Identity Governance and Administration Market Size & Overview:

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Identity Governance and Administration Market was valued at USD 7.1 Billion in 2023 and is expected to reach USD 23.4 Billion by 2032, growing at a CAGR of 14.24% from 2024-2032.

The Identity Governance and Administration (IGA) market is experiencing rapid growth due to the rising need for organizations to safeguard sensitive data, comply with regulatory standards, and manage user access effectively. As businesses undergo digital transformation, they are facing challenges like managing remote workforces, securing access to applications, and preventing unauthorized access to critical data. This has significantly driven the adoption of IGA solutions to streamline identity management processes while reducing risks linked to data breaches, identity theft, and non-compliance. Several key factors are contributing to the growth of the IGA market. First, with the increasing sophistication of cyberattacks, there is a greater emphasis on cybersecurity and data protection. Organizations are more focused on safeguarding sensitive customer and company information, thereby driving demand for comprehensive identity management solutions. Additionally, strict regulatory frameworks, including GDPR, HIPAA, and SOX, have made compliance a priority, pushing businesses to invest in technologies that ensure proper access control and auditing. Another significant factor is the shift towards cloud computing and the growing adoption of hybrid IT environments, which require advanced identity governance tools to manage access to data and applications across multiple platforms. Furthermore, the integration of artificial intelligence (AI) and machine learning (ML) into IGA solutions is becoming a major growth driver. These technologies are helping organizations automate processes such as user provisioning, de-provisioning, and role-based access control (RBAC), improving operational efficiency and reducing the risk of human error. The increasing adoption of identity as a service (IDaaS) is also accelerating market growth, as cloud-based IGA solutions offer businesses the ability to scale, reduce costs, and simplify implementation.

Recent findings reveal that IGA solutions are being increasingly adopted across industries. For instance, according to the survey, 70% of organizations have either already implemented or are planning to deploy IGA solutions in the next year to address evolving security challenges and compliance requirements. As cyber threats continue to rise, the demand for robust, scalable identity management systems is set to increase, driving further growth in the IGA market.

Identity Governance and Administration Market Dynamics

Drivers

• The rise in cyberattacks and data breaches is pushing organizations to implement robust identity management solutions to secure sensitive information.

• The shift to cloud computing and hybrid IT environments requires advanced identity governance to manage access across diverse platforms and environments.

• The increase in remote workforces has created a need for centralized and secure identity management to ensure proper access controls from various locations.

The increasing prevalence of remote work has significantly driven the demand for centralized and secure identity management solutions, making it a major growth factor for the Identity Governance and Administration (IGA) market. As more employees work from diverse locations, organizations are encountering new challenges in managing user identities and safeguarding access to critical systems. In traditional office settings, access was confined to a secure, controlled network, but remote work has expanded the number of access points, thereby increasing vulnerabilities. Employees now use personal devices and access corporate systems through potentially insecure networks, which escalates the risk of unauthorized access and data breaches. In response, businesses are increasingly adopting IGA solutions to provide a cohesive framework for managing access across various environments. These solutions enable organizations to enforce consistent access policies, irrespective of employee location or device type. By streamlining user authentication, role assignments, and access controls, IGA solutions ensure that only authorized users can access sensitive resources, minimizing the risk of unauthorized access and protecting critical data.

Moreover, IGA systems are increasingly integrated with advanced security technologies, such as multifactor authentication (MFA) and single sign-on (SSO), to enhance security further. These tools help ensure that users are thoroughly authenticated before gaining access, even when working remotely. As remote work continues to rise, the need for robust identity governance solutions becomes even more essential, driving further growth in the IGA market. By providing scalable, secure, and efficient management of identities, IGA solutions are indispensable for supporting the modern, distributed workforce while mitigating the risks that come with remote work.

Restraints

• The initial setup and ongoing maintenance of IGA systems can be expensive, particularly for small and medium-sized businesses.

• Integrating IGA solutions with existing IT infrastructure and applications can be complex and time-consuming.

• There is a shortage of professionals with expertise in identity governance, making it difficult for organizations to fully leverage IGA solutions.

The shortage of skilled professionals in identity governance is becoming a significant barrier for the growth of the Identity Governance and Administration (IGA) market. As more organizations adopt complex IGA systems to manage user access and ensure regulatory compliance, there is an increasing demand for qualified professionals who can effectively implement, configure, and maintain these systems. Unfortunately, there is a substantial gap in the availability of skilled workers capable of managing these advanced systems. This shortage becomes particularly problematic when organizations try to integrate IGA solutions into their existing IT infrastructures, requiring experts who can manage access control, risk assessments, compliance, and security.

The demand for IGA professionals extends across several critical fields, including cybersecurity, compliance, cloud computing, and data management. With the growing adoption of cloud and hybrid IT environments, businesses need professionals who can address the specific identity governance challenges in these settings. The skills gap limits organizations' ability to fully leverage the capabilities of IGA solutions, such as automating user provisioning, ensuring compliance with regulations (e.g., GDPR), and securing sensitive data from unauthorized access. Moreover, as identity management technologies rapidly evolve with the integration of AI and machine learning, organizations need professionals who can keep up with emerging trends and effectively apply these innovations. The lack of specialized training programs and certifications in identity governance further complicates the issue, restricting the talent pool available to organizations seeking to enhance their IGA systems. As the demand for IGA solutions continues to rise, addressing the shortage of qualified professionals will be essential. Companies must invest in comprehensive training and certification programs to build a skilled workforce capable of optimizing IGA systems, managing risks, and ensuring compliance with evolving industry regulations.

Identity Governance and Administration Market Segment Analysis

By Component

The solutions segment dominated the Identity Governance and Administration (IGA) market and represented a significant revenue share of 72.48% in 2023, driven by the rising demand for automated, comprehensive identity management tools. These solutions typically include user provisioning, role-based access control, compliance management, and security monitoring. As organizations face increasing cyber threats and stricter regulations, IGA solutions offer enhanced protection, streamlined compliance, and automated management, which contribute to their growing adoption. As digital transformation accelerates, the need for robust identity governance solutions is expected to increase, fueling further growth in this segment.

The services segment is expected to register the highest CAGR in the IGA market, largely due to the rising demand for consulting, system integration, and managed services. As organizations deploy complex IGA systems, the need for specialized services for deployment, customization, and maintenance is expanding. The shift to hybrid IT environments and the growing adoption of cloud-based IGA solutions have heightened the demand for services that ensure seamless integration and optimization. This trend will continue to grow as organizations seek expert guidance to manage evolving identity governance systems, comply with regulatory standards, and incorporate new technologies such as AI and cloud-based services into their identity management strategies.

By Deployment

The on-premises segment dominated the Identity Governance and Administration (IGA) market with a revenue share of 68.23% in 2023, as many large enterprises emphasize maintaining control over their sensitive data and security protocols. These organizations typically have robust IT infrastructures that support complex identity management needs. The rising emphasis on regulatory compliance and data privacy is motivating enterprises to invest in on-premises solutions, enabling them to retain complete control over data access and management. However, forecasts indicate that while this segment will continue to be significant, its growth may plateau as businesses start to seek more flexible alternatives.

The cloud segment is projected to achieve the highest compound annual growth rate (CAGR) during the forecast period. This growth is largely fueled by the increasing demand for scalable, cost-effective, and easily deployable identity management solutions. The transition to remote work and the necessity for secure access to applications from various locations are further driving the adoption of cloud-based IGA solutions. Additionally, technological advancements, including enhanced security features and compliance capabilities offered by cloud service providers, make these solutions more attractive. Future predictions indicate that the cloud segment will experience substantial expansion as more organizations move to cloud infrastructures to support their digital transformation initiatives.

Regional Analysis

In 2023, North America dominated the Identity Governance and Administration (IGA) market and represented a revenue share of more than 39.58%, owing to a large presence of established players and increased regulatory compliance within the region. Because of its advanced IT infrastructure and early technology adoption, the region can effectively deploy holistic IGA solutions. With the increasing cyberattacks and data breaches, organizations are spending their money on stronger identity management solutions. The market is also driven by regulatory frameworks like GDPR and HIPAA that ensure the compliance and practices of identity governance following the strict regulations imposed by these regulatory frameworks. North America will continue to play a leading role, but competition may be heated with emerging markets rising in a major way, which will naturally halt growth in the region as well.

Asia-Pacific region is expected to register the highest CAGR during the forecast period. This growth has been driven by the evolution of digital transformation and a heightened emphasis on data security. Booming cloud adoption and technological advancements in nations including India, China, Japan, and so forth are attributed to the need for scalable identity management solutions. In addition to that, the increasing population of the middle class and improved penetration of the internet. It also compels business firms to deploy IGA systems over traditional ones to protect their digital assets. As a result, the Asia-Pacific region is set to experience robust growth and it is likely to drive the global IGA market in the coming years, supported by more stringent regulatory ecosystems and a growing focus on cyber security.

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Key Players

• SailPoint Technologies - IdentityNow

• Okta, Inc. - Okta Identity Cloud

• Microsoft - Azure Active Directory

• IBM - IBM Security Identity Governance and Intelligence

• Oracle - Oracle Identity Governance

• One Identity - One Identity Manager

• Ping Identity - PingOne

• CyberArk - CyberArk Identity

• Sopra Steria - Identity & Access Management (IAM) Solutions

• Saviynt - Saviynt Security Manager

• RSA Security - RSA Identity Governance and Lifecycle

• Dell Technologies - Dell Identity Management Solutions

• ForgeRock - ForgeRock Identity Platform

• Micro Focus - NetIQ Identity Governance

• CloudLock - CloudLock Cloud Security

• Hitachi ID Systems - Hitachi ID Identity Management

• Vormetric - Vormetric Data Security Platform

• Broadcom - CA Identity Governance and Administration

• Omada - Omada Identity Suite

• Atos - Atos Identity Governance Solutions

Recent Developments

January 2024: Omada's new report highlights growing concerns regarding identity-related cybersecurity threats. The report emphasizes the risks associated with legacy IGA systems, with companies expressing heightened worry over malware, identity breaches, and privileged account vulnerabilities​

February 2024: SailPoint has launched a new SaaS-based solution aimed at integrating generative AI into identity management systems. This product focuses on automating access provisioning and compliance management, enabling faster adaptation to emerging threats and reducing manual workload for IT teams