Consumer Identity and Access Management (CIAM) Market

[453 Pages Report] The global Consumer Identity And Access Management (CIAM) market size is projected to grow from USD 12.5 billion in 2024 to USD 21.0 billion by 2030 at a Compound Annual Growth Rate (CAGR) of 8.9% during the forecast period. A rising need for seamless customer experience along with growing worries about access privileges is observed globally which is driving the CIAM market. In addition to this, the shift from conventional IAM to CIAM, emphasizing user-friendly functionalities like smooth user experience and privacy protection, is driving market growth even more. Another important growth aspect is the increasing adoption of cloud-based CIAM solutions, as they support flexibility and are easier to integrate. Such aspects, along with innovations in Al and ML technologies to enhance identity verification and fraud detection capabilities, are fueling the growth of the CIAM market.

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IMPACT OF GENAI ON CONSUMER IDENTITY AND ACCESS MANAGEMENT (CIAM) MARKET

Generative Al creates a transformative change in customer identity security by shifting from reactive to proactive measures. It enables data and attack simulations, significantly improving CIAM systems by allowing them to be prepared for threats in a very proactive manner. Generative Al will speed up the analysis of data, providing faster decision-making and collaboration. Some of the tools in the market, such as Transmit Security, with low-code orchestration, help organizations effectively automate and adapt customer identity security workflows. It provides quality detection, better visibility, and governance. By using generative Al, transmit security will deliver increased end-to-end visibility and efficiency across the customer lifecycle. It will augment data scale, fine-tune fraud detection accuracy, and execute complex tasks at an expedited pace.

Impact Areas and Descriptions:

Fraud Detection:

With the help of Generative AI, one can produce counterfeit versions of new attacks. This enables security researchers to train detection systems in advance. This proactive training enhances the preparedness of CIAM systems, greatly enhancing their capacity to identify and prevent fraudulent activities.

Synthetic Data Generation:

It enables teams to work on tasks involving the use of synthetic user data, which captures the structure and statistical properties of actual data. This further enables the testing of policies, research, benchmarking, model training, and sharing of data in a confidential manner with third parties. In this way, the CIAM aspects of data security and privacy compliance would be improved.

Automated Analysis of Multi-source Data:

The proliferation of identity providers, security tools, databases, APIs, and various other services has made the process of retrieving identity information more complex. Utilizing Generative AI can simplify tasks for individuals lacking expertise in this field by automatically examining user data from multiple sources. This enhances the efficiency and effectiveness of a CIAM system.

Identity Verification:

It offers complete visibility into the security status of customers using seamlessly integrated services. The AI system will expand the data for training and testing models, improve accuracy in fraud detection, and accelerate the speed at which complex tasks are performed, resulting in more effective identity verification in CIAM.

Personalization of User Experience:

With the help of intelligent analytics, Generative Al simplifies and accelerates data retrieval. It further empowers platform users to execute customized queries in natural language and present results in raw format and visualizations. It democratizes big data analysis, providing real-time, actionable insights into authentication events, registration rates, user journeys, threat patterns, and all user lifecycle events, thereby enhancing personalization capabilities within a CIAM system.

Threat Response and Mitigation:

Threat response and mitigation, a component of generative AI in the CIAM industry, uses sophisticated AI capabilities to proactively improve security measures. Generative AI facilitates the production of synthetic attack variations, allowing systems to train for these threats before they arise, assuring preparedness and rapid detection. It simplifies multi-source data analysis and automates complicated threat response activities, allowing CIAM systems to respond quickly to changing threats. By recognizing phishing assaults, detecting deepfakes, and mitigating adversarial attacks, generative AI provides strong and dynamic protection for consumer identification information, ensuring security and confidence in digital interactions.

CONSUMER IDENTITY AND ACCESS MANAGEMENT (CIAM) MARKET DYNAMICS

Driver: Rising identity theft and fraud

Identity thefts in the financial sector occur when financial transactions take place with open credit cards or bank accounts, and the process of obtaining loans takes place using personal details. Between 2019 and 2021, reports of identity theft saw a significant increase, reaching 1.4 million cases in 2021. In 2023, the FTC received approximately 1 million reports of identity theft, it is a slight decrease from 1.1 million in 2022, yet still surpassing pre-pandemic levels. Credit card fraud was the most prevalent in 2023, accounting for 426,000 cases, while government document and benefits fraud rose by 68%. Synthetic identity theft is also on the rise, particularly affecting the retail, financial services, and travel sectors. Many instances likely remain unreported, underscoring the seriousness of the problem. This escalation in identity-related attacks underscores the necessity for robust CIAM solutions to safeguard customer identities, regulate access, and secure sensitive information.

Restraint: Lack of identity standards and budgetary constraints

Several organizations do not fully grasp the strategic significance of CIAM standardization, particularly in the retail, media, entertainment, and education industries. The expenses involved in establishing identity standards act as a barrier to adoption despite the potential advantages such as cost reduction and competitive edge. The growth in cyber threats increases the significance of CIAM. However, it is hindered by the high costs associated with the implementation and maintenance of CIAM. Further, the restraint in the CIAM market is caused by SMEs and startups who usually have low budgets and lack resources. SMEs focus on the security of their organization after experiencing a security breach; otherwise, they often neglect its importance. This issue is especially common in regions such as Asia Pacific, the Middle East & Africa, and Latin America, where businesses frequently operate with limited financial resources.

Opportunity: High volume of online transactions

Large organizations that conduct numerous online transactions may need CIAM systems. These organizations must focus on security, privacy, and user experience to ensure the smooth operation of their online business with a large client base. A high volume of transactions attracts malicious actors, which further leads to several illicit activities, including account takeover, identity theft, and unauthorized access.

Large enterprises are compelled by central banks to verify users using robust authentication methods due to the rise in eCommerce, internet banking, and regulatory requirements. There has been a rising need for OTP authenticators, including both hardware and software, because of the surge in mobile banking for online transactions. Moreover, MFA is utilized to enhance security and protect customers from phishing attacks and illicit activities. Furthermore, system integration in industries such as healthcare, retail, and BFSI for payment processing opens up huge growth avenues for the CIAM market. Moreover, Clients can easily access various services without the hassle of remembering multiple usernames and passwords by leveraging the SSO features of CIAM systems. It can reduce the number of client accounts across different systems and applications.

Challenge: Difficulties in addressing the complexity of advanced threats

In recent years, there has been a notable rise in the volume and complexity of APTs and targeted threats, posing a major security challenge for organizations worldwide. Cybercriminals are employing advanced tactics to breach networks and access data, leaving organizations susceptible to attacks. It has become very difficult to comprehend the various types of cyberattacks, especially with a diverse range of threats. Consequently, organizations are seeking robust mobile security solutions to anticipate, identify, and safeguard mobile devices. Thus, tackling the intricacies of advanced threats presents a substantial challenge for the CIAM market.

CONSUMER IDENTITY AND ACCESS MANAGEMENT (CIAM) MARKET ECOSYSTEM

By vertical, BFSI is expected to grow at the largest market size during the forecast period.

In the CIAM market, when segmented by verticals, the BFSI vertical has the largest market size because of many factors. At first, the stringent regulatory requirements along with the dire need to safeguard sensitive financial data from unauthorized access or misuse are driving the market because there is a rising need for advanced identity verification and authentication solutions in the BFSI industry to combat fraud and also there is a need for organizations to ensure compliance with regulations such as GDPR and PSD2.

Also, the BFSI sector is in a state of the highest digital transformation with the usage of online banking services going up, and with the increased adoption of financial services, the demand for strong CIAM solutions has also increased. Furthermore, the need to provide secure and seamless user experiences across multiple channels has accelerated the adoption of CIAM in the industry.

By authentication type, Multi-Factor Authentication (MFA) accounts for the largest market size during the forecast period.

By authentication type, the MFA segment is dominating the CIAM market because of its ability to increase security through multiple verification methods for user identity. MFA is adopted by organizations to protect customer data from cyber threats and data breaches. The requirement for a robust authentication method to comply with regulations has further amplified this trend. Businesses prefer MFA as it provides an extra layer of security without significantly impacting user experience, seeking a balance between security and user convenience.

By region, North America accounts for the largest market size during the forecast period.

In the CIAM market, North America stands out as having the largest market size. The reason behind this is the perfect combination of a well-developed technology infrastructure along with the presence of some major economies like the US and Canada. The region is witnessing a growth in security threats, which has led organizations to implement CIAM solutions to protect their digital identities. The region has suffered a large number of data breaches, with 422 million individuals affected in 2022 alone, highlighting the importance of strong identity management.

Governments in North America consider cybersecurity a critical national security challenge and have allocated resources in budgets and policies to improve identity management. In 2021, an executive order on cybersecurity was released by the US president to bolster the adoption of CIAM solutions in the region. Furthermore, the region is seeing an increased use of smart mobile devices along with the rapidly expanding eCommerce industry because of which the market growth in the region is expanding.

Key players

The key players in the CIAM market are IBM (US), Okta (US), SAP (US), Microsoft (US), Ping Identity (US), Thales (France), Broadcom (US), AWS (US), Salesforce (US), OpenText (Canada), Akamai Technology (US), Deloitte (UK), HID Global (US), CyberArk (US), Nevis Security (Switzerland), Simeio Solutions (US), Ubisecure (Finland), Onelogin (US), SecureAuth (US), LoginRadius (Canada), IDlogy (US), Omada Identity (Denmark), WSO2 (US), WidasConcepts (Germany), FusionAuth (US), Transmit Security (Israel), IDnow (Germany), MiniOrange (US), Strivacity (US).

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Scope of the Report

The study categorizes the CIAM market based on Offering, Solutions, Services, Authentication Type,  Deployment Mode, Organization Size, Vertical, and Region.

By Offering:

• Solution
• Services

By Solution:

• Identity Administration
• PII Management and Analytics
• Access Management
• Fraud Analytics
• Other Solutions (Identity Directory and Social Login)

By Services:

• Integration and Deployment
• Support and Maintenance
• Consulting

By Authentication Type:

• Multi-factor Authentication
• Single Sign on
• Passwordless Authentication

By Deployment Mode:

• Cloud
• On-Premises
• SaaS

By Organization Size:

• SMB
• Large Enterprises

Vertical:

• BFSI
• Healthcare
• Hospitality
• Retail & eCommerce
• Telecommunication
• Education
• Government
• Energy & Utilities
• Manufacturing
• iGaming
• Other Verticals (Automotive, Transportation, and Logistics)

By Region:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• Latin America

Recent Developments

• IBM and Palo Alto Networks partnered in May 2024 to enhance their CIAM solutions by leveraging Al. This partnership helps Palo Alto Networks to incorporate IBM's LLMs into its Cortex XSIAM platform to enhance Al-driven security and identity management solutions.
• In February 2024, SAP and Microsoft collaborated to transform identity management for SAP customers. This partnership enhanced the integration of SAP's software suite, which includes SAP SuccessFactors, SAP Cloud Platform, SAP S/4HANA, and Microsoft Entra. Microsoft aims to support SAP clients in achieving their cloud adoption and digital transformation goals by providing a seamless migration path and a comprehensive identity and access governance framework.
• Ping Identity unveiled its latest cloud offering, PingOne for Customers Passwordless, in September 2023. This innovative solution is tailored to assist companies in expediting their passwordless initiatives. By utilizing a user-friendly interface and pre-configured orchestration templates, organizations can efficiently create secure and seamless customer interactions. Additionally, this solution offers a range of authentication options, including social media SSO, email magic links, one-time passcodes, and FIDO biometric authentication. These methods aid organizations in boosting customer satisfaction and loyalty, as well as strengthening security measures and increasing productivity. 
• In March 2023, Thales extended its Identity Platform known as OneWelcome to a new region in the United States. This move is aimed at enhancing Thales' ability to offer enhanced features for the management and protection of digital identities to organizations globally.
• In February 2023, Okta partnered with Plaid to deliver secure and seamless access to open finance. With the help of this partnership, the financial services ecosystem will be able to speed up their open finance projects and enable seamless connection to potentially millions of customers.

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