Identity Analytics Market: Global Size, Share, Trends, Growth and Forecast Outlook 2022-2032
Identity Analytics Market: Overview and Definition
The identity analytics market is likely to reach a valuation of USD 4.2 billion by 2032 end, growing at a CAGR of 29.3% during the forecast period 2022-2032. Identity analytics is a subset of identity and access management (IAM) that uses big data and advanced analytics techniques to identify and manage identity-related risks and opportunities. The identity analytics market includes software, services, and consulting offerings that help organizations analyze and manage user identities, access rights, and behavior in real-time. The market is expected to grow due to the increasing need for effective identity management solutions to meet compliance requirements, mitigate security risks, and improve operational efficiency.
The global market is experiencing enormous growth rate primarily driven by several factors such as rising demand to secure devices as well as users from unauthorized access, upsurge in number of identity theft, and growth in demand for mobility solutions.
Identity analytics is a combination of advanced analytics and big data that helps to detect identity-based risks in enterprises' IT infrastructure. This factor is further expected to fuel the identity analytics market's growth across the IT & telecom industry. Furthermore, the upsurge in the adoption of identity & access management (IAM) solutions is anticipated to boost the identity analytics market around the globe. However, the factors such as budget constraints and lack of awareness are projected to hamper the market's growth to some extent.
Identity analytics is the process that applies science and logic to identity as well as access the data to provide insights and improve the identity & access management (IAM) decisions. It offers organizations with the ability to manage & define roles and automate critical identity-based controls.
The global market is observing extensive consolidations, geographical expansions, new product launches, and acquisitions by the key market players. The market players embrace these strategies to enhance their product portfolio, expand the reach, and generate new revenue streams. For instance, in March 2020, SailPoint Technologies, a provider of Identity management and Governance for Unstructured Data access launched identity governance for infrastructure-as-a-service (IaaS) platforms as well as workloads.
Identity Analytics Market: Key Drivers
The key drivers of the identity analytics market include:
- Increasing demand for identity and access management (IAM) solutions due to the growing number of cybersecurity threats and data breaches.
- The need for compliance with regulations and standards such as GDPR, HIPAA, and PCI-DSS, which require organizations to ensure the privacy and security of user data.
- The need to manage the complexity of user identities in large enterprises with multiple systems and applications, where traditional IAM solutions may be insufficient.
- The adoption of cloud-based IAM solutions, which offer greater flexibility and scalability than on-premises solutions.
- The integration of advanced analytics and machine learning capabilities in IAM solutions, which enable organizations to detect and respond to identity-related risks in real-time.
- The increasing use of identity analytics in industries such as healthcare, banking, and finance, where security and privacy are critical.
Identity Analytics Market: Challenges
The identity analytics market faces several challenges, including:
- Complexity of integrating identity analytics solutions with legacy systems and applications, which can result in high implementation and maintenance costs.
- Lack of skilled professionals who can design, implement, and maintain identity analytics solutions, leading to a shortage of qualified staff in the market.
- Concerns over data privacy and security, especially in light of recent high-profile data breaches, which can undermine trust in identity analytics solutions.
- The difficulty of managing identities in hybrid and multi-cloud environments, where users and applications may be spread across multiple platforms and locations.
- The need to balance security and convenience, as overly restrictive IAM policies can lead to user frustration and reduced productivity.
- The challenge of keeping up with evolving compliance and regulatory requirements, which can be difficult and time-consuming for organizations to manage.
Identity Analytics Market: Segmentation
On the basis of component, the market is segmented into solution and services. As per the estimation, solution segment observed the biggest portion, regarding income in 2019 and may rule the innovation field, as far as size, by 2025. This is attributed to the rising adoption of identity analytics solutions in processes that include making informed decisions about user access and entitlements. In addition, these solutions leverages machine learning and advanced analytics to reduce identity access related risk. Hence, more number of organizations are adopting identity analytics to ensure continuous compliance.
On the contrary, services segment is projected to observe impressive development and rule the market (regarding development rates) over the conjecture time frame.
Consolidations and acquisitions, to generate new revenue streams and to expand the geographical presence have advanced as a significant piece of the current identity analytics industry. For example, in January 2020, LexisNexis Risk Solutions, a global data & advanced analytics leader acquired ID Analytics, a fraud & credit risk solution provider. ID Analytics uses advanced data, technology, and analytics to provide actionable insights for enterprises.
Industry Vertical Insights
On the basis of industry vertical, the market is divided into Banking, Financial Services, and Insurance (BFSI), government and defense, IT and telecom, energy and utilities, retail, manufacturing, healthcare, and others. The IT and telecom industry vertical is estimated to hold largest share of the global identity analytics market in 2019. This is attributed to the rising demand for identity management solutions in organizations across the IT & telecom industry due to the huge volumes of information produced daily in such organizations.
The BFSI portions may witness highest growth rate during the forecast period. This may be due to increasing adoption of identity analytics in BFSI sector to automate identity compliance processes. For instance, in June 2017, HSBC Holdings Plc, a British multinational investment bank and financial services holding company partnered with Ayasdi Inc., the artificial intelligence (AI) startup to automate its identity compliance processes to become more efficient.
The development of telecom foundation in emerging economies such as China and India is projected to opportunistic for growth of the identity analytics market.
Identity Analytics Market : Report Scope
Base Year Market Size
Forecast Year Market Size
Identity Analytics Market: Regional Synopsis
North America region is estimated to possess the largest market share global identity analytics. This is attributed to the factors such as the significant presence of key market players, the emergence of several vendors that offer identity analytics solutions, and the early adoption of identity analytics to fuel market growth in the region.
On the other hand, Asia-Pacific region is expected to observe highest growth rate in the forecast period. This region offers lucrative growth opportunities due to the varying trends across the enterprises operations. For instance, the enterprises in this region are progressively focusing on improving their operation efficiency; hence, adoption of identity analytics is growing to manage access to vast information. In addition to this, growing penetration of the cloud analytics and business intelligence in industry verticals such as telecom and IT sector, retail, and healthcare significantly fuel the growth of the market.
Identity Analytics Market: Recent Developments
Some recent developments in the identity analytics market include:
- Integration of machine learning and artificial intelligence (AI) capabilities into identity analytics solutions, which enable real-time analysis of user behavior and identification of potential risks.
- Increasing adoption of cloud-based identity analytics solutions, which offer greater flexibility and scalability than on-premises solutions.
- Emergence of identity-as-a-service (IDaaS) offerings, which allow organizations to manage identities and access control in the cloud.
- Growing demand for identity analytics solutions in healthcare, financial services, and retail industries, where security and compliance are critical.
- Acquisitions and partnerships among key players in the market to expand their offerings and capabilities. For example, in 2021, SailPoint Technologies acquired Intello, a SaaS management platform that helps organizations to discover and manage their SaaS applications.
Identity Analytics Market: Key Players
- Verint Systems
- Hitachi ID Systems
- LogRhythm, Inc
- Quantum Secure, Inc
- Sailpoint Technologies
- Nexis GmbH
- Prolifics Inc
- Brainwave GRC