Consumer IAM Market

[290 Pages Report] The global consumer IAM market size is projected to grow from USD 8.6 billion in 2023 to USD 18.1 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 16.2% during the forecast period. The expansion of the CIAM market can be attributed to an increase in identity theft and fraud and the demand to deliver a frictionless customer experience.

Moreover, the CIAM market is experiencing growth due to the introduction of AI/ML-powered solutions and the proliferation of cloud-based CIAM solutions and services. These factors contribute to the market’s promising growth potential, providing organizations with enhanced identity management capabilities and proactive security measures.

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CIAM Market Dynamics

Driver: Increased identity theft and fraud

The Consumer Sentinel Network, maintained by the Federal Trade Commission (FTC), tracks consumer fraud and identity theft complaints filed with federal, state, and local law enforcement agencies and private organizations. In 2021, more than 5.88 million fraud reports were filed with the U.S. Federal Trade Commission (FTC). It is a 19% increase from the previous year. With 1,686.121 complaints, identity theft complaints led to the list of fraud reports received by the FTC in 2021. Of the 5,883,409 allegations of fraud, identity theft, and other complaints, identity theft accounted for nearly 24%. Imposter schemes were the second most often reported fraud category behind identity theft. It was responsible for 995,789 complaints and approximately $2.4 billion in losses—nearly doubling the roughly $1.2 billion attributed to the category in 2020.

The FTC witnessed a rise in identity theft complaints in 2021. Identity theft occurs when a victim’s personal information is used to create credit cards or bank accounts, get a loan, or make transactions. According to the FTC, the number of consumer identity theft complaints in the U.S. increased by 3.3% from over 1.39 million in 2020 to a little over 1.43 million.

Restraint: Lack of identity standards and budgetary constraints in deploying CIAM solutions

A lack of identification standards, limited financial resources, and expensive installation costs for CIAM systems, are restraining the growth of the CIAM market. Due to the advanced security technology, CIAM systems have a significant initial investment and ongoing maintenance costs. SMEs neglect CIAM in favour of concentrating on the resources necessary for company survival. They frequently ignore security until there has been a breached.

Additionally, businesses focus primarily on the security of just the most important servers while paying little attention to the data kept in databases. Therefore, insufficient finances continue to be a major obstacle for CIAM experts to successfully carry out IT security activities. Budgetary restrictions have been noted in large markets where businesses are bootstrapped or managed with small capita, such as various regions of the Asia Pacific, the Middle East and Africa, and Latin America.

Opportunity: High volume of online transactions

Large amounts of online transactions can considerably influence the demand for Consumer Identity and Access Management (CIAM) systems. Organizations must ensure security, privacy, and smooth user experience when they do online business with many clients. The danger of fraudulent actions, including account takeover, identity theft, and unauthorized access, rises when transaction volumes are high because they attract the attention of bad actors. A substantial number of client accounts across several systems and applications might result from high transaction volumes. Customers may access different services using CIAM systems' SSO features, improving ease and removing the need for users to remember many usernames and passwords.

Challenge: Difficulties in addressing the complexity of advanced threats

Cyber attackers around the world are trying new ways to attack mobile devices. They are becoming more sophisticated; several new malware variants attack mobile phones every month. Cybercriminals constantly enhance their strategies and use cutting-edge tools to find weaknesses and gain unauthorized access to systems and data. The notion of growth in sophisticated cyberattacks suggests the emergence of a new type of danger from previous generations. However, even the most antiquated methods frequently provide for gaps in an organization's defences. The sophistication of the assault is in the attacker's strategy and execution. For example, automation and artificial intelligence (AI) technologies are being used by attackers to expedite their attack procedures. They can launch massive assaults more successfully and efficiently by automating processes like reconnaissance, vulnerability assessment, and malware dissemination. AI-driven attacks may potentially change and advance in reaction to defences, making it harder to stop them.

CIAM Market Ecosystem

By vertical, Healthcare is expected to grow at the highest CAGR during the forecast period.

The healthcare sector encompasses a wide range of entities, including hospitals, clinics, medical practices, healthcare service providers, pharmaceutical companies, and life sciences organizations. Unfortunately, Healthcare is a prime target for cybercriminals worldwide. To enhance patient care and experience, the healthcare industry is swiftly adopting advanced technologies. In this context, CIAM solutions play a crucial role in addressing security concerns related to user credentials and enabling healthcare organizations to provide an enhanced experience for their patients.

Patient identity protection is a significant challenge in Healthcare. Without adequate safeguards, patients are vulnerable to medical identity theft, which can result in falsified medical and health data within their records. It can jeopardize subsequent treatments and compromise patient safety and care quality. CIAM solutions help mitigate these risks, ensuring secure patient identities and improving the efficiency and safety of healthcare delivery. By leveraging CIAM, healthcare organizations can establish robust identity management practices, safeguard patient information, and streamline access to healthcare services, leading to safer and more effective patient care while enhancing the healthcare vertical’s overall experience.

By deployment mode, the cloud segment is to grow at the highest CAGR during the forecast period.

Cloud deployment has emerged as the fastest-growing model in the CIAM market, particularly favored by SMEs. This deployment option allows organizations to concentrate on their core competencies rather than investing capital in security infrastructure. Businesses can avoid hardware, software, storage, and technical personnel expenses by leveraging cloud-based solutions. Furthermore, organizations are looking forward to having their solutions deployed in the cloud due to the advantages this brings—scalability, flexibility in capacity, enhanced collaboration, and cost-efficiency

By region, North America accounts for the highest market size during the forecast period.

Cybersecurity is identified as the most severe economic and national security challenge by governments across North America. Specific budget allocations and mandated identity management policies are expected to make North America the most lucrative region for different categories of vendors. Governments in this region keep focusing on various initiatives to strengthen their identity and access management across the countries. President Joe Biden signed an executive order in May 2021 to strengthen cybersecurity across the country. The directive outlines measures to improve government agencies' cybersecurity, such as adopting multi-factor authentication (MFA) and encryption, protecting cloud services, and creating a Cybersecurity Safety Review Board to investigate major cyber events.

The region includes several large enterprises and rapidly growing SMEs, where consumer data protection is a prime objective of the organization. The other factors fueling the market growth include the extensive use of smart mobile devices and the rapidly growing eCommerce sector in the region. The countries analyzed for the CIAM market in this region are the US and Canada.

Key Market Playes

The key players in the consumer IAM market are IBM (US), Microsoft (US), Salesforce (US), SAP (Germany), Broadcom (US), Okta (US), Akamai Technologies (US), Ping Identity (US), ForgeRock (US), LoginRadius (Canada), HID Global (US) and others.

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Scope of the Report

The study categorizes the CIAM market by offering, solution type, identity type, organization size, verticals, and regions.

By offerings:

• Solutions
• Services

By Solution:

• Identity Governance
• Identity Verification and Authentication
• Access Management
• Behavioral Analytics

By Services:

• Integration and deployment
• Support and Maintenance
• Consulting

By Deployment mode:

• On-Premises
• Cloud

By Vertical:

• BFSI
• Travel, Tourism and Hospitality
• Healthcare
• Retail and eCommerce
• IT and ITeS
• Education
• Government
• Other Verticals

By Region:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• Latin America

Recent Developments

• In February 2023, Ping Identity partnered with security consulting services provider Deloitte to offer organizations advanced identity and access solutions. This strategic partnership is expected to help firms' joint clientele benefit from improved IAM solution selection and onboarding.
• In November 2022, ForgeRock launched the ForgeRock Identity Governance solution. It is a comprehensive cloud-native governance offering designed to help solve security and compliance challenges for large enterprises at scale.
• In November 2022, Okta launched Okta Customer Identity Cloud. It is an easy-to-implement and customizable customer identity solution that helps organizations with security, privacy, and user experience for their customers. It provides complete identity management, from sign-up to sign-out, and helps businesses develop safe, effective, and enjoyable digital experiences.
• In June 2022, Microsoft recently unveiled the Microsoft Entra product family, including the company's identity and access features. It offers complete visibility over authorization for all identities (both user and workload), activities, and resources Across multi-cloud infrastructures.
• In January 2022, AI & Robotics Ventures Company Limited (ARV) partnered with IBM to launch a blockchain-based National Digital Corporate Identity (NCID) platform. The platform will enhance authentication and reduce the time it takes for onboarding, known as Know Your Customer (KYC).

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