Identity Security Spending Set to Surge
Juniper Research projects identity and access management spending will climb 55% by 2031 as AI agents multiply security risks.
Updated on Nov. 3, 2026 in Cybersecurity
Sophos research found seven-in-ten companies experienced at least one identity-related breach in 2025, with AI exacerbating the problem. Juniper Research projects global identity and access management spending will rise from $26.2 billion this year to $40.5 billion by 2031.
Why it matters
Non-human identities such as AI agents are quickly outnumbering human employees, creating security demands that traditional authentication struggles to address. Businesses are responding by shifting from one-time logins toward continuous, adaptive monitoring of access.
Juniper Research projects IAM services spending will grow from $26.2 billion this year to $40.5 billion globally by 2031, a 55% rise, with businesses deploying IAM expected to grow from 67.6 million to 88 million over the same period. The projections do not detail the modeling assumptions behind them or how much of the increase is driven by non-human identities.
The players
Juniper Research
Juniper Research is a London-based market intelligence firm that publishes forecasts on technology spending and digital markets.
Sophos
Sophos is a British-American cybersecurity company known for its endpoint protection, managed detection and response services, and threat research.
The details
Authentication is shifting from one-time logins to continuous and adaptive monitoring, and IAM systems are being designed to catch excessive privileges, dormant accounts, and policy drift. Smaller businesses are likely to adopt dedicated IAM tools, while larger businesses have already established guardrails around AI agents.
Timeline
2025: Sophos research found seven-in-ten companies saw at least one identity-related breach.
2026: IAM spending is estimated at $26.2 billion, with 67.6 million businesses deploying IAM.
2031: IAM spending is projected to reach $40.5 billion, with 88 million businesses deploying IAM.
The Tech Race
The projected 55% rise in IAM spending reflects an arms race between defenders and attackers as AI agents become a growing category of identity to secure. Vendors and enterprises are moving away from static, perimeter-based access controls toward systems built to monitor identities continuously.
Users increasingly encounter continuous authentication prompts and adaptive access checks as organizations adopt IAM tools. Small business owners should expect more accessible identity security options as adoption expands.
The takeaway
Protecting accounts now depends less on a single password and more on ongoing verification of who or what is accessing systems. Reviewing which accounts hold excessive privileges is a practical first step for individuals and businesses alike.
Further reading
For broader context on how companies are defending against these threats, explore our Cybersecurity coverage.
