6th April 2023
IAM systems for customers are utilized to offer authentication services and manage customer identities. These remedies retain in-depth customer information and aid businesses in offering a safer, more cohesive, and better customer encounter. They are also commonly employed to safeguard the customer registration process, sustain customer profile databases, and authenticate individuals accessing a company's services. The escalation in security requirements, as well as the increasing digitization worldwide, has resulted in amplified demand for customer identity and access management systems. The surge in the adoption of digital practices by businesses is also a contributing factor.
Additionally, it can be utilized to secure the process of customer registration, maintain databases of customer profiles, and authenticate access to a company's services by both customers and others. Moreover, the increase in occurrences of cyber-attacks significantly affects the implementation of customer IAM by businesses. As a result, organizations have embraced customer IAM solutions to furnish a secure platform for online transactions and accessing services. A robust IAM strategy minimizes the risk of cyber threats by restricting the access of unauthorized individuals to sensitive data.
However, the segment of identity proofing services is expected to experience the highest growth, which is anticipated to persist throughout the projected period. Businesses utilize identity-proofing services in the early stages of providing their services to clients. End-user identity proofing in-person is supported by documents like national identity cards, passports, and driving licenses, among others, while remote identity proofing involves the use of biometric data such as fingerprints, voiceprints, knowledge-based authentication (KBA), e-mail verification, and other. These services are also employed as an additional authentication technique for various purposes, including accessing confidential information by customers, especially in financial services and e-commerce firms. As a result of these advantages, the market segment's expansion would be propelled.
The Customer Identity Access Management (CIAM) Market size is projected to grow from USD 9.9 billion in 2022 to USD 30.9 billion by 2030, at a Compound Annual Growth Rate of 16.4% during the forecast period.
The provision of aid to businesses has resulted in increased success rates and decreased organizational risks, consequently enhancing professional services. Nevertheless, the managed services segment is expected to observe the highest growth in the forthcoming years. This is due to the various benefits it offers, including maintenance, standardization of IAM operating procedures, the presence of on-site and remote service centers, and others. These services serve as a supplement to additional IT resources, as several organizations require additional IT personnel to manage business operations effectively, including the smooth functioning of IT assets and monitoring of data within the organization. These circumstances are expected to provide profitable opportunities for the growth of this market segment.
Numerous financial institutions and banks have acknowledged the essential importance of safeguarding their customers' valuable and sensitive financial assets. To prevent potential security breaches that can adversely affect their profits, operational expenses, brand reputation, and other critical aspects, many of these organizations have implemented cutting-edge technologies. By employing customer identity and access management solutions, banks and other financial institutions can potentially obtain unforeseen ROI while also protecting their bottom line.
The North American region is projected to hold the most significant market share in the global customer identity and access management market. This is due to the widespread implementation of customer identity and access management solutions across various end-user industries, as well as the existence of several significant players like Microsoft Corporation, Salesforce Inc., Broadcom Inc., and others that offer security and customer identity and access management solutions in the region.
The increased incidence of data breaches in various industries across the United States is contributing to the rising demand for a customer identity and access management solutions in the region. Additionally, cybercriminals are continually developing new tactics, and a series of significant data breaches across various end-user sectors in the area have once again highlighted the susceptibility of supposedly secure systems.
Infutor, a Verisk business specializing in customer identity management, has revealed the launch of Infutor Identity Resolution in June 2022. The application is integrated into the Snowflake Data Cloud and can natively enrich and activate first-party data. The application is constructed with the Snowflake Native Application Framework, which is presently in a private preview stage. With the Snowflake Marketplace, developers can use Snowflake's core features to create apps and distribute them globally while also deploying them within a customer's Snowflake account.
May 2022 saw WSO2, a renowned company for its open-source and cloud-native technologies catering to API management, integration, and customer identity and access management, announcing the completion of its Series E funding round. With the addition of RedStart Labs (India), a subsidiary of Info Edge, WSO2 has raised a total growth capital of USD 93 million.
Due to the increased demand for a customer identity and access management solutions in the region, significant players in the market are striving to gain more market share. An example of such efforts can be seen in the massive cybersecurity firm GBG's November 2021 announcement to acquire its former competitor, Acuant. This merger brings together two industry giants under a single organization. By acquiring Acuant, GBG can further expand its footprint in the United States, the world's largest and strategically significant market for location, identity, and fraud services. Recent developments in the market lead to more development in Customer Identity Access Management Market.
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