According to the Market Statsville Group (MSG), the global consumer identity and access management market size is expected to grow from USD 10,396.72 million in 2022 to USD 50,733.91 million by 2033, at a CAGR of 15.5% from 2023 to 2033.
The significant increase in security breaches and cyberattacks is predicted to have an impact on the market growth of the consumer identity and access management (IAM) market. Additionally, the increased desire to provide a seamless customer experience is expected to fuel the market growth of the consumer identity and access management industry. Furthermore, the identity theft and fraud, as well as an increase in financial institutions' investment in IT infrastructure to protect consumer data, are projected to have a significant influence on market growth. Furthermore, the growing trend for smart homes, smart buildings, and widespread use of smart devices and IoT are predicted to create a large demand for consumer identity and access management, as well as propel the consumer identity and access management (IAM) market forward.
The consumer identity and access management (IAM) offer authentication services and manages customer identities. Consumer IAM solutions save user profile data and allow businesses to deliver a more secure, consistent, and enhanced customer experience. Furthermore, it is appropriate for safeguarding the client registration process, preserving customer profile databases, and authentication when customers and others access a company's services. Furthermore, the increase in cyber-attack occurrences has a significant influence on enterprises' adoption of consumer IAM. As a result, enterprises have implemented consumer IAM solutions to provide a secure platform for accessing services and conducting online transactions. A robust IAM strategy decreases security risk by preventing unauthorized access to critical data.
Identity Access Management Software reduces risk and promotes compliance, by monitoring and protecting user access in multi-perimeter scenarios. With context-based access control, security policy enforcement, and business-driven identity governance, these identities and access management solutions help to secure important data and applications.
The COVID-19 outbreak has impact on many aspects of society, including individuals and corporations. The internet ecosystem has played a critical role all around the world. The dependence on internet enterprises has grown dramatically as a result of the COVID-19 epidemic. BFSI, healthcare and life sciences, manufacturing, retail, transportation and logistics, and other industries are using the internet to deliver essential services to customers. Vendors have seen an upsurge in demand for CIAM systems. Amidst the COVID-19 pandemic crisis, various governments and regulatory authorities have mandated both public and private enterprises to embrace new practices of teleworking and maintaining social distance. Since then, digital ways of doing business and usage of emails with home servers became the new business continuity plan (BCP) for various organizations. With the widespread use of mobile devices and internet penetration across the globe, individuals are progressively inclined towards the use of CIAM. These changing trends and distributed IT environments have made organizations susceptible to privacy concerns, further fueling the demand for CIAM solutions.
One of the main privacy issues that arise with online e-commerce technology is the collection and potential use of customer information. As online retail offering, significant customer engagement via the internet is more prone to cyber-attacks. For instance: according to Transforming Data with Intelligence Organization (TDWI), the number of data breaches in the United States by the end of 2010 was around 662 and continued to grow at 1,632 in 2017, a 265 percent increase in 10 years. In 2018, the data show a slight decline in data breaches to 1,257 in 2018, while again jumped to 1,473 in 2019. Thus, the increase in data breaches and security concerns enables brands and organizations to opt for secured management platform. The brands provide a unified customer login experience while reducing the risk of a data breach through customer identity and access management (CIAM). This system works with a brand’s front-end architecture and tech stack (website, checkout, etc.) that enables brands to collect customer information from a variety of sources and store it in a centralized location. This information helps brands to cater to customer need for future experiences which increases the demand for data privacy.
The budgetary concern for the deployment of CIAM solutions and the dearth of skilled professionals impedes the growth of the United States customer access and identity management market over the forecast period. The need to integrate robust security technologies lead to high initial investment and maintenance cost for employing CIAM systems which maybe act as a challenging factor for the small organizations. For instance: a small business has an average revenue of $46,978 and the average small business owner makes around US$71,000 a year. Thus, it is estimated that the vast majority of small business owners make less than US$100,000 a year in income. This makes a challenging factor for small business to recover from a data breach. Moreover, the dearth of the skilled workforce will be another factor hampering the market growth. Therefore, inadequate budgets and scarcity of skilled professionals continue to be a crucial challenge for CIAM professionals to carry out IT security operations effectively.
Artificial intelligence (AI) technology plays a significant role in almost every industry. This technology is maturing swiftly and is already being used in several applications from BFSI to hospitality, healthcare and many other industries to accelerate workflow efficiencies. Also, deep learning technology is used in data extraction in order to learn customer experience. The objective of these applications is to improve customer security and privacy and increases the volume & availability of customer-related data from personal and other devices. Also, AI technology has more ability to gain information and give a well-defined output to the brands as compared to traditional technologies. Various organizations have developed AI algorithms for their departments such as Oracle and IBM, and others have also developed AI algorithms for CIAM. Companies are also advancing predictive analytics solutions which business operations through rising utilization, reducing risks of data breaches, optimizing staffing levels and minimizing the length of stay. Presently, AI technologies are widely used by public and private organizations to enhance the completeness and accuracy of customer’s information by translating the free text into standardized data. Thus, escalating adoption of CIAM along with rising investments in AI are few factors that have triggered the growth of AI in CIAM.
The study categorizes the consumer identity and access management market based on type, organizational size, and application area at the global levels.
By Organizational Size Outlook (Sales, USD Billion, 2019-2033)
Based on the organizational size, the market is bifurcated into SMEs, Large Enterprises. The large enterprises segment is projected to account the largest market share in 2022 in the global consumer identity and access management market. Large enterprises are defined as organizations with more than 1,000 employees. These businesses are early users of CIAM software and services because they operate a significant variety of business systems that are vulnerable to cyberattacks. Because these organizations are vast and have varied types of IT infrastructure, they confront a variety of challenges when it comes to managing security across several apps.
Based on the regions, the global freight procurement technology solutions market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific and South America. North America is projected to account the highest market share in 2022. Early CIAM adoption, as well as the availability of multiple suppliers offering security and CIAM solutions, are projected to boost regional market growth. Businesses in this region are progressively employing security and vulnerability management solutions to enable data security, prevent cyber-attacks and commercial espionage, and provide data security and privacy for business continuity.
The consumer identity and access management market is significant and extremely cutthroat competitors in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
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