Posted by Hampshire, UK: Businesses will spend more than $40 billion globally on Identity and Access Management (IAM) services, according to Juniper Research’s new study.
The Identity and Access Management (IAM) spend is expected to witness a 55% growth from $26.2 billion in 2026 to $40.5 billion by 2031. The rise of AI is reshaping IAM services and driving this 55% growth in IAM market globally. However, there are both the positive and negative implications of AI adoption driving IAM investment.
AI integration is enabling identity and access controls to move from one-time authentication to continuous, adaptive monitoring systems; making them more appealing and effective.
However, AI agents are increasingly accessing business systems at a scale never designed for or anticipated. This is creating new risks that IAM systems must adapt for and address.
Small businesses need help to adjust to post-AI world
The research identified small businesses as uniquely vulnerable to AI-driven change in the IAM market. Unlike larger businesses, which use dedicated IAM tools that are already adapting to non-human identity risks, small businesses frequently use very limited or no IAM tools whatsoever; exposing them to risk as AI agents scale.
“Small businesses must change the way they manage access to systems, or they will encounter significantly elevated risks as AI agents become increasingly widespread,” commented Nick Maynard, VP of Research, Juniper Research – a global tech strategist firm.
“IAM vendors must create small business-friendly versions of their systems that are usable without specialised expertise. Pursuing modular and scalable IAM system design will position vendors attractively, in a market set to see rising small business adoption,” added Maynard.