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Identity Management Software in the US - Market Research Report (2014-2029)

William Curtis William Curtis New York, United States Last Updated: November 2024 NAICS OD6190

Revenue

$4.6bn

2024

$4.6bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

8,947

Businesses

147

Wages

$X.Xbn

Identity Management Software in the US industry analysis

The Identity Management Software (IAM) sector in the US continues to grow as companies prioritize cybersecurity. It reached $4.6 billion in 2024, increasing at a CAGR of 6.9%. IAM solutions, notably single sign-on (SSO) and multi-factor authentication (MFA) have enhanced network security and employee productivity, especially as remote work remains prevalent.

Trends and Insights

  • Remote work has fueled substantial revenue growth. Employers are now oftem adopting a hybrid schedule model, effectively requiring double the identity management software for each employee.
  • Single sign-on authentication remains the industry’s most popular product. It enables users to access multiple systems with a single ID or password without further authentication.
  • Northeast urban centers demand flexible pricing strategies from IAM developers. High demand and strict regulations in markets like New York and Boston drive up prices for customizable and compliant identity solutions.
  • The top four companies compete for market dominance in the industry. Microsoft is the largest industry player, followed closely by Okta.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 6.9 % over the past five years, to reach an estimated $4.6bn in 2024.

Trends and Insights

Identity management software emerges as a crucial service in the remote era

  • Amid the remote work transition, Identity Access Management (IAM) software is rapidly adapting to secure numerous new endpoints. As employees work outside traditional offices, businesses must update IAM systems. Increasing cybersecurity concerns require robust device and network protection. Once seen as a luxury, access to these solutions has become essential for many organizations.
  • Additional trends and insights available with purchase
Identity Management Software in the US
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Biggest companies in the Identity Management Software in the US

Company
Market Share (%)
2024
Revenue ($m)
2024
Profit ($m)
2024
Profit Margin (%)
2024
Microsoft Corporation
1,747.7
780.2
44.6
Okta, Inc.
1,737.3
-396.1
-22.8
Logmein, Inc.
678.3
1.9
0.3

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Identity Management Software in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including ID mgmt. access control, ID mgmt. SSO and Multifactor authentication. ID mgmt. access control is the largest segment of the Identity Management Software in the US.

Trends and Insights

Steady demand for ID management access control driven by security priorities

  • ID management access control provides mechanisms for verifying user identities and controlling resource access. Demand from large enterprises emphasizes the need to streamline identity verification across multiple applications.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Companies in this industry offer software systems that manage user identity and access to corporate resources, commonly known as IAM (Identity Access Management) systems. Individual solutions such as password managers are also included in this industry.

What's included in this industry?

Developing and publishing single sign-on software systems Developing and publishing multifactor authentication software systems Developing and publishing password management applications, extensions and software systems Providing technical support for identity management software

Companies

Microsoft CorporationOkta, Inc.Logmein, Inc.

Purchase this report to view all 4 major companies in this industry.

Related Terms

APPLICATION SOFTWARECLOUD COMPUTINGIDENTITY AND ACCESS MANAGEMENT (IAM)

Industry Code

NAICS 2017

NAICS 51121 - Identity Management Software in the US

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Remote work has fueled substantial revenue growth. Employers are now oftem adopting a hybrid schedule model, effectively requiring double the identity management software for...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Single sign-on authentication remains the industry’s most popular product. It enables users to access multiple systems with a single ID or password without further authentica...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Northeast urban centers demand flexible pricing strategies from IAM developers. High demand and strict regulations in markets like New York and Boston drive up prices for cus...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each state in 2024
  • Number and share of revenue each state accounts for in 2024
  • Number and share of wages each state accounts for in 2024
  • Number and share of employees in each state in 2024

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The top four companies compete for market dominance in the industry. Microsoft is the largest industry player, followed closely by Okta.

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Microsoft runs the show throughout the industry. The company is heavily invested in technology, including the industry’s main external competition, cloud computing.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Microsoft Corporation's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Okta, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Logmein, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Microsoft Corporation, and factors influencing its performance in the industry
  • Description and key data for Okta, Inc., and factors influencing its performance in the industry
  • Description and key data for Logmein, Inc., and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

International regulations are an important obstacle developers need to navigate. Due to the decentralized nature of the digital space, developers must create programs accessi...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Increased demand from the commercial market has maintained high profitability. Rising corporate profit across all industries has driven increased investment in industry softw...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Industry Multiples (2017-2022)
  • Industry Tax Structure (2017-2022)
  • Income Statement (2017-2022)
  • Balance Sheet (2017-2022)
  • Liquidity Ratios (2017-2022)
  • Coverage Ratios (2017-2022)
  • Leverage Ratios  (2017-2022)
  • Operating Ratios (2017-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Identity Management Software in the US industry in United States in 2024?

The market size of the Identity Management Software in the US industry in United States is $4.6bn in 2024.

How many businesses are there in the Identity Management Software in the US industry in 2024?

There are 147 businesses in the Identity Management Software in the US industry in United States, which has grown at a CAGR of 9.1 % between 2019 and 2024.

Has the Identity Management Software in the US industry in United States grown or declined over the past 5 years?

The market size of the Identity Management Software in the US industry in United States has been growing at a CAGR of 6.9 % between 2019 and 2024.

What is the forecast growth of the Identity Management Software in the US industry in United States over the next 5 years?

Over the next five years, the Identity Management Software in the US industry in United States is expected to grow.

What are the biggest companies in the Identity Management Software in the US market in United States?

The biggest companies operating in the Identity Management Software market in United States are Microsoft Corporation, Okta, Inc. and Logmein, Inc.

What does the Identity Management Software in the US in United States include?

Developing and publishing single sign-on software systems and Developing and publishing multifactor authentication software systems are part of the Identity Management Software in the US industry.

Which companies have the highest market share in the Identity Management Software in the US in United States?

The company holding the most market share in United States is Microsoft Corporation.

How competitive is the Identity Management Software in the US industry in United States?

The level of competition is moderate and increasing in the Identity Management Software in the US industry in United States.

Related Industries

Widen your competitive advantage with related industries

Competitors

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Complementors

  • There are no industries to display.

International industries

  • Software Publishing in Canada
  • Software Publishing in Australia
  • Software Publishing in the UK
  • Software Development in China

View all industries in United States

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the US include: 

  • US Census Bureau
  • US Bureau of Labor Statistics
  • US International Trade Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.