Identity and Access Management in Healthcare Market

Identity and Access Management in Healthcare Market Size and Share:

The global identity and access management in healthcare market size was valued at USD 1.71 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 8.63 Billion by 2033, exhibiting a CAGR of 18.10% from 2025-2033.  North America currently dominates the market, holding a market share of over 37.4% in 2024. The market is driven by increasing digitization, stringent regulatory compliance and rising concerns about data security. The demand for secure patient information access and management systems is fueling the market growth further across the world.

The identity and access management (IAM) in healthcare market is driven by the growing need for robust data security amid increasing cyberattacks on sensitive patient information. According to industry reports, in 2024, healthcare data breaches affected over 168 million individuals with the largest being Change Healthcare impacting 100 million due to a ransomware attack. Kaiser Foundation Health Plan followed with 13.4 million affected and HealthEquity reported 4.3 million. Regulatory compliance such as HIPAA in the United States mandates secure access management boosting adoption. The digitization of healthcare records and rising telehealth services further drive demand for IAM solutions to ensure secure and seamless access to patient data. This, in turn, is contributing to the identity and access management in healthcare market growth. The shift toward cloud based IAM solutions also supports market growth by offering scalability and cost-effectiveness for healthcare providers.

The United States identity and access management (IAM) in healthcare market is driven by stringent regulatory frameworks such as HIPAA which mandate secure access to patient data. Rising cyberattacks targeting healthcare systems have further emphasized the importance of advanced IAM technologies including AI and multi-factor authentication. According to industry reports, US healthcare organizations lose an average of $1.9 million daily due to ransomware attacks with 654 attacks since 2018 including 143 in 2023 exposing over 26.2 million patient records. The average ransom demand is $1.18 million but recovery costs add significantly to overall expenses, urging proactive security measures. The widespread adoption of cloud-based IAM solutions in the U.S. offers scalability and cost efficiency enabling healthcare organizations to enhance data security and streamline access management processes.

Identity and Access Management in Healthcare Market Trends:

Adoption of AI and Machine Learning

The adoption of AI and machine learning in identity and access management (IAM) solutions is revolutionizing data security in healthcare. AI-powered systems facilitate immediate threat detection by examining large volumes of data to pinpoint irregularities and possible security breaches. Predictive analytics powered by machine learning anticipates security risks allowing proactive measures to mitigate vulnerabilities. For instance, in March 2024, Rhapsody announced the launch of Rhapsody Autopilot an innovative AI technology designed to automate data stewardship and improve identity data governance in healthcare. By leveraging machine learning it enhances record linking accuracy and reduces costs significantly benefiting healthcare organizations by lowering duplicate rates and improving patient safety. Advanced AI algorithms also enhance authentication processes including biometric verification and behavior-based access control ensuring only authorized users can access sensitive healthcare information. This integration enhances security while also boosting operational efficiency by automating tasks that were previously done manually, minimizing human error, and streamlining identity verification throughout healthcare systems. This further represents one of the key identity and access management in healthcare market trends across the globe.

Biometric Authentication Growth

Biometric authentication is gaining traction in the healthcare sector due to its ability to provide secure, efficient and user-friendly access management. Technologies such as fingerprint scanning, facial recognition and iris scanning are increasingly being deployed to ensure robust identity verification for both patients and healthcare providers. Biometric systems enhance data security by offering unique and non-replicable identifiers ensuring only authorized individuals can access sensitive information. For instance, in February 2024, Imprivata announced the launch of its Biometric Patient Identity solution, a HIPAA-compliant facial recognition technology that is designed to enhance patient identification accuracy and reduce misidentification in healthcare. Integrated with Epic the system accommodates various physical attributes and aims to improve patient safety, privacy and streamline the check-in process for medical providers. Their seamless and fast operation improves user experience making them ideal for high-demand environments like hospitals and clinics. This is facilitating the identity and access management in healthcare market demand.

Rising Focus on Multi-Factor Authentication (MFA)

The rising implementation of multi-factor authentication (MFA) is a critical trend in enhancing data security in healthcare. MFA requires users to provide two or more verification factors something they know (password), something they have (smartphone or security token) or something they are (biometric data) to gain access to systems. In the healthcare sector where sensitive patient data is a prime target for cyberattacks MFA provides an added layer of protection ensuring compliance with regulatory standards like HIPAA and mitigating risks associated with data breaches. For instance, in December 2024, the US Department of Health and Human Services proposed new HIPAA requirements to enhance cybersecurity in healthcare organizations. Key measures include multifactor authentication, data encryption and mandatory anti-malware protection. The initiative aims to address a surge in cyberattacks with an estimated first-year cost of $9 billion for implementation.

Identity and Access Management in Healthcare Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global identity and access management in healthcare market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on component, deployment, type and end user.

Analysis by Component:

• Software
• Services

Software leads the market with around 65.2% of identity and access management in healthcare market share in 2024. Software leads the identity and access management (IAM) in healthcare market due to its central role in securing access to sensitive patient data and ensuring regulatory compliance. IAM software solutions provide essential functionalities such as user authentication, authorization, role-based access control and audit logging. These features help healthcare organizations prevent unauthorized access, manage user identities and maintain secure access to electronic health records (EHRs). Software solutions can be integrated with AI and machine learning for enhanced threat detection and risk management. As healthcare systems become increasingly digitized the demand for robust IAM software continues to grow driving market leadership in this segment.

Analysis by Deployment:

• On-Premises
• Cloud

Cloud leads the market with around 67.3% of market share in 2024. Cloud deployment leads the identity and access management (IAM) in healthcare market due to its scalability, flexibility and cost-effectiveness. Cloud-based IAM solutions enable healthcare organizations to manage user access securely across multiple locations and devices without requiring significant on-premises infrastructure. This allows healthcare professionals to have remote access thereby ensuring seamless and secure collaboration. Cloud IAM also supports automatic software updates and scalability allowing health care providers to adapt to evolving needs and regulatory requirements. The cloud's security features such as encryption and multi-factor authentication make it an ideal choice for the protection of sensitive patient data in a rapidly digitizing health care landscape.

Analysis by Type:

• Single Sign On
• Multifactor Authentication
• Provisioning
• Directory Service
• Audit and Compliance Management

Provisioning leads the market with around 31.3% of market share in 2024. Provisioning leads the identity and access management market in healthcare by type because it plays a critical role in managing user access to healthcare systems. This is done by creating, modifying, and disabling user accounts to ensure that only the right people have access to the right resources for the right reasons. Provisioning is the most essential activity for healthcare organizations, which are supposed to meet all the regulatory standards, ensure secure access to patient data, and also ensure efficient management of identities across various platforms. Rising demand for automated and secure user provisioning solutions is propelling the adoption of IAM technologies in the healthcare sector.

Analysis by End User:

• Healthcare Payers
• Hospitals and Clinics
• Life Sciences Companies
• Others

Hospitals and clinics leads the market with around 43.5% of market share in 2024. Hospitals and clinics lead the identity and access management (IAM) in healthcare market by end user due to their critical need for secure and efficient management of patient data and user access. These facilities require IAM solutions to ensure compliance with healthcare regulations prevent unauthorized access to sensitive medical records and streamline access management for doctors, nurses and staff. With the increasing use of electronic health records (EHR) and telehealth services hospitals and clinics are adopting IAM systems to enhance data security improve operational efficiency and safeguard patient privacy across diverse healthcare platforms. For instance, in February 2024, Corsight AI announced its partnership with ISEG to enhance security at three Monterrey hospitals through its facial recognition technology, improving access control and patient safety.

Regional Analysis:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East
• Africa

In 2024, North America accounted for the largest market share of over 37.4%. In 2024, North America leads the identity and access management (IAM) market in healthcare, influenced by the region's well-developed healthcare infrastructure, significant uptake of digital health technologies, and strict regulatory standards like HIPAA. The increasing need to secure sensitive patient data from cyber threats along with the rising demand for efficient healthcare operations further fueled IAM adoption. The region’s established healthcare providers and government support for healthcare digitization contributed to robust growth in IAM solutions making North America a dominant player in this market. For instance, in May 2024, the United States launched a $50 million initiative UPGRADE to enhance cybersecurity in hospitals. Announced by ARPA-H the program aims to automate vulnerability management and enable quick patch deployments addressing challenges posed by outdated devices. This move follows recent ransomware attacks that disrupted patient care in healthcare facilities.

Key Regional Takeaways:

United States Identity and access management in healthcare Market Analysis

In 2024, the United States captured 83.60% of the North American market. The United States identity and access management (IAM) in healthcare market is experiencing significant growth driven by the need to secure sensitive healthcare data and comply with stringent regulations like HIPAA. With the increasing adoption of electronic health records (EHRs) and digital health solutions healthcare providers are prioritizing IAM systems to ensure secure user authentication, data protection and streamlined access management. The rise in cyber threats targeting healthcare organizations further accelerates the demand for robust IAM solutions to mitigate risks. The growing trend of remote patient monitoring and telehealth services necessitates secure access controls for healthcare professionals and patients. Government initiatives promoting healthcare IT modernization and investments in cloud based IAM solutions also contribute to the market's expansion. As healthcare organizations continue to embrace digital transformation the United States IAM in healthcare market is expected to witness sustained growth focusing on enhancing data security and operational efficiency.

Europe Identity and access management in healthcare Market Analysis

The Europe identity and access management (IAM) in healthcare market is growing rapidly driven by the increasing demand for secure access to healthcare data amidst the region's evolving digital health landscape. With the implementation of GDPR and other stringent data protection regulations healthcare organizations are prioritizing IAM solutions to ensure compliance and protect patient privacy. The adoption of electronic health records (EHRs), telemedicine and other digital health technologies is fueling the need for robust authentication and access control systems. The rising number of cyberattacks targeting healthcare providers in Europe highlights the importance of secure IAM systems to safeguard sensitive medical information. Government initiatives supporting digital healthcare transformation, and the growing trend of cloud based IAM solutions are further contributing to market growth. For instance, in November 2024, the new EU Commission plans to launch a cybersecurity action plan for healthcare within its first 100 days focusing on hospitals and healthcare providers. By emphasizing implementation of the existing regulations, the initiative aims to enhance cyber resilience amidst rising threats with efforts to share best practices across diverse healthcare systems in Europe. As healthcare systems across Europe modernize the demand for efficient and secure IAM solutions is expected to continue expanding enhancing both patient safety and organizational efficiency.

Asia Pacific Identity and access management in healthcare Market Analysis

The Asia Pacific identity and access management (IAM) in healthcare market is witnessing rapid expansion driven by increasing healthcare digitization and rising concerns over data security. As the region adopts electronic health records (EHRs) and telemedicine the demand for robust IAM solutions to manage access control and ensure patient data protection is growing. Regulatory frameworks in countries like India and Japan are pushing healthcare providers to comply with data privacy and security requirements. The surge in cyber threats targeting healthcare systems further fuels the need for secure IAM technologies. According to industry reports, in 2024, India’s healthcare sector faced 21.82% of all cyber threats with 37.29 detections per endpoint led by Trojans (43.38%). Telangana reported 55.90 detections per endpoint while Surat had 69.34. Ransomware represents 0.30%. Cloud-based IAM solutions are gaining traction due to their scalability and cost-effectiveness contributing to market growth. With the continued focus on digital health transformation the IAM market in Asia Pacific is set to grow enhancing the security and efficiency of healthcare organizations.

Latin America Identity and access management in healthcare Market Analysis

The Latin America identity and access management (IAM) in healthcare market is experiencing steady growth driven by the increasing digitalization of healthcare services and the need for enhanced security of sensitive patient data. With rising cyber threats and the growing adoption of electronic health records (EHRs) and telemedicine across the region healthcare organizations are prioritizing IAM solutions to ensure compliance with data protection regulations and safeguard patient privacy. Countries such as Brazil and Mexico are focusing on strengthening their healthcare IT infrastructure further fueling demand for secure IAM systems. Cloud based IAM solutions are gaining popularity due to their affordability and scalability.

Middle East and Africa Identity and access management in healthcare Market Analysis

The Middle East and Africa identity and access management (IAM) in healthcare market is evolving as healthcare providers increasingly adopt digital solutions to enhance patient care and security. The growing prevalence of cyber threats and the need to comply with regional data protection regulations are driving demand for IAM solutions. Countries like the UAE and Saudi Arabia are leading healthcare digitization efforts focusing on secure access control and patient data protection. Cloud based IAM technologies are gaining traction due to their cost-efficiency and scalability contributing to the market's expansion.

Competitive Landscape:

The identity and access management (IAM) in healthcare market is highly competitive with several players offering a wide range of solutions to meet the growing demand for secure data management and regulatory compliance. Companies are focusing on developing advanced IAM systems that provide seamless user authentication, role-based access control and robust data protection. The shift towards cloud-based solutions is intensifying competition as these offer scalability, flexibility and cost-effectiveness. Key market drivers include the increasing need for cybersecurity due to rising cyber threats and the digital transformation of healthcare systems. Vendors are differentiating themselves by incorporating AI and machine learning technologies to enhance the security and efficiency of IAM solutions positioning themselves as leaders in a rapidly evolving market. Strategic partnerships and acquisitions across the market also contributed positively to the market growth. For instance, in July 2024, Intragen acquired Atlas Identity enhancing its position as a leading European IAM Managed Service Provider. Atlas recognized for its expertise in Okta, SailPoint and Workato complements Intragen’s portfolio fostering growth and improving managed services for customers amid evolving cyber threats.

The report provides a comprehensive analysis of the competitive landscape in the identity and access management in healthcare market with detailed profiles of all major companies, including:

• Core Security (Fortra, LLC)
• Evidian S.A. (Atos)
• Intragen
• LexisNexis Risk Solutions
• Okta
• One Identity LLC (Quest Software)
• Optimal IdM
• Ping Identity

Latest News and Developments:

• In December 2024, SailPoint Technologies announced partnership with Imprivata acquiring Imprivata's identity governance business. This alliance aims to enhance identity security and access management for healthcare organizations worldwide. Both companies will collaborate to provide integrated solutions promoting improved data security and patient care while transitioning customers to SailPoint's Identity Security Cloud.
• In February 2024, NEXT Biometrics announced its partnership with a leading Beijing-based company to penetrate China's healthcare and medical insurance market. The collaboration aims to establish NEXT's biometric technology as the industry standard with sensor deliveries expected in the latter half of 2024 enhancing biometric verification across the sector.

Identity and Access Management in Healthcare Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the identity and access management in healthcare market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global identity and access management in healthcare market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the identity and access management in healthcare industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.