Market Insight

Identity governance and administration global revenue to reach nearly $6 billion by 2021

March 26, 2018

Don Tait Don Tait Principal Analyst, Cybersecurity & Digital ID

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Following is information and insight from IHS Markit on the latest trends and outlook for the world identity governance and administration (IGA) market. 

Highlights

  • The global identity governance and administration (IGA) market is projected to increase from $3.2 billion in 2017 to $5.8 billion in 2021. It is growing faster than the access management area, which is a more mature market with higher revenue.
  • Banking, finance, insurance, government, utilities and other heavily regulated end-user sectors have traditionally placed the most focus on IGA solutions. However, over the past year, manufacturing, retail and other non-traditional market sectors have also grown.
  • Smaller organizations are more likely to use software-as-a-service (SaaS) cloud deployment solutions, which can be more cost effective than on-premises solutions.


Our analysis

IGA tools manage digital identity and access rights across multiple systems. To enhance control over user access, these tools collect and correlate the disparate identity and access-rights data distributed throughout the IT landscape. This aggregated data serves as the basis for core IGA functions, including identity life cycle and entitlements management, access requests, workflow orchestration, access certification, fulfilment via automated connectors and service tickets, reporting and analytics. IGA also provides a number of ancillary functions, including role and policy management and auditing.

Following are the five key access management growth factors over the next five years:

1. GDPR deadline fast approaching

Finance, banking, insurance, government, utilities and other heavily regulated end-user sectors have traditionally focused on identity- and access-management solutions. However, manufacturing and retail sectors have become more security conscious over the past year. An increase in the number of data breaches, and looming legislation around General Data Protection Regulation (GDPR) in May 2018, have also piqued renewed interest in security and identity and access management (IAM) solutions.

2. Smaller organizations using identity governance and administration solutions

Identity governance and administration solutions have traditionally been deployed by larger organizations. In fact, companies with 5,000 or more employees are projected to contribute the largest revenue growth over the next five years, increasing from $2.4 billion in 2017 to $3.1 billion in 2021. The proportional importance of this segment is forecast to decline from 75 percent of total access management revenue in 2017 to around 54 percent in 2021.

Small and medium-sized enterprises (SMEs) will steadily increase the amount of IGA solutions they deploy. For example, revenue from companies with between 1 and 499 employees is projected to increase from $106 million in 2017 to $439 million in 2021. This segment managed to grow from 3.3 percent of total revenue in 2017 to 7.6 percent in 2021. The introduction of more cloud solutions within the IGA market will particularly help SMEs, because cloud-based access management solutions can be more cost effective and scalable for small and medium enterprises.

3. On-premises hybrid and cloud solutions

As there are a lot of applications running on premises at companies, a significant portion of larger organizations still want some on-premises solutions. Larger organizations are more apt to move to a hybrid model, with some applications running in the cloud as a steppingstone toward full adoption of cloud solutions. Hybrid solutions are projected to increase from $714 million in 2017 to $1 billion in 2021. In contrast, smaller organizations are more likely to deploy SaaS solutions, which can be more cost effective than on-premises solutions.

4. Asia Pacific embracing IGA solutions

Compared to their counterparts in North America and Europe, organizations in the Asia Pacific region have traditionally been more conservative and risk adverse when it comes to utilizing identity governance tasks. More than two-thirds of small and medium enterprises are still practicing traditional spreadsheet-based manual provision tasks. However, this state of affairs is changing, as more IGA vendors enter the Asia Pacific region to grab growth opportunities created from newly introduced access risks. APAC organizations now have more affordable IGA options, which provide access to localized IGA skills.

5. Blockchain makes security cheaper and more accessible

Many organizations have isolated and centralized identity management systems, but the current market landscape demands federation and single sign-on (SSO). These systems make identity management, protection and verification very cumbersome, costly and risky for industry enterprises and government agencies. Blockchain has the potential to introduce improvements that can make security more accessible and budget friendly.

With smart contract capabilities, there can even be a secondary market where users benefit from sharing resources back to the network. Smart contracts automatically execute pieces of code carrying valuable data or perform other condition-based executions.

A permissioned blockchain technology provides core capabilities that enable a trusted digital identity network to build and operate the following:

  • A shared, append-only ledger, with one version of the facts shared in real time, across all permissioned network participants
  • Smart contracts that ensure verifiable and signed business logic is executed in each transaction
  • Trust between known participants, to verify transactions and ensure records are valid
  • Privacy and security measures that grant access only to permissioned parties

Research synopsis

The two-volume Cybersecurity Identity & Access Management Report provides coverage in several key areas of the identity and access management market, including access management and identity governance and administration. Given the complexity of cybersecurity threats and the diversity of the market for cyber solutions, IHS Markit provides this detailed analysis of individual vertical markets from market-specific operating models to key trends and development opportunities providing for the first time an analysis of where the future revenues from identity management will arise. The report also provides competitive environment analysis and market shares on a regional basis. It provides a clear and concise outlook on the market, giving vendors and other industry stakeholders crucial insight into the opportunities and dynamics of the market over the forecast period.

Geography
Global
Research by Market
Security Technology
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