The future of Identity Access Management (IAM): Trends and predictions for 2025

IAM market overview

In 2022, the global IAM market was valued at around 16 billion U.S. dollars, with expectations to rise to over 43 billion U.S. dollars by 2029, largely due to its benefits in employee security and customer identification. IAM policies can proactively identify unusual behaviors and detect policy violations, while automating access rights and role assignments. When examining its use cases, IAM encompasses several crucial market components: Access Management ,Identity Governance and Administration (IGA), Privileged Access Management (PAM), Internet of Things IAM, as well as Customer IAM and related technologies.

The chart shows the projected growth in the global market value of Internet of Things (IoT) Identity and Access Management (IAM) from 2022 to 2030. In 2022, the market was valued at approximately $6.26 billion, and it is expected to rise to $7.22 billion in 2023. By 2030, the market is projected to reach $20.53 billion, highlighting significant anticipated growth. This trend reflects increasing demand for secure identity and access solutions, as IoT adoption expands globally, driven by heightened security needs in interconnected systems.

Identity Access Management (IAM) is highly relevant for both the financial services and mobility and transportation sectors due to their reliance on secure access controls, regulatory compliance, and data protection. In financial services, IAM systems help prevent unauthorized access, safeguard sensitive customer data, and support compliance with strict regulations such as GDPR and CCPA. By implementing role-based access controls and multi-factor authentication, financial institutions reduce risks of internal and external data breaches and ensure operational efficiency across complex financial ecosystems. In the mobility and transportation sector, IAM is essential for managing identities across a diverse range of users and connected devices, ensuring secure access in environments driven by IoT and connected technologies. IAM supports secure interactions, prevents unauthorized access to critical systems, and adapts to emerging security challenges, making it a foundational element for building trust and ensuring safety in transportation networks.

How does IAM work?

In the beginning, Identity Management Systems consisted of different basic parts. These traditionally involved various authentication methods for verifying an identity, such as passwords, digital certificates, etc. As technology advanced, modern approaches started to develop, which included biometric elements.

Because of the advanced and complex technological environment, there have been many considerable changes in IAM systems over the last couple of years - a strong username and password aren't effective anymore. Today's most advanced systems includebiometrics, AI & Machine Learning, and risk-basedauthentication.

Core benefits of IAM for financial services and mobility/transportation

Enhanced security control

For CIOs and IT Managers in financial services, IAM provides a comprehensive approach to prevent unauthorized access and protect customer data. IAM enables companies to implement role-based access controls, allowing only authorized individuals to interact with sensitive systems, which is essential in sectors managing high volumes of personal and financial data.

Regulatory compliance

With regulations like GDPR, CCPA, and industry-specific requirements, enterprises must prove they manage user identities and data responsibly. IAM systems not only support compliance by maintaining clear access records but also provide a foundation for audits and data protection, a necessity for the IT Manager or Risk Lead, who ensures compliance and manages security risks.

Operational efficiency

By automating the process of access management, IAM reduces the workload for IT teams while also minimizing the risk of human error. For the IT sector, this means adopting an efficient method for handling permissions across diverse applications and systems, enhancing both operational resilience and security.

Here are some key IAM trends in 2025:

Zero Trust architecture

Firstly, Zero Trust architecture is expected to become more prominent. In this model, every user or device is treated as a potential threat, ensuring continuous verification for access. The core idea of the zero trust security model is "never trust, always verify," meaning that users and devices should not be automatically trusted, even if they are on a secured network.

AI and Machine Learning Enhancements

AI and Machine Learning (ML) are poised to enhance IAM systems by making real-time decisions and predictions to counter cyber threats. Here, AI-driven techniques like behavioral biometrics, predictive analytics, and automated responses will play a crucial role.

Decentralized Identity with Blockchain

Decentralized identity, powered by Blockchain, is another anticipated trend. This concept gives users control over their identity data, improves privacy and security, and reduces the risk of centralized breaches.

IAM for IoT and Edge Computing

Furthermore, as IoT and edge computing expand, IAM systems will adapt to manage identities across a multitude of connected devices. 

Passwordless Authentication

Lastly, passwordless authentication methods like biometrics and hardware tokens will become standard by 2025, offering improved security and user experience.

How can Veriff help solve IAM challenges for financial services and mobility/transportation

In the financial services and mobility & transportation sector, Veriff is committed to creating safer digital environments through our innovative identity solutions. Our services help companies establish trust, streamline operations, and enhance security by integrating comprehensive Identity Access Management (IAM) tools.

Veriff offers a suite of capabilities tailored to the unique needs of these sectors, including identity verification, fraud prevention, and compliance-driven IAM enhancements. Here’s how Veriff strengthens IAM solutions for financial services and mobility & transportation industries:

Identity Verification

Veriff provides real-time identity verification, ensuring that only authorized users gain access to systems and sensitive data. By verifying a user’s identity through document checks, biometric verification, and liveness detection, Veriff adds a secure layer to the IAM process, especially useful for industries with strict compliance requirements.

Biometric Authentication

With advanced biometric solutions, Veriff helps ensure that the person accessing a system matches the enrolled identity. This is essential for IAM systems that rely on multi-factor authentication (MFA), adding an additional layer of security by verifying users through unique physical traits.

Fraud prevention

Veriff’s fraud prevention capabilities help organizations detect and block fraudulent access attempts in real-time. The platform uses machine learning to detect anomalies and flag high-risk activities, supporting secure access management and minimizing unauthorized access.

Automated onboarding

Veriff’s onboarding services streamline user onboarding by automating identity checks, document verification, and other authentication processes. This helps organizations scale their IAM efforts by efficiently managing access for new users while maintaining compliance and security standards.

Data compliance and regulatory support

Veriff’s solutions comply with GDPR, CCPA, and other regulatory standards, offering peace of mind to industries where data protection is paramount. These compliance features ensure that Veriff’s IAM support aligns with global and regional data privacy laws.

Customizable verification flow

Veriff allows organizations to tailor verification flows to their IAM policies, enabling different levels of verification based on user risk profiles or access needs. This flexibility helps enterprises customize IAM protocols in line with their security frameworks.

These services help strengthen IAM systems by ensuring that only legitimate users gain access to critical data, supporting organizations in maintaining secure, compliant, and efficient access control.

FAQs

1. What is the Zero Trust model in IAM?

The Zero Trust model is a security approach that requires continuous verification of users and devices, assuming no entity is trusted by default, whether inside or outside the network.

2. How will AI impact IAM systems?

AI will enhance IAM systems by enabling real-time decision-making, adaptive authentication, and automated threat detection, ultimately strengthening security.

3. What is decentralized identity?

Decentralized identity allows users to control their identity data rather than relying on centralized authorities. Blockchain technology is expected to play a significant role in this shift.

4. Why is passwordless authentication important for the future of IAM?

Passwordless authentication reduces the risk of credential-based attacks and improves user experience by eliminating the need for passwords, making it a crucial element of future IAM solutions.