Market studies suggest that growing security concern is driving demand for Identity and Access Management (IAM) solutions worldwide.
Data collected by market research firm Forrester show that IAM spending was $7.7 billion in 2016.
Based on analysis of customer inquiries and global surveys of enterprise buyers, the firm predict that the IAM market spending will grow at an annual rate of 11.5 percent to reach $13.3 billion by 2021.
Increase in security concerns among organizations and the demand for mobility solutions are main factors driving growth.
Moreover, rise in awareness about compliance management across various industries has driven the adoption of identity & access management solutions for security purposes.
According to Forrester surveys, 71 percent of North American and European business decision makers say it is a high priority to improve the security of customer-facing properties such as websites and native mobile applications.
The IAM market is composed of seven technology categories – customer identity access management, identity-as-a-service, identity management and governance, privileged identity management, risk-based authentication, two-factor authentication and web single sign-on.
Amazon Web Services, CA Technlogies, Centrify, IBM, Intel, Microsoft, Okta and Oracle are some of the major IAM market players.
Among industry verticals, financial services firms make up the lion share, 33 percent, of IAM spending today.
Given the importance of this sector, this trend is likely to continue over the next five years. Spending by government agencies account for 14 percent.
Retail is expected to be the fastest-growing sector and the third-largest user of IAM solutions by 2021.
The healthcare sector initially adopted IAM tools to comply with regulatory requirements, but with the value of patient data increasing and data breaches continuing, organizations are using IAM to shore up and complement cybersecurity tools.
While healthcare is not the largest or fastest-growing vertical, it’s an important market for IAM vendors because the cost of a healthcare security breach is so high. Healthcare spending on IAM is forecast to increase by 12.4 percent per year from 2016 to 2021.