The identity authentication access market is set to grow by 13.4% in revenues in 2021 reaching $28.5bn.
Omdia forecasts that by 2025 the IAA market is projected to increase to $49.5bn, representing a CAGR of 14.9%.
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Show me the money
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.
While currently the smallest segment in 2020 (6.5%), IoT identity 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 respectively. 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 pandemic has accelerated migration towards cloud-based solutions. That’s the good news. The bad news is that the pandemic has also resulted in a sharp increase in fraud attacks due to home working. That said, businesses will continue to look at alternative security solutions in the future.
The competitive landscape
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 partly down to its 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. Micro Focus’s market share has declined by 0.5% YoY dropping the business down to fourth in terms of market share.
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 noted that the past 18 months has seen the IAA market grow double digits, this is despite the global pandemic and global downturn. He attributes this to the evolving needs of enterprises and businesses that 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,” he concluded.
