The global cloud identity and access management (IAM) market is set to reach over USD 3 billion by the end of 2020, growing at a tremendous CAGR of close to 25%, according to Technavio’s latest report.

In this report, Technavio covers the market outlook and growth prospects of the global cloud IAM market for 2016-2020. To calculate the market size, the report considers the revenue generated from the sales of IAM solutions hosted on both private, public, and hybrid cloud deployed as software as a service (SaaS).

As per Technavio’s market analysis, North America is the most prominent revenue-contributing region in the cloud IAM market. In 2015, the region accounted for a market share of close to 45%, followed by Europe, APAC, Latin America, and MEA.

The availability of adequate IT and business infrastructure and the presence of many global financial institutions and large companies are some of the major factors contributing to the growth of the market in North America.

“However, the market share of North America is likely to decline by the end of 2020 due to market saturation. End-users adopted cloud IAM solutions quickly in the early stages of its introduction in the region, which will lead to its decline over the next few years,” says Amrita Choudhury, senior industry analyst from Technavio’s IT security research team.