Identity security budgets grow amid tool consolidation push

New industry surveys reveal that identity security is a top investment priority for organizations, even as they struggle with complex tool sprawl and a critical shortage of skilled practitioners, according to Biometric Update.

According to ManageEngine's Identity Security Outlook 2026, over 92% of North American professionals expect budgets to grow, with more than three-quarters actively consolidating fragmented IAM solutions. The research highlights a surge in non-human identities, which now outnumber human identities by ratios of 100:1 or more, creating urgent new risk vectors. While over 90% of firms are attempting to integrate AI tools like behavioral analytics, only 7% have achieved organization-wide deployment, citing talent gaps as a primary barrier.

A separate ConductorOne report confirms these trends, noting that 84% of respondents have increasing IAM budgets, with top challenges being system complexity and employees ignoring policies. The industry is responding with consolidation, as seen in CrowdStrike's acquisition of SGNL and Saviynt's $700 million funding round, signaling a push toward unified platforms to manage escalating identity scale.