Identity Analytics Market Size & Share, by Enterprise Size (Large Enterprises and Small and Medium-sized Enterprises); Component; Deployment Mode; Application; and Industry Vertical - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2025-2037

Growth Drivers

• Rise in cyber threats and data breaches: Attackers are using advanced tactics such as credential stuffing, phishing, and social engineering to compromise accounts and gain unauthorized access. By 2024, 10,626 confirmed data breaches across the world were reported, which is almost twice as many as the 5,199 that were reported the year before. This high figure reflects the increasing capability of attackers as well as the growing digital footprints of enterprises. Identity analytics solutions use behavior analysis, anomaly detection, and machine learning to identify unusual activity and alert organizations to potential threats in real-time. As the frequency of data breaches rises, companies face mounting financial and reputational risks.
• Identity analytics solutions help mitigate these risks by closely monitoring user access patterns and quickly flagging suspicious activities, reducing the chances of data exfiltration. With data breaches often causing irreversible damage, there is a shift toward proactive security strategies. Identity analytics allows organizations to monitor and analyze user behavior continuously, enabling them to detect and address suspicious behavior early rather than after an attack occurs.
• Increasing complexity of IT environments: Companies are increasingly adopting multi-cloud and hybrid environments, combining on-premises, private cloud, and public cloud systems. Across a wide spectrum of enterprises, 89% of companies adopt a multi-cloud strategy. About 80% take a hybrid strategy, using both private and public cloud computing and 97% of IT leaders plan to grow their cloud solutions by integrating one or more clouds. Managing user identities across these platforms is complex, and traditional security approaches struggle to offer unified visibility and control. Identity analytics centralizes insights across platforms, allowing organizations to monitor, analyze, and secure identities consistently.
• With the proliferation of SaaS applications, mobile access, and APIs, organizations face a wide range of access points. Each access point presents a potential vulnerability, making it essential to monitor how, when, and where users are accessing systems. Identity analytics uses behavioral monitoring and risk analysis to detect anomalies across diverse access points, reducing the risk of unauthorized access. Moreover, the rise of remote work and Bring Your Own Device (BYOD) policies has increased the need to secure access from various devices and networks. Identity analytics helps track user behaviors across different locations and devices, enabling IT teams to spot unusual patterns that might indicate a security threat.
• The rise of artificial intelligence (AI) and machine learning (MI): AI and ML algorithms can learn typical user behavior patterns and quickly detect anomalies or unusual behaviors, such as access attempts from unfamiliar locations or unusual login times. This helps organizations identify potential threats, such as compromised credentials or insider misuse, early in the attack chain. AI and ML enable behavioral biometrics, where user behavior such as typing speed, mouse movements, and usage patterns is continuously analyzed to confirm identity. This enhances security by adding a layer of authentication that’s difficult for attackers to mimic.
• The rise of AI and ML technologies is thus driving rapid advancements in identity analytics, making these solutions smarter, faster, and more accurate, and enabling organizations to secure identities more effectively across complex digital environments. As of 2024, 77% of organizations are either employing or exploring the usage of AI in their operations, and 83% believe AI is a major priority in their business strategy.

Challenges

• Data privacy and compliance concerns: Identity analytics solutions often rely on collecting and analyzing large volumes of user data, raising privacy concerns and potentially conflicting with data protection regulations such as GDPR, CCPA, and HIPAA. These regulations limit data collection and processing, creating challenges for organizations that must balance security and compliance.
• Shortage of skilled professionals: Implementing and managing identity analytics solutions requires skilled professionals with expertise in data science, machine learning, cybersecurity, and identity management. However, there is a shortage of skilled talent in these areas, which can make it difficult for organizations to deploy and effectively operate identity analytics solutions.