industries such as finance, healthcare, and supply chain management, where safe & trustworthy identity verification is critical.
 

Additionally, blockchain technology helps companies comply with strict legal standards, attracting businesses looking to enhance their security infrastructure. The market is anticipated to develop significantly as more businesses implement blockchain identity management solutions.
 

The development of Self-sovereign Identification (SSI) frameworks is another expanding trend in the identity analytics market. SSI enables people to own and manage their digital identities without depending on centralized authority. As it provides improved security, privacy, and user control over personal data, this decentralized approach to identity management is becoming increasingly popular. By allowing users to exchange validated login credentials without disclosing private information, SSI lowers the possibility of fraud and identity theft.
 

The rise of blockchain technology has facilitated the development of SSI solutions, enabling secure & tamper-proof identity verification. The usage of SSI frameworks is anticipated to rise in response to the growing regulatory pressures and data privacy issues. This will raise the demand for identity analytics solutions that can support and integrate with these decentralized systems.
 

Identity Analytics Market Analysis

Identity Analytics Market Share, By Component, 2023

Based on component, the market is divided into solution & service. The service segment is expected to register a CAGR of 27% during the forecast period.
 

  • Identity analytics plays a critical role in the service sector in improving customer experience, protecting client data, and preventing fraud in a range of service sectors such as financial services, healthcare, retail, and telecommunications.
     
  • Identity analytics is a tool used by service providers to expedite processes, personalize offerings, and authenticate users. For example, identity analytics is used in the financial services industry to secure online banking systems and identify fraudulent transactions. In the healthcare industry, it ensures patient data protection and restricts access to authorized staff exclusively. Retailers utilize it to protect consumer data while customizing shopping experiences. Scalability, real-time data processing, and the capacity to manage multiple transactions effectively, while maintaining security and client satisfaction are prioritized in the services sector.

 

Identity Analytics Market Share, By Enterprise Size, 2023

Based on enterprise size, the identity analytics market is divided into large enterprises & SMEs. The large enterprise segment dominated the global market with a revenue of over USD 7 billion in 2023.
 

  • Large companies' requirement for strong security solutions to manage & protect huge volumes of sensitive data and user identities across intricate IT infrastructures defines the identity analytics market. Due to its expansive networks and numerous access points, large organizations are vulnerable to sophisticated cyber assaults. As a result, businesses make significant investments in sophisticated identification analytics to find abnormalities, prevent data breaches, and ensure regulatory compliance. These companies prioritize systems that can operate in tandem with their current infrastructure, monitor in real time, and provide extensive data & analytics to aid decision-making.
     
  • For major businesses in this market, the capacity to handle a variety of user identities—including those of contractors, partners, and employees—while upholding the highest standards of security and operational effectiveness is essential.

 

U.S. Identity Analytics Market Size, 2022-2032 (USD Million)

North America dominated the global identity analytics market in 2023, accounting for a share of over 35%. North America's strong technological foundation, high rate of digital adoption, and substantial investments in cybersecurity have made it a leader in the market. Many global technology companies and creative startups that are creating state-of-the-art identity analytics solutions are based in this region. To preserve digital assets and adhere to strict regulations, such as the California Consumer Privacy Act (CCPA) in the U.S. and several data protection legislation in Canada, these solutions are essential for enterprises.
 

Identity analytics is a growing industry in North America partly due to the strong demand for more security measures to counter the increasing number of cyberattacks and data breaches. Additionally, government initiatives & collaborations between the public & private sectors play a pivotal role in advancing the adoption of identity analytics technologies across various industries, including finance, healthcare, and government services.
 

Due to its emphasis on cybersecurity, innovations, and regulatory compliance, the U.S. is leading the identity analytics market. The industry is greatly boosted by the existence of big technology companies that substantially invest in identity management systems, such as Microsoft, International Business Machines Corporation (IBM), and Oracle. Identity analytics usage is further encouraged by the U.S. government's emphasis on strengthening national cybersecurity through programs and frameworks such as the National Institute of Standards and Technology (NIST) standards.
 

Furthermore, the growing frequency of well-publicized cyberattacks and data breaches on both public and private sector enterprises highlights the urgent need for sophisticated identity management solutions. Additionally, a significant degree of digital transformation across industries characterizes the American market, driving the need for safe & effective identity verification and management systems.
 

For instance, in June 2021, Stripe launched Stripe Identity, an easy-to-use tool that allows online companies to securely confirm the identity of customers from more than 30 nations. For a business, identity verification can be as simple as accepting payments by using Stripe Identity. With no programming needed, Stripe Identity is the only self-serve solution of its kind, enabling any online business to start user identity verification in minutes. These trends are anticipated to contribute to the market’s expansion in North America.
 

Japan's technological breakthroughs and government support for digital transformation projects are driving the country's rise to prominence in the identity analytics market. The Act on the Protection of Personal Information (APPI) and other laws demonstrate the Japanese government's dedication to strengthening its cybersecurity & safeguarding personal information.
 

The use of identity analytics solutions is further accelerated by Japan's Society 5.0 project, which promises to build a super-smart society by integrating sophisticated technology into every aspect of life. To safeguard their digital ecosystems and meet regulatory requirements, major Japanese firms are investing in identity management technologies. Secure identity verification systems are also required in Japan due to the country's aging population and rising use of digital health services, which protects private health information.
 

Due to its advanced IT infrastructure, high level of digital literacy, and proactive government initiatives, South Korea is a vibrant market for identity analytics. With the goal of improving the efficiency & security of digital services, the South Korean government has started several programs to encourage the use of identity management and blockchain technologies. There is a high demand for safe & dependable identity verification solutions, owing to the nation's tech-savvy populace and the pervasive usage of internet & mobile services.
 

Tech giants from South Korea such as Samsung & LG are leading the way in creating and incorporating identity analytics into their goods & services, which is propelling the market expansion. Furthermore, South Korea's emphasis on IoT and smart city initiatives adds to the demand for advanced identity management solutions to secure connected devices and infrastructure.
 

The rapid digital transformation and rising cybersecurity concerns are driving considerable growth in the identity analytics market in China. Sophisticated identity management and analytics solutions are in high demand due to the expanding e-commerce sector, the growing popularity of mobile payments, and the development of smart cities. To safeguard confidential information, maintain regulatory compliance, and improve operational effectiveness, Chinese businesses and service providers are making significant investments in cutting-edge technologies.
 

Identity analytics usage is further fueled by the government's strict data privacy laws and attention on cybersecurity. Furthermore, identity analytics is being increasingly integrated with AI and ML, thereby enabling the application of predictive analysis and anomaly detection with greater accuracy.
 

Identity Analytics Market Share

Oracle and Verint Systems Inc. held a significant share of over 10% in the blockchain identity management market. Oracle, a pioneer in enterprise software & database management, uses its broad range of products to provide comprehensive identity analytics solutions that tackle the intricate requirements of big businesses. They offer a range of services, including advanced identity governance, access control, and analytics capabilities. These are necessary for preserving security, compliance, and operational effectiveness in a variety of IT environments. Oracle's position in the industry has been cemented by its capacity to expand its solutions, offer smooth interaction with current systems, and provide strong support services.
 

Verint Systems Inc., a company well-known for its proficiency in cyber intelligence and consumer engagement, has created a strong foothold in the identity analytics market with its creative approach to fraud detection & protection. Verint's solutions use ML algorithms and powerful analytics to safeguard identities in real-time, identify anomalies, and anticipate threats. Their emphasis on improving operational effectiveness and providing actionable information is well-received by service providers in industries such as healthcare, telecommunications, and finance. Through constant technological advancements and the expansion of their identity analytics capabilities, Verint Systems Inc. has established itself as a reliable partner for businesses seeking to protect sensitive information, providing secure and customized consumer experiences.
 

Oracle and Verint Systems Inc. stand out in the identity analytics market due to their comprehensive industry expertise, diverse product offerings, and commitment to innovations. Their ability to address the evolving challenges of cybersecurity and identity management positions them as leaders in assisting enterprises & service providers navigate the complexities of digital transformation securely & efficiently.
 

Identity Analytics Market Companies

Major players operating in the identity analytics management industry are:

  • Oracle
  • Verint Systems Inc.
  • LogRhythm, Inc.
  • SailPoint Technologies, Inc.
  • Gurucul
  • Securonix
  • LexisNexis Risk Solutions
     

Identity Analytics Market Industry News

  • In September 2023, the Identity Data Fabric firm, Radiant Logic, announced the complete integration of Brainwave GRC after being acquired in April 2023. According to the latest Gartner Industry Guide for IGA, these new features validate Radiant Logic's entry into the identity analytics industry and place the platform in the identity governance and administration market. The company celebrated the final integration of Brainwave into Radiant Logic with the introduction of a new website and the release of the entire RadiantOne Identity Data Platform including Identity Analytics.
     
  • In February 2022, the U.S. financial institutions improved KYC automation, found unusual trends in individual users, and predicted fraudulent transactions and situations of personal information theft by utilizing ML and predictive analytics. Identity analytics benefits organizations by assisting in the prevention of crime and other issues.
     

The identity analytics market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD billion) from 2021 to 2032, for the following segments:

Click here to Buy Section of this Report


Market, By Component

  • Solution
  • Service

Market, By Deployment Mode

  • On-premises
  • Cloud

Market, By Enterprise Size

  • Large enterprises
  • Small and Medium-sized Enterprises (SMEs)

Market, By Application

  • Customer management
  • Governance risk and compliance management
  • Account management
  • Fraud detection
  • Identity and access management
  • Others

Market, By Industry Vertical

  • BFSI
  • Retail & e-commerce
  • IT & telecommunication
  • Government & public sector
  • Healthcare
  • Manufacturing
  • Media & entertainment
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa
    • Rest of MEA

 

Authors: Suraj Gujar, Kanhaiya Kathoke

Frequently Asked Questions (FAQ) :

The market size of identity analytics reached USD 1.54 billion in 2023 and is set to witness over 25% CAGR between 2024 and 2032, due to the integration of AI and ML technologies.

The service segment in the identity analytics industry is expected to register 27% CAGR during 2024 to 2032, backed by improving customer experience, protecting client data, and preventing fraud.

North America market accounted for over 35% share in 2023, led by the government initiatives & collaborations between the public & private sectors.

Oracle, Verint Systems Inc., LogRhythm, Inc., SailPoint Technologies, Inc., Gurucul, Securonix, and LexisNexis Risk Solutions.

Identity Analytics Market Scope

Buy Now


Premium Report Details

  • Base Year: 2023
  • Companies covered: 25
  • Tables & Figures: 372
  • Countries covered: 21
  • Pages: 270
 Download Free Sample