TL;DR: Enterprises are increasingly treating physical access, badges, and facility rights as part of the same governance problem as applications and cloud roles, and the market opportunity tied to unified digital and physical identity control exceeds $25 billion worldwide, according to AlertEnterprise. The real shift is not a new control layer, but extending lifecycle, certification, and audit discipline to the identities people carry into buildings as well as systems.
NHIMG editorial — based on content published by AlertEnterprise: The $25B Opportunity in Cyber Physical Security: Governing Digital and Physical Access Through One Identity Enterprises
By the numbers:
- The convergence of identity governance, the PIAM software market, physical security technology, compliance, and critical infrastructure protection represents an opportunity exceeding $25 billion worldwide.
Questions worth separating out
Q: How should security teams govern physical and digital access through one identity model?
A: Start by mapping badges, facility rights, contractor credentials, and application entitlements to a single identity record.
Q: Why does cyber-physical convergence increase identity governance risk?
A: Because attackers and insiders can combine physical presence with digital privilege, and many programmes still treat those signals separately.
Q: What do IAM and IGA teams get wrong about physical access governance?
A: They often assume physical access belongs only to facilities operations, so lifecycle controls stop at digital systems.
Practitioner guidance
- Build a shared identity record for people and contractors Map application entitlements, cloud roles, badge status, and facility rights to one authoritative identity profile so digital and physical access can be reviewed together.
- Align badge offboarding with IAM revocation workflows Tie physical credential removal to the same joiner-mover-leaver and leaver processes used for application access so badge access does not outlive employment or engagement.
- Correlate physical and digital events before certification Require reviewers to see badge activity, facility access history, and digital entitlements in the same recertification cycle rather than reconciling separate exports after the review closes.
What's in the full article
AlertEnterprise's full blog covers the operational detail this post intentionally leaves for the source:
- The PIAM architecture that sits above access control hardware and connects to identity governance workflows.
- The market sizing logic behind the $25 billion convergence opportunity and the buyer segments behind it.
- The SailPoint integration framing for extending governance from digital identity into physical access.
- The regulatory and insider-risk rationale for treating server access and facility access as one governance problem.
👉 Read AlertEnterprise's analysis of cyber-physical identity governance and PIAM →
Cyber physical identity governance: what it means for IAM teams?
Explore further
Cyber-physical identity governance is the next lifecycle problem, not a facilities add-on. Once the same person can hold a cloud role, an application entitlement, and a badge, lifecycle governance has to span all three or it is incomplete. The article is right to frame this as a single identity issue, because revocation and certification lose meaning when they stop at the server room door. Practitioners should treat physical access as part of the same identity lifecycle.
A few things that frame the scale:
- 71% of NHIs are not rotated within recommended time frames, increasing the risk of compromise over time, according to Ultimate Guide to NHIs.
- Only 5.7% of organisations have full visibility into their service accounts, which shows how often identity programmes still lack end-to-end coverage.
A question worth separating out:
Q: Who is accountable when physical and cyber controls are managed separately?
A: Accountability stays with the organisation, but operational responsibility becomes blurred when no single architecture ties detection, verification, and response together. That is why regulated environments increasingly need an identity-led control plane that can support both access governance and evidence retention.
👉 Read our full editorial: Cyber physical identity governance is the next IAM frontier