Customer Identity and Access Management Market Size to Reach USD 30.06 Billion by 2031 - Mordor Intelligence

Customer Identity and Access Management Market Overview

According to Mordor Intelligence, the customer identity and access management market size was valued at USD 11.3 billion in 2025 and is estimated to grow from USD 13.3 billion in 2026 to reach USD 30.06 billion by 2031, at a CAGR of 17.72% during the forecast period. The steady rise in the customer identity and access management market size reflects how organizations are strengthening digital customer engagement while addressing compliance requirements and rising cyber risks. Cloud deployment continues to dominate new implementations, while managed services are gaining attention as organizations outsource complex integration and compliance workflows.

Enterprises across banking, healthcare, telecom, government, and digital commerce are prioritizing secure and seamless login journeys. As a result, the customer identity and access management industry is moving beyond basic authentication to advanced orchestration, consent management, and adaptive security controls. Businesses are also responding to increasing API-layer threats and stricter privacy mandates across major economies. These dynamics are shaping the customer identity and access management market forecast over the coming years.

Report overview: https://www.mordorintelligence.com/industry-reports/global-consumer-identity-and-access-management-market?utm_source=industrytoday

Key Customer Identity and Access Management Market Growth Drivers

Generative AI Adaptive Authentication

One of the most visible customer identity and access management market trends is the use of generative AI in adaptive authentication. Instead of reacting after a breach, organizations are assessing user behavior, device context, and risk signals in real time. This approach reduces unnecessary step-up authentication while maintaining strong security. Healthcare providers, in particular, are integrating adaptive authentication to streamline patient sign-ins without compromising regulatory compliance. The shift toward predictive risk scoring is influencing both the customer identity and access management market share and long-term growth outlook.

Privacy and User Experience Balance

Privacy mandates such as digital identity wallet frameworks in Europe are encouraging enterprises to rethink consent workflows. Organizations are investing in privacy-by-design frameworks that allow customers to manage their data preferences across channels. This shift supports customer identity and access management market growth as businesses aim to reduce friction in digital journeys while meeting data protection standards. Privacy is increasingly viewed as part of the value proposition rather than an operational burden.

Embedded Finance and Super-App Ecosystems

Super-app platforms that combine payments, messaging, and digital services require federated identity models. In these ecosystems, identity must work across multiple partners and applications while maintaining consistent policy enforcement. This demand is expanding the customer identity and access management industry into new digital commerce environments. Identity federation and consent orchestration are becoming standard requirements in these ecosystems, influencing customer identity and access management market size expansion.

PSD3 and Consent Orchestration Requirements

Upcoming delegated authentication and outcome-based security requirements in financial services are compelling banks and fintech firms to modernize consent workflows. Regulatory alignment across regions has made orchestration engines central to the customer identity and access management market forecast. Vendors are responding by offering tools that store, verify, and update dynamic privacy directives across jurisdictions. This regulatory shift is contributing to broader customer identity and access management market share distribution across BFSI and related segments.

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Customer Identity and Access Management Market Segmentation

By Component

• Solutions
• Services

By Deployment Mode

• Cloud-Based
• On-Premise

By End-User Industry

• BFSI
• Healthcare
• IT and Telecom
• Government
• Energy and Utilities
• Transportation
• Aerospace and Defense
• Education

By Authentication Type

• Multifactor Authentication (MFA)
• Other Authentication Methods

By Organisation Size

• Large Enterprises
• Small- and Medium-Sized Enterprises (SMEs)

Key Players in the Customer Identity and Access Management Market

• Microsoft Corporation
• IBM Corporation
• Okta Inc.
• Ping Identity Holding Corp.
• Salesforce Inc.

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Conclusion

The customer identity and access management market is entering a phase where identity is central to digital customer engagement strategies. Rising cyber threats, API-layer risks, and expanding digital ecosystems are reinforcing the need for secure and user-friendly identity solutions. At the same time, regulatory mandates related to consent management and digital identity wallets are influencing the customer identity and access management market forecast.

As cloud adoption accelerates and managed services gain momentum, the customer identity and access management market growth outlook remains strong. The combination of adaptive authentication, consent orchestration, and federation across super-app ecosystems is expected to sustain expansion across industries, shaping the future direction of the customer identity and access management industry. Organizations are seeking platforms that balance privacy, compliance, and seamless customer journeys.

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