IAM Security Services Market Size to Surpass USD 77.09 Billion by 2034

1. IAM Security Services Market Size to Surpass USD 77.09 Billion by 2034 According to Precedence Research, the global IAM security services market size was valued at USD 20.19 billion in 2024 and is expected to surpass around USD 77.09 billion by 2034, growing at a CAGR of 14.34% from 2025 to 2034. IAM Security Services Market Key Points •North America dominated the global market with the highest share of 38% in 2024. •Asia Pacific is projected to register the fastest growth during the forecast period. •Europe established itself as a prominent player in the global market. •By type of solutions, the identity cloud segment secured a notable market share in 2024. •By type of solutions, the access management segment is expected to expand significantly over the coming years. •By type of deployment, the cloud-based segment accounted for the largest market share in 2024. •By type of deployment, the hybrid segment is forecasted to grow at the highest CAGR during the forecast period. •By organization size, the large enterprise segment captured the leading market share in 2024. •By organization size, the small and medium enterprises segment is projected to witness rapid growth during the forecast period. •By end-user vertical, the IT and telecom segment held the dominant market share in 2024.

2. •By end-user vertical, the BFSI segment is anticipated to experience substantial growth over the forecast period. The Transformative Role of AI in Enhancing IAM Security Services AI significantly enhances Identity and Access Management (IAM) security services by introducing intelligent, automated capabilities that strengthen security and streamline operations. It enables real-time behavioural analytics and anomaly detection, helping identify suspicious activities such as unusual login attempts or unauthorized access. AI also powers risk-based and adaptive authentication, ensuring that users face stronger security measures only when needed, thereby reducing friction while maintaining high levels of protection. Additionally, AI automates identity lifecycle management, optimizes access controls, and supports password less authentication methods like biometrics. It improves threat detection and response by learning from patterns and predicting risks, helping organizations proactively secure their systems. With AI, IAM becomes not only more secure but also more user-friendly and efficient. Get a Free Sample Copy of the Report@ https://www.precedenceresearch.com/sample/5988 What is IAM Security? Identity and Access Management (IAM) is a comprehensive framework used by organizations to manage digital identities and control user access to critical resources. It ensures that only authorized individuals, devices, or applications are allowed access to systems, applications, or data based on pre-defined security policies. IAM helps protect sensitive information, mitigate unauthorized access, and maintain regulatory compliance. It also plays a key role in digital transformation by securing cloud-based systems and remote access, enabling organizations to implement secure and seamless access across their infrastructure. Core Components of IAM Security Services 1. Identity Management Identity Management is the process of creating, maintaining, and removing user identities in an organization’s systems. It involves assigning and managing unique identifiers for each user, device, or application to ensure they have distinct and secure identities. This process is typically managed through centralized identity repositories, which store critical information like usernames, passwords, and user attributes. Synchronization tools are used to maintain consistency of identity data across various systems within

3. the organization, ensuring that every system recognizes and validates the user's identity appropriately. 2. Authentication Authentication is the process of verifying that a user is who they claim to be. This step is critical in IAM to prevent unauthorized access. Traditional authentication methods rely on passwords, but more advanced systems use Multi-Factor Authentication (MFA), which combines multiple methods like biometrics, one-time passwords (OTPs), or security tokens for added security. As cyber threats evolve, password less authentication methods, such as facial recognition or fingerprint scanning, are gaining traction, offering a more secure and user-friendly alternative to passwords. 3. Authorization Once a user’s identity is authenticated, the next step is authorization, which determines what resources the user can access and what actions they are allowed to perform. This is typically achieved through access control models such as Role-Based Access Control (RBAC), where users are granted, permissions based on their roles within the organization. Alternatively, Attribute-Based Access Control (ABAC) and Policy-Based Access Control (PBAC) use a broader set of attributes, such as user roles, department, time of day, and more, to determine access rights dynamically. 4. Access Management Access Management is responsible for enforcing the policies that control user access to systems and data. Tools like Single Sign-On (SSO) allow users to access multiple systems with a single login, simplifying their experience and reducing the need for remembering multiple credentials. Identity Federation extends access across trusted systems or organizations, allowing users from one domain to access resources in another. Additionally, Conditional Access evaluates the risk factors (like location, device security, etc.) and adjusts access requirements accordingly. 5. Privileged Access Management (PAM) Privileged Access Management focuses on controlling and monitoring access for users with elevated permissions, such as system administrators or executives. These privileged accounts are often targeted by attackers because they provide broader access to sensitive systems.

4. PAM solutions help by enforcing the principle of least privilege (ensuring users only have access to the resources they need) and implementing strict controls over who can access privileged accounts, with features such as session recording, time-limited access, and automated credential rotation. 6. Governance and Compliance IAM solutions provide Governance and Compliance features that ensure organizations meet legal and regulatory requirements. These features include auditing capabilities that log user activities, track access to sensitive data, and maintain detailed records for compliance audits. Tools for access reviews, policy enforcement, and reporting also help organizations monitor user behaviour and ensure access controls are being followed. Governance is crucial for adhering to regulations like GDPR, HIPAA, and SOX, which require organizations to protect sensitive data and prove they are following security protocols. Emerging Trends in IAM A major trend in IAM is the increasing adoption of AI and machine learning, which are used to enhance anomaly detection, automate risk analysis, and provide context-aware access controls. The Zero Trust Architecture (ZTA) is another growing trend, where IAM systems play a crucial role by verifying every request, regardless of the user's location or network, enforcing strict access policies at all levels. Password less authentication methods, such as biometric recognition and hardware tokens, are becoming more popular to eliminate the vulnerabilities associated with traditional passwords. IAM solutions are also being increasingly integrated into DevOps and CI/CDpipelines to secure applications and APIs throughout their development lifecycle. Regional Outlook of IAM Security Services Market

5. North Americais the largest market for IAM security services, valued at over USD 7.47 billion in 2024. The region benefits from widespread cloud adoption, strong cybersecurity regulations, and a robust vendor ecosystem. The U.S. leads the market with significant investments in advanced IAM technologies, driven by increasing cyber threats and digital transformation initiatives. North America is expected to grow steadily at around 14.5% CAGR through 2034. Asia Pacificis the fastest-growing region in the IAM security services market. Rapid digitalization, expanding cloud adoption, and rising cybersecurity awareness are fueling demand. Countries like China, India, and Japan are investing heavily in IAM solutions to protect growing data volumes and comply with evolving regulations. The region’s expanding digital economy makes it a key growth hotspot. Europemaintains a strong position with steady market growth. The presence of strict data protection laws such as GDPR compels businesses to adopt IAM solutions for compliance and security. Germany, Italy, and Spain are notable contributors. European organizations increasingly prefer cloud-based IAM services, with SMEs becoming important adopters due to regulatory pressures. Latin America and the Middle East & Africa (MEA)currently hold smaller shares but show promising growth potential. Increasing cyber threats, government initiatives, and cloud migration are driving IAM adoption. However, challenges such as limited technical infrastructure and expertise remain. Key sectors like banking, government, and telecom are leading IAM investments in these regions. Segmental Analysis of IAM Security Services Market Type of Solutions Insights

6. Identity Cloud: Held a significant market share in 2024. It provides a unified framework to manage user identities, roles, and privileges across multiple cloud environments. This segment benefits from accelerated digital transformation and cloud migration trends. Access Management: Expected to witness considerable growth. It combines policies, processes, and technologies to prevent unauthorized access and data breaches. The rise of IoT, mobile devices, and remote work drives demand for robust access management solutions. Type of Deployment Insights Cloud-Based: Dominated the market in 2024 due to benefits like reduced IT management costs, scalability, and simplified user access control across cloud services. Increasing cloud migration fuels demand for cloud-based IAM solutions. Hybrid: Projected to grow at the fastest rate. Hybrid deployment manages access across both on-premises and cloud infrastructures, ensuring consistent security policies. The complexity of multi-cloud environments and remote work scenarios boosts this segment. Organization Size Insights Large Enterprises: Captured the largest market share in 2024. These organizations invest heavily in IAM to secure expansive IT infrastructures and comply with regulatory requirements. They require advanced multi-factor authentication and identity governance. Small and Medium Enterprises (SMEs): Expected to grow rapidly. SMEs increasingly adopt IAM solutions to centralize identity management, prevent unauthorized access, and reduce administrative overhead. Customized IAM offerings for SMEs enhance market growth. End-User Vertical Insights IT and Telecom: Accounted for the largest market share in 2024. Continuous cloud adoption and the need to secure millions of user identities drive demand. IAM solutions help reduce security risks and improve operational efficiency. Banking, Financial Services, and Insurance (BFSI): Anticipated to show strong growth. The rise of mobile payments and digital banking increases the need for IAM to prevent fraud, secure transactions, and comply with regulations. IAM solutions enhance customer trust and business integrity. IAM Security Services Market Companies

7. •IBM:Offers comprehensive IAM solutions including identity governance, privileged access, and adaptive authentication for cloud and on-premises environments. •Oracle:Provides strong cloud-based IAM with identity governance, access management, and compliance features for large enterprises. •Broadcom:Focuses on scalable IAM for hybrid/multi-cloud environments and Zero Trust security, including privileged access management. •Microsoft:Delivers Azure Active Directory with role-based access, MFA, and conditional access for secure identity management in cloud and enterprise setups. •Amazon Web Services (AWS):Provides scalable cloud IAM services to manage user access and permissions across AWS resources. •Centrify (Delinea):Specializes in privileged access management to secure hybrid IT environments with least-privilege enforcement. •Okta:Known for cloud-native IAM with single sign-on, adaptive MFA, and user lifecycle management, popular among mid-sized businesses. •SailPoint Technologies:Focuses on identity governance and compliance automation for complex enterprise environments. •HID Global:Provides secure physical and digital identity management solutions, especially for high-assurance sectors like government and healthcare. •NetIQ:Offers identity governance, access management, and privileged account solutions for hybrid IT infrastructures. •Symantec (Broadcom):Provides integrated identity security and access management solutions within Broadcom’s portfolio for cloud and on-premises. Source: https://www.precedenceresearch.com/iam-security-services-market