Identity Governance And Administration Market Size and Share
Market Overview
| Study Period | 2020 - 2030 |
| Market Size (2025) | USD 8.36 Billion |
| Market Size (2030) | USD 16.85 Billion |
| Growth Rate (2025 - 2030) | 15.05% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Identity Governance And Administration Market Analysis by Mordor Intelligence
The identity governance and administration market size stands at USD 8.36 billion in 2025 and is on track to expand at a 15.05% CAGR, reaching USD 16.85 billion by 2030. Heightened reliance on hybrid IT estates combined with an 82% surge in impersonation-led fraud is steering security spending toward identity-centric controls.[1]Veriff, "Authorized Fraud Rising and ID Theft Victim Support to Decline in 2025", Biometric Update, biometricupdate.comCloud delivery models now anchor most new deployments, reflecting the need for elastic scaling and quicker time-to-value. Regional spending patterns are fragmenting: North America sets the adoption pace through mature zero-trust programs, while Asia propels overall growth as local enterprises accelerate digitization and leapfrog to cloud-native tools. Services retain the largest revenue pool, mirroring the skills gap that hampers in-house roll-outs and drives demand for managed identity expertise. Meanwhile, vendors are embedding machine learning into certification workflows, automating entitlement reviews and raising detection accuracy, a shift that is rapidly altering competitive positioning and widening addressable opportunities in adjacent privileged access and non-human identity segments.
Key Report Takeaways
- By component, services led with 57% of the identity governance and administration market share in 2024; solutions are forecast to grow at a 17.70% CAGR to 2030.
- By deployment mode, cloud held 61.25% of the identity governance and administration market size in 2024 and is poised to compound at 16.35% CAGR through 2030.
- By enterprise size, large enterprises controlled 70.25% share of 2024 revenue, while SMEs are projected to advance at a 15.53% CAGR between 2025-2030.
- By vertical, BFSI commanded 30.25% of 2024 revenue; healthcare is set to be the fastest riser at 16.40% CAGR over the forecast window.
- By geography, North America accounted for 33% of 2024 spending; Asia is expected to record a 17.08% CAGR through 2030.
Global Identity Governance And Administration Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| AI-driven IGA for continuous access certification | +3.2% | Global, early uptake in North America and Europe | Medium term (2-4 years) |
| Convergence of PAM and IGA suites | +2.8% | Europe with spillover to North America | Medium term (2-4 years) |
| Zero-trust and passwordless programs boosting role mining | +2.5% | North America, gradual uptake in Europe and Asia | Short term (≤ 2 years) |
| Telco M&A spurring telco-grade IGA roll-outs | +1.9% | Asia-Pacific, notably China, India, Japan, ASEAN | Medium term (2-4 years) |
| Sovereign-cloud mandates driving domestic platforms | +1.7% | Middle East, chiefly GCC states | Medium term (2-4 years) |
| ESG-linked audit demands for identity proof | +1.4% | Nordics with diffusion to Western Europe | Long term (≥ 4 years) |
Source: Mordor Intelligence
Rising Adoption of AI-Driven IGA for Continuous Access Certification
AI-enabled tools now inspect user and non-human entitlements in near real time, minimizing certification fatigue by spotlighting high-risk anomalies. Enterprises deploying these capabilities report sharper risk detection and administrative cost relief, a combination that scales governance to sprawling multicloud estates. Generative AI is also rewriting complex entitlement descriptions into natural language, widening participation among business managers and reducing help-desk cycles. Early roll-outs in financial services and tech verticals suggest the model is suited for globally dispersed workforces where manual reviews have become impractical. Growth momentum is therefore expected to intensify as more organizations build trust in explainable AI review engines.
Convergence of PAM & IGA Suites Among Highly-Regulated Sectors in Europe
Financial institutions and critical infrastructure operators are rationalizing tool sprawl by fusing privileged access controls with broader lifecycle governance. Unified suites reduce overlap between administrator and standard user entitlements, closing gaps that attackers target. Recent acquisitions by leading PAM providers underscore a race to integrate governance modules and to deliver compliance-ready workflows aligned with Europe’s Digital Operational Resilience Act. Early adopters report fewer audit findings and faster evidence gathering, reinforcing the business case for integrated architectures across global subsidiaries.
Zero-Trust & Passwordless Initiatives Accelerating Role Mining Tools in North America
Mandatory least-privilege models push organizations to refine role definitions and strip legacy over-entitlements. Automated role mining compresses redesign cycles, with recorded reductions of excessive permissions by more than 40% in live federal deployments.[2]Microsoft, "US Department of Labor's Journey to Zero Trust Security with Microsoft Entra ID", Microsoft Security Blog, microsoft.comAs passwordless authentication reaches mainstream status, governance engines must now track credential-less policies, linking them to just-in-time session attributes. Demand for granular analytics is therefore surging in regulated sectors where the majority of successful breaches still exploit password weaknesses.
M&A Activity Among Telcos Driving Telco-Grade IGA Roll-Outs in APAC
Rapid consolidation in Asian telecommunications has produced multi-tenant, multi-cloud platforms that host millions of subscriber and workforce identities. Operators are standardizing on high-availability IGA engines able to sustain carrier-grade uptimes and cross-domain authentication at scale. These deployments establish best-practice benchmarks, prompting financial services and manufacturing firms to adopt similar blueprints when integrating acquired businesses across India, Indonesia, and Vietnam.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Skill shortage in identity engineering | -1.8% | Global, most acute in emerging markets | Medium term (2-4 years) |
| API sprawl raising integration cost | -1.5% | Global, higher in North America and Europe | Short term (≤ 2 years) |
| Fragmented data-residency laws | -1.2% | EU, China, Russia, Middle East | Medium term (2-4 years) |
| Delayed ROI from role-based clean-ups in legacy ERP | -0.9% | Industries with extensive legacy estates | Long term (≥ 4 years) |
Source: Mordor Intelligence
Skill Shortage in Identity Engineering Limiting Complex Deployments
Demand for specialists versed in directory architecture, entitlement modelling, and regulatory mapping continues to outstrip supply. A majority of enterprises cite talent scarcity as the principal hurdle to large-scale implementations. The gap drives wage inflation and elongates project timelines, especially in emerging markets where cybersecurity skill pools remain shallow. Vendors are responding with prescriptive templates and managed offerings, yet many organizations still defer advanced features such as policy automation because internal expertise is absent.
API-Sprawl Elevating Integration Cost for Brownfield IT Environments
Legacy estates now coexist with a growing constellation of SaaS platforms, each exposing proprietary interfaces that must be mapped into governance workflows. Enterprises operating multiple Active Directory forests incur markedly higher deployment costs and elongated cut-over phases. Although connector marketplaces and low-code orchestration mitigate the pain, mid-size firms often lack the budget to integrate long-tail applications, postponing full compliance coverage.
Segment Analysis
By Component: Services Maintain Revenue Leadership as AI-Driven Platforms Lift Software Growth
Services generated 57% of 2024 revenue in the identity governance and administration market, reflecting the consulting and integration effort needed to harmonize diverse application estates. Implementers remain indispensable for mapping entitlements across on-premises, SaaS, and operational technology layers, particularly in regulated sectors that demand audit-grade evidence. The arrival of SaaS-delivered governance platforms is shifting some expenditure toward outcome-based managed services, with providers bundling software subscriptions and day-to-day administration into fixed-fee models.
Software subscriptions are, however, outpacing services in growth terms. AI-enhanced user provisioning, continuous certification, and privileged session analytics underpin a 17.70% CAGR outlook, drawing budget from stand-alone access management tools. Vendors are weaving automation into every workflow, shrinking manual touchpoints, and opening mid-market opportunities where previous complexity deterred adoption. This dynamic positions software to capture incremental share as customers seek long-term cost efficiencies.
By Deployment Mode: Cloud-Native Adoption Surges Amid Sovereign Demands
Cloud deployments accounted for 61.25% of the identity governance and administration market size in 2024 and are projected to register the segment’s steepest 16.35% CAGR. Enterprises value rapid onboarding, elastic scaling, and instant access to feature releases. Multicloud realities now require governance that spans infrastructure-as-a-service, SaaS, and platform services, making centrally-hosted architectures the preferred option.
On-premises installations persist where data-sovereignty statutes or air-gapped environments dictate local control. Sovereign-cloud constructs are narrowing this divide by offering dedicated regional instances that satisfy residency rules without sacrificing subscription economics. Hybrid models, in which policy engines run in the cloud while sensitive identity stores remain on-site, provide transitional paths for organizations with large legacy footprints.
By Enterprise Size: Mid-Market Uptake Quickens Through Simplified SaaS Offers
Large enterprises retained a 70.25% revenue share in 2024, a consequence of the sprawling application portfolios and compliance mandates that typify global corporations. These organizations often orchestrate tens of thousands of workforce credentials and significant volumes of non-human service accounts across multiple directories. Integrated identity fabrics, therefore, remain a strategic necessity to reduce operational risk.
SMEs are forecast to post a 15.53% CAGR as vendors deliver pared-back, cloud-native packages that emphasise automated provisioning, built-in connectors, and subscription pricing. Government agencies have highlighted affordability barriers for smaller firms, yet managed security operators are now bundling governance, threat detection, and support services into monthly contracts, lowering entry thresholds.[3]CISA, "Barriers to SSO Adoption for Small and Medium-Sized Businesses", CISA, cisa.gov
By End-User Vertical: Healthcare Poised for Fastest Expansion Under Stricter Data Rules
BFSI institutions held 30.25% of 2024 spending as regulators impose stringent accountability for all access to client and payment data. Identity governance aligns with anti-money-laundering and fraud monitoring frameworks, creating a natural pull-through for advanced analytics.
Healthcare providers show the steepest forecast trajectory at 16.40% CAGR, spurred by planned HIPAA enhancements that mandate multi-factor and continuous access oversight for electronic protected health information.[4]Federal Register, "HIPAA Security Rule to Strengthen the Cybersecurity of ePHI", Federal Register, federalregister.gov Convergence of clinical applications with IoT medical devices further complicates entitlement models, prompting investments in unified governance engines capable of enforcing least privilege across operational and patient-facing systems.
Geography Analysis
North America generated 33% of 2024 revenue, underpinned by mature zero-trust initiatives and a concentration of platform vendors that continually innovate around AI-driven analytics. Sector-specific mandates in financial services and healthcare boost baseline demand, while government agencies sponsor large-scale reference deployments that de-risk adoption for private firms.
Asia-Pacific is projected to expand at a 17.08% CAGR, buoyed by aggressive digital-economy policies in China, India, and key ASEAN states. Telco consolidation, sovereign-cloud investments, and widespread mobile-first consumer services force enterprises to modernize identity controls rapidly. Domestic software suppliers leverage localisation advantages to penetrate accounts subject to national technology-development directives, amplifying competitive intensity.
Europe remains a pivotal battleground where GDPR, sectoral directives, and ESG-linked procurement rules compel organisations to adopt audit-ready governance. The Nordics push vendor assessment rigor even further, embedding ethical identity verification into sourcing checklists. Meanwhile, the Middle East prioritises residency-compliant cloud instances to harmonise expansive e-government projects with data-sovereignty imperatives. South America and Africa enter the market through banking, telecom, and public-sector pilots that demonstrate rapid ROI and spur broader adoption.
Competitive Landscape
Market structure is moderately concentrated, with established identity suite providers, cybersecurity platforms, and cloud hyperscalers vying for wallet share. Recent acquisitions signal a play for breadth: privileged-access specialists now bolt on certification and role-mining engines, while SaaS-first start-ups court mid-market buyers through intuitive UX and API-first integration. Vendors differentiate through adaptive policy engines that ingest behavioural telemetry and through connectors that shorten time-to-value in complex estates.
Non-human identity management emerges as the next frontier, given a reported 45:1 ratio of machine to human identities. Providers able to govern secrets, tokens, and API keys within the same entitlement framework as workforce credentials gain a strategic advantage. AI investments focus on contextual risk scoring and explainability features that resonate with board-level priorities around accountable automation.
Buyer influence has also risen to the C-suite as chief executives view identity security as foundational to generative AI initiatives. This visibility raises stakes for vendor performance, fuelling demand for demonstrable reduction in audit effort and faster incident triage through embedded analytics..
Identity Governance And Administration Industry Leaders
-
SAP SE
-
Microsoft Corporation
-
IBM Corporation
-
Oracle Corporation
-
Sailpoint Technologies Holdings Inc.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- May 2025: Okta unveiled Secure Identity Integrations to extend governance to SaaS and machine identities
- May 2025: Ericsson joined a Swedish AI factory consortium to advance identity-aware AI workloads
- April 2025: RSA enhanced its Governance & Lifecycle platform with posture-management modules
- April 2025: Google Cloud launched Unified Security, embedding AI risk controls for identity workflows
Global Identity Governance And Administration Market Report Scope
Identity Governance and Administration is the centralized composition of access control and identity management practices often instituted to comply with government regulations and industry standards. For an organization, the main agenda for implementing Identity Governance and Administration (IGA) is to make sure that right people are getting the right access for the right reason at the right time. The report gives a detailed analysis of solutions and services offered on different deployment modes in various industries across the globe.
| By Component | Solutions | Access Certification and Review | |
| User Provisioning / De-provisioning | |||
| Privileged Governance | |||
| Password Management | |||
| Services | Professional Services | ||
| Managed Services | |||
| By Deployment Mode | On-premise | ||
| Cloud | |||
| By Enterprise Size | Large Enterprises | ||
| Small and Medium Enterprises | |||
| By End-user Vertical | Banking, Financial Services and Insurance | ||
| IT and Telecom | |||
| Healthcare and Life Sciences | |||
| Energy and Utilities | |||
| Government and Public Defense | |||
| Manufacturing | |||
| Retail and e-Commerce | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Europe | United Kingdom | ||
| Germany | |||
| France | |||
| Italy | |||
| Nordics (Sweden, Norway, Denmark, Finland) | |||
| Rest of Europe | |||
| APAC | China | ||
| India | |||
| Japan | |||
| South Korea | |||
| ASEAN (Singapore, Indonesia, Malaysia, Thailand, Vietnam, Philippines) | |||
| Rest of APAC | |||
| Middle East | GCC (Saudi Arabia, UAE, Qatar, Oman, Kuwait, Bahrain) | ||
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Rest of Africa | |||
| Solutions | Access Certification and Review |
| User Provisioning / De-provisioning | |
| Privileged Governance | |
| Password Management | |
| Services | Professional Services |
| Managed Services |
| On-premise |
| Cloud |
| Large Enterprises |
| Small and Medium Enterprises |
| Banking, Financial Services and Insurance |
| IT and Telecom |
| Healthcare and Life Sciences |
| Energy and Utilities |
| Government and Public Defense |
| Manufacturing |
| Retail and e-Commerce |
| North America | United States |
| Canada | |
| Mexico | |
| South America | Brazil |
| Argentina | |
| Rest of South America | |
| Europe | United Kingdom |
| Germany | |
| France | |
| Italy | |
| Nordics (Sweden, Norway, Denmark, Finland) | |
| Rest of Europe | |
| APAC | China |
| India | |
| Japan | |
| South Korea | |
| ASEAN (Singapore, Indonesia, Malaysia, Thailand, Vietnam, Philippines) | |
| Rest of APAC | |
| Middle East | GCC (Saudi Arabia, UAE, Qatar, Oman, Kuwait, Bahrain) |
| Turkey | |
| Rest of Middle East | |
| Africa | South Africa |
| Nigeria | |
| Rest of Africa |
Key Questions Answered in the Report
What is the current value of the identity governance and administration market?
The market is valued at USD 8.36 billion in 2025, with a projected USD 16.85 billion by 2030.
Which segment grows fastest within the identity governance and administration market?
Cloud-based deployments show the highest pace, advancing at a 16.35% CAGR through 2030.
Why are healthcare organisations increasing their identity governance spend?
New HIPAA security amendments require multi-factor and continuous access controls for ePHI, accelerating 16.40% CAGR growth in the sector.
How does AI improve identity governance processes?
AI automates entitlement reviews, elevates risk detection, and delivers natural-language explanations that cut administrative time while boosting accuracy.
What hampers broader adoption among small and medium enterprises?
A shortage of specialised skills and integration costs linked to API sprawl remain primary barriers, although managed services and simplified SaaS packages are reducing entry hurdles.
Which regions are projected to lead future market expansion?
Asia-Pacific is forecast to post the highest regional CAGR of 17.08%, driven by rapid digitisation and sovereign-cloud mandates.
Page last updated on: July 1, 2025
