Market Trends of Global Consumer Identity and Access Management Industry
This section covers the major market trends shaping the Consumer Identity & Access Management Market according to our research experts:
BFSI Segment is Expected to Gain Significant Traction
- Banks and other financial institutes (BFSI )are under increasing scrutiny to ensure they have the appropriate security measures in place, especially in the wake of the numerous high-profile data breaches that have taken place over the last few years. In addition, financial institutions store highly valuable data, and their digital transformation efforts create greater opportunities for cyber attackers to access that data.
- For instance, in February 2022, Mortgage lender, Radius Financial Group, fell victim to a data breach when an unauthorized party accessed its server and stole private data pertaining to 16,000 customers. Additionally, in April 2022, a data breach occurred at A Square (now known as Block), impacting 8.2 million current and former employees. These data breaches in the finance sector are growing the demand for consumer identity and access management solutions.
- Furthermore, a growing number of banking frauds in major countries is increasing the need for better infrastructure and security solutions, thus increasing the demand for consumer identity and access management systems in the BFSI sector. For instance, as per data published by the Reserve bank of India, the number of bank fraud cases in India increased from 5,076 in FY 2017 to 7,400 in FY 2021.
- Many banks and financial institutions have recognized the critical need to secure the valuable and sensitive financial assets their customers trust to keep them safe. Hence, most of these organizations have invested in advanced technologies to prevent lapses in security, which may negatively impact their revenues, operating costs, reputation, and much more. Consumer identity and access management solutions may provide unexpected ROI to banks and other financial institutions that help protect their bottom line.
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North America is Anticipated to Hold the Largest Market Share
- North America is anticipated to account for the largest market share in the global consumer identity and access management market owing to the growing adoption of consumer identity and access management solutions across various end-user sectors and the presence of several major players such as Microsoft Corporation, Salesforce Inc., Broadcom Inc., etc. that provide security and consumer identity and access management solutions in the region.
- Furthermore, the growing number of data breaches across various end sectors in the United States is further driving the need for consumer identity and access management solutions in the region. Moreover, cybercriminals are constantly exploring new methods, and a series of major data breaches across the various end-user sectors in the region have again demonstrated that supposedly secure systems are often surprisingly vulnerable.
- For instance, according to a report published by the Identity Theft Resource Center (ITRC), a record number of 1862 data breaches occurred in 2021 in the United States. The number of data breaches in 2021 broke the previous 1506 set in 2017 and represented a 68% increase compared to the 1108 breaches in 2020. Sectors like BFSI, healthcare, business, and retail are the most commonly attacked, impacting millions of Americans annually.
- Additionally, stringent government regulations, such as the Gramm-Leach-Bliley (GLB) Act, play a crucial role in adopting consumer identity and access management solutions in the United States. The act requires securities firms and financial institutions to implement strict regulations for protecting consumer data privacy by establishing a program that assesses risks to the data and protects against threats.
- With the growing need for consumer identity and access management solutions in the region, major companies are making efforts to acquire more market share. For instance, in November 2021, the massive cybersecurity company GBG announced to acquire the Acuant, its erstwhile competitor. The merger brings two industry giants together within a single organization. The acquisition of Acuant enables GBG to expand further into the United States, the world's largest and most strategically important market for location, identity, and fraud services.
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