A major challenge in CIAM is managing fragmented and unreliable identity data, with 75% of businesses facing issues from inconsistent data sources, inadequate identity verification, and poor data governance. Data privacy regulations further complicate this by restricting data collection and enforcing region-specific compliance, making managing identities across an organization challenging. This complexity requires a balance between increased security and a seamless customer experience, a balance that traditional, inflexible CIAM solutions often need help to maintain, resulting in a patchwork of technologies.
Despite being satisfied with their current customer identity and access management solutions, businesses are considering significant changes or complete overhauls of their systems to meet evolving demands. The market has undergone significant transformations due to recent vendor consolidation, which has expanded and enhanced CIAM solution capabilities. According to our research, nearly half of businesses are contemplating major changes to their CIAM systems, including complete overhauls or integrating new functionalities using APIs and SDKs.
Liminal projects the total addressable market (TAM) for customer identity and access management solutions will grow from $6.2 billion in 2024 to $10.8 billion by 2028 at a compound annual growth rate (CAGR) of 11.7%. This growth indicates an increasing demand for more sophisticated CIAM solutions that effectively address the evolving challenges of managing customer identities across global user databases and cross-jurisdictional privacy laws.
