The Identity and Access Management in Healthcare Market is being reshaped by new security models. Healthcare entities are moving away from universal access toward validating users before granting entry. Zero-trust security lets organizations apply access controls according to user roles and specific needs, which matters because care is delivered from many locations and devices. AI-driven identity solutions add flexible policies and access decisions, and demand for them is expected to rise as organizations strengthen security across digital environments.

Passwordless Authentication and Emerging Technologies

Passwordless authentication replaces passwords with methods such as security keys or authentication apps, reducing password-related issues. Biometric verification uses fingerprints or facial recognition, and mobile authentication supports access through mobile devices. Identity lifecycle management keeps account records current as staff join, change roles or leave, while identity governance provides tools to review accounts and identify unnecessary access. Vendors are building these capabilities into their products, and Imprivata's February 2026 additions included passwordless authentication and AI-enabled behavioral analytics.

Telehealth Identity Verification

Continued use of telehealth is raising demand for digital identity management. Patients need safe access to virtual visits and online accounts, and physicians need secure access to systems even when they practice remotely. Telehealth identity verification is vital during account creation and when patients access services remotely. In February 2026, LexisNexis Risk Solutions introduced an identity management solution for healthcare that supports identity verification in digital enrollment and virtual care. In March 2026, it also expanded its relationship with Epic to bring identity verification into Epic workflows.

𝐁𝐫𝐨𝐰𝐬𝐞 𝐌𝐨𝐫𝐞 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬:

https://www.polarismarketresearch.com/industry-analysis/identity-and-access-management-in-healthcare-market 

HIPAA Compliance and Regulatory Pressure

Regulation is a steady driver of spending. Under HIPAA, healthcare organizations must implement safeguards to protect health information. As services and records move to digital platforms, organizations need to reassess their security systems, and IAM tools help by verifying identities, managing permissions and monitoring access. HIPAA compliance support is a key difference between healthcare IAM and traditional perimeter security, which offers limited compliance capabilities and tends to grant broad access rights. Healthcare IAM, by contrast, is identity-centric, uses role- and individual-based access and monitors identities on an ongoing basis.

Third-Party Access Management and AI Identities

Healthcare organizations also serve external users such as contractors, temporary employees and business partners, whose permissions change often. Third-party access management lets IAM providers offer temporary access and revoke permissions at the right time, reducing unnecessary exposure to healthcare information.

AI is adding a new class of digital identities that do not belong to people. AI applications and agents may need credentials, permissions and separate accounts, and organizations must know who owns each identity. In March 2026, Imprivata introduced Agentic Identity Management for securing and governing AI agents in healthcare environments. In May 2026, Palo Alto Networks launched Idira, an identity security platform, and in March 2026 Oasis Security announced USD 120 million in Series B funding to deepen its work on agentic access management.

Use Cases, Vendors and Market Position

Common use cases include access to patient records, telemedicine platforms, patient portals, connected medical devices, insurer data and telepharmacy services. In July 2026, Ping Identity Verification and Fraud Protection was listed in the Epic Toolbox for MyChart.

The industry was valued at USD 1.95 billion in 2025 and is projected to reach USD 8.25 billion by 2034, at a CAGR of 17.4% from 2026 to 2034. North America held a 39.20% share in 2025, and the software segment accounted for 65.40%.

Healthcare IAM Versus Traditional Access Control

Healthcare IAM differs from traditional security systems in several ways. It takes an identity-centric approach, whereas traditional systems rely on a network and perimeter approach. Access is role-based and individual-based rather than broad, monitoring is ongoing rather than limited, and the platform can detect malicious actions by insiders, while traditional tools focus on preventing external threats.

Adoption still faces hurdles. Implementation can be costly, especially for organizations with outdated infrastructure, and integration with existing healthcare applications takes time. A lack of specialized personnel can also slow deployment and push organizations toward external experts. Asia Pacific is projected to grow at a CAGR of 14.65%, reflecting the pace of digital health adoption.

Key Players

Notable vendors include Cisco Systems, Inc.; CloudIBN; Delinea; 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. Some vendors offer identity as part of broader security portfolios, while others focus on identity and healthcare access.

Conclusion

The Identity and Access Management in Healthcare Market is moving toward continuous verification, stronger authentication and tighter governance of every user, device and AI agent. Providers that plan for zero-trust adoption, telehealth growth and external access early will be better prepared for tightening regulation and rising cyber risk through 2034.

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