Identity Analytics Market Size, COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3381
Identity Analytics Market size is expected to grow commendably through 2027, given the increasing rate of synthetic identity fraud cases worldwide. This form of identity theft has become the fastest-growing financial crime in the U.S., with banks struggling to tackle the complex theft technique that combines fictitious and real data about individuals. The capability of identity analytics tools to automate processes, like remediating policy violations and certifying access, and help enterprises simplify the compliance audits will also boost the industry share.
Identity analytics refers to the process of analyzing identity and access management (IAM) data in organizations, by leveraging technologies such as machine learning and artificial intelligence. This tool can be used to enhance the existing IAM processes through the usage of user activity and event data, threat analysis, fraud detection, and real-time alerting and monitoring.
Rapid digitalization and the subsequent increase in identity theft, especially during the coronavirus pandemic, are the prominent trends bolstering the identity analytics market growth. Identity fraud accounts for $5 trillion of the global economy on an annual basis, according to a 2019 Financial Cost of Fraud Report by accounting & consulting firm Crowe, while financial losses due to digital identity fraud surged by 15% in 2020. High requirement for greater fraud resilience tools to fight against account takeover and identity theft, among other threats in the financial sector, will further strengthen the market forecast in the years ahead.
On the basis of components, identity analytics market share from the solution segment is anticipated to register significant growth by 2027. This is attributable to the enhanced capability of identity analytics and intelligence solutions to dynamically manage access decisions and identify risks profiles. Demand for identity analytics solutions will further be stimulated by their ability to help organizations reduce operational costs, ensure regulatory compliance, and safeguard data.
On the regional front, the Asia Pacific identity analytics market is poised to exhibit a high growth rate through 2027. This robust growth is driven by the mounting cases of online financial fraud and data security breaches across major e-Commerce and e-retail brands in the region. As per a 2021 Norton Cyber Safety Insights report, 45% of the adult internet users in India encountered identity theft in 2020, a hike of over 40% since 2019. Moreover, the emergence of the country as an IT hub for various software companies worldwide will further push the demand for identity analytics solutions over the projected timeline.
Key identity analytics market players include Evidian, NetOwl, SailPoint Technologies, NetIQ (Micro Focus, The Attachmate Group), Brainwave GRC, One Identity (Quest Software), Venafi, Verint Systems, Gurucul, Novetta, Anomalix, Centrify, Idax Software, LogRhythm, Hitachi ID Systems, Okta, Nexis Gmbh, ThreatMetrix, Confluxsys, Quantum Secure (HID Global), Oracle, and NortonLifeLock (formerly Symantec Corporation), among others. Innovative product launches, partnerships, and acquisitions are among the strategies being undertaken by the firms to boost their stance across the global market.
For example, in June 2021, LexisNexis® Risk Solutions unveiled its Financial Crime Digital Intelligence solution, designed to transform financial crime compliance workflows by leveraging digital identity data, through the combined power of LexisNexis® Dynamic Decision Platform, LexisNexis® ThreatMetrix® and LexisNexis® WorldCompliance™ data.
COVID-19 impact on identity analytics market trends:
Movement restrictions as well as health- and economic-driven shifts in demand amid the coronavirus pandemic have led to the shuttering of several small-sized businesses. The massive drop in active business owners and losses to business activity has been witnessed across nearly all industries worldwide. For example, African American businesses recorded a 41% decline in business activity in the U.S. These disruptions could, in turn, create an indirect impact on the adoption of identity analytics and management solutions in the near future.
Apart from the psychological and financial crisis induced by the pandemic, a dramatic increase In identity theft has been observed over the past months, which could trigger identity analytics market recovery. According to the U.S. Federal Trade Commission, more than 67,000 complaints related to identity fraud, involving credit cards and other types of transactions, were reported in 2020 in New York. Significant risks of financial loss due to such breaches may thus contribute to the industry growth over the coming years.
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