LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global identity and access management (IAM) market to grow at a CAGR of almost 13% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global IAM market for 2016-2020. To calculate the market size, the report considers the revenue generated from the sales of the on-premises IAM and cloud-based IAM.
The market for IAM solutions was developed to facilitate the management of digital identities so that only authorized individuals can access the organizational resources. The scope of IAM is not only restricted to authorization, it also discusses managing mobile access in corporate environments, increasing data security, and improving employee productivity.
Most of the identity management solutions also automate the initiation, capturing, recording, and management of the user identities and their related access permissions. Organizations are focusing more on entitled management in which roles or tasks are assigned to those who feel more deserving than others. Organizations follow a risk-driven approach related to access review and focus on managing the identity of all employees, system users, and third-party contractors.
Technavio ICT analysts highlight the following four factors that are contributing to the growth of the global IAM market:
- Increased demand of IAM from BFSI sector
- Need to improve operational efficiency
- Growing need to enhance mobile security
- Adoption of cloud-based applications
Increased demand of IAM from banking, financial services and insurance (BFSI) sector
The BFSI sector needs to cope with constantly changing compliance requirements and challenges arising from new technologies such as cloud and mobile services. IAM solutions help the sector meet criteria related to security, access and password management, provisioning, de-provisioning, compliance, and governance. IAM solutions help in effective risk management and prevention of fraud related to online transactions, ATM card-related functions, and insurance claims. In addition, many large financial institutions are replacing outdated solutions and investing heavily in IAM solutions to reform their workflows.
The sector is increasingly adopting IAM due to compliance and corporate governance concerns. Amrita Choudhury, a lead enterprise application research analyst at Technavio, says, “According to the Sarbanes-Oxley regulations, the IT department is responsible for providing corporate governance. IAM solutions ensure the smooth audit process for regulatory conformance regarding who has accessed what data and also helps determine privileged access for specific employees.”
IAM solutions comply with regulatory standards such as the Health Insurance Portability and Accountability Act and the Payment Card Industry Data Security Standards (PCI DSS). The adoption of cloud IAM is also increasing in the BFSI sector because of the acceptance of hybrid deployment models for cost-effective functioning.
Need to improve operational efficiency
Organizations face constant threats from unauthorized users attempting to access confidential information. An organization's success depends on how well an organization can integrate risk management and automated internal control systems with its business activities and decision-making processes. In an increasingly competitive market landscape, organizations choose IAM solutions to enhance operational efficiency and gain a competitive advantage.
“Organizers adopt IAM solutions to detect and prevent fraud, analyze real-time and historical trends in business activities to identify high-risk areas, and ensure optimal performance. The increasing demand for IAM solutions among organizations will contribute to the growth of the global IAM market,” adds Amrita.
Growing need to enhance mobile security
Organizations have implemented the BYOD approach that allows employees to access e-mails, corporate resources, and sensitive data of organizational and business applications using their personal devices from any location. Consumers are also demanding mobile computing that drives organizations to develop mobile applications so that they can access their products and improve productivity and efficiency.
The adoption of the BYOD policy helps organizations save costs related to the purchase and maintenance of equipment. In mobile computing, IAM plays a very important role both for business to employee and business to consumer, and assists as a foundational component in mobile security.
Adoption of cloud-based applications
The adoption of cloud-based platforms has reduced the dependence on network access controls and increased the dependence on logical access controls offered by IAM applications. There is a need to manage identities in cloud-based applications, which has given rise to an emerging concept known as identity as a service (IDaaS). It is an alternative to on-premises IAM applications, which allows organizations to save on the cost of infrastructure.
Key vendors are:
Browse Related Reports:
- Global Privileged Identity Management Market 2016-2020
- Global Cloud Identity and Access Management Market 2016-2020
- Global Access Control Solutions Market 2016-2020
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