IoT IAM Market Report 2025

The IoT IAM market size has grown exponentially in recent years. It will grow from $9.53 billion in 2024 to $12.27 billion in 2025 at a compound annual growth rate (CAGR) of 28.8%. The growth in the historic period can be attributed to user authentication needs, data privacy regulations, rise of smart homes, consumer demand for convenience, identity theft concerns.

The IoT IAM market size is expected to see exponential growth in the next few years. It will grow to $36.13 billion in 2029 at a compound annual growth rate (CAGR) of 31%. The growth in the forecast period can be attributed to biometric authentication adoption, user-centric identity models, personalized user experiences, regulatory compliance focus, enhancing device management, dynamic access controls. Major trends in the forecast period include adoption of zero trust security models, integration with ai and machine learning, emergence of 5g networks, device lifecycle management, enhanced user authentication methods, edge computing and distributed IAM.

An increase in cyberattacks and data breach incidents is expected to drive the growth of the IoT IAM market in the coming years. A cyberattack refers to an action carried out by cybercriminals aimed at stealing data and sensitive information by infiltrating a computer system with malicious content. Data breaches involve security violations where sensitive information is extracted from a computer system without the owner's consent. Currently, identity and access management systems are employed to prevent unauthorized access to sensitive data within a company's employee database. For example, in April 2024, Parachute Technology, a US-based IT solutions provider, reported that government agencies encountered 49 cyber incidents in the first half of 2023, reflecting an 11% increase from 2022. Consequently, the rising incidence of cyberattacks and data breaches is expected to further stimulate the growth of the IoT IAM market in the years ahead.

The burgeoning demand for internet connectivity is poised to drive the growth of the IoT IAM market. The internet, a vast network enabling global communication and data sharing among devices irrespective of location, plays a pivotal role in centralizing access control for various IoT devices and applications. Reports from Meltwater in February 2023 revealed a 0.3% increase in UK internet users, reaching a total of 66.11 million. This surge in internet usage significantly contributes to the escalating demand and subsequent growth of the IoT IAM market.

Technological advancements emerge as a significant trend fostering growth in the IoT IAM market. Key market players are intensifying efforts to innovate and introduce cutting-edge technologies, consolidating their positions. For instance, Okta, Inc., unveiled Unified IAM, branded as Okta Identity Governance, a cloud-based governance solution integrating identity governance and administration (IGA) tools. This technology, introduced in August 2022, emphasizes enhancing security and compliance in an organization's IT infrastructure. The cloud-based and user-friendly nature of Okta Identity Governance streamlines deployment for IT teams and simplifies usage for employees, offering comprehensive identity management and controlled access to devices.

Major players in the IoT IAM market are forging strategic partnerships to expand their offerings. These alliances, centered on leveraging collective strengths and resources, aim for mutual benefits and success. For example, Device Authority collaborated with Entrust in March 2022, intending to provide trust and machine identity automation for IoT. This partnership targets the removal of logistical barriers in large-scale IoT implementation through automated Public Key Infrastructure (PKI) certificate administration. By combining Device Authority's KeyScaler IoT IAM platform with Entrust's PKI services, the collaboration extends beyond Hardware Security Module (HSM) services, enabling trust establishment, data integrity, and automation at an IoT scale.

In July 2022, Thales Group, a leading technology company headquartered in France, completed the acquisition of OneWelcome for €100 million ($102.37 million). This strategic move enables Thales to broaden its product spectrum within cybersecurity strategy, customer identity and access management (CIAM), and secure credential enrollment while enhancing its service coverage in Western Europe. OneWelcome, based in the Netherlands, specializes in IoT-based customer identity and access management (CIAM) tailored for highly regulated sectors.

Major companies operating in the IoT IAM market are International Business Machines Corporation, Amazon.com Inc., GMO GlobalSign Inc., Ping Identity Corporation, ForgeRock Inc., Broadcom Inc., Microsoft Corporation, Oracle Corporation, Micro Focus International PLC, Cloud Security Alliance Inc., ARCON TechSolutions Pvt. Ltd., Telefonaktiebolaget LM Ericsson, Hitachi ID Systems Inc., KaaIoT Technologies LLC, Okta Inc., HID Global Corporation, CyberArk Software Ltd., OpenText Corporation, Cisco Systems Inc., Google LLC, Entrust Datacard Corporation, SailPoint Technologies Inc., Dell Technologies Inc., Optiv Security Inc., Quest Software Inc., Identity Fusion Inc., Thales Group, DigiCert Inc., Keyfactor Inc., RSA Security LLC, Centrify Corporation, SecureAuth Corporation, Auth0 Inc., Idaptive LLC, Akamai Technologies Inc., Thycotic Software LLC, BeyondTrust Corporation, Cyberinc Corp., Avatier Corporation, NetIQ Corporation.

North America was the largest region in the IoT IAM market in 2024. Asia-Pacific is expected to be the fastest-growing region in the IoT IAM market report forecast period. The regions covered in the iot iam market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the iot iam market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

IoT IAM (IoT identity and access management) serves as a crucial system facilitating device identity management, access control, and the discovery of unmanaged devices, ensuring appropriate action is taken. Its primary objectives include fostering seamless communication among various IoT devices and safeguarding against data breaches and security threats. Furthermore, it equips organizations with tools to enhance the productivity of their employees across diverse settings.

The key components of IoT IAM comprise solutions and services. These solutions encompass interconnected internet-managed device systems governed by unique digital identities. Categorized by security type, they encompass network security, endpoint security, application security, cloud security, and other related security protocols. Deployment modes include cloud-based and on-premises setups, catering to both small and mid-sized enterprises (SMEs) and large enterprises. The technology finds application across various industry verticals like banking, financial services, insurance (BFSI), automotive, telecommunications, retail, consumer goods, energy, utilities, healthcare, and more.

The IoT IAM market research report is one of a series of new reports that provides IoT IAM market statistics, including IoT IAM industry global market size, regional shares, competitors with a IoT IAM market share, detailed IoT IAM market segments, IoT IAM market trends and opportunities, and any further data you may need to thrive in the IoT IAM industry. This IoT IAM market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The IoT IAM (IoT identity and access management) market includes revenues earned by entities by providing 5G transport services, cloud native services, open source networking, user activity monitoring services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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