IoT IAM Market - Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Component (Solutions, Services), By Security Type (Network Security, Endpoint Security, Application Security, Cloud Security, Others), By Verticals (BFSI, Automotive, Telecom, IT & ITeS, Retail & Consumer Goods, Energy & Utilities, Healthcare, Oil & Gas, Manufacturing, Others), By Region, By Competition, 2020-2030F

Market Overview

The Global IoT IAM Market was valued at USD 16.89 billion in 2024 and is expected to reach USD 32.61 billion by 2030 with a CAGR of 11.59% through 2030. The Global IoT IAM market revolves around technologies and frameworks that manage the identification, authentication, and access control of devices and users within connected environments.

As industries across the globe rapidly digitize their operations, the deployment of IoT devices has surged, creating complex networks that require robust identity and access management systems to maintain security and operational integrity. IoT IAM solutions ensure that only authorized users and devices can access specific data or perform certain actions, thereby minimizing vulnerabilities and reducing the risk of cyberattacks. With an increasing number of endpoints in sectors like healthcare, manufacturing, smart homes, energy, and logistics, organizations are turning to IoT IAM to enforce policies that protect sensitive data and enable secure communications across devices.

The growth of this market is being driven by factors such as the proliferation of connected devices, rising incidents of identity theft, stringent data protection regulations, and the adoption of zero-trust security models. Furthermore, cloud-based IoT IAM platforms are gaining traction for their ability to scale efficiently and offer real-time access management across decentralized networks. The integration of artificial intelligence and machine learning into these platforms is enhancing their ability to detect anomalies, enforce adaptive authentication, and automate access control decisions. As 5G networks become more widespread, they are expected to accelerate IoT deployments, thus increasing the demand for scalable and secure identity solutions.

Emerging technologies like blockchain are also being explored to offer decentralized identity frameworks, reducing single points of failure and enhancing transparency. Vendors are increasingly focusing on offering customizable, interoperable, and lightweight IAM solutions suitable for constrained IoT environments.

Key Market Drivers

Escalating Threat Landscape Driving Secure Device Identity Solutions

As digital transformation accelerates globally, enterprises and governments are increasingly deploying interconnected devices across various operational domains, from critical infrastructure to consumer applications. However, this expanding Internet of Things environment has introduced a growing surface area for cyber threats, pushing organizations to adopt more robust identity and access governance frameworks. Cyber attackers are increasingly targeting vulnerable devices—often designed with limited security considerations—for unauthorized access, data exfiltration, and even sabotage of physical systems. In response, businesses are investing in identity and access management systems that can assign, verify, and monitor device identities in real time, thereby enabling secure authentication and minimizing the possibility of impersonation or unauthorized control. The demand for resilient digital identity solutions is not merely a reaction to immediate threats; it reflects a strategic shift towards establishing zero-trust security models in distributed architectures, where identity becomes the central perimeter for protection.

The risk associated with compromised credentials—be it human or machine—has elevated identity management to a board-level priority. Enterprises now recognize that a breach at the identity level can compromise entire systems, leading to cascading business disruptions and reputational harm. Consequently, organizations are deploying advanced identity platforms with features such as behavioral analytics, continuous authentication, and real-time policy enforcement, all of which are tailored to Internet of Things environments. These platforms are particularly critical in industries such as healthcare, energy, and transportation, where compromised devices can result in life-threatening situations. Additionally, the need to comply with evolving regulations such as the European Union Cybersecurity Act and the U.S. National Institute of Standards and Technology cybersecurity framework is compelling companies to implement verifiable device identity protocols as part of their risk mitigation strategies. In this context, the market for identity and access management in the Internet of Things is experiencing exponential demand growth, catalyzed by a heightened and evolving threat landscape. In 2024, over 42 million Internet of Things devices globally were flagged as exposed to identity-related vulnerabilities, marking a 27% increase from the previous year based on aggregated cybersecurity incident reporting from multinational enterprise networks.

Proliferation of Connected Devices Requiring Scalable Identity Frameworks

The relentless growth of connected devices across global supply chains, smart homes, healthcare systems, and industrial operations is placing immense pressure on existing identity infrastructure. Traditional identity and access systems, which were designed primarily for human users, are not equipped to handle the volume, variety, and velocity of Internet of Things endpoints. The need for scalable identity frameworks that can support millions of devices with dynamic identities, automated policy enforcement, and decentralized verification is becoming non-negotiable. Identity and access management systems that are cloud-native, device-aware, and protocol-agnostic are gaining prominence due to their ability to manage large-scale device provisioning, lifecycle tracking, and de-provisioning securely. This is especially relevant in sectors where machine-to-machine communication is prevalent and human intervention is minimal, making automated identity trust the backbone of operational integrity.

Device proliferation is not just a function of quantity but also diversity. Devices in the Internet of Things ecosystem range from industrial sensors and medical wearables to autonomous vehicles and smart city infrastructure, each requiring a tailored identity approach. Organizations are increasingly investing in federated identity management systems that allow interoperability across multiple platforms, applications, and geographies without compromising security. These solutions offer dynamic policy management, identity discovery, and access control customization based on contextual attributes such as location, time, and behavior. As the world moves toward hyperconnectivity, the Global IoT IAM market is positioned to experience surging demand for flexible and scalable solutions that can adapt to ever-evolving device landscapes without compromising speed or security. By early 2025, the number of connected devices exceeded 18 billion globally, with over 70% of them requiring machine-to-machine authentication protocols, according to publicly reported figures from device manufacturers and telecom infrastructure providers.

Rise in Remote Operations and Decentralized Infrastructure

The widespread adoption of remote work models, cloud computing, and edge infrastructure has led to a decentralized technology ecosystem where identity is the new security perimeter. In a world where employees, applications, and devices are dispersed across multiple geographies and networks, traditional perimeter-based security approaches are no longer viable. Identity and access management systems tailored to the Internet of Things offer centralized visibility into all access points—whether human or machine—and enable continuous authentication, dynamic risk scoring, and real-time policy enforcement. Organizations managing critical infrastructure, remote diagnostics, or autonomous logistics increasingly rely on identity platforms to secure endpoints beyond the reach of physical security controls.

In this decentralized context, the ability to identify, authenticate, and authorize every entity—without relying on centralized data centers—is crucial. Edge-based deployments of identity and access solutions are enabling real-time access decisions with minimal latency, while integration with cloud-based identity hubs ensures policy consistency across dispersed systems. This capability is essential for maintaining the integrity of business processes that span continents, such as global shipping, real-time telehealth monitoring, or international supply chains. As more organizations shift to hybrid and distributed operating models, demand for resilient and intelligent identity management platforms is expected to grow, positioning the IoT IAM market as a foundational enabler of secure digital transformation. In 2024, over 62% of industrial Internet of Things deployments were operated through decentralized infrastructure models, requiring continuous identity verification protocols for more than 500 million endpoints globally, according to data shared by major cloud and edge computing providers.

Technological Advancements in Artificial Intelligence and Blockchain Integration

Rapid advancements in artificial intelligence and blockchain are reshaping the landscape of identity and access management for Internet of Things environments. Artificial intelligence enables real-time behavioral analytics, anomaly detection, and adaptive authentication by continuously learning from access patterns and identifying deviations that may signal compromise. These capabilities are particularly critical in high-risk environments where static credentials or rule-based controls are insufficient. Simultaneously, blockchain offers immutable and decentralized identity frameworks that eliminate single points of failure and enhance trust across device networks. These technologies, when combined, enable the creation of self-sovereign identities and distributed access ledgers that can autonomously manage credentials and authentication transactions without centralized authority.

The integration of artificial intelligence and blockchain into Internet of Things identity frameworks allows for predictive threat modeling and tamper-proof audit trails, improving both proactive security and regulatory compliance. Use cases are emerging in fields such as autonomous vehicles, energy grids, and cross-border logistics, where identity assurance must be both instantaneous and verifiable across jurisdictions. Additionally, these technologies are improving scalability by removing bottlenecks traditionally associated with centralized verification systems. Enterprises are now piloting blockchain-based identity wallets for devices, enabling rapid provisioning and secure communication between trustless nodes. As adoption widens, these technologies are expected to serve as critical enablers for the next generation of identity and access management in the Internet of Things. In 2024, more than 11% of enterprise-grade Internet of Things identity and access deployments included blockchain or artificial intelligence components for autonomous identity validation, as reported by open-source project repositories and consortium test networks.

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Key Market Challenges

Lack of Standardization Across Internet of Things Ecosystems

One of the most critical challenges hindering the adoption of identity and access management solutions in the global Internet of Things environment is the absence of universally accepted standards and protocols. The Internet of Things ecosystem comprises a wide array of devices, communication protocols, and data formats, all developed by different manufacturers with minimal interoperability. This lack of uniformity results in a fragmented technology environment where integrating identity and access systems becomes increasingly complex and resource-intensive. Vendors often deploy proprietary solutions that are incompatible with third-party platforms, leading to silos that undermine centralized identity governance. Without standardization, enterprises face significant operational difficulties in implementing consistent authentication mechanisms across their entire Internet of Things infrastructure, especially when devices span multiple generations and geographies.

This problem is further exacerbated by the pace at which new devices and technologies are introduced into the market. As innovation in the Internet of Things space outpaces the development of cohesive standards, organizations are forced to implement custom identity and access frameworks that are neither scalable nor future-proof. The absence of a unified approach impedes cross-industry collaboration, weakens regulatory compliance efforts, and increases vulnerability to security breaches. Furthermore, the cost of maintaining disparate identity solutions across different device ecosystems significantly increases the total cost of ownership. Until global industry stakeholders can agree on a standardized framework for identity verification, policy enforcement, and credential management in Internet of Things environments, widespread adoption of identity and access management solutions will remain hindered by compatibility and integration limitations.

High Complexity and Cost of Implementation in Legacy Infrastructure

Deploying identity and access management systems within legacy Internet of Things infrastructure presents a formidable challenge due to the complexity and financial burden associated with retrofitting outdated systems. Many industrial, healthcare, and utility organizations rely on legacy devices that were not designed with modern security or identity management capabilities in mind. These devices often lack the processing power, memory, or connectivity features required to support contemporary identity protocols, such as cryptographic authentication or dynamic access control. As a result, integrating these systems with newer identity and access platforms demands custom engineering, middleware development, and device-level upgrades. These efforts are not only resource-intensive but also introduce operational risks, particularly when legacy infrastructure is mission-critical and cannot tolerate extended downtime.

The costs associated with implementing identity and access management solutions across a diverse Internet of Things landscape can be prohibitively high for many organizations, particularly small and medium-sized enterprises. Investment in new hardware, software licenses, skilled personnel, and ongoing maintenance adds up quickly, often without immediate return on investment. Moreover, identity and access management implementation requires alignment across multiple departments—information technology, operations, compliance, and security—which introduces organizational friction and slows down decision-making. The perceived complexity of deployment acts as a deterrent for many companies that might otherwise benefit from improved security and regulatory compliance. Until cost-effective and scalable deployment models become widely available—such as plug-and-play identity modules or modular integration frameworks—the widespread adoption of identity and access management solutions in legacy-heavy environments will remain a persistent challenge.

Limited Awareness and Expertise in Internet of Things Security Architecture

Another major obstacle confronting the global IoT IAM market is the widespread lack of awareness and expertise surrounding device-level security architecture. Many enterprises are still in the early stages of digital transformation and are primarily focused on device connectivity, data acquisition, and operational efficiency, often overlooking the critical role that identity management plays in safeguarding these ecosystems. In numerous instances, project stakeholders assume that network-level security controls are sufficient to protect device communication, neglecting the foundational requirement of establishing trusted identities for each endpoint. This knowledge gap exposes organizations to significant risks, including unauthorized access, data leakage, and compromised system integrity. Without a strong understanding of identity architecture, organizations fail to prioritize access control policies, leaving their Internet of Things networks vulnerable to both internal and external threats.

Compounding this issue is the shortage of skilled professionals who possess both cybersecurity knowledge and domain-specific expertise in Internet of Things environments. The unique nature of device authentication—ranging from constrained computing environments to decentralized operating models—demands specialized skill sets that are not readily available in the market. Most security teams are trained to manage traditional information technology infrastructures and are unfamiliar with the operational technology and embedded systems common in Internet of Things deployments. This talent gap limits the ability of organizations to design, implement, and maintain effective identity and access management systems. Furthermore, the absence of formal training programs and certifications focused on Internet of Things identity security contributes to the problem, as it impedes workforce development in this critical area. As a result, the lack of awareness and expertise continues to delay the adoption of secure identity frameworks across the global Internet of Things landscape.

Key Market Trends

Increasing Adoption of Decentralized Identity Frameworks

A notable trend shaping the global IoT IAM market is the accelerated adoption of decentralized identity frameworks, driven by the growing demand for device autonomy and privacy-respecting authentication methods. In traditional identity systems, centralized servers control access decisions and store credentials, which makes them vulnerable to single points of failure and mass breaches. However, with billions of connected devices across manufacturing, healthcare, transportation, and smart city infrastructures, this model is proving unsustainable. Decentralized identity systems distribute identity verification across peer-to-peer networks or blockchain-based platforms, allowing devices to assert identity without relying on a central authority. This approach enhances both scalability and resilience, especially in environments where latency, connectivity, and control are critical.

The trend is further reinforced by emerging industry initiatives that promote self-sovereign identity and device-centric authentication. These innovations are enabling more secure machine-to-machine communication and facilitating trust among heterogeneous devices without extensive manual provisioning. Companies are increasingly embedding cryptographic identifiers directly into devices during manufacturing to support decentralized identity from the outset. The shift is also being encouraged by regulatory frameworks that emphasize data minimization and user control over identity attributes. By reducing reliance on central directories and enhancing end-point independence, decentralized identity is poised to become a foundational element in securing complex Internet of Things ecosystems across global applications.

Integration of Artificial Intelligence for Context-Aware Access Control

The integration of artificial intelligence technologies into identity and access management solutions for Internet of Things ecosystems is rapidly transforming the way organizations secure their connected environments. Traditional access control models rely heavily on predefined policies and static rule sets that fail to adapt to dynamic usage patterns, user behavior, and device interactions. With artificial intelligence, enterprises can implement context-aware access control mechanisms that analyze real-time data such as user location, time of access, device behavior, and historical patterns to make more accurate and adaptive authorization decisions. This level of intelligence not only enhances security by detecting anomalies and potential threats but also reduces the likelihood of false positives and operational disruptions. For example, a connected medical device attempting to transmit data outside designated hours or from an unusual geographic location can trigger automated access revocation or alert protocols.

Artificial intelligence also plays a key role in automating identity lifecycle management, enabling the detection and deactivation of dormant credentials across large device fleets. Furthermore, predictive analytics supported by machine learning models helps organizations forecast security risks and adjust access policies proactively. This trend is gaining momentum as Internet of Things deployments scale and as organizations seek to manage identity more efficiently across thousands of decentralized nodes. The convergence of artificial intelligence and identity and access management is redefining digital trust frameworks, making them more dynamic, responsive, and intelligent.

Expansion of Cloud-Based Identity and Access Management Solutions

The increasing reliance on cloud-based platforms is fueling a significant shift in how identity and access management is delivered for Internet of Things deployments. Cloud-based identity services offer a scalable, flexible, and centralized approach to managing digital identities across vast, geographically dispersed device networks. This trend is particularly important for enterprises that operate across multiple locations or have remote infrastructure, as it allows for consistent identity governance without requiring on-premise installations or hardware-intensive solutions. Cloud-native identity platforms support rapid onboarding of new devices, real-time access policy updates, and automated compliance reporting, all through centralized dashboards. In addition, cloud-based solutions are better positioned to integrate with other enterprise technologies such as data analytics, artificial intelligence engines, and threat detection systems, further enhancing their utility.

Vendors are now offering modular identity and access management capabilities that can be deployed as part of broader cloud Internet of Things management suites, allowing organizations to tailor their security postures based on device criticality and business priorities. The subscription-based pricing model associated with cloud solutions also enables cost-effective scaling, especially for small and mid-sized enterprises seeking to implement robust identity and access management without significant capital expenditure. As cloud infrastructure continues to mature and gain regulatory approval across industries, cloud-based identity and access management is expected to dominate new deployments and play a key role in the long-term growth of the Internet of Things ecosystem.

Segmental Insights

Component Insights

In 2024, the solutions segment dominated the global IoT IAM market and is expected to maintain its dominance throughout the forecast period, driven by the increasing demand for robust, scalable, and interoperable platforms that provide secure authentication, authorization, and identity lifecycle management across diverse Internet of Things environments. Enterprises across industries such as manufacturing, transportation, healthcare, and energy are prioritizing security-first Internet of Things deployments, leading to heightened adoption of integrated solutions that offer device identity provisioning, policy enforcement, and real-time access monitoring.

As organizations expand their Internet of Things infrastructure, the need for unified and centralized identity solutions that can manage a wide range of connected devices and user roles across complex ecosystems becomes essential. The solutions segment is also being propelled by technological advancements such as embedded cryptographic modules, blockchain-based authentication frameworks, and machine learning-enabled access governance, which are increasingly being packaged into commercially available identity and access management platforms. With the rise of zero-trust architecture and regulatory pressure to strengthen digital trust frameworks, organizations are favoring solutions that offer end-to-end security visibility and compliance readiness.

While the services segment—comprising consulting, integration, and support—is experiencing notable growth due to the need for specialized deployment and management expertise, it primarily acts as an enabler for solution adoption rather than a standalone growth driver. As more organizations transition to hybrid and cloud-based infrastructure models, the demand for comprehensive and adaptable identity solutions will only accelerate. Vendors are increasingly investing in pre-configured and modular solutions that minimize deployment time and operational complexity, further solidifying the position of the solutions segment as the market leader.

Security Type Insights

In 2024, the cloud security segment dominated the global IoT IAM market and is expected to maintain its leading position during the forecast period. This dominance is driven by the rapid expansion of cloud-based IoT deployments, where managing identity and access centrally is critical for scalability, flexibility, and real-time threat detection. Organizations are increasingly adopting cloud-native IAM platforms to streamline policy enforcement, automate identity lifecycle processes, and ensure compliance across distributed device networks. As IoT ecosystems grow more complex and interconnected, cloud security provides the agility and integration needed to support dynamic access controls and secure authentication at scale. With rising investment in cloud infrastructure, this segment will continue to be the primary contributor to IoT IAM market growth.

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Regional Insights

Largest Region

In 2024, North America emerged as the dominant region in the Global IoT IAM Market, primarily driven by the rapid proliferation of connected devices across critical sectors such as manufacturing, healthcare, energy, and transportation. The region’s strong emphasis on cybersecurity, stringent data privacy regulations, and early adoption of advanced technologies such as artificial intelligence and cloud computing have significantly contributed to the widespread deployment of IoT IAM solutions. Enterprises in North America are increasingly integrating IAM platforms into their IoT infrastructure to ensure secure authentication, streamline device onboarding, and maintain compliance with frameworks such as the Health Insurance Portability and Accountability Act and the General Data Protection Regulation.

The presence of major technology providers and security vendors in the United States and Canada has accelerated innovation and accessibility of comprehensive IAM offerings tailored to IoT environments. Growing investment in smart city initiatives and industrial automation is further driving demand for scalable and resilient identity and access management systems. With a well-established digital ecosystem and a forward-looking regulatory landscape, North America is expected to maintain its leadership in the global IoT IAM market during the forecast period, setting the benchmark for security best practices and technology adoption across other regions.

Emerging Region

South America is rapidly emerging as a significant growth region in the global IoT IAM market, driven by increasing digital transformation initiatives across industries such as energy, agriculture, manufacturing, and logistics. Governments and enterprises in countries like Brazil, Argentina, and Chile are investing in connected infrastructure and smart city projects, which require secure identity and access management to protect device ecosystems. The growing awareness of cybersecurity threats, along with a rising emphasis on data protection and compliance, is encouraging the adoption of IAM solutions tailored for IoT environments. Additionally, expanding internet penetration and mobile connectivity are creating fertile ground for IoT deployment, positioning South America as a promising region for sustained IoT IAM market growth in the coming years.

Recent Developments

• In April 2025, F5 introduced extensive cybersecurity enhancements to its Application Delivery and Security Platform, significantly improving organizations’ ability to detect and mitigate vulnerabilities and threats targeting AI and modern applications. As the industry’s only platform combining high-performance load balancing with advanced application and API security, F5 ADSP simplifies security management by consolidating multiple tools into a unified solution, providing comprehensive protection in today’s complex AI-driven hybrid multicloud environment.
• In April 2025, Okta, Inc. announced enhanced platform capabilities to secure AI agents and non-human identities with the same control and visibility as human identities. As non-human identities grow rapidly, Okta’s unified identity security fabric helps organizations manage and protect all identities—including AI agents, API keys, and employees—addressing rising complexity and security risks in increasingly connected ecosystems.
• In October 2024, CyberArk completed its acquisition of Venafi, a leader in machine identity management, expanding its market opportunity to approximately USD 60 billion. This acquisition enhances CyberArk’s ability to secure both human and machine identities with advanced privilege controls. Together, they will deliver comprehensive, enterprise-scale machine identity security solutions, addressing complex identity challenges and replacing manual, siloed processes with an integrated, innovative platform.
• In September 2024, Cisco announced its intent to acquire Robust Intelligence, a leader in AI security solutions. This strategic move strengthens Cisco’s Security Cloud by integrating Robust Intelligence’s platform, which safeguards AI models throughout their lifecycle with advanced automation and risk mitigation. The acquisition supports organizations in securely deploying AI applications while meeting regulatory requirements, reinforcing Cisco’s commitment to securing AI-driven enterprises amid growing IT modernization and cybersecurity demands.

Key Market Players

• IBM Corporation
• Cisco Systems, Inc.
• Microsoft Corporation
• Oracle Corporation
• Okta, Inc.
• Google LLC
• F5 Networks, Inc.
• ForgeRock, Inc.

Report Scope:

In this report, the Global IoT IAM Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• IoT IAM Market, By Component:

o   Solutions

o   Services   

• IoT IAM Market, By Security Type:

o   Network Security

o   Endpoint Security

o   Application Security

o   Cloud Security

o   Others

• IoT IAM Market, By Verticals:

o   BFSI

o   Automotive

o   Telecom

o   IT & ITeS

o   Retail & Consumer Goods

o   Energy & Utilities

o   Healthcare

o   Oil & Gas

o   Manufacturing

o   Others

• IoT IAM Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  Germany

§  France

§  United Kingdom

§  Italy

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  South Korea

§  Australia

o   Middle East & Africa

§  Saudi Arabia

§  UAE

§  South Africa

o   South America

§  Brazil

§  Colombia

§  Argentina

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global IoT IAM Market.

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Company Information

• Detailed analysis and profiling of additional market players (up to five).

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