Why Hospitals Are Investing in the Identity and Access Management in Healthcare Market
Overview of the Identity and Access Management in Healthcare Market
Identity and access management (IAM) in healthcare is the process of controlling access to healthcare applications, systems and patient data. It authenticates users and limits access according to the privileges they hold, so organizations can protect sensitive information while giving the right personnel the access they need. The Identity and Access Management in Healthcare Market was valued at USD 1.95 billion in 2025 and is estimated at USD 2.29 billion in 2026. Polaris Market Research projects it to reach USD 8.25 billion by 2034, growing at a CAGR of 17.4% from 2026 to 2034. Surging cyberattacks on electronic health records and stringent legal mandates for patient privacy are driving demand.
How Healthcare IAM Controls Access
The process begins when a user logs in with credentials. The system then identifies the user through passwords, multi-factor authentication, biometrics and other methods. Role-based access applies next, so each user sees or edits only the information that fits their role. Authorized users reach electronic health records and other hospital systems, while the platform monitors activity continuously and logs it for audit purposes.
Single sign-on supports daily workflows by giving users access to several approved applications through one login. This removes the need to track separate credentials and is especially useful where staff move between administrative and clinical systems. Provisioning, directory services and audit and compliance management complete the segmentation by type.
Software, Services and Deployment
By component, software accounted for a 65.40% share in 2025 because healthcare providers need comprehensive control over user identities across applications. The services segment is projected to grow at a CAGR of 13.25%, as organizations seek outside expertise for configuration, integration, maintenance and managed services.
By deployment, the cloud segment held a 66.20% share in 2025. Cloud-based IAM can scale with user needs, deploys faster than solutions that require extensive on-premises infrastructure and removes the need for IAM-specific hardware. It also lets smaller healthcare organizations adopt identity tools without large initial investments. The on-premise segment is projected to grow at a CAGR of 9.85%, because some providers want more control over systems and data and prefer to use existing internal infrastructure.
𝐁𝐫𝐨𝐰𝐬𝐞 𝐌𝐨𝐫𝐞 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬:
Segments by Type and End User
Within the type segmentation, provisioning accounted for a 29.70% share in 2025. It supports the full employment lifecycle by creating access for new staff, updating permissions when roles change and removing access promptly when employees leave. The single sign-on segment is projected to grow at a CAGR of 11.70%.
By end user, hospitals and clinics led with a 42.10% share in 2025 because many users in these institutions access applications and patient health record data every day. Life sciences companies are projected to grow at a CAGR of 13.45%, as they handle confidential research data and collaborate with outside partners.
Drivers and Constraints
Cyberattacks are a leading driver. Ransomware has become a major concern for healthcare providers, and attackers can exploit passwords to reach systems. In February 2026, Imprivata added passwordless login, multi-factor authentication and artificial intelligence-enabled behavioral analytics to its Enterprise Access Management solutions. Telemedicine, regulatory requirements and the growth of AI, big data and connected devices are also increasing the number of access points that need protection.
On the other side, implementation costs and a shortage of cybersecurity skills can limit adoption. Costs include software, integration, staff training and maintenance, and smaller providers may struggle to budget for them.
Use Cases and Market Structure
The report segments the industry by component, deployment, type and end user. Types include single sign-on, multi-factor authentication, provisioning, directory services and audit and compliance management, while end users include hospitals and clinics, healthcare payers, life sciences companies and others. Practical uses include role-based access for patient portals and telemedicine platforms, as well as protection of insurer data and connected medical devices.
Regional Snapshot
North America accounted for a 39.20% share in 2025, supported by advanced healthcare infrastructure and leading healthcare IT providers. Europe held a 27.10% share. Asia Pacific is projected to grow at a CAGR of 14.65% as digital health services expand, followed by Latin America at 13.10% and the Middle East and Africa at 12.80%.
Key Players
Key companies include Cisco Systems, Inc.; CloudIBN; Delinea; Eviden / Bull (formerly Evidian S.A., Atos); Fortra, LLC; IBM; Idira (formerly CyberArk Software Ltd.); Imprivata, Inc.; Intragen; LexisNexis Risk Solutions; Microsoft Entra ID (formerly Azure AD); Okta; One Identity LLC (Quest Software); Optimal IdM; Oracle; Ping Identity; SailPoint Technologies, Inc.; symplr; and Veritis Group Inc. Competition centers on product capabilities, healthcare integration, security functions and support services, and vendors are building partnerships with healthcare technology providers.
Conclusion
The Identity and Access Management in Healthcare Market is growing as hospitals digitize services and move workloads to the cloud. Software and cloud deployment lead today, while services, provisioning and specialized user groups offer faster growth. Vendors that combine strong authentication, simple user experience and healthcare integration will be best placed to serve providers through 2034.
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