New market analysis reveals that enhanced
security and seamless customer experiences are still key drivers
amid increasing identity data management complexities.
NEW
YORK, May 1, 2024 /PRNewswire/ -- Liminal, a
global leader in market intelligence for digital identity and
cybersecurity, today released its latest research report, which
forecasts substantial growth in the Customer Identity and Access
Management (CIAM) solutions market. The market is 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
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. With the market's evolution, those with
advanced CIAM systems are increasingly seeking further
enhancements, specifically through integration with Master Data
Management (MDM) to boost their capabilities.
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.
About Liminal
Liminal is a global market intelligence and strategic advisory
firm specializing in digital identity, financial crime and
compliance, and cybersecurity technology solutions across
industries while catering to the private equity and venture capital
community. Founded in 2016, Liminal offers strategic and analytical
services supporting executive decision-making at all product and
business lifecycle stages. We advise some of the world's most
prominent business leaders, investors, and policymakers on
building, acquiring, and investing in the next generation of
solutions and technologies. We provide access to proprietary data
and analysis, strategic frameworks, and integrated insights on the
industry's only market intelligence platform.
Sign up for a free Link account to access our Liminal's
market and buyer's guides or learn more at www.liminal.co. Follow
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Contacts:
Stacy
Schulman
Liminal Media Relations
media@liminal.co
1 (602) 616-9818
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SOURCE Liminal Strategy, Inc.