Identity Authentication Access Market set to hit $28.5bn in 2021

LONDON--(BUSINESS WIRE)-- The Identity authentication access market is set to grow by 13.4% in revenues in 2021 reaching $28.5bn, according to Omdia’s latest Identity Authentication Access Market Tracker. By 2025 the IAA market is projected to increase to $49.5bn, representing a CAGR of 14.9%.

In 2020, authentication was the largest segment of the IAA representing 1/3 of the total market share ($8.2bn), by 2025 authentication revenues are set to grow to $14.8bn with its market share dropping to 30% of the total market. IoT identity however, which is currently the smallest segment in 2020 (6.5%) is projected to have the highest growth over the next four years growing to $4.5bn.

On premises IAM/IDaaS, PAM and IGA accounted for $7.7bn, $2.0bn and $5.2bn according, however Omdia expects that over the next few years there will be a continued move away from on-premises products to cloud based solutions such as IDaaS.

The migration towards cloud-based solutions has been accelerated by the global pandemic but will continue as whilst the pandemic resulted in a sharp increase in fraud attacks due to home working, business will continue to look at alternative security solutions in the future.

Market share by Company:

The current IAA market is extremely fragmented with over 200 vendors already competing within the IAA space. Okta is currently estimated to be the market leader based on revenues with a market share of 3.5% in 2020, which is part down to Okta’s dominance of IAM/IDaaS market where it holds a 7.5% market share.

Microsoft’s market share has increased to 3% up from 2% YoY rising to the second largest market share, whilst Micro Focus’s market share actually decreased by 0.5% YoY dropping the business down to fourth in terms of market share.

However, over the next few years Omdia forecasts that the market share may change as businesses continue to evolve and adapt their products to ensure that they are meeting the requirements of continuous authentication and authorization.

Don Tait, IAA cybersecurity lead, at Omdia commented: “Over the past 18 months the IAA market has continued to grow in double digits despite the global pandemic and global downturn. This is due to the evolving needs of enterprises and business who require significant security products as more and more employees are working offsite.

“However, over the next few years we expect to see that physical on-site products are less popular as more cloud-based solutions takeover”

View source version on businesswire.com: https://www.businesswire.com/news/home/20210614005580/en/

Jonathan Haigh
[email protected]

Source: Omdia

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