Physical Identity And Access Management Market Analysis Report By Offering, By Product, By Application, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global physical identity and access management (PIAM) market size was worth USD 427.0 million in 2018 and is expected to grow with a CAGR of 14.6% over the forecast period, from 2019 to 2025. Factors such as rising investment for corporate security coupled with increasing demand for access control and management software are majorly driving the market growth. In addition, numerous companies are adopting this solution to prevent cyber threats and implementation of better IT strategies to enhance operational efficiency.

Physical identity & access management solutions give a comprehensive management platform for authentication and access of visitors, contractors, partners, and employees to organizational infrastructure. This solution offers complete efficient and automated management to the industry and corporate security landscape. Further, companies are also focusing on security management and integrating them with a single platform. This factor is expected to propel the demand for physical identity and access management solutions during the projected years.

The market is majorly driven by government initiatives for compliance and standard policies in airport and energy & utility security.  In addition, government support for regulating security protocols in both public and private sectors owing to which industries like civilian infrastructure and pharmaceutical are projected to come under government purview. As a result, physical identity and access management solutions are expected to adopt extensively over the forecast period.

Moreover, there are several regulatory compliances like North-American Electric Reliability Corporation (NERC), Sarbanes Oxley Act of 2002 (SOX), Sarbanes Oxley Act of 2002 (SOX), and Gramm-Leach-Bliley Financial Modernization Act (GLB) for security in life science, BFSI, education, energy & utilities, and other industries. These acts imposed companies to keep their data safe from external and internal threats. This scenario is expected to drive the PIAM market growth over the forecast period.

Technological advancement and digitalization such as the increasing application of smart cards and other contactless cards have increased the need for personal data security, thereby the demand for PIAM is expected to increase across several sectors. Further, growing numbers of smartphone users are influencing organizations for developing applications for consumers to find identity management solutions.

In this industry, solution possesses multiple capabilities like entity lifecycle management, PIV management, modeling & corrections, and predictive analytics. To curb risks of cyber threats and gaps between several systems such as OT and IT, the PIAM solution offers complete automated solutions, thereby expected to open new avenues for the development of the security ecosystem. Moreover, the emergence of PIAM solutions has enabled companies to keep their employee’s identities and assets safe with the help of automated security systems. Due to the introduction of PIAM technology, companies are now able to safeguard their employees and assets.

Offering Insights

Based on offerings, the physical identity and access management market is fragmented into software and services. The software segment is expected to hold the largest market share over the forecast period wherein the services segment is expected to witness robust growth over the projected period. Physical identity & access management solutions provide several capabilities such as badging solutions, PIV management, contractor/partner authorization and authentication, and employee lifecycle management. Moreover, badging solutions are anticipated to have a significant growth due to increasing adoption for airports in developing countries.

The physical identity & access management solutions deployment is done both on-premise and via the Software as a Service (SaaS) model. The services segment has been majorly driven by sectors such as healthcare, airports, defense & security and the software segment is driven by the healthcare sector.

The PIAM solution handles users and permission on a single source within an organization. Therefore, physical identity & access management services help users to improve operational efficiency and reduction in management costs.

Product Insight

Based on product, the market is segmented into credential management, backend database solutions, and visitor management. In 2018, credential management dominated the market and accounted for the leading market share, compliance solutions, federal PIV solutions, and directory management are also widely gaining popularity among government agencies and enterprises. The credential management solution is expected to witness significant growth due to data security and privacy regulations. Under these regulations, all processes for changing revoking, and issuing identities of persons and their credentials should be managed by a centralized system for assuring traceability and suitability.

Regulatory bodies like the Federal Aviation Administration (FAA) and Transportation Security Administration (TSA) govern several aspects of credential policies along with operations of federal offices and airports. This has led to the demand for physical access control systems with features like Security Threat Assessment (STA), active directories, and even Criminal History Records Checks (CHRC). Hence, the credential management segment is expected to witness significant growth over the forecast period.

Application Insights

Based on application, the PIAM market is segmented into BFSI, airports, IT & telecom, defense & security, industrial, government & public sector, and others (transport, logistics, and education).  BFSI segment held the largest market share, in 2018 due to the presence of critical data and assets. This segment is expected to witness robust growth during the forecast period in emerging countries like China and India. In addition, PIAM solution providers are offering their services with the SaaS model, thereby this solution is gaining traction among SMBs to reduce the operational cost of system administration and increase performance efficiency.

The BFSI segment is followed by the defense & security segment due to strict authorization and authentication procedures in this industry. The government and public segment are expected to witness considerable growth over the forecast period due to increasing investment for physical identity & access management solutions from developing economies.

Regional Insights

In 2018, North held the largest market share in terms of revenue. This largest revenue market share is attributed to high technological proliferation in Canada and U.S. The PIAM solution is highly adopted in U.S. Furthermore, the growing number of data breaches incidences in Europe and North America is expected to boost the demand for PIAM solutions in the next few years. Further, strict government regulations in the U.S. by the government for data security and protection against threats are also anticipated to surge the demand for PIAM software.

Asia Pacific is expected to grow with the highest CAGR during the forecast period. This growth is attributed to growing awareness in emerging countries regarding data security and the benefits of PIAM solutions among government agencies and corporate sectors. In addition, security standards and concerns imposed by international bodies are also playing a vital role in the adoption of physical identity & access management solutions. In this region, China followed by India accounted for the largest market share, in 2018 and is expected to retain its position throughout the forecast period.

COVID-19 Impact Analysis

The outbreak of the COVID-19 virus has positively impacted the market. During this situation, several industries are shifting towards automation and digitalization. To maintain safety and contactless measures, many corporates are adopting facial recognition and PIAM solutions.  Maintaining privacy and security of the company’s assets and also employees, contractors, and visitors has become an essential part of every organization thereby expected to drive the demand for PIAM solutions to increase operational efficiency and risk management.

Physical Identity And Access Management Market Share Insights

Key players included in this market are Avatier Corp; Intellisoft Technologies, Inc.; HID Global; Alert Enterprise; NetIQ Corp.; Quantum Secure; ForgeRock, and Integid GmbH.  Companies are striving to offer advanced PIAM software to government agencies and corporate entities for managing the security identities of numerous security systems. In addition, they are also concentrating on developing new features by integrating technologies like facial recognition and artificial intelligence. For example, in 2019, AlertEnterprise has announced an addition of facial recognition features to Visitor Management Kiosk software.  This advanced feature enables organizations to check-in processes by contractors, guests, employees, and visitors. In addition, this software also offers a PIAM solution by integrating with Enterprise Guardian software. The market is fragmented and highly competitive due to the presence of regional and global market players. Strategies such as mergers, acquisitions, and collaborations are adopted by key market players. For example, Nexus Technology GmbH merged with Integid GmbH, in 2016. This acquisition will help Nexus Technology GmbH to strengthen its expertise in the entitlement management field for physical access control.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Million Insights has segmented the global physical identity and access management market report based on offering, product, application, and region:

• Offering Outlook (Revenue, USD Million, 2014 - 2025)
    • Software
    • Services

• Product Outlook (Revenue, USD Million, 2014 - 2025)
    • Backend Database Solutions
    • Credential Management
    • Visitor Management

• Application Outlook (Revenue, USD Million, 2014 - 2025)
    • BFSI
    • Defense& Security
    • Airports
    • IT & Telecom
    • Government & Public Sector
    • Industrial
    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • The U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
    • The Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
    • MEA