International. The identity authentication access (IAA) market is projected to grow 13.4% in revenue in 2021, reaching $28.5 billion, according to Omdia's latest market report. By 2025, this market is projected to increase to $49.5 billion, representing a CAGR of 14.9%.
In 2020, authentication was the largest segment of the IAA and accounted for 1/3 of the total market share ($8.2 billion), by 2025 authentication revenue will grow to US$14.8 billion with its market share falling to 30% of the total market. However, ioT identity, which is currently the smallest segment in 2020 (6.5%), is projected to have the highest growth over the next four years, with growth of US$4.5 billion.
Global Authentication and Identity Access Market, by Revenue
In the IAM/IDaaS, PAM and IGA facilities accounted for US$7.7 billion, US$2.0 billion and US$5.2 billion according to, however, Omdia expects that in the coming years there will be a continuous movement from on-premises products to cloud-based solutions such as IDaaS.
The migration to cloud-based solutions has been accelerated by the global pandemic, but it will continue, as while the pandemic resulted in a sharp increase in fraud attacks due to working from home, companies will continue to look for alternative security solutions in the future.
Market share by company
Today's IAA market is extremely fragmented with over 200 vendors already competing within the IAA space. Currently, Okta is estimated to be the market leader based on revenue with a market share of 3.5% in 2020, which is partly due to Okta's dominance in the IAM/IDaaS market, where it has a market share of 7.5%.
Microsoft's market share has increased to 3% from 2% year-on-year to the second largest market share, while Micro Focus's market share actually decreased by 0.5% year-on-year, leading the business to fourth place in terms of market share.
However, in the coming years, Omdia forecasts that market share may change as companies continue to evolve and adapt their products to ensure they meet ongoing authentication and authorization requirements.
Don Tait, IAA cybersecurity lead at Omdia, commented: "Over the past 18 months, the IAA market has continued to grow by double digits despite the global pandemic and global recession. This is due to the changing needs of companies and businesses that require important security products as more and more employees work off-site. However, in the coming years we expect to see on-site physical products become less popular as they acquire more cloud-based solutions."
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