Machine identity has emerged as a major growth opportunity for the cybersecurity industry lately, specifically for identity & access management specialists. Machine identity refers to a unique digital credential assigned to non-human entities, ensuring secure interactions between machines and allowing only trusted systems to access and exchange information.
Historically, this term has included a wide range of devices and systems like IoT devices, servers, software applications or cloud workloads. With artificial intelligence (AI) growing across industries, machine identity now needs to encompass AI agents—systems that act autonomously to meet specific goals—, making the theme a derivative play on AI.
AI agents include conversational agents that respond to voice commands, manage tasks, and control smart devices, e-commerce agents that suggest products based on user preferences and behavior, or cybersecurity agents that detect threats and prioritize responses.
In the world of machine identity, three key issues stand out. First, trust and security are essential, as machines—especially AI systems—need verifiable identities to avoid impersonation and misuse or to get data access, just as humans rely on digital signatures and cryptographic methods for trust. Second, as AI becomes more autonomous, it raises questions about accountability and responsibility, such as who is liable when AI systems take actions. Lastly, machines need clear digital representations to interact securely within digital systems, much like human online identities.
Managing machine identities relies on several key technologies. Public Key Infrastructure (PKI) helps machines prove their identity, protect communications, and secure data. SSL/TLS certificates ensure private and unaltered information exchange between devices. Certificate lifecycle management automates the creation, updating, and revocation of certificates to keep security strong. Key Management Systems (KMS) protect the keys used for secure communications. Identity and Access Management (IAM) determines which machines can access specific systems, while Hardware Security Modules (HSMs) offer extra protection for important keys. Zero Trust Architecture treats every device as suspicious until proven trustworthy.
The machine identity market is now reaching an inflection point. While machine identities already outnumber human ones, the rapid proliferation of AI agents suggests that machines could outnumber human identities by at least 10-20x in coming years. Securing these digital credentials is then becoming a top cybersecurity priority for enterprises, with spending expected to jump from about $5 billion in 2023 to $10 billion in coming years, with a CAGR of 25–30%.
Unsurprisingly, leading identity & access management players, which already benefit from a robust core market growing in the low teens, are at the forefront of securing AI agents and should then enjoy a boost to their topline momentum. CyberArk launched Secure AI Agents in April 2025, SailPoint introduced Agentic Identity Security in March 2025, and Okta released Auth for GenAI in late 2024.
