Redefining IAM for Customers and Partners
The traditional B2C/B2B identity model no longer fits today’s digital landscape. The 2025 Gartner® report Innovation Insight for Customer and Partner Identity and Access Management contains new insights. This shift is crucial to effectively manage customer (CIAM) and partner (PIAM) identities.
So what does this shift mean in practice? Here are the top takeaways from the Gartner report and what they mean for your IAM strategy.
Redefine B2C and B2B to no longer represent user constituencies but instead describe collections of IAM functionality: one targeted at supporting individuals (B2C) and one targeted at supporting organizations.
CIAM tools manage identity, authentication, and authorization for customer identity use cases and will typically require a combination of B2C and functionality.
Uses for PIAM technologies include partner and vendor collaboration, including distributors, dealers, brokers, and supply chain activities.
These AM use cases have both overlapping and discrete drivers: CIAM’s focus is user experience, privacy, and security; PIAM’s focus is secure and controlled access for external business entities and partners.
Recommendations
If you’re updating or overhauling your IAM strategy, these are the steps Gartner recommends for IAM leaders:
Modify the definition of functionalities known as “B2C” and “B2B” in CIAM and PIAM projects. Success can be achieved through redefining these terms in CIAM and PIAM use cases as AM services for individuals (B2C) and AM services for organizations (B2B).
Build a solid foundation for CIAM and PIAM projects by investigating and understanding the unique requirements for both use cases and addressing each as a unique and discrete initiative in your IAM program.
For PIAM, plan early for identity data and identity provider (IdP) integration strategies, both from a self-service (B2C) and federation (B2B) perspective.
For CIAM, plan early for integration with adjacent tools, such as DXPs, CPM tools, and identity verification (IDV) tools.
Balance user experience and security. It is tempting to go “all in” and protect all attack surfaces in CIAM and PIAM initiatives as much as possible. However, adding overly strict ATO prevention controls can cause friction and compromise the UX, ultimately frustrating existing consumers, prospects, and partners.
By following these steps, we believe organizations can better support identity-driven use cases across all sectors.
Market Snapshot
As identity needs grow, so does the market response. As per the report, “CIAM has a market penetration of a little over 40%, and the technology is in the early mainstream stage of maturity.” Meanwhile, PIAM is just gaining momentum; most implementations are still custom-built, but new vendors are entering the space with purpose-built tools.
This trend reflects a broader industry shift away from building in-house IAM platforms toward purchasing specialized, integrated solutions, reducing costs while improving security and user experience.
Conclusion
The bottom line? Identity today is more complex and more strategic than ever. The Gartner Innovation Insight for Customer and Partner Identity and Access Management report makes it clear that effective IAM today means moving past rigid B2C/B2B labels and embracing flexible, user-focused strategies. By tailoring identity services for individuals and organizations, businesses can streamline access, reduce risk, and support both growth and compliance. Dig into the full report here.
Gartner, Innovation Insight for Customer and Partner Identity and Access Management, Michael Kelley, Abhyuday Data, Akif Khan, Nathan Harris, 28 April 2025
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