Australia Identity and Access Management Market Size, Share - Growth Analysis Report and Forecast Trends (2026-2035)

Market Overview

The Australia identity and access management market is moving from a staff login tool to the control layer for people, devices, software agents and customers. Buyers are replacing passwords with passkeys, consolidating separate products into platforms and tying access decisions to risk.

Three forces are shaping demand: credential theft, with compromised accounts present in 21% of incidents analysed by the Australian Signals Directorate in its report of October 2026; government digital identity, with private providers allowed into the national system later this month; and non-human identities, which Okta says can outnumber staff by up to 45 to 1.

In February 2026 Palo Alto Networks completed its acquisition of CyberArk, and in May 2026 Okta reported quarterly revenue of USD 765 million. In September 2026 Microsoft made passkeys the default sign-in method in Entra ID.

Key Market Trends and Insights

• Credential theft pressure: Compromised accounts featured in 21% of incidents analysed in the Australian Signals Directorate report of October 2026, and valid accounts in a further 15%.
• National digital identity scale: The Australian Government Digital ID System had 15 million myID accounts and 80 million verified transactions by December 2025, across 246 government services.
• Weak authentication practice: A survey released in October 2026 found 45% of Australian technology staff still use passwords as the main route into work accounts, and only 17% received hardware keys.
• Agent and machine identities: Okta said in May 2026 that non-human identities can outnumber people by up to 45 to 1, and only 10% of organisations feel equipped to secure them.

Australia Identity and Access Management Market Size and Forecast

The market is shifting from perimeter logins towards continuous, risk-based verification across people, machines and customers. Access management leads on installed base, while privileged access advances fastest as regulators, insurers and boards press for tighter control of administrator and service accounts. Public cloud delivery gains share from on-premises directories, and government buyers accelerate as shared services mature. Banking and financial services remain the largest buyers on compliance and fraud pressure. New South Wales is the largest region on enterprise density, and Queensland grows quickest on digital licence adoption and public investment. Passkeys, agent identity and government-backed verification point to a durable platform refresh rather than a short procurement cycle, even as vendors consolidate and bundle.

Key Takeaways: Australia Identity and Access Management Market

Credential Attacks Keep Identity Spending Rising

Revenue is on course to nearly triple, from AUD 2,020.20 million in 2025 to AUD 5,893.14 million in 2035 at an 11.3% CAGR. The Australian Signals Directorate counted 1,524 incidents it responded to, and phishing featured in 39% of those it analysed.

Privileged, Cloud and Government Segments Lead Growth

Access Management and Single Sign-On holds the largest share, but Privileged Access Management grows at an estimated 13.4% CAGR, Public Cloud at 12.5% and Government and Public Sector at 12.9% through 2035. CyberArk completed its IRAP assessment at Protected level in August 2025.

Passwordless Sign-In Moves From Pilot to Default

Vendors and regulators are retiring weak factors, yet local practice still lags, so replacement work should run through the decade. Microsoft, Okta and others are pushing phishing-resistant methods into standard tiers.

• Microsoft made passkeys the Entra ID default from 1 September 2026
• Only 17% of Australian staff received hardware keys at onboarding
• 24% of enterprises do not enforce multi-factor authentication on every app

Australia Identity and Access Management Market Report Summary

Key Insight

Demand is shifting to cloud delivery, passwordless sign-in and tighter control of administrator and machine accounts. New South Wales leads, while Queensland grows fastest as digital identity programs widen.

Key Trends in the Australia Identity and Access Management Market

The Australia identity and access management market is being reshaped by rising credential attacks, passkey adoption, national digital identity growth and the arrival of software agents.

October 2026 - Signals Directorate Report Shows Compromised Accounts in 21% of Incidents

• The Australian Signals Directorate released its annual cyber threat report in October 2026, covering 1,524 incidents, up about 21%.
• Compromised accounts appeared in 21% of analysed incidents and valid accounts in 15%, while phishing appeared in 39%.
• The report urges phishing-resistant authentication and tighter privileges, which supports demand for access management and privileged access tools.

October 2026 - Survey Finds Australian Firms Lag on Passkeys and Hardware Keys

• A study commissioned by Yubico and Okta, reported on 8 October 2026, found 45% of Australian staff still use passwords as their main work login.
• Only 17% received hardware security keys at onboarding, and 24% said multi-factor authentication is not enforced across all applications.
• Fragmented authentication, reported by 73%, points to platform consolidation as a purchasing driver.

September 2026 - Microsoft Makes Passkeys the Default in Entra ID

• From 1 September 2026 Microsoft prompts users of text message or voice sign-in to register a passkey at their next login.
• Microsoft will retire native text message and voice delivery early next year, citing AI-enabled phishing and SIM swapping.
• The change pushes Australian Microsoft customers towards phishing-resistant methods and reduces reliance on telecom-delivered codes.

December 2025 - Government Reports 15 Million myID Accounts and 80 Million Verified Transactions

• Trade press reported on 8 December 2025 that verified transactions through the Australian Government Digital ID System tripled to 80 million.
• The system serves 246 government services, and the number of business numbers linked to the Relationship Authorisation Manager is to exceed 2 million.
• Accredited private providers may join the system later this month, which widens the customer identity opportunity.

Key Insight

Rising credential theft, passkey adoption and government digital identity are the main structural forces, while fragmented tooling and uneven multi-factor practice remain the main risks to rollout pace.

Recent Market Developments in the Australia Identity and Access Management Market

Recent developments, presented from the most recent, show state digital licence growth, platform vendor results, ownership change at a privileged access specialist and government assurance for cloud services.

July 2026 - Queensland Reports 1.4 Million Digital Licence Downloads

• The Queensland Government said on 31 July 2026 that about one third of eligible residents have downloaded its digital licence app.
• The app now holds 19 credentials, and A$18.4 million has been allocated to the app and customer service portal.
• State credential programs create demand for citizen-scale identity verification, wallet and fraud controls.

June 2026 - SailPoint Announces Fiscal First Quarter 2027 Results

• SailPoint, headquartered in Austin, Texas, announced results for the quarter ended 30 April 2026 on 9 June 2026.
• The company describes its platform as managing and securing access for both human and digital identities.
• Governance of machine and agent identities is becoming a core purchase requirement for large Australian organisations.

May 2026 - Okta Reports Quarterly Revenue of USD 765 Million

• Okta announced on 28 May 2026 revenue of USD 765 million, up 11%, with remaining performance obligations of USD 4.719 billion.
• In Australia on 4 May 2026 the company released its Businesses at Work 2026 report and made Okta for AI Agents generally available.
• Mike Reddie, Okta's ANZ lead, said the challenge is no longer adoption but control.

February 2026 - Palo Alto Networks Completes Acquisition of CyberArk

• Palo Alto Networks completed its acquisition of CyberArk on 11 February 2026, after announcing the deal at about USD 25 billion in July 2025.
• CyberArk's identity security products remain available as a standalone platform while integration proceeds.
• Ownership by a large platform vendor may speed bundling of privileged access with network and cloud security.

Key Insight

Digital licence growth, platform vendor results and consolidation among privileged access specialists show suppliers and governments positioning for citizen-scale verification and machine identity through the forecast period.

Australia Identity and Access Management Industry Segmentation

The Expert Market Research’s report on the Australia Identity and Access Management Market offers a detailed analysis of the market based on the following segments.

Market Breakup by Solution Type

• Access Management and Single Sign-On
• Identity Governance and Administration
• Privileged Access Management
• Customer Identity and Access Management
• Others

Access Management and Single Sign-On leads on value, in our estimate, because every organisation needs workforce login and multi-factor control, and Microsoft moved Entra ID to passkeys by default in September 2026. Privileged Access Management grows fastest at an estimated 13.4% CAGR through 2035, with CyberArk's IRAP assessment at Protected level in August 2025 aiding government sales. Identity Governance and Administration grows steadily as SailPoint pursues human and digital identity governance. Customer Identity and Access Management benefits from 80 million verified Digital ID transactions reported in December 2025. Others include directory and identity verification tools.

Market Breakup by Deployment Mode

• Public Cloud (SaaS)
• Private Cloud
• Hybrid
• On-Premises
• Others

Public Cloud (SaaS) leads and grows fastest at an estimated 12.5% CAGR through 2035, in our estimate, as Okta reported revenue up 11% in May 2026 and released Okta for AI Agents in Australia the same month. Private Cloud suits regulated and government workloads that need sovereign hosting and assessed services. Hybrid remains common in banks and utilities that connect cloud login to older directories. On-Premises declines in share as organisations retire directory-bound tools, though defence and critical infrastructure keep some local control.

Market Breakup by End-Use Industry

• Banking, Financial Services and Insurance
• Government and Public Sector
• Healthcare and Life Sciences
• IT, Telecom and Media
• Retail, Energy and Others
• Others

Banking, Financial Services and Insurance leads, in our estimate, on fraud pressure and prudential expectations for access control. Government and Public Sector grows fastest at an estimated 12.9% CAGR through 2035, supported by 246 services accepting Digital ID by December 2025 and Queensland's 19 digital credentials by July 2026. Healthcare and Life Sciences expands with patient portals and clinician access. IT, Telecom and Media buys customer identity and workforce tools at scale. Retail, Energy and Others includes utilities, mining and consumer brands.

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Western Australia
• Others (Rest of Australia)

New South Wales dominates, in our estimate, because Sydney hosts the densest cluster of banks, insurers, vendors and federal and state agencies, and it grows at an estimated 10.5% CAGR through 2035 from a large, mature base. Queensland is the fastest-growing region at an estimated 12.4%, helped by about 1.4 million digital licence downloads reported in July 2026. Victoria grows at 11.1% on finance and health demand. Western Australia grows at 12.0% on resources and energy operators. Rest of Australia, covering South Australia, Tasmania, the Australian Capital Territory and the Northern Territory, grows at 11.6%.

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If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Competitive Landscape in the Australia Identity and Access Management Market

Competition combines global identity specialists, platform vendors and local integrators. Entry barriers include government assurance such as IRAP assessment, integrations with Microsoft and cloud services, partner reach, local support and trust built with banks and agencies.

Okta

Okta, headquartered in San Francisco, sells workforce and customer identity products that include single sign-on, multi-factor authentication, governance and Okta for AI Agents. On 4 May 2026 it released its Businesses at Work 2026 report in Australia and made its agent product generally available. On 28 May 2026 it reported quarterly revenue of USD 765 million, up 11%, with remaining performance obligations of USD 4.719 billion.

Microsoft

Microsoft, headquartered in Redmond, Washington, supplies Microsoft Entra ID, widely used for Australian workforce login because it ships with Microsoft 365. From 1 September 2026 Entra ID made passkeys the default sign-in method for users of text message or voice codes. Microsoft plans to retire native delivery of those codes early next year, which should raise phishing-resistant adoption among its large Australian base.

CyberArk

CyberArk, based in Newton, Massachusetts, supplies privileged access, secrets and machine identity security. In August 2025 it completed its IRAP assessment at Protected level for its software-as-a-service offerings, supporting Australian government sales. Palo Alto Networks completed its acquisition of CyberArk on 11 February 2026, and the identity products remain available as a standalone platform during integration.

Ping Identity

Ping Identity, headquartered in Denver, Colorado, sells workforce and customer identity, orchestration and verification software aimed at large enterprises, banks and agencies. On 24 September 2025 it appointed Daniel Gardner as sales director for Australia and New Zealand to strengthen regional reach. Its Ping Youniverse 2026 event in Sydney focused on trust in an AI-driven world and identity for AI agents.

Other players operating in the Australia identity and access management market include SailPoint, IBM, Thales, Telstra, and Entrust, alongside global cloud providers, local integrators, managed security providers and identity verification specialists supplying banks, government agencies, health providers and consumer brands across Australia.

Key Insight

Competition rests on platform breadth, government assurance, ecosystem integrations and partner reach rather than price alone, while acquisitions are reshaping vendor positions and bundling.