As per MRFR analysis, the US Identity Governance and Administration Market Size was estimated at 1.65 (USD Billion) in 2023. The US Identity Governance and Administration Market Industry is expected to grow from 2(USD Billion) in 2024 to 8 (USD Billion) by 2035. The US Identity Governance and Administration Market CAGR (growth rate) is expected to be around 13.431% during the forecast period (2025 - 2035).
The US Identity Governance and Administration market is experiencing significant growth influenced by several key market drivers. One primary driver is the increasing need for organizations to comply with various regulations such as the Health Insurance Portability and Accountability Act (HIPAA) and the Sarbanes-Oxley Act. These regulations enforce strict requirements for identity management, leading to more entities investing in effective governance solutions. Additionally, the rise of remote work and digital transformation has heightened the necessity for robust identity management systems to protect sensitive data and ensure secure access to resources.
There are numerous opportunities to be explored in the US market, particularly with the advancement of cloud-based identity governance solutions. Organizations are looking for scalable and efficient options to manage user access and privileges, especially as the hybrid work model becomes more prevalent. There is also a growing demand for innovation in AI-driven identity solutions that can enhance decision-making processes for access rights, further streamlining compliance. Trends in recent times show an increasing emphasis on zero-trust security frameworks, where identity verification is mandatory for all users, both inside and outside of an organization.
The US market is adapting to this trend by integrating identity governance with broader security strategies to not only protect organizational assets but also to reduce the risk of insider threats. Moreover, there has been a noticeable push towards integrating identity governance with existing IT frameworks, allowing organizations to leverage existing investments while enhancing their overall security posture. This integration trend is crucial as it allows firms to work more efficiently and respond swiftly to changing regulatory environments and security threats. As the landscape evolves, keeping pace with these trends will be essential for organizations operating within the US Identity Governance and Administration market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The US Identity Governance and Administration Market Industry is significantly driven by the rising demand for regulatory compliance across various sectors. Government regulations such as the Health Insurance Portability and Accountability Act (HIPAA) and the General Data Protection Regulation (GDPR) have necessitated stringent identity management protocols. The Department of Health and Human Services reported that health organizations faced nearly 30% more compliance audits over the past five years, underscoring the need for robust identity governance solutions. Major companies like IBM and Microsoft have invested heavily in compliance-focused identity management technologies, enhancing their market presence. As organizations strive to mitigate compliance risks, the focus on identity governance and administration solutions is expected to grow, propelling the market further.
The surge in cybersecurity threats is a crucial driver for the US Identity Governance and Administration Market Industry. Recent reports indicate that cyberattacks targeting businesses have increased by over 400% in the last two years, with ransomware attacks alone affecting nearly 1 in 4 organizations. The Cybersecurity and Infrastructure Security Agency (CISA) has warned that unauthorized access to corporate resources often originates from compromised identities. Renowned security firms such as Palo Alto Networks and Cisco are at the forefront, developing advanced identity management solutions that help organizations defend against these threats, fostering the growth of the identity governance and administration sector.
The US Identity Governance and Administration Market Industry is being propelled by the ongoing digital transformation initiatives by enterprises across diverse sectors. With approximately 70% of organizations in the US initiating their digital transformation strategies, there is a growing need for secure identity management. The shift to cloud services and mobility solutions has made identity governance a priority, with businesses recognizing that they require comprehensive governance to protect sensitive data. Leaders like Amazon Web Services and Google Cloud are advancing identity solutions, allowing organizations to adapt to the digital landscape while securing identities, thereby driving market growth in identity governance and administration.
The US Identity Governance and Administration Market has shown dynamic growth, particularly within the Component segment, which consists of Solutions and Services. The increasing necessity for organizations to secure sensitive information and comply with regulatory standards has led to a significant shift towards robust identity management frameworks. The growing complexity of cyber threats, coupled with evolving regulatory requirements, has intensified the demand for comprehensive identity governance solutions that can streamline user access, maintain compliance, and ensure data protection. Solutions such as access management tools, identity lifecycle management, and audit solutions play a substantial role in this landscape, enabling enterprises to effectively govern user identities and manage roles. In terms of Services, consulting and implementation services are crucial in aiding businesses to adapt to the changing identity governance landscape. These services guide organizations through the complexities of establishing effective identity management programs, including risk assessments and compliance analysis.
Furthermore, managed services are becoming increasingly popular as businesses seek to outsource identity governance tasks, allowing them to focus on their core competencies while ensuring their identity processes remain efficient and secure. With organizations increasingly adopting cloud-based infrastructure, the trend towards integrating identity governance solutions with existing technologies has emerged prominently. This integration facilitates seamless access for users while enforcing security policies consistently across all platforms and applications. The ability to leverage advanced analytics and machine learning in identifying and mitigating potential security risks is another aspect driving market growth. Overall, as businesses continue to navigate a digitally transformed era, the Component segment within the US Identity Governance and Administration Market remains fundamental in providing the necessary tools and services that foster secure and compliant identity management practices.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Deployment Mode segment of the US Identity Governance and Administration Market encompasses solutions delivered through various modes, primarily focusing on Cloud and On-premises solutions. The increasing adoption of Cloud-based systems significantly influences market dynamics, driven by the need for scalability, flexibility, and reduced infrastructure costs. Organizations within the US are increasingly recognizing these advantages, as Cloud solutions allow for more efficient management of identity and access. On the other hand, On-premises solutions remain a strong choice for businesses requiring heightened security and compliance measures, often preferred by sectors with stringent regulatory requirements.
The preference for deployment modes reflects a broader trend towards hybrid environments, where organizations seek a balance between both models to optimize their identity governance strategies. With the growing prominence of remote work and digital transformation, the Deployment Mode segment is becoming increasingly critical, facilitating secure access management to sensitive data and applications in various settings, thus establishing an essential foundation for organizational security protocols within the US market. As businesses navigate the complexities of identity management, these deployment strategies will play a pivotal role in shaping the landscape of the US Identity Governance and Administration Market.
The US Identity Governance and Administration Market is critically shaped by various industry verticals, notably Banking, Financial Services, and Insurance (BFSI), Government and Defense, and Healthcare. Each of these sectors presents unique demands and compliance requirements that necessitate robust identity governance solutions. The BFSI sector significantly focuses on secure transactions and customer data privacy, making identity governance pivotal in preventing fraud and maintaining trust. In the Government and Defense space, safeguarding sensitive information is paramount, often driving the adoption of advanced identity management tools to comply with regulatory standards and enhance security measures.
Meanwhile, the Healthcare sector relies heavily on identity governance to protect patient information and ensure compliance with regulations such as the Health Insurance Portability and Accountability Act (HIPAA). As digital transformation continues to evolve, these verticals are experiencing an increased demand for comprehensive identity governance systems to mitigate risks, streamline operations, and enhance user experience, thus illustrating the crucial role these sectors play in the US Identity Governance and Administration Market landscape.
The US Identity Governance and Administration Market is characterized by a rapidly evolving competitive landscape, influenced by the increasing need for secure and efficient identity management solutions among organizations. As businesses face growing complexities around regulatory compliance, data security, and user access, identity governance technologies have become crucial in ensuring operational resilience and safeguarding sensitive information. The competitive dynamics in this market are shaped by various factors, including technological advancements, regulatory changes, and shifts in customer expectations regarding identity management. Vendors are continuously innovating and adapting their offerings to address these challenges, ensuring that they provide comprehensive solutions that facilitate business continuity while also enhancing security measures.
Micro Focus has established a robust presence in the US Identity Governance and Administration Market, owing to its strong portfolio of solutions that cater to a diverse range of organizations. The company's strengths lie in its ability to offer integrated identity management solutions that address not only compliance and security concerns but also enhance user experience and productivity. By leveraging a combination of traditional identity governance practices and modern cloud-based frameworks, Micro Focus has managed to position itself effectively against competitors. Additionally, the company's commitment to innovation is reflected in its continuous improvement of existing products and the introduction of new functionalities that cater to the unique needs of US businesses. This focus on enhancing user engagement and operational efficiency solidifies Micro Focus's reputation as a leading player in the identity governance landscape.ForgeRock stands out in the US Identity Governance and Administration Market due to its comprehensive identity management solutions designed to meet the demands of a digital-first era. The company provides key products and services that focus on identity and access management, including capabilities for user provisioning, authentication, and governance.
This positions ForgeRock favorably in the competitive arena, allowing it to cater to both large enterprises and small-to-medium-sized businesses. The company's strong market presence is bolstered by strategic alliances and partnerships that broaden its reach and enhance its service offerings. Additionally, ForgeRock has been active in mergers and acquisitions, which have enabled it to expand its technological capabilities and enter new market segments. With a strong emphasis on innovation and customer-centric solutions, ForgeRock continues to enhance its standing within the US market, effectively addressing the evolving identity management needs of organizations across various sectors.
The US Identity Governance and Administration Market has seen significant developments recently, primarily driven by an increasing emphasis on security and compliance measures. Notably, in October 2023, Okta announced the launch of enhanced features to its Identity Governance solutions, targeting organizations seeking to strengthen user access controls while simplifying the onboarding process. In terms of mergers and acquisitions, ForgeRock completed its acquisition of the identity management startup, B1 Systems, in September 2023, enhancing its capabilities in automated identity verification. Additionally, in August 2023, Micro Focus revealed a strategic partnership with IBM to integrate their identity solutions, bolstering their market presence. The valuation of companies such as SailPoint Technologies and CyberArk has seen a significant increase, reflecting growing demand for sophisticated identity management solutions amid rising cyber threats. With the current administration focusing on bolstering cybersecurity through initiatives like the National Cybersecurity Strategy, the market continues to evolve rapidly. Over the past few years, 2022 witnessed RSA Security expanding its cloud security offerings, reflecting a trend towards cloud-based identity governance solutions that align with broader digital transformation efforts in the US.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 1.65(USD Billion) |
| MARKET SIZE 2024 | 2.0(USD Billion) |
| MARKET SIZE 2035 | 8.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 13.431% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Micro Focus, ForgeRock, OneLogin, Oracle, Saviynt, Atos, Okta, Delinea, IBM, Ping Identity, SailPoint Technologies, Microsoft, RSA Security, CyberArk, NetIQ |
| SEGMENTS COVERED | Component, Deployment Mode, Industry Vertical |
| KEY MARKET OPPORTUNITIES | Cloud-based identity solutions, AI-driven governance tools, Regulatory compliance automation, Enhanced user experience frameworks, Real-time access analytics |
| KEY MARKET DYNAMICS | Regulatory compliance requirements, Increasing cloud adoption, Rising cyber threats, Enhanced user access controls, Growing demand for automation |
| COUNTRIES COVERED | US |
Frequently Asked Questions (FAQ) :
The US Identity Governance and Administration Market is expected to be valued at 2.0 USD Billion in 2024.
By 2035, the market size is anticipated to reach 8.0 USD Billion.
The market is projected to grow at a CAGR of 13.431% during the period from 2025 to 2035.
The market is divided into two main components: Solution and Services.
Solutions are projected to be valued at 5.4 USD Billion and Services at 2.6 USD Billion by 2035.
Major players in the market include Micro Focus, ForgeRock, OneLogin, Oracle, and Okta among others.
The market is expected to face challenges such as evolving cybersecurity threats and compliance requirements.
Key trends include an increasing focus on regulatory compliance and the adoption of cloud-based solutions.
Growth drivers include the rising demand for security solutions and the growing need for identity management.
The global scenario adds urgency to the demand for robust identity governance solutions, enhancing market growth.
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