IT departments have been put under intense pressure to protect access to corporate resources the past two years. As a way to help automate the process, IT managers are adopting identity and access management that include automated tools, such as two-factor authentication.

Juniper Research (News - Alert), in a new study, revealed that the global spending for IAM solutions will rise to $26 billion by 2027, an increase from $16 billion in 2022. A major factor contributing to the growth is the subscription model, where customers are charged on a recurring basis for a service.

Ninety-four percent of global IAM spend will be attributable to the subscription model by 2027, a rise from 60% in 2022, as more small businesses use the subscription model that will minimize the initial acquisition cost of IAM services and enable service vendors to provide regular software updates that continually improve the value proposition of their platforms.

Annual spend on IAM solutions by small businesses through subscription models will surpass $370 million globally by 2027, up from $178 million in 2022, according to the study. To capitalize on this growth, IAM vendors are recommended to develop flexible pricing models that appeal to the small business sector.

Increased spending on cybersecurity as a result of the pandemic is also driving the market’s growth. Enterprises are adopting cloud computing infrastructure as malicious threats evolve, and cybersecurity policies are being put into place to protect company assets.

Juniper Research anticipates that IAM solutions will represent a cornerstone of corporate cybersecurity initiatives as firms seek to meet increasingly stringent regulatory compliances.