India Identity and Access Management (IAM) Market Research Report: Forecast (2026-2032)

India Identity and Access Management (IAM) Market Report Key Takeaways:

• The India Identity and Access Management (IAM) Market size is valued at around USD 329 million in 2025 and is projected to reach USD 852 million by 2032. The estimated CAGR from 2026 to 2032 is around 14.56%, indicating strong growth.
• By deployment, the cloud segment is leading in the India Identity and Access Management (IAM) Market in 2025, with a market share of around 55%.
• By end user, the BFSI sector is leading in the India Identity and Access Management (IAM) Market with a market share of around 24%. IT & Telecom is also one of the main end-users, with a substantial market share of around 18%.
• The leading Identity and Access Management (IAM) companies in India are Microsoft Corporation (India) Pvt Ltd., SAP India Private Limited, Embee Software & Services Ltd, Tata Consultancy Services, Oracle India Private Limited, IBM India Private Limited, Wipro Limited, Infosys, Thales India Private Limited, and others.

Market Insights & Analysis: India Identity and Access Management (IAM) Market (2026- 2032):

The India Identity and Access Management (IAM) Market size is valued at around USD 329 million in 2025 and is projected to reach USD 852 million by 2032. Along with this, the market is estimated to grow at a CAGR of around 14.56% during the forecast period, i.e., 2026-32.

The India Identity and Access Management (IAM) Market is expanding rapidly, as enterprises confront escalating cyber risks, accelerated cloud adoption, and the mainstreaming of Zero-Trust architectures.

A 2025 security-industry survey revealed that 85% of Indian organizations faced cloud-security incidents in the preceding year, with 57% reporting data breaches and 43% encountering unauthorized access, while 70% of these events were linked to firewall or cloud-configuration gaps. Such findings highlight that identity governance, misconfiguration prevention, and continuous verification will become foundational to enterprise cybersecurity.

Large-scale breaches have intensified urgency. In 2024, BSNL’s breach exposed over 278 GB of sensitive telecom data, including SIM/IMSI information and server snapshots, signaling growing threats across critical infrastructure. Meanwhile, the average cost of a data breach in India climbed to USD 2.3 million in 2024, underscoring severe financial and reputational risks across BFSI, IT, telecom, and public services.

The Government of India has strengthened its digital-fraud containment ecosystem through initiatives such as the “Suspect Registry,” launched in September 2024, which by year-end flagged over 1.1 million suspect identifiers and 2.4 million mule accounts. This registry reinforces the need for federated identity checks, real-time risk scoring, and adaptive authentication across platforms.

Technology leaders also view network evolution as a risk multiplier. With India’s rapid 5G rollout, experts at the 2025 BFSI Summit, including leadership from Amazon Pay India, emphasized that Zero Trust has already become standard, especially to secure increasing machine-to-machine interactions, API traffic, and cross-cloud workloads.

On the supply side, ecosystem capacity is set to expand meaningfully. For example, Microsoft’s USD 17.5-billion investment commitment over four years, aimed at enhancing cloud and AI infrastructure and hyperscale data-center capabilities, will significantly elevate enterprise migration to cloud platforms, directly driving demand for IAM tools, including multi-factor authentication, identity lifecycle governance, privileged-access security, and continuous audit mechanisms.

Together, surging cyber threats, stronger regulatory frameworks, and massive cloud-infrastructure investments position IAM as a mission-critical pillar of India’s digital economy in the years ahead.

India Identity and Access Management (IAM) Market Recent Developments:

• March 2025: WSO2 rolled out version 7.1, embedding AI-driven automation into its IAM suite (WSO2 Identity Server, Asgardeo IDaaS, Private Identity Cloud). The update enables natural-language creation of login flows, automatic UI branding, easier B2B/CIAM setup, and post-quantum cryptography — accelerating secure identity deployment.
• March 2025: ManageEngine AD360’s IAM platform has added 100+ new prebuilt integrations, significantly broadening its support for HRMS, ITSM, SIEM, and other enterprise applications, enabling seamless identity-and-access management across diverse IT systems.

India Identity and Access Management (IAM) Market Scope:

India Identity and Access Management (IAM) Market Drivers:

Rising Cyberattacks Across BFSI, IT, and Government Sectors

India’s escalating cyberattack landscape has become a key driver for Identity and Access Management (IAM) adoption. For instance, in 2024, the Indian Cyber Crime Coordination Centre (I4C) and the National Cyber Crime Reporting Portal (NCRP) recorded 3.64 million financial-fraud cases, with total citizen losses estimated at USD 2.7–2.8 billion, representing a 206% surge from 2023. This dramatic escalation highlights the increasing sophistication of attackers targeting banking, telecom, fintech, and digital services ecosystems.

A prominent example was the WazirX breach on 18 July 2024, where attackers infiltrated a multi-signature wallet and stole USD 234.9 million, exposing severe deficiencies in identity governance, privileged access control, and crypto-asset security.

Regulatory bodies have intensified oversight. The RBI’s 2024 Master Directions on Fraud Risk Management require multi-factor authentication, continuous monitoring, and stronger audit trails for financial institutions. CERT-IN’s Digital Threat Report 2024 further cautions against AI-enabled credential theft and supply-chain attacks, emphasizing the need for adaptive and risk-aware IAM frameworks.

Parallelly, the government is expanding forensic capacity, allocating USD 14 million for cyber-forensic-cum-training labs now functional across 33 States/UTs and enhancing cyber-investigation infrastructure in 20 States/UTs.

Amid rising losses, large-scale breaches, and tougher compliance norms, enterprises will increasingly adopt modern IAM solutions to safeguard digital operations and maintain regulatory resilience.

India Identity and Access Management (IAM) Market Trends:

Zero-Trust Security Approach Becoming Mainstream

Zero-Trust Security is rapidly becoming a foundational cybersecurity approach in India, driven by escalating digital fraud and regulatory pressure. For instance, in June 2025, the Reserve Bank of India (RBI) formally strengthened its stance on Zero Trust by recommending risk-based supervision and continuous verification for all regulated financial entities. This marks one of the strongest regulatory endorsements for Zero-Trust adoption in India’s banking ecosystem, urging institutions to replace perimeter-based controls with identity-centric access governance.

Industry responses further highlight its mainstreaming. By September 2025, leading cybersecurity providers publicly aligned their Zero Trust Network Access (ZTNA) solutions with RBI’s recommendations, signaling active deployment across banks and financial institutions.

Enterprise adoption is also accelerating. Industry survey reported that 26% of Indian enterprises had implemented Zero-Trust models in the past year, while another 8% planned implementation within 12 months, reflecting clear momentum toward identity-first security architectures.

Government initiatives add additional thrust. The Secure Bharat Mission, launched in July 2025, brings together central agencies, cybersecurity experts, and public-sector organizations to embed Zero-Trust, AI-driven threat detection, and strong identity controls into national digital infrastructure. This initiative underscores India’s shift toward continuous authentication, micro-segmentation, and least-privilege access across public systems.

With firm regulatory backing, rising enterprise adoption, and national programmes mandating identity-centric security, Zero-Trust implementation will significantly accelerate IAM demand, strengthening India’s digital-security landscape in the years ahead.

India Identity and Access Management (IAM) Market Challenges:

Shortage of Skilled Cybersecurity and IAM Professionals

India continues to face a significant shortage of skilled cybersecurity and IAM professionals, creating a structural challenge for organizations implementing advanced identity-security frameworks.

National estimates in 2024 indicated a deficit of approximately 0.8 million specialists, with the steepest gaps in cloud security, Zero-Trust engineering, PAM, and identity-governance roles. CERT-IN’s Digital Threat Report 2024 further emphasized that the rising complexity of attacks, including AI-driven credential theft and supply-chain compromises, requires deeper IAM expertise than most organizations currently possess.

Government efforts remain insufficient despite progress. For instance, in 2024, CERT-IN and MeitY trained 12,014 officials across 23 cyber-capacity programmes, and in 2025, MeitY–BITS Pilani launched specialized cybersecurity courses for the public and private sectors. Yet, workforce availability still lags enterprise demand, and global competition for identity-security talent further intensifies the shortage.

This persistent talent shortfall leads to misconfigurations, delayed IAM rollouts, and weak operationalization of Zero-Trust and privileged-access controls. Without rapid workforce expansion, India’s IAM adoption pace will remain constrained, increasing implementation risk and overall security exposure.

India Identity and Access Management (IAM) Market (2026-32) Segmentation Analysis:

The India Identity and Access Management (IAM) Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Deployment

• On-Premises
• Cloud
• Hybrid

The cloud segment holds the largest share, around 55% in the India Identity and Access Management (IAM) Market, propelled by accelerated digital transformation, extensive cloud migration, and the mainstream adoption of Zero-Trust frameworks.

By 2024, industry sources indicated that around 30% of Indian business applications had already shifted to the cloud, reflecting a decisive move toward cloud-first architectures. As enterprises scale multi-cloud and SaaS ecosystems, cloud IAM delivers superior scalability, rapid deployment, and lower capital expenditure compared to on-premise models. Its strong integration capabilities, automated identity lifecycle management, and advanced MFA and AI-driven threat detection make it the preferred option across BFSI, IT/ITeS, fintech, e-commerce, and government digital services.

Rising cyber incidents caused by misconfigurations and credential theft have further accelerated the shift, with organizations increasingly adopting cloud-native IAM to enable continuous authentication, behavioral analytics, and unified access visibility.

While hybrid IAM is expanding in regulated industries with legacy systems, cloud adoption is outpacing all segments due to compliance pressures, remote-working needs, and major hyperscale investments. As a result, cloud IAM continues to dominate the market by enabling agile, automated, and scalable identity governance.

Based on End Users

• BFSI
• Healthcare and Life Sciences
• IT and Telecom
• Retail and Consumer Goods
• Energy and Utilities
• Government Agencies
• Education
• Manufacturing
• Others

The BFSI end-user leads the India Identity and Access Management (IAM) Industry with a substantial market share of around 24%, due to its strict regulatory landscape, heavy digitization, and elevated exposure to cyber threats. Banks, NBFCs, insurers, and fintech firms rely heavily on IAM to secure UPI payments, digital wallets, API ecosystems, internet banking, and core-banking systems. Rising fraud incidents and accelerated cloud adoption are driving stronger MFA, privileged-access controls, and continuous monitoring.

Regulatory pressure further reinforces IAM adoption. For instance, in early 2025, the Reserve Bank of India (RBI) instructed banks to strengthen cybersecurity oversight and enhance fraud-prevention controls, including more robust transaction monitoring and third-party vendor risk management. Supporting this need, RBI data for H1 FY 2024-25 reported a 27% year-on-year rise in bank fraud cases, reaching 18,461 incidents, while the total fraud amount surged to USD 2.56 billion. These developments highlight urgent identity-centric security requirements.

With the continued expansion of digital lending, open banking, and real-time payment ecosystems, BFSI remains the largest and fastest-growing adopter of IAM solutions, driven by its high-risk profile and mandatory compliance obligations.

Gain a Competitive Edge with Our India Identity and Access Management (IAM) Market Report 

• India Identity and Access Management (IAM) Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions. 
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition. 
• India Identity and Access Management (IAM) Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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