Healthcare Identity Management Market Size, By Solution (Identity and Access Management [IAM], Authentication, Verification, Access Management & Authorization), By Technology, By Deployment Mode, By End Use, Forecast 2024 - 2032

Healthcare Identity Management Market Size, By Solution (Identity and Access Management [IAM], Authentication, Verification, Access Management & Authorization), By Technology, By Deployment Mode, By End Use, Forecast 2024 - 2032

Healthcare Identity Management Market Size

Healthcare Identity Management Market was valued at USD 3.84 billion in 2023 and is anticipated to grow at a CAGR of over 9.5% between 2024 and 2032. According to the Information Commissioner’s Office (ICO) of the UK, nearly 8,903 cases of data breach in the healthcare sector were reported between 2019 and 2023 across the country.

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Additionally, according to a joint investigation by the Poneman Institute and Verizon, the healthcare sector has witnessed the most data breach globally. The Center for Internet Security (CIS) recommended that every healthcare provider implement an identity monitoring and management system to mitigate these cases.

Implementing a healthcare identity management system grants access only to authorized personnel, reducing the risk of patient data breaches. Additionally, the use of identity management in healthcare has the potential to decrease the need for customer support and minimize the cost of operations. Key players in the market are offering customized solutions to institutes. For instance, IBM MaaS360 solution uses zero trust principles and works on cloud/hybrid cloud to improve access management, endpoint security and network security on mobile devices, laptops, desktops, IoT, infrastructure, and network. Also, Staten Island Heart Society used IBM Security QRadar, which enabled the institute to unfold the threats on cloud assets, endpoints, and users.
 

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International and national policymakers are focusing on data privacy and have framed rules & regulations to safeguard patient privacy. For instance, the Health Insurance Portability and Accountability Act (HIPAA) in the U.S. mandates that healthcare centers adhere to high standards of technical security and administrative practices. The electronic prescribing for Controlled Substances (EPCS) rule in the U.S. mandates that professional practitioners must have two-factor authentication for signing an electronic prescription.

User resistance and adoption issues in healthcare identity management are significant challenges for the market. Resistance emerges due to a perception that new systems are complex/disruptive. Complex identity verification procedures can be seen as hard to implement, impacting their widespread adoption.

Handling huge data volumes and user bases becomes difficult as the healthcare organizations grows, creating scalability issues in healthcare identity management. The identity management systems should be adaptable for the expanding user base, devices, and access points, while maintaining performance and security. As healthcare data and operational needs evolve, identity management solutions may struggle to scale efficiently, leading to performance bottlenecks, increased costs, and compromised security. Addressing scalability challenges requires efficient resource management, robust system architecture, and the ability to integrate new technologies seamlessly.

Healthcare Identity Management Market Trends

The uniqueness of biometrics for authentication makes it dispensable for security purposes and for the prevention of the unauthorized access of data. It eliminates the need for users to remember passwords or PINs, enhancing the user experience. This allows organizations to track and monitor users’ actions and activities. Biometric identity service providers are witnessing business expansion as organizations and institutes increasingly adopt these systems in their workplaces. For instance, in May 2024, authID Inc., a biometric solution provider, announced its partnership with IDMWORKS, a major player in the Identity and Access Management (IAM) industry.

Further, cloud computing services are used to provide secured data storage and management solutions to tackle the emerging challenges such as scalability in the healthcare sector. The leading companies are collaborating with expert organizations in the healthcare sector for business expansion. For instance, in March 2024, Microsoft announced a collaboration with NVIDIA to strengthen its presence in the healthcare sector by offering secured data storage.

Healthcare Identity Management Market Analysis

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Based on solution, the market is divided into IAM, authentication, verification, and access management & authorization. The verification segment is expected to reach a value of over USD 1.7 billion by 2032.

• The IAM is experiencing integration with cloud environments as all healthcare institutes are shifting toward the cloud. Challenges posed by hybrid cloud architectures and distribution can be addressed by the IAM with cloud. The key aspects of IAM in cloud includes Single Sign-on (SSO), identity federation, and secure access control. The flexibility and scalability offered by the cloud services are primarily fueling this trend. Additionally, the benefits are necessitating the sector to adapt to the diverse and dynamic environments. Further, Machine Learning (ML) and Artificial intelligence (AI) are infused with the IAM to cater to cybersecurity. These technologies help to detect existing threats and potential security threats and automate certain safeguarding processes. The ability to analyze data and identify the pattern is useful for detecting unauthorized activities, enhancing the IAM capabilities.
  Also, verification has gained importance for identity management. Hence, companies are focusing on verification of authorized user. In June 2024, Praia Health announced a partnership with CLEAR, an identity security company, to improve the identity verification procedure in its systems.

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Based on end user, the healthcare identity management market is divided into biometric authentication, RFID and smart card, Single Sign-On (SSO), Multi-factor Authentication, and IoT authentication. The MFA segment is the fastest growing segment with a CAGR of over 9.5% between 2024 and 2032.

• Biometric authentication offers robust and secured authentication mechanism compared to passwords. It provides a user-friendly and seamless experience by eliminating the need to remember passcodes.
• The MFA is used to address the vulnerabilities associated with the reliance on passwords. Two or more factors are used for this authentication. Combination of password or token or device OTP and biometric is used for created for authentication. This complicated and layered access makes it difficult to get unauthorized access. Additionally, the MFA can be adjusted as per the security requirements of users’ behavior and environment, enhancing both security & user experience. For instance, Health Insurance Portability and Accountability Act (HIPAA) updated the security rule guidelines in May 2024, which mandated the adoption of robust MFA solutions to protect patient data.
• Single SSO is in trend as the clinicians carry a smaller number of devices/single device with them. The healthcare segment is adopting IT solutions for efficient operations. SSO can reduce the time required for the clinicians and other staff to log in multiple software and applications, allowing them to spend more time on patients. According to a study by The Ponemon Institute, the usage of SSO technology can reduce the time clinicians spend on the access process, and the technology has a potential to save providers around USD 2 million. Therefore, many companies are designing these systems for healthcare. For instance, in April 2024, Ping Identity launched a new SSO solution specifically designed for healthcare, featuring integrated support for EHR systems such as Epic and Cerner. 

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Asia Pacific is the fastest-growing region in the healthcare identity management market, driven by its rapid digital transformation and expanding healthcare infrastructure. Countries, such as China, India, and Japan, are investing in mobile and cloud-based identity solutions to support their burgeoning healthcare systems. For instance, in October 2020, Shanghai Municipal People's Government launched the Healthcare Cloud app. The app requires identity authentication for appointment booking and registration, reflecting the significant push toward the adoption of identity management systems in healthcare in this region.

Indian government is pushing towards a unique health ID system by implementing digital identity management in healthcare. This integration of telemedicine platforms is boosting demand for secure patient identity verification. There is rising usage of biometric authentication for patient verification and access control in healthcare facilities.

North America, dominated the healthcare identity management market in 2023, accounting for a share of over 34.0%. In North America, HIT Policy Committee Privacy and Security Tiger Team recommended identity management in the healthcare sector. Also, electronic authentication is recommended in the guideline published by the National Institute of Standards and Technology’s (NIST). According to the guidelines, authentication should include four Levels of Assurance (LOA) defined by the Office of Management and Budget. Such government initiatives are driving the adoption of advanced IAM technologies, including biometric authentication and zero trust architectures. Additionally, there is a strong focus on cloud-based solutions and AI-driven security to manage the complexities of healthcare systems and enhance patient data protection. The U.S. leads in implementing comprehensive identity solutions across healthcare organizations.

The European Commission suggested enhancements in interoperability in eHealth, creating a need for patient identification system with privacy and patient safety. Nations are adapting the identity management systems according to their own rules and regulations for example UK is using the patient identifier for Identity management systems, while Netherland, Sweden, and Norway are using the national citizen identifiers for identity management system. This eHealth concept is creating a demand for identity management services.

South Korean healthcare institutes and solution providers are leveraging blockchain technology for secure health data management and patient identity verification. Smart health cards are being adopted for portable and secure access to medical records and identity verification. Also, the nation is experiencing increasing usage of AI-powered identity verification systems to enhance accuracy and efficiency.

In Latin America, the focus on healthcare identity management is growing as governments and healthcare providers work to improve healthcare access and security. The region is witnessing an increase in cloud adoption and mobile identity solutions to enhance the efficiency and reach of healthcare services. Role-based Access Control (RBAC) and MFA are implemented to secure access to healthcare systems.

Healthcare Identity Management Market Share

Key players in the market are engaged in partnerships and collaborations with healthcare institutes to improve the expertise and quality of services. Leading companies are investing in advanced technologies such as biometric authentication, AI, and blockchain to offer secure & efficient identity management solutions. For instance, in May 2023, Microsoft collaborated with Ecuro Health to launch Microsoft HIMSS23 solution for cybersecurity, digital health, privacy, and interoperability to drive better patient outcomes.

Continuous investments in Research and Development (R&D) ensure that solutions, such as IBM Guardium, stay ahead of emerging cybersecurity threats and regulatory changes, maintaining robust security and compliance across various healthcare environments. The healthcare IAM market has seen significant consolidation through acquisitions. For instance, in April 2024, Thales Group acquired OneLogin, bolstering its IAM portfolio with advanced MFA and SSO solutions tailored for healthcare. This acquisition enabled Thales to offer more comprehensive identity management solutions to healthcare providers.

Healthcare Identity Management Market Companies

Major players operating in the healthcare identity management industry are

• IBM Corporation
• Microsoft Corporation
• Oracle Corporation
• Cisco Systems, Inc.
• Siemens Healthineers
• Imprivata, Inc.
• Symplr.

Healthcare Identity Management Industry News

• In February 2024, Oracle announced the launch of Oracle Identity Governance integration for Oracle Health HER, which was previously known as Cerner Millennium. This integration enabled the healthcare institutions to synchronize data and improve operational efficiency and security.

The healthcare identity management market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD million) from 2021 to 2032, for the following segments

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Market, By Solution

• Identity and Access Management (IAM)
• Authentication
• Verification
• Access management & authorization

Market, By Technology

• Biometric authentication
• RFID and smart card
• Single Sign-on (SSO)
• Multi-factor Authentication (MFA)
• IoT authentication

Market, By Deployment Mode

• On-premises
• Cloud-based
• Hybrid

Market, By End User

• Hospitals and clinics
• Diagnostic laboratories
• Research institutions
• Health insurance companies

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA