Identity Analytics Market Report Scope & Overview:

Identity Analytics Market Size was valued at USD 1.90 billion in 2024 and is expected to reach USD 12.86 billion by 2032, growing at a CAGR of 27.03% from 2025-2032. 

The Identity Analytics Market Growth is due to increasing incidents of cybercrimes, burgeoning digital identities, and the increasing demand of modern identity governance. As organizations aim to prevent data breaches, ensure compliance, and enforce identity and access management solutions across complex IT environments, they are increasingly leveraging real-time risk assessment and user behavior analytics.

In October 2024, SailPoint's report revealed that 83% of organizations saw fewer identity-related security issues due to 2023 investments. Mature identity security practices led to 1.7 times higher adoption of AI-powered solutions.

U.S. Identity Analytics Market Size was valued at USD 0.42 billion in 2024 and is expected to reach USD 3.51 billion by 2032, growing at a CAGR of 26.72% from 2025-2032. 

The U.S. Identity Analytics is growing due to heightened cybersecurity concerns, increasing data breaches, and regulatory pressures. Organizations are investing in advanced identity management solutions for better risk mitigation, fraud prevention, and compliance, driving significant demand for identity analytics technologies.

In 2024, Americans reported a record USD 16.6 billion in losses to internet crimes, with investment scams leading at USD 6.5 billion, followed by business email compromise at USD 2.7 billion, and tech support scams at USD 1.4 billion.

Identity Analytics Market Dynamics

Drivers

• Rising cyber threats push enterprises to adopt intelligent identity governance and behavioral analytics solutions rapidly.

The proliferation of advanced cyber threats and complex attack vectors targeting digital identities has made identity analytics a crucial defense mechanism. There is growing pressure on enterprises to secure sensitive data and user credentials across hybrid environments. With the increase in insider threats, credential theft, and phishing attacks, organizations are focusing on solutions that provide context-aware and behavioral-based identity information.  

In 2023, UK businesses had their cyber breaches mainly caused by stolen credentials through phishing attacks, a study commissioned by cybersecurity firm IDEE showed. The poll, which questioned more than 500 professionals across IT and cybersecurity, found 61 per cent of businesses had suffered some form of a cyber breach.

Restraints

• Shortage of skilled cybersecurity experts limits effective deployment and use of identity analytics in organizations.

Even with increasing awareness, organizations find it difficult to execute identity analytics because of a lack of skilled experts in data analytics and cybersecurity. These solutions need to be constantly monitored, tuned, and integrated, which takes specialized expertise. Small companies do not have the resources or abilities to make effective use of these solutions. The interpretive complexity of behavioral data and the setup of machine learning models presents additional impediments. With inappropriate expertise, underutilization or misconfigurations may result in inefficiencies or false positives.

Opportunities

• AI-driven security orchestration enhances identity analytics with adaptive capabilities and predictive threat detection potential.

Combining AI and machine learning with identity analytics empowers enterprise risk detection and response. Such AI-driven platforms can now identify anomalies, forecast threats, and produce more accurate preventive security measures. When integrated into SOAR platforms, this enables intelligent, automated reactions to continual risks tied to identities. Enterprises are looking for solutions that combine automation and behavioral intelligence as they shift toward a more adaptive and resilient cybersecurity posture.

Reflecting this trend, in October 2024, Verint acquired four AI solution providers including Cogito and Fonolo to expand its customer experience automation capabilities. These strategic acquisitions enhance Verint’s ability to deploy AI-powered bots in contact centers, aligning with a broader move toward intelligent automation across enterprise systems.

Challenges

• Frequent false positives in behavior-based models reduce trust and efficiency in identity analytics tools.

Behavior-based identity analytics solutions provide sophisticated insights, they also introduce the risk of false positives that can disrupt workflows. Similarly, authentic users with unusual behavior may be flagged as well, causing unnecessary investigations or deny access. Such incidents can cause loss of user trust as well as security teams getting bogged down with too many alerts. Requires precise calibration of analytics models to find the right trade-off between sensitivity and accuracy, especially in ever-changing environments that involves multiple users showing varied behavior.

Identity Analytics Market Segment Analysis

By Component

The solution segment dominated the Identity Analytics Market Share in 2023 of about 64%, due to the increasing demand for real-time analytics and automated decision-making in identity governance tools. The software platforms solve factors such as integration with existing systems, along with compliance, risk management and behavior analytics, and hence, organizations continuously prefer such offerings.

The service segment is expected to grow at the fastest CAGR of about 28.09% from 2025–2032 due to increasing demand for consulting, integration, and managed services. As the challenge of implementation complexity and shortage of skilled workers has led to the enterprises rely on the service providers to deploy and take the optimal advantage of the identity analytics.

By Enterprise Size

Large enterprises dominated the Identity Analytics Market in 2024 with a revenue share of about 63%, owing to their expansive IT ecosystems and heightened need for robust identity security frameworks. These organizations face complex access governance challenges across multiple departments, regions, and digital platforms, making them early adopters of identity analytics tools to safeguard data, detect threats, and maintain regulatory compliance on a large scale.

Small and Medium-sized Enterprises are expected to grow at the fastest CAGR of about 28.51% from 2025–2032, driven by increased awareness of cyber risks and growing accessibility of scalable, cloud-based identity analytics solutions. With digital transformation and SaaS platforms spreading their wings among SMEs, companies are now able to afford identity tools that provide a secure balance between protecting sensitive data, meeting compliance standards and allowing rapid user access.

By Industry Vertical

The BFSI segment led the Identity Analytics Market in 2024 with a 33% revenue share, due to high exposure to financial fraud, stringent compliance mandates and constant need of trust of the customers. Long-time users of identity management tools, banks, insurers, and financial institutions hold identity analytics high on their list of priorities in terms of monitoring transaction anomalies, insider threats and keeping up with ever-changing regulations.

The IT & telecommunication segment is projected to grow at the fastest CAGR of about 28.67% from 2025–2032, driven by the rapid growth of digital infrastructure, cloud services, and mobile platforms. With these companies overseeing huge networks and an enormous number of users, identity gets challenging across devices and endpoints.

By Deployment Mode

The cloud segment dominated the Identity Analytics Market in 2024 with a 63% revenue share and is expected to grow at the fastest CAGR of 27.53% from 2025 to 2032, due to increased adoption of cloud-native infrastructure and expansion of hybrid and remote work environment. More organizations are opting for a cloud identity analytics suite or cloud-based identity analytics platform because these solutions offer many advantages including ease of scalability, a lower cost of entry, and ease of integration with other cloud services.

Regional Analysis

North America dominated the Identity Analytics Market with the highest revenue share of about 39% in 2024 due to the region's strong cybersecurity infrastructure, increasing adoption of digital transformation, and a high demand for advanced security solutions. The presence of major tech companies, strict regulations, and growing cybersecurity threats have driven the need for identity analytics to protect data and ensure compliance in China.

The U.S. dominated the Identity Analytics Market in 2024 due to advanced cybersecurity infrastructure, stringent regulations, increasing cyber threats, and high adoption of digital transformation solutions.

Asia Pacific is expected to grow at the fastest CAGR of about 29.61% from 2025-2032, driven by rapid digitalization, growing cybersecurity threats, and increasing investments in advanced security technologies. The region's expanding IT and telecommunications sector, coupled with the rising number of cyberattacks, is propelling the adoption of identity analytics solutions.

China dominated the Identity Analytics Market Trends in 2024 due to strong investments in AI-powered security solutions, widespread digital transformation, and increasing demand for robust identity management across various industries.

Europe has a strong presence in the Identity Analytics Market in 2024 due to stringent data protection regulations like GDPR, a high focus on cybersecurity, widespread adoption of digital transformation initiatives, and the increasing need for compliance across industries.

Germany dominated the Identity Analytics Market in 2024 due to advanced technology adoption, strong regulatory frameworks, and growing cybersecurity demands.

Middle East & Africa and Latin America have a strong presence in the Identity Analytics Market in 2024 due to increased digital transformation, rising cybersecurity threats, and growing investments in data protection and compliance solutions.

Key Players

Major Key Players in the Identity Analytics Market Companies are Oracle Corporation, Verint Systems Inc., LogRhythm, Inc., Okta Inc., Novetta, Prolifics, NetOwl, Anomalix, Quantum Secure, SailPoint Technologies Holdings Inc., NetIQ, Gurucul Solutions Pvt Ltd., Centrify Corporation and others.

Recent Developments:

• ​In April 2024, SailPoint enhanced its Identity Security Cloud with new integrations including Guidewire PolicyCenter, SAP Analytics Cloud, and Ceridian DayForce to strengthen identity governance across diverse enterprise environments.

• In October 2024, SailPoint launched Identity Graph, an AI-powered tool that visualizes identity relationships across systems, helping security teams detect risks and streamline identity management with real-time insights.

• In May 2024, Oracle launched “Grow for Business Leaders,” an AI-powered solution within Oracle Cloud HCM to help leaders guide employee upskilling, align development with goals, and improve workforce agility.

• In April 2024, LogRhythm enhanced its SIEM platform with features like role-based access controls, expanded parsing, and community-shared dashboards. The updates aim to improve security data management and operational efficiency.