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78% of Organizations Plan to Increase Identity Security Spending in 2025, Delinea Report Finds

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David Marshall | Published: January 14, 2025

Delinea has published new
research analyzing the evolving state of identity security in the enterprise.
The report, titled “Why CISOs Must Prioritize a Strong Identity Security
Strategy – and Where to Start
,” found that detecting and responding to identity
threats is the number one priority for organizations as identity-focused
vulnerabilities and attacks like ransomware rise.  

Based on a comprehensive survey of 300
technology and security leaders, the report highlights the critical role that
identity and access management (IAM) plays in managing and safeguarding the
complex relationships inherent in modern digital ecosystems –  which now encompass both human and non-human
identities. As the rise of non-human identities continues to transform the
landscape, the findings reveal a shift from focusing solely on authentication
to adopting a more holistic strategy that includes intelligent authorization,
entitlements, governance, privileged access management (PAM), and other key
elements that are essential for safeguarding digital environments.  

“Strong identity management has become
foundational to an organization’s overall security posture,” said Art
Gilliland, CEO of Delinea. “As businesses adapt to an increasingly complex
digital landscape driven by cloud technologies, hybrid work models, and
sophisticated cyber threats, legacy solutions will be exposed. Those who fail
to evolve and implement modern identity security strategies risk falling victim
to the next wave of cyberattacks, which are more frequently targeting
vulnerable credentials.”  

Key findings from the report include: 

  • Identity security as a critical
    investment:
    One in four organizations spend over 30% of their IT budget
    on IAM technology and processes, and more than half allocate 20% or more.
    Additionally, 78% of organizations expect to increase their identity security
    spending in 2025.
  • A shift toward advanced IAM solutions: While
    multifactor authentication (MFA) remains a top priority for most organizations
    (51%), cloud infrastructure entitlements management (CIEM) and identity
    governance and administration (IGA) closely followed, tied for 49%. Identity
    threat detection and response (ITDR) and PAM rounded out the top five, named by
    46% and 43%, respectively.
  • Increased complexity poses major
    challenges:
    A third of respondents identified complexity in existing
    infrastructures as the biggest obstacle to effective identity management.
    Resistance from users and stakeholders, siloed identity technologies, lack of
    integration, and outdated legacy systems were also frequently cited as
    hindrances to scaling and securing modern digital ecosystems, with 88% of
    organizations considering consolidating their IAM vendors – most of them within
    the next year.
  • Identity security priorities: The top five
    IAM priorities reported by those surveyed include:
  1. Detecting and responding to identity
    threats
  2. Securing credentials, secrets, and
    privileged accounts
  3. Managing identities and entitlements in
    the cloud
  4. Visibility into all identities and levels
    of access
  5. Securing remote work and third-party risk 

The future is AI 

Looking ahead, the report suggests that AI
will play a key role in shaping the future of identity security. Over 94% of
survey respondents are planning to adopt AI-driven identity technologies now or
in the near future, with 55% having already adopted or are already in the
process of adoption. AI is expected to enhance identity security in several
ways: 

  • Automating identity governance: AI will help
    streamline policy enforcement and entitlement management, reducing the burden
    on security teams.
  • Advanced threat detection: AI-powered
    tools will enable faster and more accurate detection of identity-related
    anomalies, improving the ability to respond to threats in real-time
  • Securing non-human identities: With the
    growing number of machine-to-machine interactions, AI will help organizations
    secure and manage automated systems, AI platforms, DevOps environments, and
    other non-human identities. Over a quarter (28%) consider securing nonhuman or
    machine identities a top priority for the coming year.