Global Identity & Access Management Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Component;
Access Provisioning, Directory Services, Single Sign-On, Password Management, Multifactor Authentication, Audit, Compliance & Governance, and Others.By Type;
Customer IAM, and Workforce IAM.By Organization Size;
Small & Medium Enterprises (SMES), and Large Enterprises.By Deployment;
Cloud, and On-Premises.By Geography;
North America, Europe, Asia Pacific, Middle East and Africa, and Latin America - Report Timeline (2021 - 2031).Introduction
Global Identity & Access Management Market (USD Million), 2021 - 2031
In the year 2024, the Global Identity & Access Management Market was valued at USD 16,919.41 million. The size of this market is expected to increase to USD 41,819.71 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 13.8%.
The Global Identity & Access Management (IAM) Market stands at the forefront of digital security, playing a pivotal role in safeguarding organizational assets, data, and systems from unauthorized access. IAM solutions have evolved significantly, adapting to the complex challenges posed by the interconnected digital landscape. With the proliferation of cloud services, mobile devices, and remote work arrangements, the need for robust IAM strategies has never been more pronounced.
The IAM market has witnessed remarkable growth driven by escalating security threats, stringent regulatory requirements, and the increasing adoption of cloud-based services. Enterprises across various sectors are investing heavily in IAM solutions to fortify their security postures, streamline access management processes, and ensure compliance with industry regulations. The market landscape is characterized by a diverse array of offerings, including identity governance, authentication, privileged access management, and single sign-on solutions, catering to the unique needs of organizations of all sizes and industries.
The IAM market is poised for continued expansion fueled by ongoing digital transformation initiatives, rising cybersecurity concerns, and the emergence of new technologies such as artificial intelligence and blockchain. As organizations strive to strike a delicate balance between security and user convenience, IAM vendors are innovating at a rapid pace, introducing advanced features like adaptive authentication, biometric recognition, and identity analytics. In this dynamic environment, collaboration between industry stakeholders, ongoing advancements in cybersecurity capabilities, and a proactive approach to risk management will be instrumental in shaping the future trajectory of the Global Identity & Access Management Market.
Global Identity & Access Management Market Recent Developments
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In February 2024, Cisco is set to enhance its Security Cloud with additional security and AI functionalities, aimed at safeguarding on-premise, cloud, and hybrid environments. Among the new features are Cisco Identity Intelligence, providing organizations with a visibility graph of their identities, and access management tools.
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In January 2024, Cross Identity unveiled a Privileged Identity and Access Management (PIAM) solution tailored to bolster the security of financial institutions, with a particular focus on privileged users. This solution is designed to combat cyber threats across on-premises, cloud, and hybrid configurations.
Segment Analysis
The global identity & access management (IAM) market is segmented by component into access provisioning, directory services, single sign-on (SSO), password management, multifactor authentication (MFA), audit, compliance & governance, and others. Access provisioning solutions enable organizations to manage user permissions efficiently, while directory services provide centralized user identity storage and authentication. SSO enhances user convenience by allowing access to multiple applications with a single set of credentials. Password management tools improve security by enforcing strong authentication policies, and MFA adds an extra layer of protection against unauthorized access. Audit, compliance & governance solutions ensure adherence to regulatory requirements and help organizations track identity-related risks.
Based on type, the market is categorized into customer IAM and workforce IAM. Customer IAM solutions help businesses enhance user experience while ensuring secure access to digital services through authentication and authorization mechanisms. These solutions play a crucial role in sectors like banking, e-commerce, and healthcare, where secure user verification is essential. Workforce IAM focuses on managing employee identities within organizations, ensuring secure access to internal systems, applications, and data. The increasing adoption of remote work and hybrid work models has amplified the demand for workforce IAM solutions to mitigate security threats and prevent unauthorized access.
By organization size, the market caters to small & medium enterprises (SMEs) and large enterprises. SMEs are increasingly adopting IAM solutions to strengthen security postures and protect customer data while complying with regulations. Cloud-based IAM offerings are particularly attractive to SMEs due to their affordability and ease of deployment. Large enterprises, on the other hand, require more comprehensive IAM solutions with advanced features, such as role-based access control, real-time monitoring, and integration with other cybersecurity tools. The rising incidents of cyber threats and data breaches have driven large organizations to invest heavily in IAM technologies.
The market is segmented by deployment into cloud and on-premises solutions. Cloud-based IAM solutions are gaining widespread adoption due to their scalability, flexibility, and cost-effectiveness. They enable organizations to streamline identity management processes while reducing infrastructure costs and ensuring seamless integration with cloud applications. On-premises IAM solutions, on the other hand, appeal to organizations that prioritize data security and regulatory compliance, particularly in industries such as finance, healthcare, and government, where sensitive information must be tightly controlled and managed internally.
Geographically, the IAM market is divided into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. North America leads the market, driven by stringent data security regulations, high adoption of cloud-based technologies, and a strong cybersecurity ecosystem. Europe follows closely, benefiting from GDPR compliance requirements and increasing investments in IAM solutions. Asia Pacific is experiencing rapid growth, fueled by the rising number of cyberattacks, expanding digital economies, and government initiatives promoting cybersecurity. The Middle East & Africa region is witnessing gradual adoption, particularly in banking and government sectors, while Latin America is also seeing increasing demand for IAM solutions due to growing cybersecurity concerns and regulatory developments.
Global Identity & Access Management Segment Analysis
In this report, the global identity & access management market has been segmented by Component, Type, Organization Size, Deployment, And Geography.
Global Identity & Access Management Market, Segmentation by Component
The Global Identity & Access Management Market has been segmented by Component into Access Provisioning, Directory Services, Single Sign-On, Password Management, Multifactor Authentication, Audit, Compliance & Governance, and Others.
The Global Identity & Access Management (IAM) Market is segmented by Component into Access Provisioning, Directory Services, Single Sign-On, Password Management, Multifactor Authentication, Audit, Compliance, & Governance, and Others. These components play a critical role in ensuring secure and efficient user authentication, authorization, and identity governance across organizations. As cyber threats continue to evolve, IAM solutions are increasingly being adopted to strengthen security frameworks, manage user access efficiently, and comply with regulatory requirements.
Access Provisioning and Directory Services form the backbone of IAM solutions, enabling organizations to grant, modify, or revoke user access rights to various systems and applications. Access provisioning ensures that employees, partners, and customers have appropriate access levels based on their roles, reducing unauthorized access risks. Directory services, on the other hand, act as a centralized repository for storing and managing user identities, facilitating efficient authentication and access control. These components help organizations streamline identity lifecycle management and enhance security.
Single Sign-On (SSO), Password Management, and Multifactor Authentication (MFA) are crucial for enhancing user experience and strengthening security protocols. SSO allows users to access multiple applications with a single set of credentials, reducing password fatigue and minimizing the risk of credential-related breaches. Password management solutions help organizations enforce strong password policies, automate password resets, and reduce security vulnerabilities caused by weak or reused passwords. MFA adds an extra layer of security by requiring multiple verification factors, such as biometrics, OTPs, or security tokens, ensuring robust protection against unauthorized access.
Audit, Compliance, & Governance, along with other IAM components, play a crucial role in ensuring regulatory compliance and risk management. These solutions help organizations track user activities, generate audit reports, and enforce security policies in line with industry standards such as GDPR, HIPAA, and ISO 27001. Governance tools enable organizations to define and enforce access policies, ensuring that only authorized users can access sensitive information. As regulatory requirements become stricter, the demand for IAM solutions that offer comprehensive audit and compliance capabilities is expected to grow significantly.
Global Identity & Access Management Market, Segmentation by Type
The Global Identity & Access Management Market has been segmented by Type into Customer IAM, and Workforce IAM.
The Global Identity & Access Management (IAM) Market is segmented by Type into Customer IAM (CIAM) and Workforce IAM. Both segments play a crucial role in securing digital identities and ensuring that users have the appropriate access to systems and data. With the increasing adoption of digital transformation, cybersecurity threats, and regulatory compliance requirements, organizations are prioritizing IAM solutions to enhance security and streamline authentication processes.
The Customer IAM (CIAM) segment focuses on managing and securing digital identities of customers across various platforms. This includes authentication, authorization, and identity verification solutions designed to enhance user experience while protecting sensitive data. Key features of CIAM solutions include single sign-on (SSO), multi-factor authentication (MFA), consent management, and social login capabilities. These solutions help businesses provide seamless and secure access to online services, ensuring compliance with data privacy regulations such as GDPR and CCPA while improving customer engagement and trust.
The Workforce IAM segment is designed to manage the identities and access privileges of employees, contractors, and business partners within an organization. Workforce IAM solutions provide role-based access control (RBAC), identity governance, and privileged access management (PAM) to prevent unauthorized access and minimize security risks. These solutions help organizations streamline employee onboarding and offboarding, enforce security policies, and mitigate insider threats. With the rise of remote work and hybrid work models, the demand for Workforce IAM has grown, ensuring secure access to enterprise systems from any location.
Both CIAM and Workforce IAM segments contribute significantly to cybersecurity and compliance, but they cater to different user groups with distinct requirements. While CIAM emphasizes a seamless user experience and customer engagement, Workforce IAM focuses on internal security and operational efficiency. As cyber threats continue to evolve, organizations are increasingly investing in IAM solutions to protect identities, prevent data breaches, and ensure regulatory compliance across both customer and workforce environments.
Global Identity & Access Management Market, Segmentation by Organization Size
The Global Identity & Access Management Market has been segmented by Organization Size into Small & Medium Enterprises (SMES), and Large Enterprises.
The Global Identity & Access Management (IAM) Market, delineated by organization size, distinguishes between the unique needs and priorities of Small & Medium Enterprises (SMEs) and Large Enterprises. SMEs, characterized by their nimbleness and resource constraints, are increasingly recognizing the critical importance of IAM solutions in fortifying their digital assets and operations. Tailored IAM offerings for SMEs often prioritize simplicity, scalability, and cost-effectiveness, empowering these organizations to efficiently manage user identities, control access to sensitive data, and adhere to compliance regulations without burdening their limited IT resources.
Large Enterprises, with their expansive networks, diverse user bases, and complex IT ecosystems, represent a formidable segment propelling the demand for IAM solutions. These organizations confront multifaceted challenges in orchestrating identities and access across geographies, business units, and systems. IAM platforms designed for large enterprises emphasize robustness, scalability, and interoperability, enabling seamless identity lifecycle management, centralized access control, and comprehensive audit capabilities to mitigate security risks and ensure regulatory compliance on a massive scale.
The segmentation of the IAM market by organization size underscores the diverse adoption patterns and preferences prevalent among SMEs and Large Enterprises. While SMEs lean towards agile, cloud-based IAM solutions for their ease of deployment and cost-efficiency, Large Enterprises often opt for on-premises deployments or hybrid models to accommodate their stringent security requirements, customization needs, and legacy system integrations. As the IAM landscape continues to evolve, vendors are poised to innovate and tailor their offerings further to address the evolving security needs and digital transformation initiatives of organizations across the spectrum of sizes and industries.
Global Identity & Access Management Market, Segmentation by Deployment
The Global Identity & Access Management Market has been segmented by Deployment into Cloud, and On-Premises.
The segmentation of the Global Identity & Access Management (IAM) Market by deployment method distinguishes between two predominant models: Cloud-based and On-Premises solutions. Cloud-based IAM solutions have surged in popularity, offering organizations of all sizes unprecedented flexibility, scalability, and accessibility. By harnessing the power of the cloud, businesses can rapidly deploy IAM functionalities without the need for extensive infrastructure investments or maintenance overheads. This model appeals particularly to organizations seeking agility, as it enables seamless integration with existing cloud environments, rapid provisioning of user access, and simplified management of identities across diverse platforms and devices.
On-Premises IAM deployments retain their relevance, especially among large enterprises and regulated industries with stringent security and compliance requirements. These organizations prioritize data sovereignty, customization, and full control over their IAM infrastructure, driving the demand for solutions housed within their premises. On-Premises IAM solutions offer granular control over security policies, robust integration capabilities with legacy systems, and the assurance of physical data control, making them the preferred choice for entities operating in highly regulated sectors such as finance, healthcare, and government.
The segmentation of the IAM market by deployment method reflects the evolving dynamics of cybersecurity strategies and organizational preferences. While cloud-based IAM solutions continue to gain momentum due to their agility and cost-effectiveness, on-premises deployments remain resilient, catering to the unique needs of enterprises with specific compliance mandates, legacy systems, or data sovereignty concerns. Hybrid deployment models, combining the strengths of both cloud and on-premises architectures, are also emerging as a viable option, offering organizations the flexibility to balance security, scalability, and operational efficiency according to their evolving business requirements and risk profiles.
Global Identity & Access Management Market, Segmentation by Geography
In this report, the Global Identity & Access Management Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Global Identity & Access Management Market Share (%), by Geographical Region, 2024
The Global Identity & Access Management (IAM) Market provides a detailed analysis of the industry's landscape, with a particular focus on regional segmentation. By delineating the market into five distinct regions - North America, Europe, Asia Pacific, Middle East and Africa, and Latin America - the report offers valuable insights into the regional dynamics, market trends, and growth prospects shaping the IAM landscape on a global scale. Each region presents a unique set of opportunities and challenges, driven by varying levels of technological maturity, regulatory frameworks, and adoption patterns across industries.
North America emerges as a frontrunner in the IAM market, buoyed by the region's advanced cybersecurity infrastructure, robust regulatory environment, and high awareness of data privacy concerns. The presence of leading IAM vendors, coupled with the increasing incidence of cyber threats and regulatory mandates such as GDPR and CCPA, has propelled the adoption of IAM solutions across enterprises in sectors ranging from finance and healthcare to technology and government. Moreover, the region's emphasis on cloud computing, digital transformation initiatives, and remote work arrangements further accelerates the demand for IAM solutions that offer seamless access management, identity governance, and threat detection capabilities.
Europe represents another significant market for IAM solutions, characterized by a diverse ecosystem of industries, stringent data protection regulations, and a growing emphasis on cybersecurity resilience. With the implementation of regulations such as GDPR and PSD2, European enterprises prioritize IAM investments to ensure compliance, mitigate cyber risks, and safeguard consumer data privacy. Additionally, the proliferation of cloud services, IoT adoption, and the rise of hybrid work environments underscore the need for IAM solutions that can adapt to evolving threat landscapes and regulatory requirements while delivering seamless user experiences across borders and devices.
The Asia Pacific region presents immense growth opportunities driven by rapid digitization, expanding enterprise IT infrastructures, and increasing cybersecurity awareness. Countries like China, India, and Japan are witnessing a surge in IAM adoption, fueled by government initiatives, rising cyber threats, and the proliferation of mobile and cloud technologies. As organizations across verticals embrace digital transformation initiatives, IAM solutions that offer scalability, interoperability, and compliance with local regulations are poised to witness significant traction in this dynamic and burgeoning market landscape.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Identity & Access Management Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunities Analysis
Drivers:
- Cybersecurity Threats
- Regulatory Compliance
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Digital Transformation - Digital transformation is a key driver of growth in the Global Identity & Access Management (IAM) Market, as organizations increasingly shift towards cloud computing, remote work, and digital services. Businesses are modernizing their IT infrastructures to improve efficiency, security, and user experience, making identity and access management solutions essential. The rise of digital business models requires advanced authentication, authorization, and user management capabilities to protect sensitive data and ensure seamless access across multiple platforms. IAM solutions play a critical role in enabling secure digital transformation by providing centralized identity control and mitigating cyber threats.
As organizations adopt cloud-based applications and Software-as-a-Service (SaaS) solutions, the need for robust IAM systems has surged. Cloud-based IAM solutions offer scalability, flexibility, and real-time access control, enabling businesses to manage identities across hybrid and multi-cloud environments. Traditional security models are no longer sufficient in a decentralized digital landscape, making IAM essential for ensuring secure authentication, managing user privileges, and preventing unauthorized access. Single sign-on (SSO), multi-factor authentication (MFA), and zero-trust security frameworks are becoming standard IAM components as companies modernize their IT ecosystems.
The increasing adoption of remote work and mobile workforce solutions has further accelerated the demand for IAM technologies. Employees, contractors, and third-party vendors require secure and seamless access to corporate resources from various locations and devices. IAM solutions help organizations enforce security policies, monitor user activities, and implement role-based access controls to reduce the risk of data breaches. Additionally, IAM plays a crucial role in identity governance and compliance, ensuring organizations meet regulatory requirements such as GDPR, CCPA, and HIPAA while maintaining visibility into access privileges and user behaviors.
The growing emphasis on digital identity verification and consumer IAM is also shaping the market, as businesses focus on enhancing user experiences while maintaining security. Industries such as banking, healthcare, and e-commerce rely on IAM solutions for secure customer authentication, fraud prevention, and personalized digital interactions. The integration of artificial intelligence (AI) and biometric authentication in IAM solutions is further improving identity verification processes, reducing reliance on passwords, and strengthening overall cybersecurity. As digital transformation continues to evolve, the Global Identity & Access Management Market will witness sustained growth, driven by the need for advanced security, compliance, and seamless access management solutions.
Restraints:
- Complexity of Implementation
- Cost Concerns
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Resistance to Change - One of the key restraints in the Global Identity & Access Management (IAM) Market is resistance to change, which hinders the adoption of modern IAM solutions across organizations. Many businesses, particularly those with long-established IT infrastructures, are reluctant to transition from traditional identity management systems to advanced, cloud-based, or AI-driven IAM solutions. This resistance often stems from concerns about operational disruptions, high implementation costs, and the need for employee training. Organizations may also fear potential integration challenges with their existing legacy systems, further slowing the adoption of new IAM technologies.
A significant factor contributing to resistance is the lack of awareness and understanding of IAM benefits among employees and decision-makers. Many organizations perceive IAM as a complex system that primarily adds to administrative burdens rather than enhancing security and efficiency. Employees may resist new authentication methods such as multi-factor authentication (MFA) or zero-trust security models, viewing them as inconvenient or time-consuming. Additionally, IT teams may hesitate to implement IAM solutions due to concerns about additional workload, ongoing maintenance, and the learning curve associated with managing sophisticated access control mechanisms.
Another challenge is the organizational culture and reluctance to overhaul security protocols. Companies that have relied on conventional security practices for years may be skeptical about shifting to an IAM-driven approach. Resistance often comes from senior management, who may view cybersecurity upgrades as a non-priority investment compared to other business initiatives. In industries like finance, healthcare, and manufacturing, where regulatory compliance is a major factor, organizations may worry that IAM implementation could lead to disruptions or conflicts with existing security policies, adding further hesitation to change.
To overcome this restraint, awareness, training, and gradual implementation strategies are essential. Organizations need to educate employees and leadership about the advantages of IAM, including enhanced security, streamlined access control, and compliance benefits. Vendors and IT security teams can facilitate adoption by offering customized solutions that integrate seamlessly with legacy systems, minimizing disruption. Additionally, businesses can adopt a phased approach to IAM implementation, starting with key security areas before expanding system-wide. Without addressing resistance to change, the growth of the Global IAM Market will continue to face challenges in achieving widespread adoption.
Opportunities:
- Cloud Adoption
- IoT Integration
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AI & Machine Learning - The integration of AI and Machine Learning (ML) presents a significant opportunity in the Global Identity & Access Management (IAM) Market by enhancing security, automation, and user experience. Traditional IAM solutions often struggle with managing complex access controls, detecting threats in real time, and reducing manual workload. AI-powered IAM systems can intelligently analyze user behavior, identify anomalies, and automatically adjust access privileges based on risk assessments. This capability is particularly valuable in industries with high-security requirements, such as banking, healthcare, and government, where cyber threats and identity fraud are growing concerns.
One of the biggest advantages of AI-driven IAM solutions is their ability to improve fraud detection and threat mitigation through behavioral analytics. Machine learning algorithms can continuously monitor login patterns, device usage, and network activity to detect suspicious behavior. If an employee suddenly accesses sensitive data from an unusual location or device, the AI system can trigger an alert, request multi-factor authentication (MFA), or even block access until verification is completed. This proactive approach significantly reduces the risk of unauthorized access, insider threats, and account takeovers, making IAM systems more robust and adaptive.
AI and ML also contribute to enhanced user experience and operational efficiency by automating identity verification, password management, and role-based access controls. Many organizations face challenges with password fatigue, forgotten credentials, and access request delays. AI-driven IAM solutions can provide passwordless authentication, biometric verification, and intelligent access provisioning based on job roles and usage patterns. This not only strengthens security but also reduces administrative burdens on IT teams, allowing organizations to streamline IAM operations while ensuring seamless access for employees and customers.
Furthermore, the growing demand for cloud-based IAM solutions and the rise of zero-trust security frameworks are fueling investments in AI and ML technologies. Companies are increasingly adopting adaptive authentication, AI-driven risk scoring, and automated policy enforcement to meet stringent compliance regulations such as GDPR, CCPA, and HIPAA. As cyber threats continue to evolve, businesses that leverage AI and ML in their IAM strategies will gain a competitive edge, enabling them to enhance security, reduce operational costs, and improve regulatory compliance, driving significant growth in the global IAM market.
Competitive Landscape Analysis
Key players in Global Identity & Access Management Market include:
- IBM Corporation
- Microsoft Corporation
- Oracle Corporation
- CA Technologies
- Dell EMC
- Okta, Inc
- Micro Focus (Netiq Corporation)
- Hitachi ID Systems, Inc.
- SailPoint Technologies, Inc.
- Centrify Corporation
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- 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 Type
- Market Snapshot, By Organization Size
- Market Snapshot, By Deployment
- Market Snapshot, By Region
- Global Identity & Access Management Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Cybersecurity Threats
- Regulatory Compliance
- Digital Transformation
- Restraints
- Complexity of Implementation
- Cost Concerns
- Resistance to Change
- Opportunities
- Cloud Adoption
- IoT Integration
- AI & Machine Learning
- 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
- Global Identity & Access Management Market, By Component, 2021 - 2031 (USD Million)
- Access Provisioning
- Directory Services
- Single Sign-On
- Password Management
- Multifactor Authentication
- Audit
- Compliance & Governance
- Others
- Global Identity & Access Management Market, By Type, 2021 - 2031 (USD Million)
- Customer IAM
- Workforce IAM
- Global Identity & Access Management Market, By Organization Size, 2021 - 2031 (USD Million)
- Small & Medium Enterprises (SMES)
- Large Enterprises
- Global Identity & Access Management Market, By Deployment, 2021 - 2031 (USD Million)
- Cloud
- On-Premises
- Global Identity & Access Management 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
- Global Identity & Access Management Market, By Component, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- IBM Corporation
- Microsoft Corporation
- Oracle Corporation
- CA Technologies
- Dell EMC
- Okta, Inc
- Micro Focus (Netiq Corporation)
- Hitachi ID Systems, Inc.
- SailPoint Technologies, Inc.
- Centrify Corporation
- Company Profiles
- Analyst Views
- Future Outlook of the Market