New market analysis reveals that enhanced security and seamless customer experiences are still key drivers amid increasing identity data management complexities.
NEW YORK, May 01, 2024 /PRNewswire/ — Liminal, a global leader in market intelligence for digital identity and cybersecurity, today released its latest research report. This report forecasts substantial growth in the CIAM Market, expected to rise from $6.2 billion in 2024 to an estimated $10.8 billion by 2028, marking a compound annual growth rate (CAGR) of 11.7%. This growth in the CIAM Market is driven by significant transformations within the industry, including vendor consolidation and the escalating need to integrate advanced security measures seamlessly with customer experience.
The market faces ongoing challenges with fragmented and unreliable identity data, complicating data privacy compliance and creating inconsistent user experiences across digital platforms. According to the Market and Buyer’s Guide for Customer Identity and Access Management, nearly half of the businesses are planning major changes to their CIAM systems, including complete overhauls and integrating new functionalities to improve identity verification and fraud detection.
“Our research underscores a market at a tipping point,” says Travis Jarae, CEO at Liminal. “The evolution of CIAM solutions is a critical business priority as organizations seek more sophisticated systems that better integrate across applications and enhance security and identity management across the customer journey.”
Liminal’s market survey reveals that 74% of businesses struggle with siloed identity data, impeding data privacy compliance and disrupting customer identity management across organizational divisions. This is compounded by migration challenges that delay the adoption of innovative CIAM technologies. As a result, the market is shifting towards more adaptable, customizable, and integrated solutions, including user behavior analytics, adaptive authentication, and API-first capabilities. These innovations, once inaccessible, are now available to organizations of all sizes. As market dynamics continue to evolve, organizations with advanced Customer Identity and Access Management (CIAM) systems are looking for further ways to enhance their capabilities. A popular approach is integrating CIAM with Master Data Management (MDM) systems to leverage the benefits of both technologies. MDM enables businesses to create a unified and accurate view of customer data across all systems, while CIAM provides secure and personalized access to customer data. By combining these two systems, businesses can achieve a more comprehensive view of their customers and deliver a superior customer experience.
The CIAM landscape is expected to evolve with an increased focus on integrating identity verification and enterprise data integrity. The demand for authorization-as-a-service solutions is steadily rising, and the integration of identity verification throughout the customer journey is becoming more prevalent. “As businesses navigate the complexities of digital identity and access management, the integration of advanced security features and seamless identity verification becomes increasingly important,” added Jarae.
Key Insights:
- 89% of surveyed businesses report operational cost reductions due to CIAM solutions, and 86% of these organizations also report increased business revenue.
- 91% of businesses are interested in a CIAM solution that includes enterprise and master data management capabilities, and 65% are in the market to purchase a CIAM solution with these capabilities today.
- 80% of practitioners cite that legacy CIAM systems hinder the adoption of passwordless authentication methods.
- Almost half of CIAM practitioners plan to switch their primary CIAM providers within the next two years or will seek to add more robust authorization and access control services to their existing stack due to the need for more innovative and customizable features.
- Only 16% of businesses feel they have achieved the ideal balance of data collection that complies with regulations and supports customer monetization, and 42% are exploring ways to modify customer data capture in anticipation of regulatory changes.
- Enhanced identity verification is the most sought-after feature in CIAM solutions.
Liminal’s latest report, “The Market & Buyer’s Guide to Customer Identity and Access Management,” explores these demand-side dynamics, providing insights into business challenges and priorities today. The report is essential for organizations looking to enhance security frameworks while ensuring customer satisfaction and compliance with evolving regulations.
