This free identity and access management report 2022 is prepared by Identity Management Institute to share updated information on the latest IAM industry trends and drivers, statistics, threats, solutions, and more.
Identity and Access Management (IAM) is a comprehensive set of technologies, company-wide policies, and processes for granting, controlling, and accounting for identities throughout their lifecycle to ensure authorized access and transactions as well as non-repudiation. This includes onboarding and identifying each identity, authenticating it with a trusted credential, authorizing access to resources, assigning responsibilities, tracking activities, offboarding, and managing other attributes associated with an individual user.
This IAM report for 2022 will outline the evolving threats, trending solutions, technology innovations such as blockchain and distributed identity management, IoT device identity management, and other relevant information that companies can use for their digital identity transformation projects.
About Identity and Access Management Report 2022
Exploring and anticipating the future of identity and access management is daunting, especially when a new threat surfaces frequently. That’s why Identity Management Institute created this identity and access management report to assess the risks and outline the industry’s general direction and strategy for addressing the threats. Throughout the years, Identity Management Institute has evaluated the IAM industry with published documents to help organizations foresee the risks by observing the trends and the risk factors that affect identity management and enterprise security at macro as well as micro levels.
This report aims to inform stakeholders about the state of the identity and access management (IAM) industry. It includes valuable information for parties interested in securing systems and data as they consider how IAM processes and technologies can support their security objectives.
The identity and access management report is prepared with publicly available information and analysis of observations for existing and prospective IAM solution providers and experts, software vendors, end-users, industry analysts, IT professionals, and anyone else who wants to understand IAM better. It contains an analysis of how market trends are moving, how security threats are changing, and technology advancements that will shape IAM in the future.
An Overview of Identity and Access Management
Identity and access management (IAM) is a set of processes, policies, and tools that work together to make sure that the right people gain access to the right systems and data while keeping unauthorized access at bay.
There are five general domains within IAM:
- Access governance
When considering IAM, it’s likely that technology such as two-factor authentication comes to mind. However, industries throughout the global economy are under constant threat of various cyberattacks, and the state of IAM continues to adapt and evolve to stay a few steps ahead of the latest cyber attacks:
Identification: Zero-Trust Approach
The establishment of identity is at the foundation of all of the other IAM domains. It’s the unique differentiator of users, devices, and applications for today’s computer systems. After that identity is established by an organization, the organization can manage the access to critical systems by implementing its protocols for access governance.
It used to be that an organization’s IT security systems would assume that a user, device, or application can be trusted on good faith. If a request was not flagged as a threat by the security program, it was given access to a number of areas on a network by default. In 2022, more organizations are abandoning traditional IT security protocols and implementing a zero-trust framework for IAM. This means that the IT team assumes that the network is already compromised and no one user, device, or application can be trusted until its identity is verified.
Authentication: Multi-Factor Authentication
Nearly every business transaction is now processed digitally. This is a big attraction for sophisticated hackers who are no longer satisfied with notoriety and are going straight for the money or their asset of interest. Stolen personal and financial records have high value on the black market. Progressive companies and government agencies attempt to cut cybercriminals off at the pass in 2022 with the adoption of innovative biometric and multi-factor authentication platforms.
One such platform is ID.me which provides multi-factor authentication at each level of trusted access. One of its most prominent clients is the Internal Revenue Service. By summer 2022, taxpayers will no longer be able to access certain services, files, and documents without proving their identities with ID.me. Due to a backlash, the multi-factor authentication platform will not use digital mugshots of taxpayers for a facial recognition scan as of the writing of this IAM report.
Authorization: Conditional Access Management
Authorization is the act of verifying that a device, application, or user has permission to access requested network resources. One of the most common types of IT security breaches happens when someone accidentally or purposely gains access to resources or files for which they aren’t authorized. As a result, IT security teams are tightening up the way that access privileges are set up. Instead of giving the same level of access to everyone who maps to a certain role, the cyber security teams create more granular access roles. Users who meet specific criteria become privileged players who have elevated access while others may have temporary or limited access.
Access Governance: Automation for Speed and Accuracy
Access governance is the set of policies and procedures for assigning and managing access for different users, applications, and devices. Several years ago, it was common for access governance publications to be static documents that only changed with formal governance board reviews. Access governance automation tools were available, but they had limited functionality.
In 2022, IT security specialists face changes to national and regional legislation that impact access governance for computer systems in the public and private sectors. Also, world markets have recently experienced devastating supply chain issues. These challenges have helped to shed light on the ways that companies manage and share supply chain data.
Now, robust access governance automation tools aren’t just nice-to-have security features anymore. Instead, they are needed to update access governance rules in real time to avoid fines, lawsuits, and damaged reputations.
Accountability: Larger Data Analytics Budgets
According to Gartner, many companies expect to increase their data analytics budgets for IAM in 2022. They want data sets that allow them to make more informed IT security decisions. However, the collected data can also be used to conduct more in-depth audits on access logs that support accountability for IAM.
IAM Contributions to Data Protection and Cyber Security
The main benefits of identity and access management revolve around data protection and cyber security. Around 80% of all data breaches occur as a result of weak or stolen passwords. When a company implements an IAM system, best practices for credential management are put into place to eliminate these and related issues by requiring employees to frequently change their passwords, which mitigates the possibility of a password being stolen when better authentication methods are not available.
A notable percentage of breaches are also caused by insider threats. IAM is able to mitigate these threats by limiting user access and making sure that additional privileges are only given under supervision. Another clear contribution of IAM to cyber security is the ability to track anomalies with accuracy.
Along with basic credential management, modern IAM solutions are built with risk-based authentication, artificial intelligence, and machine learning. These technologies allow IAM solutions to better identify and resolve anomalous activity. With more advanced technologies, IAM solutions also help businesses move away from passwords to multi-factor authentication. The advanced capabilities available with IAM solutions include fingerprint sensors, face recognition, and iris scanning, all of which bolster security and protect sensitive data.
State of The IAM Market in 2022
Cybercriminals are constantly exploring new methods, which means the identity and access management (IAM) market must remain dynamic to keep up. Just recently, a series of major breaches have again demonstrated that supposedly secure systems are often surprisingly vulnerable. The IAM industry has also been in flux, with key mergers and acquisitions affecting the general landscape. Amid all the changes, a few definite trends are taking shape. By keeping tabs on the latest developments in the world of IAM, you can know what to expect in the years ahead.
As an industry, identity and access management continues to grow and is viewed as a necessity by cyber-security professionals. Over the past few years, the market has grown substantially to a value of $13.41 billion in 2021 and is expected to grow to $34.52 billion by 2028. This identity and access management report 2022 covers numerous factors that are contributing to the continued growth, recent trends, possible challenges, and market value. According to a research report, the market will grow at a compound annual rate of 14.5% from 2021 to 2028.
Several factors contribute to the IAM market growth. There’s been real progress in the IAM space at all enterprise levels due to the prevalence of cloud computing and mobility. As organizations move more of their data to the cloud, they need to ensure that the right IAM technologies will secure intellectual property, protect confidential customer data, and create a more secure and compliant environment. All of this has led to greater adoption across several vertical markets, including banking and finance, healthcare, and government agencies.
Many enterprises are also exploring IAM strategies beyond basic authentication and access management. They’re looking at how their processes can be reengineered to help them automate more of their operations and secure the most critical data portfolios. This is driving an increasing need for IAM technologies that provide solutions for sophisticated requirements that executive management and IT professionals alike must address.
Major Breaches Continue to Reveal Vulnerabilities
Organizations from private companies to government agencies continue to fall victim to hackers and cybercriminals. In this environment, the need for comprehensive security measures is clearer than ever before. Below are a few examples:
Fraudsters Use Deepfake Audio to Fool Employee
A corporate worker in Hong Kong sent fraudsters $35 million after receiving forged emails and a phone call that was supposedly from the company’s director. The caller claimed that the company was about to make a major acquisition. What the worker didn’t know is that the audio was fake, created with software to mimic the director’s actual voice. Cybercriminals are likely to use this technology more in the future.
Washington State Department of Licensing Suffers Suspected Breach
The Department of Licensing in Washington state holds all sorts of sensitive data about citizens, including social security numbers and dates of birth. The department recently shut down POLARIS, an online business service, because of a suspected data breach. The incident demonstrates the continued vulnerability of the public sector.
IAM companies have responded to emerging threats by building new products, developing new protocols, and perfecting existing methods. This has created a truly dynamic industry. Companies have also been merging with larger organizations looking to consolidate or add products under their umbrellas. Taken together, these developments reveal an industry that’s gone into overdrive, doing whatever it can to strengthen online security.
GBG Acquires Acuant
In November 2021, the massive cybersecurity company GBG acquired Acuant, its erstwhile competitor. The merger brings two industry giants together within a single organization. For GBG, the move provides inroads into the exploding American market. The United States is full of new and growing companies, all of which will need IAM services in order to protect themselves from digital harm. GBG is betting on itself as a long-term provider of these essential services.
SecureAuth Purchases Acceptto
SecureAuth recently purchased Acceptto, a provider of multi-faceted authentication tools that relies heavily on artificial intelligence. The move fits in with SecureAuth’s general intentions. The company has long sought to use AI as a means of improving password-free authentication. Acceptto’s cutting-edge technology can help SecureAuth provide top-end products for corporate clients.
Importance of Identity and Access Management
IAM is critical to the security, privacy, and compliance posture of organizations’ data, systems, and applications. While access control is important, IAM needs to address more than just access control. Access control is only one aspect of a larger identity management and security model. Access control alone will not be enough in specific industries, such as financial services, healthcare, and government agencies that handle sensitive customer data or have regulatory requirements to comply with AML, HIPAA or other privacy and related laws. There is an increasingly growing need for more advanced identity management capabilities for IT and executive management.
The ability to identify individuals is an essential part of the Identity and Access Management (IAM) process. An individual’s identity may reveal information beyond their access authorization and system activity such as their reputation, employment status, health benefits, and many other personal data. Read about top 5 reasons why identity and access management is important.
Key growth drivers for the IAM market include the following which we will further explore below:
- Cloud computing
- Mobile services and applications
- Increased compliance mandates and regulations
- Vertical markets
- Consumerization of IT
Cloud computing has created a shift in the way companies use technology. Cloud offers a delivery mechanism for applications, data and services where the infrastructure is hosted remotely. Cloud computing enables higher utilization of processing resources as users do not need to invest in software or pay for overages on IT infrastructure.
Today, cloud computing has become the fastest growing technology segment and shows no signs of slowing down. More organizations are realizing the cloud computing’s legitimate benefits and adopting the solution. Businesses embrace an actual cloud-first strategy to harness the power of this technology as they look to advance their IT strategies in pursuit of higher returns.
Mobile Services and Applications
Almost 80% of the world’s population will be using the Internet via their mobile phones by 2022, according to Gartner. The mobile Web and applications are expanding the number of people who can use the Web from any location at any time. Furthermore, organizations will no longer limit access to data on a per-location basis, as they often could in the past.
Increased Compliance Mandates and Regulations
When observing the IAM industry, it’s largely driven by the need to meet compliance requirements and regulations, which change almost constantly. As such, it’s believed that the compliance sector of IAM will be the primary driver of growth in the industry. Keep in mind that around 250 resolutions or bills that deal with cyber security were considered by U.S. state governments in 2021 alone. The passing of each new bill means that new compliance requirements must be upheld. With an IAM system in place, navigating these requirements becomes considerably more straightforward.
“There are many redundant and overlapping regulations that require organizations to comply with many aspects of identity and access management such as know your customer, anti-money laundering, financial transaction tracking, and online age verification or behavior monitoring for “appropriate” content. Staying ahead of the regulatory curve and meeting compliance mandates is especially important for companies with government contracts or government-related clients” says Henry Bagdasarian, President of Identity Management Institute.
While most IAM vendors design and sell products for all enterprise types, there is growing demand coming from vertical markets to meet their special needs. The vertical market is a subset of the broader IAM market which includes financial services, healthcare, retail, and manufacturing sectors.
Consumerization of IT
There’s a tremendous demand for devices that can be used for at-work and at-home computing. This trend is driven mainly by the increasing number of people working from home or remotely and internet availability in devices such as smartphones, tablets, and notebook computers. The blockchain technology may also add to this dynamic by giving consumers added control over the management of their personal information in self-sovereign identity management scheme.
Identity and Access Management Threats
Companies are constantly dealing with new and unique IAM threats that could pose problems for any business. The most important aspect of an IAM solution is its ability to identify and eliminate any new threats that arise. Cyber security attacks were yet again prevalent in 2021 with an average cost of $4.24 million per breach. One of the costliest issues that companies must contend with are ransomware attacks.
In 2021, cyber-attacks directly affected several high-profile companies. For instance, the attack that occurred on Colonial Pipeline brought about a $4.4 million payout. A considerably higher payout of $40 million was paid to ransomware hackers by CNA financial. It’s because of these and other cyber threats that businesses are looking to any solutions that protect them from losing millions of dollars. The IAM industry is at the forefront of this protection.
Although the IAM market has enjoyed strong growth over the past years, several IAM-related threats could slow down future adoption. Chief among them is a lack of communication between IT and security teams. Without proper communication and integration, enterprise identity management strategy can’t be efficient or effective.
Another potential threat to adoption is the concept of shadow IT. As cloud-based services become more common, the role of an enterprise IAM strategy becomes more blurred. Employees can increasingly use third-party cloud solutions to access sensitive information, thus reducing the role and contributions of their enterprise IAM solution.
And then there’s the potential for cybercrime. The growing number of IAM-based cyberattacks is making security professionals wary about the broad adoption of cloud and mobile technologies, which are often more vulnerable than traditional on-prem solutions. Thus, organizations may be held back from fully utilizing their IAM strategy simply because they’re uncertain whether or not it will be as secure as they need it to be.
The good news is that there are natural solutions to these challenges, including using complementary IAM technologies and solutions from a variety of security vendors. As more traditional on-premise systems transition to cloud and mobile, the number of potentially vulnerable applications grows — but there are still steps that can be taken to minimize those risks.
Challenges Facing the IAM Market Growth
According to market research reports, several challenges potentially threaten IAM market growth. One of them is the increasing complexity of identity management requirements. IAM vendors must ensure that their customers have the best possible tools and resources to manage access by employees and third parties across diverse enterprise applications.
Another challenge is greater user adoption of mobile technologies and cloud-based services. Cloud computing allows organizations to be more agile in their business processes, but it makes managing access even more complex. And without proper adoption of innovative mobile technologies, enterprise customers won’t be able to take full advantage of the benefits that cloud computing offers.
Yet another challenge is the likelihood of increased cybersecurity threats. As more and more sensitive information is moved to the cloud and mobile devices, cybercriminals are becoming more interested in using those systems to break into an organization’s network and data repositories.
On a positive note, security solutions are on the rise, and they will help minimize these risks. Organizations need to ensure that they have the proper measures to protect their data and information, regardless of various access points.
Projected Spending on Identity and Access Management
Fortune Business Insights reports that the global enterprise identity management (IAM) market will grow from an estimated $8.7 billion in 2015 to $19.3 billion by the end of 2022, at a compound annual growth rate of 13.2%. While the US leads the pack, in terms of individual countries, Japan is projected to register the highest CAGR over the forecast period at 5.8%, while Russia and the UK are expected to experience a CAGR of 6.7% and 5.6%, respectively, over the same period. The industry has experienced steady growth over the past 12 years due to several factors, including the increased adoption of third-generation mobile technologies and cloud services by enterprises. As more organizations continue their digital transformation efforts over the next five years, spending on IAM technologies will continue to increase.
Budgeting Priorities for IAM
Budgeting priorities will include the automation of access and user management across a range of applications in the coming years. It’s essential to automate IAM processes as much as possible to reduce errors, detect and respond to threats on time, and be more efficient specially for midsize firms and smaller organizations, which cannot afford to invest heavily in IT staffing.
Workforce productivity is another essential part of IAM initiatives. Organizations would like to ensure that employees can access information and applications when needed. Technology is only one part of the equation; data privacy issues can also be a significant challenge for some organizations. There is often urgent need to grant users access, even when there are security concerns. Access provisioning is as important as access deprovisioning which must be addressed for various scenarios.
Governance must be in place to ensure that employees’ access rights are appropriate and enforceable, depending on their role within the organization. As with many enterprise IT initiatives, it isn’t easy to come up with a comprehensive governance model. IAM is no different. With constantly evolving technology, it’s critical to ensure that the right policies are in place to define who has access to which data and applications.
Enhanced visibility across several identities and access management (IAM) related applications will be necessary given the scale of the IAM market over the next five years. More advanced technologies will require a steady increase in spending on IAM solutions, including identity management platforms and various systems for user and access management. Organizations should ensure that there is sufficient funding for the automation of access and user management across a range of applications. They must also invest in technologies that provide real-time network access and system activity visibility.
IAM Employment Opportunities
Employment in the identity management industry is projected to grow 17% by 2022, faster than the average for all occupations. Most jobs can be broken down into four main categories: Manager, engineer or architect with programming background, analyst, and administrator. In general, openings for identity administrators will increase as businesses seek to better manage their information security risks and the risks posed by hackers who exploit vulnerabilities in networks. Learn about IAM career and jobs.
IAM Industry Job Requirements
Due to emerging trends, companies are generally looking for candidates with a minimum of 4-7 years of experience in the information technology with an undergraduate degree or higher. Those companies who are hiring for IAM positions generally look for candidates who have an understanding of enterprise resource planning software and associated security functions.
Another position that companies are looking to fill is that of identity administrators, which are responsible for managing the policies and procedures that govern access control to applications and information systems in organizations. Newcomers can prepare to enter the IAM industry by completing a degree in computer science, information technology, and cybersecurity. Identity Management Institute offers a range of professional IAM certifications for novice and experienced professionals.
The need to secure the enterprise is one of the biggest factors driving IAM spending. As organizations move their data to the cloud and mobile devices, they need an effective way to protect it. A recent survey by Trend Micro shows that two-thirds of security respondents expect a breach within two years. Organizations should also invest more in identity analytics solutions, as this is a critical area for many firms looking to improve their security posture. These solutions are designed to identify abnormal behavior patterns and establish a baseline for network usage patterns. Identity and access management (IAM) projects will be present in almost every enterprise by 2022. These projects will be divided into five categories:
- Protecting data while maximizing the value of the network.
- Reducing security risks and complying with regulations.
- Improving user productivity while simplifying IT management.
- Controlling access to a range of business applications and platforms, including email and collaboration software.
- Enabling collaboration between employees, partners, and customers.
Identity And Management Access Vendors
As more companies leverage cloud computing with SaaS applications and manage a large number of dispersed workforce, the demand for comprehensive identity and access management products will grow to identify and authenticate users, manage system access, improve cybersecurity, comply with regulations, and streamline IAM operations. There are several vendors that offer some exceptional products, services and benefits. While some vendors are big and work better for large enterprises, others are smaller and offer unique benefits to SMBs or growing businesses.
IAM vendors can generally be classified under two major categories. These are:
The “Big” vendors in the identity and access management (IAM) market will continue to dominate the IAM market in 2022. These vendors include IBM, Microsoft, Oracle, and SAP. EMC is another contender expected to have a market leader position. This is because it has been awarded contracts with several organizations to support identity and access management (IAM) initiatives.
The fast-growing vendors include CyberArk, Okta, and HID Global, which have developed innovative solutions that address the needs of business customers. Other vendors may develop niche products and services for specific vertical markets such as healthcare.
Learn more about identity and access management vendors.
Long Term Investment Outlook for IAM
The industry is expected to show sustained long-term growth, driven by the demand for diverse IAM solutions, including access management. Advanced technologies will require a steady increase in spending on identity and access management solutions. Organizations should make sure that there is sufficient funding for the automation of access and user management across all critical systems. They must also invest in technologies that provide real-time system activity visibility and monitoring.
Regulations Around Identity and Access Management Operations
Organizations’ adoption of identity and access management (IAM) technologies will put them in a better position to operate on a global scale. These solutions are crucial for ensuring that an organization adheres to the global data protection and other related regulations. Key regulations include:
While the US doesn’t have a single unified cybersecurity or privacy regulation, The General Data Protection Regulation (GDPR) came into effect on May 25, 2018 to strengthen and unify data protection rules across the EU.
The EU’s Network and Information Security Directive (NISD) is the first EU wide cybersecurity legislation for implementing security measures to enhance cybersecurity in Europe and avoid cybercrimes.
These regulations help organizations prevent various forms of identity fraud and data breaches, which have become a major concern. All these regulations encourage organizations to have an IAM infrastructure that will ensure they are compliant with these policies and provide highly secure networks that are designed to protect the data of their customers and employees.
Data Breach and Identity Theft Report, Stats, and Predictions
The average cost of a data breach in 2021 was $4.24 million, which was an increase from $3.86 million the previous year. Remote work is the primary reason for this increase. Even though the IAM industry has been providing businesses with cyber-security solutions for many years, 95% of all breaches occur because of human error.
Stolen credentials brought about just over 60% of data breaches as more than 20% of employees are relatively likely to click on phishing emails. By educating employees, damaging data breaches and cyber-attacks are considerably less likely to occur.
As for identity theft, the cost of identity theft in 2020 alone was $56 billion. Around 2.2 million fraud cases were reported that same year. Keep in mind that 15 million citizens in the U.S. go through identity theft each year, which is a trend that is expected to continue for years to come.
A data breach is one of the costliest consequences of cybercrime. It damages the trust between a company and its partners and may lead to severe damage to its reputation.
Investing in an identity and access management (IAM) systems is a great start, however, organizations must also ensure they have a skilled workforce that understands the identity risks and how to develop best practices or leverage technologies to manage identities and their access. The next technological advancements will focus on using advanced analytics, machine learning, artificial intelligence (AI), blockchain identity, and biometric technologies to prevent system or data breach and ensure timely and legitimate access to resources.
Innovations Across the Identity and Access Management Market
Digital identity innovations such as distributed identity management, and decentralized identifiers using blockchain technology is crucial in creating better tools and solutions for the identity and access management industry in the coming years.
The ability to recognize trends and take advantage of new technologies can help industry leaders develop and embrace solutions that help businesses gain customer loyalty and develop a stronger foothold in their market shares. Innovation and improvement in user experience can lead to higher customer satisfaction and revenues for product development firms and their customers.
Distributed Digital Identity Management
In our evolving and interconnected digital economy, distributed digital identity and decentralized identifier are changing the way identities are managed. Distributed Digital Identity (DDI) helps facilitate the verification and authentication of an identity and management of personal information on the blockchain.
The idea behind DDI is very simple, yet very powerful: it removes the need to rely on an external third party for managing digital identities and eliminates the need for centralized control. Users can create their own digital identity using decentralized identifiers (DIDs), which are stored on a blockchain. They can then use their digital tokens to identify themselves, prove ownership of assets, and selectively share personal data with others for a predetermined period of time with automated smart contracts.
The adoption of distributed digital identity will accelerate the digital transformation of enterprise and government as well as change the way we manage identity and access today. The primary benefit of a decentralized digital identity management solution is the ability to establish trust, verification, and reliability between business partners, customers, and employees in a secure way.
Decentralized Identifiers or DIDs
DIDs are unique, highly available, and verifiable digital identifiers which can represent any subject such as a person or organization and are part of the core component of a decentralized pubic key infrastructure (DPKI). There are many ways to authenticate an identity some of which may be more private than others such as zero knowledge authentication. One of the most secure and popular options is using a digital token which has unique strings in the realm of distributed digital identity and decentralized identifier. These digital tokens can be used for identification purposes as well as access, transactions, and activity tracking.
With DID, users are able to use their digital tokens as identification tokens for their identities on the blockchain. Users could create distributed IDs that contain all of their personal information (such as name, gender, email address, etc.) and prove their identity with no third-party involvement. In other words, there’s no need for a central authority like a bank or credit card company to create or manage user identities. One of the most popular platforms for DIDs is EOS which lets users on the Ethereum network easily create and manage their own digital tokens. By using this technology, people can easily make transactions and provide proof of identity or ownership of assets, like cars or houses.
Identity and Access Management Industry Trends
The growth of the IAM market is mainly driven by the demand for cloud services, growing need for better security, and regulatory compliance. This can be attributed to the increase in cybercrime and hacking incidents across the globe. The world of IAM is evolving quickly in response to a changing environment. The rise of remote work has increased vulnerability just as cybercriminals devise new methods for bypassing security systems. With workers scattered around the world, organizations are struggling to keep infiltrators at bay. To meet today’s many security challenges, IAM companies are coming up with new products and tweaking their methods. The rising demand for IAM products and services is expected to help generate higher revenues for IAM vendors, which will allow them to invest additional funding in research and development (R&D). This will help accelerate innovation in the industry and create new products and solutions that will help organizations meet the needs of their customers.
A Push For Zero-Trust Policies
The increased number of security threats is forcing more organizations to adopt a zero-trust policy. This approach involves consistent authentication and validation for everyone who uses a network. Typical features include:
- Continuous verification
- Limited blast radius
- Automated behavior analysis to optimize responses
In 2022, more organizations should adopt this approach than ever before. Unfortunately, many groups and companies foresee formidable challenges associated with IAM implementation. For IAM providers, smoothing out the wrinkles will be a major focus.
Blockchain Helps Decentralize Identity Standards
Blockchain technology is revolutionizing the world of data security. By allowing for a zero-knowledge proof system, blockchain eliminates the need for sensitive information that can become vulnerable during a breach. Blockchain is also an inherently decentralized form of technology, and it fits perfectly within a user-centric security model. Given these considerable advantages, you can expect blockchain to increase its status in the IAM space.
An Increased Focus on Identity-Proofing Tools
Keeping track of user identity is harder in the age of remote work. In response to the current challenges, expect more companies to invest in identity-proofing tools that can help prove that an attempted login corresponds to an actual user. IAM companies that offer these tools can expect to see a growing client list in the future.
IAM Technology Innovation and Impact
IAM technology innovations mainly center around the use of machine learning and artificial intelligence, both of which are becoming increasingly common among top IAM vendors. For instance, IAM providers like CyberArk use artificial intelligence and machine learning to accommodate adaptive authentication. AI-powered analytics allow for the right access decisions to be made in an instant. Decentralized IAM via blockchain and decentralized identifiers are also being adopted at an increasing rate to substantially reduce security risks.
The use of a decentralized network means identities can be more private and secure. Another approach to identity that’s played a part in the IAM industry is the idea of self-sovereign identity, which provides individuals with full control of their own digital identities. While these methods of enhancing security and lessening potential points of attack are highly beneficial, widespread use of them depends on adoption by businesses and IAM solutions alike.
It’s estimated that IAM solutions will continue to be adopted by an increasing number of businesses in years to come. At the moment, the IAM industry is valued at $13 billion. The annual growth rate from now until 2028 is estimated to be 15%, which means that the projected market value for 2028 is just over $34 billion. The IAM industry has never been more important for any business that wants to protect their data and secure user/employee information. With new cyber threats being introduced almost daily, IAM solutions must be in place to keep these threats at bay.
In recent past, hourly office workers needed to punch a clock in person to begin a shift. Today, the same employees work remotely and sign into company computer systems across the Internet using IAM-based processes and technologies. These tools give businesses the freedom to securely expand their operations around the world. The major challenge is preparing new IAM technologists to innovate fast enough to keep up with ever-changing demand in the market which is expected to grow by 15% annually and reach $32 billion in 2026. This is why Identity Management Institute continues to publish content on identity and access management to raise awareness of the risks, offer solutions, and produce a growing number of certified IAM professionals globally.
The drivers for the identity and access management market growth include high demand for cloud-based solutions and SaaS applications, distributed workforce with BYOD, adoption of IoT and smart devices, access management automation, managing the human error element, compliance, and general cybersecurity.
Identity is the new security parameter. One giant network parameter is no longer a security and access solution for a dispersed workforce and network of systems. Security and access protocols must be defined for each system while a common ground is established for a collection of systems such as SSO.