Identity Governance and Administration Market
By Component;
Solution and ServicesBy Service;
Professional Services and Managed ServicesBy Deployment Type;
On-Premises and CloudBy Organization Size;
Small & Medium-Sized Enterprises and Large EnterprisesBy Industry Vertical;
BFSI, Government & Defense, Telecom & It, Energy & Utilities, Manufacturing, Retail & Consumer Goods, Healthcare & Life Sciences, and OthersBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)Identity Governance and Administration Market Overview
Identity Governance and Administration Market (USD Million)
Identity Governance and Administration Market was valued at USD 8,601.72 million in the year 2024. The size of this market is expected to increase to USD 23,443.68 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 15.4%.
Identity Governance and Administration Market
*Market size in USD million
CAGR 15.4 %
Study Period | 2025 - 2031 |
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Base Year | 2024 |
CAGR (%) | 15.4 % |
Market Size (2024) | USD 8,601.72 Million |
Market Size (2031) | USD 23,443.68 Million |
Market Concentration | Low |
Report Pages | 361 |
Major Players
- Oracle
- IBM
- Sailpoint
- SAP
- CA Technologies
- Microsoft
- Evidian
- RSA Security
- Netiq
- One Identity
- Saviynt
- Hitachi Id
- Omada
- Alertenterprise
- Secureauth
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Identity Governance and Administration Market
Fragmented - Highly competitive market without dominant players
The Identity Governance and Administration Market is expanding rapidly as businesses confront increasing security risks and stricter compliance requirements. Nearly 60% of organizations are boosting their identity management budgets to control unauthorized access. The complexity of digital infrastructures and the surge in digital identities are key drivers behind this growth.
AI and Automation Reshape IGA
Close to 55% of companies are integrating AI and automation into their IGA platforms to optimize identity verification and certification. Automation minimizes errors and accelerates identity-related workflows. AI-powered analytics further enhance the detection of anomalies, reducing the risk of breaches tied to identity misuse.
Cloud-Driven IGA Expansion
With cloud adoption nearing 65% across industries, demand for cloud-based IGA platforms continues to rise. These solutions offer scalability, flexibility, and real-time governance, perfectly suited for hybrid IT ecosystems. The shift to remote work has heightened the urgency for robust cloud-based identity controls.
Insider Threats Highlight IGA Importance
Around 30% of security breaches originate from insiders, elevating the importance of strong IGA systems. These tools monitor user activities, apply role-based access controls, and quickly flag unusual behaviors that may signal insider threats. Strengthened identity governance enhances defense against internal security risks.
Identity Governance and Administration Market Recent Developments
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In May 2020, Okta, Inc. introduced a new native identity integration with Amazon Web Services (AWS). This integration aimed to enhance security and streamline the user experience for large enterprises by automating user identity and group synchronization with AWS Single Sign,On (SSO). This improvement was designed to reduce complexity, allowing businesses to manage permissions and access more efficiently.
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In May 2020, SAP SE partnered with GEA, a global technology company, to accelerate its digital transformation by implementing SAP S/4HANA, a robust enterprise resource planning (ERP) system. This collaboration was focused on utilizing data intelligence to improve GEA’s operational efficiency, which ties directly into the growing demand for integrated identity governance and administration solutions across industries.
Identity Governance and Administration Market Segment Analysis
In this report, the Identity Governance and Administration Market has been segmented by Component, Service, Deployment Type, Organization Size, Industry Vertical and Geography.
Identity Governance and Administration Market, Segmentation by Component
The Identity Governance and Administration Market has been segmented by Component into Solution and Services.
Solution
The solution segment dominates the market due to growing demand for integrated identity lifecycle management, policy enforcement, and role management functionalities. These solutions are essential for ensuring compliance and reducing access-related risks across enterprises. They account for nearly 65% of the overall component share.
Services
The services segment includes consulting, implementation, and support, offering tailored strategies to improve deployment efficiency. With increasing complexity in identity infrastructure, service adoption has risen steadily, contributing around 35% to the component-based segmentation.
Identity Governance and Administration Market, Segmentation by Service
The Identity Governance and Administration Market has been segmented by Service into Professional Services and Managed Services.
Professional Services
Professional services include strategic consulting, system integration, and training to help organizations implement and optimize their identity governance frameworks. These services are critical for achieving regulatory compliance and ensuring efficient identity lifecycle management. They contribute to approximately 60% of the total service segment.
Managed Services
Managed services provide ongoing monitoring, maintenance, and support for identity governance solutions, helping enterprises reduce operational overhead. With rising demand for cost-effective outsourcing and 24/7 security management, this segment holds nearly 40% of the service market share.
Identity Governance and Administration Market, Segmentation by Deployment Type
The Identity Governance and Administration Market has been segmented by Deployment Type into On-Premises and Cloud.
On-Premises
The on-premises deployment model offers full control over data security, customization, and compliance, making it ideal for organizations with stringent regulatory requirements. Despite growing cloud adoption, it still accounts for around 45% of the deployment type market share.
Cloud
The cloud segment is gaining traction due to its scalability, cost-effectiveness, and ease of integration with other enterprise systems. It supports remote access and rapid deployment, which has led it to capture approximately 55% of the deployment-based segmentation.
Identity Governance and Administration Market, Segmentation by Organization Size
The Identity Governance and Administration Market has been segmented by Organization Size into Small & Medium-Sized Enterprises and Large Enterprises.
Small & Medium-Sized Enterprises
Small & medium-sized enterprises (SMEs) are increasingly adopting identity governance solutions to enhance access control, ensure regulatory compliance, and protect against data breaches. Due to limited IT resources, many SMEs prefer cloud-based deployments, contributing to nearly 40% of the organization size segment.
Large Enterprises
Large enterprises prioritize advanced identity management systems for handling complex user access environments and stringent security policies. With higher budgets and infrastructure capabilities, they dominate the market with a share of around 60%.
Identity Governance and Administration Market, Segmentation by Industry Vertical
The Identity Governance and Administration Market has been segmented by Industry Vertical into Banking, Financial Services, Insurance, Government & Defense, Telecom & It, Energy & Utilities, Manufacturing, Retail & Consumer Goods, Healthcare & Life Sciences and Others.
Banking, Financial Services, Insurance
The banking, financial services, and insurance (BFSI) sector heavily relies on identity governance to manage user access, prevent fraud, and meet compliance standards like GDPR and SOX. This segment accounts for over 20% of the market due to high data sensitivity.
Government & Defense
Government and defense organizations use identity governance solutions to protect classified information and ensure secure access control for both internal and external users. The segment prioritizes high-level security protocols and contributes significantly to public sector adoption.
Telecom & IT
The telecom and IT sector requires robust identity systems to handle vast digital identities and manage complex infrastructure access. Rapid digital transformation fuels demand, contributing around 15% to the vertical share.
Energy & Utilities
Energy and utility companies implement identity governance to secure critical operational technology (OT) systems and ensure regulatory compliance. The sector is increasingly investing in cybersecurity frameworks as infrastructure digitizes.
Manufacturing
Manufacturers adopt identity governance tools to manage access across production lines and enterprise systems. It helps streamline operations and reduce risks from insider threats and third-party access.
Retail & Consumer Goods
The retail and consumer goods segment utilizes identity governance for managing user roles, POS system access, and protecting customer data. Increased e-commerce has driven higher adoption in this sector.
Healthcare & Life Sciences
Healthcare and life sciences organizations prioritize data privacy and HIPAA compliance, using identity solutions to control access to electronic health records (EHR) and sensitive patient data. This vertical represents nearly 10% of the market.
Others
The others segment includes industries like education, transportation, and hospitality, where identity governance is vital for managing user credentials and securing digital ecosystems.
Identity Governance and Administration Market, Segmentation by Geography
In this report, the Identity Governance and Administration Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Regions and Countries Analyzed in this Report
Identity Governance and Administration Market Share (%), by Geographical Region
North America
North America leads the Identity Governance and Administration Market with over 35% share, driven by strong regulatory frameworks like HIPAA and SOX. High awareness of cybersecurity, combined with early adoption of advanced identity solutions, fuels market growth in this region.
Europe
Europe holds a significant market share of approximately 25%, backed by strict data protection regulations such as the GDPR. The demand for identity compliance and secure authentication is strong among financial and public sector organizations.
Asia Pacific
Asia Pacific is experiencing rapid growth in the market, accounting for nearly 20% of the global share. Increasing digitization, expanding IT infrastructure, and a rise in cyber threats are prompting enterprises to invest in identity governance solutions.
Middle East and Africa
The Middle East and Africa region is gradually adopting identity and access management solutions to enhance security across sectors like banking and government. While still emerging, it contributes close to 10% of the global market.
Latin America
Latin America represents around 10% of the market, with growing interest in cloud-based identity solutions and compliance tools. Rising incidents of data breaches are motivating enterprises to adopt secure identity frameworks.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Identity Governance and Administration Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Comprehensive Market Impact Matrix
This matrix outlines how core market forces—Drivers, Restraints, and Opportunities—affect key business dimensions including Growth, Competition, Customer Behavior, Regulation, and Innovation.
Market Forces ↓ / Impact Areas → | Market Growth Rate | Competitive Landscape | Customer Behavior | Regulatory Influence | Innovation Potential |
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Drivers | High impact (e.g., tech adoption, rising demand) | Encourages new entrants and fosters expansion | Increases usage and enhances demand elasticity | Often aligns with progressive policy trends | Fuels R&D initiatives and product development |
Restraints | Slows growth (e.g., high costs, supply chain issues) | Raises entry barriers and may drive market consolidation | Deters consumption due to friction or low awareness | Introduces compliance hurdles and regulatory risks | Limits innovation appetite and risk tolerance |
Opportunities | Unlocks new segments or untapped geographies | Creates white space for innovation and M&A | Opens new use cases and shifts consumer preferences | Policy shifts may offer strategic advantages | Sparks disruptive innovation and strategic alliances |
Drivers, Restraints and Opportunity Analysis
Drivers
- Rising need for identity lifecycle management
- Increased cloud adoption across enterprises
- Stringent compliance and audit requirements
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Growth in remote workforce and BYOD - The BYOD policies is playing a significant role in driving demand for Identity Governance and Administration (IGA) solutions. The shift toward flexible working environments has expanded the organizational perimeter, increasing the need for centralized, secure, and policy-driven identity management.
Employees now access sensitive enterprise data from a wide range of devices, locations, and cloud-based applications. This decentralized environment creates significant challenges in maintaining visibility, enforcing role-based access controls, and ensuring that users have the right level of access at the right time.
IGA tools help automate and streamline these processes by enabling real-time access reviews, risk-based authentication, and lifecycle management, even in a highly dispersed workforce. They ensure that organizations can maintain compliance while supporting the agility required for remote operations.
As organizations increasingly adopt bring-your-own-device (BYOD) models and hybrid work arrangements, the ability to manage user identities and access rights across diverse platforms becomes critical. This trend is expected to accelerate investment in cloud-native and scalable IGA platforms.
Restraints
- Complexity in deployment across hybrid environments
- High implementation and operational costs
- Limited interoperability with legacy systems
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Shortage of skilled IGA professionals - A critical challenge affecting the widespread deployment of Identity Governance and Administration solutions. Implementing an effective IGA framework requires a combination of technical expertise, regulatory knowledge, and operational experience, which are in short supply across many organizations.
Enterprises often struggle to hire or train professionals who can configure complex identity policies, integrate across legacy systems, and manage ongoing access certifications. The lack of skilled personnel can lead to misconfigurations, delays in deployment, and ineffective monitoring—defeating the purpose of the IGA system itself.
The evolving threat landscape demands continuous updates and policy adjustments, requiring expertise in cloud security, compliance standards, and identity lifecycle management. Without the right team in place, organizations may underutilize their IGA investments or face heightened risk exposure.
To mitigate this restraint, vendors are increasingly offering managed IGA services, AI-driven automation, and simplified user interfaces. However, the demand for specialized human expertise will continue to be a limiting factor unless addressed through upskilling and training initiatives.
Opportunities
- Integration with AI and machine learning
- Expansion of identity governance-as-a-service
- Increased demand in healthcare and finance
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Growth of zero-trust security architectures - A transformative opportunity for the Identity Governance and Administration market. As organizations move away from perimeter-based security models, zero trust emphasizes continuous verification of users, devices, and access privileges, placing identity at the center of security frameworks.
IGA platforms play a pivotal role in enabling zero-trust by providing capabilities such as dynamic access provisioning, real-time identity analytics, and policy enforcement. These tools help ensure that access is context-aware, based on least-privilege principles, and aligned with business policies and regulatory compliance.
In industries like finance, healthcare, and government, where data sensitivity is high, the implementation of zero-trust models is becoming a strategic priority. Identity governance tools help align access controls with threat intelligence, audit trails, and compliance reporting for a more robust security posture.
As zero-trust adoption becomes mainstream, the demand for intelligent and integrated IGA solutions is expected to surge. Vendors that can offer scalable, policy-driven, and API-friendly platforms will be well-positioned to lead in this evolving market landscape.
Competitive Landscape Analysis
Key players in Identity Governance and Administration Market include.
- Oracle
- IBM
- Sailpoint
- SAP
- CA Technologies
- Microsoft
- Evidian
- RSA Security
- Netiq
- One Identity
- Saviynt
- Hitachi Id
- Omada
- Alertenterprise
- Secureauth
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Market Share Analysis
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Component
- Market Snapshot, By Service
- Market Snapshot, By Deployment Type
- Market Snapshot, By Organization Size
- Market Snapshot, By Industry Vertical
- Market Snapshot, By Region
- Identity Governance and Administration Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
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Rising need for identity lifecycle management
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Increased cloud adoption across enterprises
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Stringent compliance and audit requirements
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Growth in remote workforce and BYOD
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- Restraints
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Complexity in deployment across hybrid environments
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High implementation and operational costs
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Limited interoperability with legacy systems
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Shortage of skilled IGA professionals
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- Opportunities
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Integration with AI and machine learning
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Expansion of identity governance-as-a-service
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Increased demand in healthcare and finance
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Growth of zero-trust security architectures
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- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Identity Governance and Administration Market, By Component, 2021 - 2031 (USD Million)
- Solution
- Services
- Identity Governance and Administration Market, By Service, 2021 - 2031 (USD Million)
- Professional Services
- Managed Services
- Identity Governance and Administration Market, By Deployment Type, 2021 - 2031 (USD Million)
- On-Premises
- Cloud
- Identity Governance and Administration Market, By Organization Size, 2021 - 2031 (USD Million)
- Small & Medium-Sized Enterprises
- Large Enterprises
- Identity Governance and Administration Market, By Industry Vertical, 2021 - 2031 (USD Million)
- BFSI
- Government & Defense
- Telecom & It
- Energy & Utilities
- Manufacturing
- Retail & Consumer Goods
- Healthcare & Life Sciences
- Others
- Identity Governance and Administration Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Identity Governance and Administration Market, By Component, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Oracle
- IBM
- Sailpoint
- SAP
- CA Technologies
- Microsoft
- Evidian
- RSA Security
- Netiq
- One Identity
- Saviynt
- Hitachi Id
- Omada
- Alertenterprise
- Secureauth
- Company Profiles
- Analyst Views
- Future Outlook of the Market