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Identity Management Software Market to reach $4.9 Bn by 2012

Proliferation of access levels and number of highly sensitive transactions has brought to fore the importance of identity management in the corporate world. Regulatory requirements are one of the critical factors providing impetus to market growth. Laws such as GLBA, HIPAA, California SB 1386, Sarbanes-Oxley, the USA Patriot Act, and the EU Data Protection Directive require businesses to establish authentic users by employing realistic methods and monitor access to resources, while also protecting user privacy. To meet growing demand, vendors are focusing on end-to-end identity management products to enable businesses to manage identity security issues. Integration of meta-directories and password management into provisioning and tighter integration between Web single sign-on and provisioning solutions are some of the key product trends. Federated identity management ( is also fast gaining market acceptance.

United States market for identity management software, the largest market worldwide, is estimated at $1.45 billion, as stated by Global Industry Analysts, Inc. Global identity management software market ( is dominated by US and Europe, which collectively account for nearly 75% of the market. Authorization represents the largest segment with sales estimated at $1.6 billion in 2007. Market for authentication software in the US is expected to cross the $500-million mark by 2013.

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