Identity Authentication Access Market Set to Hit $28.9B in 2021

The Identity, Authentication, and Access (IAA) market is set to grow by 13.4% in revenues in 2021 reaching $28.9bn, according to Omdia’s latest Identity Authentication Access Market Tracker. During 2021, the increasing number of security breaches and attacks has brought into even sharper focus the need for strong identity, authentication, and access technology. Identity has never been more important for cybersecurity than now. In this sense, COVID-19 merely turbocharged a tendency that had been underway for several years, i.e. identity adopting a central role in this market and being invoked in all the other areas, including infrastructure and data security.

In 2021, authentication continues to be the largest segment of the IAA market, representing $9.4bn (or 32.6% of the total). In 2025, authentication revenue is projected to reach $16.6bn (with a CAGR of 15.1%). In 2021, the combined field of on-premises IAM and cloud-based IDaaS is projected to be the second largest segment, with revenues of $9.3bn. Omdia believes that this segment is driven by increased demand for cloud-based solutions such as IDaaS. Meanwhile IGA and PAM are projected to account for $5.8bn and $2.4bn respectively in 2021. IoT identity was the smallest segment in 2021, with revenue of $1.9bn (or 6.6% of the total). However, the IoT identity segment is projected to have the highest growth during the forecast period, increasing to $4.7bn by 2025 (with a CAGR of 24.3%).

2021 – The Year of Mergers, Acquisitions, and New Entrants

The following section highlights some of the major announcements in the IAA space in 2021:

• In March 2021, Okta, announced it was spending $6.5bn, entirely in stock, to purchase Auth0.

• In March 2021, TPG Capital acquired PAM vendor Thycotic
  for $1.4bn. It plans to merge it with Centrify, the other PAM vendor it acquired in January this year. Centrify will thereby hope to present a serious challenge to PAM market leader CyberArk.

• In April 2021, Okta a leading player in identity-as-a-service (IDaaS), has announced its entry into two other segments of the identity market: privileged access management (PAM) and identity governance and administration (IGA).

• In June 2021, it was announced that Transmit Security raised $543 million Series A funding with the mission to rid the world of passwords.

• In July 2021, Microsoft
  acquired CloudKnox Security, which is the market leader in cloud permissions management (CPM) technology.

• In October 2021, One Identity, which offers privileged access management (PAM), identity governance and administration (IGA), and Active Directory management and security (ADMS) products, has acquired OneLogin, a player in the growing identity-as-a-service (IDaaS) market.

As can be seen from this section, 2021 has seen a reasonable amount of market activity in the form of mergers, acquisitions, and vendors entering new segments of the markets. Omdia believes this trend will continue in 2022, as vendors fight for increase market share in this growing market.

Conclusions

In summary, the IAA market has a bright future due to increased demand as a result of remote working, an increase in mergers and acquisitions activity, and large players entering new segments of the market. Growth has been driven by the pandemic, in that the sharp increase in fraud attacks and security breaches has driven demand for products and solutions in this segment of cybersecurity. The IAA sector is projected to show good growth during the next five years, reaching $53.4 billion in 2025 (with a CAGR of 16.7%).

Read More HERE