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IAM Spending Surge Driven by AI Security Risks

IAM Spending Surge Driven by AI Security Risks

First seen 4 Nov 2026, 09:24 UTC • •
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ThreatCluster AI
ThreatCluster •November 4, 2026 at 09:25 UTC
  • •IAM spending is projected to rise 55% by 2031, reaching $40.5 billion.
  • •70% of companies experienced identity-related breaches in 2025, exacerbated by AI.
  • •Smaller businesses face heightened risks and need simpler IAM solutions.

A new study from Juniper Research predicts a 55% increase in global spending on identity and access management (IAM) services, rising from $26.2 billion in 2026 to $40.5 billion by 2031. This surge is attributed to the growing prevalence of non-human identities, such as AI agents, which now often outnumber human employees. While AI enhances authentication processes, it also introduces significant vulnerabilities, with 70% of companies reporting at least one identity-related breach in 2025, according to Sophos. Smaller businesses are particularly at risk due to their lack of robust security measures. Experts recommend that IAM vendors develop user-friendly tools to help these organizations manage access effectively. Automated monitoring and lifecycle controls are essential to mitigate threats posed by AI agents, including excessive privileges and dormant accounts.

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Timeline

2026-11-03
IAM spending surge reported
Juniper Research predicts IAM spending will increase significantly due to AI risks, with 70% of companies facing breaches in 2025.
Itpro
2026-11-03
IAM spending projection published
Juniper Research estimates IAM services spending will climb from $26.2 billion to $40.5 billion by 2031.
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Common questions

What is driving the increase in IAM spending?
The rise of AI agents and the associated security risks are prompting businesses to invest more in IAM solutions.
How are smaller businesses affected?
Smaller businesses face higher risks due to inadequate security measures and need simpler IAM tools to manage access.
What should organizations focus on to improve IAM?
Organizations should implement automated monitoring and lifecycle controls to manage identity threats effectively.