IoT IAM Market Size, Share, Growth, and Industry Analysis, By Types (Private Deployment Model, Public Deployment Model, Hybrid Deployment Model) , Applications (Retail And Consumer Goods, Public Sector, Public Utilities, Health Care, Energy, Oil, Gas, Manufacturing, Other) and Regional Insights and Forecast to 2033

IoT IAM Market Size

The global IoT IAM Market Size was valued at USD 1,704.82 million in 2024 and is projected to reach USD 1,964.46 million in 2025, expanding to USD 6,106.17 million by 2033. The market is growing at a CAGR of 15.23% during the forecast period (2025-2033), driven by increasing IoT device proliferation, security concerns, and regulatory compliance requirements.

The US IoT IAM Market Size is expanding rapidly as organizations focus on securing IoT networks, implementing identity verification protocols, and adhering to stringent cybersecurity policies. Growth is further fueled by rising investments in cloud security solutions.

The Internet of Things (IoT) Identity and Access Management (IAM) market is witnessing rapid growth as businesses increasingly deploy IoT devices, with security becoming a top priority. IAM solutions have seen significant adoption due to the rising number of connected devices, with the market expanding by over 20% annually.

As industries such as healthcare, manufacturing, and automotive integrate IoT systems, they require scalable IAM solutions to manage and secure data. The increasing number of cyber threats and breaches in IoT networks further underscores the need for robust IAM systems, pushing market growth by more than 15% year over year.

IoT IAM Market Trends 

The IoT IAM market is experiencing transformative growth driven by increasing device connectivity, with global IoT devices reaching an estimated 50 billion by the end of 2025. As the number of connected devices rises, the demand for IAM solutions to ensure secure device authentication and data protection has surged, with a growth rate of over 20% annually.

Moreover, 30% of enterprises are adopting AI-powered IAM solutions to improve real-time access management and threat detection. Multi-cloud deployments are driving demand for cloud-based IAM systems, with companies seeking better access control across various environments. Regulatory pressure is also influencing market trends, with 25% of organizations globally adjusting IAM policies to comply with GDPR and CCPA.

Healthcare, manufacturing, and automotive industries are at the forefront of IoT adoption, and are projected to account for 40% of the total IoT IAM market share by 2026. With the growing complexity of IoT networks, organizations are increasingly focusing on advanced authentication methods like biometrics, which have seen an adoption increase of 18% in the past two years.

IoT IAM Market Dynamics

Several dynamics are shaping the IoT IAM market, such as the increasing adoption of IoT devices and the growing complexity of security management. The number of connected IoT devices is expected to grow at a rate of 20% annually, leading to a rise in demand for IAM solutions.

Furthermore, the trend of multi-cloud deployments is accelerating the demand for IAM solutions that can provide secure and unified access control across distributed environments, with a projected increase of 15% in cloud-based IAM adoption over the next 3 years. The shift to remote work and BYOD policies is also driving the need for advanced IAM systems, with 22% of companies integrating IoT IAM systems to secure remote access to IoT networks.

The rise in cyberattacks on IoT devices has significantly contributed to the growing recognition of IAM’s importance in safeguarding IoT ecosystems. As organizations focus on data protection and compliance with stringent regulations, 18% of enterprises are enhancing their IAM strategies to avoid costly data breaches.

DRIVER

" Rising demand for pharmaceuticals"

The increasing global demand for pharmaceuticals is a significant driver of market growth. The aging population, growing prevalence of chronic diseases, and rising healthcare expenditures contribute to this trend. Over 70% of the global population is expected to need regular pharmaceutical treatments due to conditions like diabetes and cardiovascular diseases. Additionally, prescription drug usage has surged by 40% in the last decade. The demand for generic drugs has also increased, accounting for over 85% of total prescriptions in many developed nations. Government initiatives to boost local drug manufacturing have further propelled this sector, with over 60% of countries implementing incentives.

RESTRAINT

"Demand for refurbished equipment"

The increasing adoption of refurbished pharmaceutical manufacturing equipment is restraining market growth. Many small and mid-sized pharmaceutical companies prefer used equipment to reduce operational costs, with over 50% of new market entrants opting for second-hand machinery. The cost savings can be as high as 65%, making it an attractive option. Additionally, sustainability initiatives and regulatory approvals for refurbished equipment have grown, with over 45% of pharmaceutical firms considering used equipment as a viable alternative. This trend is limiting the demand for new manufacturing machinery and slowing down investments in advanced pharmaceutical equipment.

OPPORTUNITY

" Growth in personalized medicines"

The rise of personalized medicine presents a significant opportunity for the pharmaceutical sector. Precision medicine now accounts for over 30% of new drug approvals globally. Advanced therapies, including gene and cell therapy, are expanding rapidly, with over 50% of biotechnology companies investing in these treatments. Additionally, research in targeted drug development has increased by over 40% in the past five years. The demand for biologics, which are a crucial part of personalized medicine, has surged by over 55%, prompting pharmaceutical firms to focus on specialized drug formulations tailored to individual genetic profiles.

CHALLENGE

" Rising costs and expenditures related to pharmaceutical manufacturing equipment"

The pharmaceutical industry faces mounting challenges due to the rising costs of manufacturing equipment. The cost of compliance with stringent regulatory standards has increased by over 35%, impacting production budgets. Additionally, the shift toward automation and digitalized production lines has led to a 50% increase in capital investment for modern manufacturing facilities. High maintenance costs, which have risen by over 45%, further strain operational budgets. With over 60% of pharmaceutical firms aiming to integrate AI and IoT-based manufacturing processes, the expenses associated with these transitions continue to pose financial challenges.

Segmentation Analysis 

The IoT IAM market is segmented based on deployment models and applications. In terms of deployment, the market is divided into private, public, and hybrid models, with each catering to different organizational needs for scalability, security, and cost-effectiveness. By application, industries such as retail, healthcare, energy, manufacturing, and public utilities are key contributors. The increasing complexity of IoT networks across sectors is driving the demand for IAM solutions tailored to specific operational needs. In total, the market growth across these segments is showing a significant increase, with private deployment models dominating at 35% share, public at 28%, and hybrid at 37%.

By Type

• Private Deployment Model: The private deployment model of IoT IAM allows enterprises to maintain greater control over security while ensuring their data remains within their own infrastructure. This model is particularly popular among large enterprises and industries handling highly sensitive data, such as healthcare. The private deployment model holds a dominant market share, accounting for 35% of the total IoT IAM market. It is driven by enterprises' desire for increased security control and tailored solutions. Organizations with strict compliance requirements and a need for data sovereignty are increasingly opting for private models, which is fueling a rise in demand of 22% annually.
• Public Deployment Model: Public deployment models for IoT IAM solutions are widely adopted by smaller businesses and startups due to their cost-effectiveness and scalability. This model leverages cloud infrastructure, reducing capital expenditures and offering easy integration. Public deployment is favored by industries such as retail, where speed and flexibility are crucial. The public deployment model accounts for 28% of the IoT IAM market share. The growing adoption of cloud-based solutions, as well as the increasing number of IoT-connected devices in sectors requiring flexible and scalable systems, is contributing to its rapid growth, projected to increase by 18% year-over-year.
• Hybrid Deployment Model: The hybrid deployment model combines the benefits of both private and public clouds, offering organizations a balanced approach to security and scalability. This model is becoming more prevalent as companies seek solutions that offer flexibility while ensuring control over sensitive data. The hybrid model is highly preferred by sectors like manufacturing and public utilities. The hybrid deployment model holds 37% of the market share, and its growth is fueled by organizations adopting multi-cloud strategies and requiring seamless integration between on-premises systems and cloud environments. This model is experiencing 19% growth annually due to its ability to offer flexible access management.

By Application 

• Retail and Consumer Goods: have seen AI-driven analytics adoption surge by 75%+. Businesses are leveraging data-driven insights to enhance customer experiences, optimize inventory, and drive personalized marketing strategies.
• Public Sector: has increased cloud adoption by 60%, enabling better data management, improved public services, and enhanced security. Governments are embracing digital solutions to streamline operations and citizen engagement.
• Public Utilities: have ramped up smart grid investments by 80% to improve sustainability and efficiency. Advanced metering, predictive maintenance, and automated controls are transforming energy distribution and consumption.
• Healthcare: has experienced a 90% rise in telemedicine usage, revolutionizing patient care. Virtual consultations, AI diagnostics, and remote monitoring are improving accessibility and reducing healthcare costs.
• Energy: sector digital initiatives have grown by 70%, integrating AI, IoT, and blockchain to optimize operations. Smart grids, predictive maintenance, and automation enhance efficiency and sustainability.
• Oil & Gas: has embraced IoT with a 65% increase in adoption, improving exploration, drilling, and asset management. Predictive analytics and automation reduce operational risks and costs.
• Manufacturing: has accelerated automation by 85%, boosting productivity and efficiency. Robotics, AI-driven quality control, and smart factories are reshaping production lines and supply chains.
• Other Sectors: have witnessed an average digital adoption growth of 50%, embracing AI, cloud computing, and automation. Businesses across industries are leveraging technology to improve efficiency, decision-making, and customer experiences.

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IoT IAM Regional Outlook 

The regional outlook for the IoT IAM market highlights strong growth prospects in all regions. North America leads the market, driven by high IoT adoption rates and stringent cybersecurity regulations. Europe follows closely, with increasing investments in smart IoT infrastructure and stringent data protection laws. The Asia-Pacific region is projected to grow rapidly due to industrialization and technological advancements, particularly in China and India. The Middle East and Africa also show significant potential, especially in oil & gas and smart city projects. These regions represent 45%, 30%, 25%, and 10% of the global IoT IAM market, respectively.

North America

North America is the dominant region in the IoT IAM market, with the United States leading the charge. The growing number of IoT devices in industries such as healthcare, retail, and manufacturing, along with stringent regulations like CCPA and HIPAA, has accelerated the adoption of IAM systems. North America holds 45% of the global market share, with the U.S. contributing the largest portion. Companies in the region are focusing heavily on ensuring the security of their IoT devices and connected networks. The high demand for robust IAM solutions in North America is fueling year-over-year market growth of 22%.

Europe

Europe is the second-largest region for the IoT IAM market, with significant contributions from countries such as Germany, France, and the United Kingdom. The region is seeing increased IoT adoption across various sectors, including healthcare, automotive, and manufacturing. Strong regulations, such as GDPR, are encouraging businesses to adopt secure IAM solutions to comply with data privacy laws. Europe holds 30% of the global IoT IAM market share. The healthcare and automotive sectors are expected to drive the highest demand for IAM systems in the region, reflecting a 20% increase in year-over-year adoption in these industries.

Asia-Pacific

The Asia-Pacific region is expected to witness the fastest growth in the IoT IAM market, driven by the rapid industrialization and technological advancements in countries like China, Japan, and India. With increasing investments in smart manufacturing, smart cities, and connected devices, the demand for IoT security solutions is rising. The region holds 25% of the global market share, and its growth is further accelerated by rising cybersecurity concerns and government initiatives to bolster IoT security. The adoption of IoT IAM in industrial sectors is expected to rise by 22% annually, contributing to rapid market expansion.

Middle East & Africa 

The Middle East and Africa region is showing significant potential in the IoT IAM market, particularly in countries with heavy investments in infrastructure and technology, such as the UAE and Saudi Arabia. IoT adoption in sectors like oil and gas, healthcare, and public utilities is driving the demand for advanced IAM solutions. The region accounts for 10% of the global IoT IAM market share. In particular, the Middle East's focus on smart city development and energy-efficient technologies is fueling market growth. Year-over-year adoption is expected to rise by 15%, especially in countries investing in technological innovations and IoT security.

List of Key IoT IAM Market Companies Profiled

• Market Reports Market Reports
• Broadcom
• LogMeIn
• ForgeRock
• Amazon Web Services
• GlobalSign
• Micro Focus International
• Certified Security Solutions
• Gemalto
• Ping Identity Corporation
• Covisint

Top Two Companies with Highest Share

• Amazon Web Services (AWS) – 18% of the market share
• ForgeRock – 15% of the market share

Investment Analysis and Opportunities 

The IoT IAM market presents substantial investment opportunities driven by the explosive growth of IoT deployments. As industries such as healthcare, manufacturing, and retail integrate more connected devices, the demand for robust IoT IAM solutions continues to rise. Investment in IoT IAM solutions surged by 25% in 2023, with 40% of all investments directed towards cloud-based IAM systems.

Furthermore, 30% of businesses are actively seeking AI-powered IAM solutions to enhance cybersecurity and real-time threat detection. In addition, governments across North America and Europe are investing heavily in securing critical infrastructure, contributing to 20% market growth. The rise in smart cities and digital transformation initiatives in emerging markets, particularly in Asia-Pacific, is opening up new avenues for investment, with an anticipated increase of 18% in the market share from this region.

Additionally, the focus on data protection regulations like GDPR and CCPA has led to 22% more investment in IoT IAM solutions, as companies look to comply with evolving standards. For investors, opportunities lie in companies offering scalable, flexible IAM systems, as well as in startups providing cutting-edge solutions focused on AI and machine learning, which are driving 28% of the market’s growth. The future looks promising, with 35% of global IoT IAM investments expected to focus on security automation technologies in the next few years.

New Product Development

Product innovation remains a key driver in the IoT IAM market as companies aim to address the growing security challenges associated with connected devices. In 2023, 40% of leading IAM vendors introduced new solutions designed specifically for the IoT space, focusing on enhanced security features such as AI-driven threat detection and biometrics. These developments are primarily aimed at tackling the security risks associated with the increasing number of IoT endpoints.

Companies like AWS and ForgeRock launched new cloud-based IoT IAM solutions, which are gaining traction due to their scalability and flexibility. Around 35% of product development is focused on the integration of machine learning and AI for automated access management and real-time monitoring of IoT networks. The market is also seeing an increasing focus on multi-factor authentication (MFA), with 30% of new IAM products incorporating advanced MFA protocols.

In addition, the introduction of decentralized identity management solutions is gaining momentum, contributing to 25% of the latest innovations. The integration of blockchain technology into IoT IAM products has also become a major trend, with 20% of new products leveraging blockchain to enhance security and ensure data integrity. As these innovations are adopted, the IoT IAM market is expected to experience sustained growth, with product development serving as a primary catalyst for market expansion.

Recent Developments by Manufacturers in IoT IAM Market 

Manufacturers in the IoT IAM market have made significant strides in 2023 and 2024, with new product launches and strategic developments addressing the growing need for secure identity and access management in connected environments. In 2023, 45% of IoT IAM providers launched new solutions that leverage artificial intelligence and machine learning for advanced threat detection. Notably, Amazon Web Services (AWS) launched an advanced IAM solution integrated with AI-driven security features, providing real-time access control across IoT devices. This solution has been widely adopted in industries such as healthcare and manufacturing, with adoption rates increasing by 30% in 2023 alone.

Similarly, ForgeRock introduced new IAM capabilities focused on simplifying access management for large-scale IoT deployments. These updates were particularly aimed at healthcare and public utilities, sectors where security and compliance are critical. In 2024, Ping Identity Corporation expanded its IoT IAM offerings by integrating zero-trust security models, enhancing the protection of connected devices in distributed networks.

Additionally, Broadcom rolled out an upgraded version of its IAM software, adding machine learning capabilities that allow businesses to automate device access policies, which has seen adoption rise by 20% across energy and public utilities sectors. These innovations underscore the growing focus on adapting IAM systems to the complex and dynamic nature of IoT ecosystems.

Report Coverage of IoT IAM Market 

The IoT IAM market report provides an in-depth analysis of the current market trends, challenges, and growth opportunities within the IoT security space. The report covers key segments such as private, public, and hybrid deployment models, with 35% of the market focused on hybrid models due to their scalability and flexibility. The report also includes detailed insights into the application of IoT IAM solutions across various industries, including healthcare, retail, energy, and public utilities, with 20% of the market share attributed to the healthcare sector alone.

The report emphasizes the growing role of AI and machine learning in enhancing IoT IAM systems, with 25% of current market solutions integrating these technologies to improve real-time threat detection and automated access control. Furthermore, the report discusses regional dynamics, providing insights into North America, Europe, Asia-Pacific, and the Middle East & Africa, highlighting that 45% of the global market is concentrated in North America due to high IoT adoption rates and stringent data protection regulations.

In addition to market segmentation, the report profiles key players, including Amazon Web Services, ForgeRock, Ping Identity Corporation, and Broadcom, and assesses their market share and strategies. The coverage also includes future market forecasts, with 30% of industry growth expected from innovations in cloud-based IoT IAM solutions.