We explore how CISOs and CTOs can structure IAM budgets for 2026, balancing technology, people, and training to strengthen resilience, compliance, and ROI.
As global cybersecurity investment heads toward $240 billion by 2026 (Gartner), security leaders are prioritizing Identity and Access Management (IAM) at the core of their strategy. Forrester recommends that 10-15% of enterprise cybersecurity budgets be dedicated to IAM, a figure that continues to rise as AI-driven threats and new regulatory demands reshape digital risk (Forrester).
IAM has evolved from an IT discipline into a strategic control layer supporting Zero Trust, compliance, and cyber insurance eligibility. With 65% of breaches involving compromised identities (IBM), IAM budgets now drive measurable reductions in exposure and improved business resilience.
The IANS Security 2025 Budget Benchmark Report – surveying 587 CISOs across sectors – reveals how security budgets are being reshaped under cost pressure. Staff and compensation now account for 39% of total security spend, while software (including IAM) represents 29% (IANS Research, Aug 2025).
Applied to IAM, that data supports the following balanced model:
Large enterprises typically emphasize governance automation, while mid-size and cloud-native organizations invest more in skill development and managed IAM services. Nearly all CISOs surveyed in 2025 reported direct ownership of IAM programs, confirming a governance shift from IT to security (IANS Research, Aug 2025).
IAM today extends far beyond authentication. it integrates Identity Governance and Administration (IGA), Privileged Access Management (PAM), Single Sign-On (SSO), and lifecycle orchestration.
In our 2025 forecast, IAM consumes 10–15% of total cybersecurity budgets, spanning cloud, hybrid, and SaaS ecosystems (CloudComputing).
Organizations with mature IAM programs – using dynamic access policies, passwordless authentication, and AI-driven analytics – save on average $1.76 million per breach through faster detection and reduced credential misuse (IBM).
Technology alone cannot sustain IAM maturity. The IANS Security 2025 Report shows that personnel remain the largest budget line, representing nearly two-fifths of all cybersecurity spending (IANS Research).
CISOs are increasingly recruiting IAM architects and governance analysts with dual expertise in technical integration and compliance alignment (DORA, NIS2). For mid-market organizations, blending internal IAM leadership with managed IAM operations provides agility without expanding headcount. Clear RACI frameworks ensure accountability across IT, HR, and compliance, embedding IAM into the organization’s operational DNA.
Even advanced IAM deployments falter when employees lack identity awareness. AWS recommends allocating 10–15% of IAM program budgets to ongoing training on Zero Trust, threat management, and vendor certifications (AWS).
Embedding such initiatives in governance cycles builds identity-first culture across departments. Simulated access governance exercises and internal awareness programs enhance accountability and increase IAM policy adoption.
CISOs defending IAM budgets for 2026 must link investment to tangible business outcomes. Typical performance metrics include:
IAM underpins security, operational efficiency, and compliance resilience. Integrating IAM KPIs into annual risk and maturity assessments provides transparency and strengthens justification for continued investment.
As security budgets tighten and board oversight increases, IAM remains the one investment that directly safeguards compliance, trust, and operational continuity. Strategic balance across technology, people, and training reinforces the foundation of a secure digital enterprise.