IAM Market to Reach $42.6 Billion by 2030 as Cyber Risks Surge

The global Identity and Access Management (IAM) market is projected to reach $42.61 billion by 2030, driven by escalating cyberattacks, remote work expansion, and the rapid adoption of cloud and AI-powered security tools. As identity becomes the new security perimeter, organisations are prioritising IAM to safeguard digital ecosystems and meet tightening regulatory demands.

IAM solutions—spanning single sign-on (SSO), multi-factor authentication (MFA), privileged access management (PAM), identity governance, and zero-trust frameworks—continue to gain traction across BFSI, healthcare, government, retail, and manufacturing. The shift toward hybrid work has accelerated enterprise adoption of passwordless authentication, behavioural biometrics, and AI-driven anomaly detection.

Cyberattacks are increasingly identity-focused, with more than 60% of breaches involving stolen credentials or privilege misuse. As organisations move to distributed, cloud-native infrastructures, controlling and verifying identities at every access point has become essential. IAM is evolving from a compliance tool to a strategic cybersecurity backbone.

Growing data privacy mandates—such as DPDP, GDPR, and global breach disclosure laws—are also forcing organisations to implement structured identity governance. Meanwhile, the rise of generative AI is reshaping IAM, enabling continuous risk scoring, automated access decisions, and real-time threat detection.

Emerging technologies such as decentralized identity and passwordless authentication are expected to unlock new market opportunities, pushing IAM deeper into enterprise digital transformation strategies.

With identity at the centre of modern cyber defense, IAM spending will continue to surge, cementing its role as a foundational pillar of zero-trust security frameworks worldwide.