I see further development in the area of single sign on and more usable examples of its implementation. I know its currently in use at AMEX but I think Universities and governments may want to explore that option.
I do see some form of National ID card becoming mandatory in the UK and the U.S., but I could be very wrong.
I believe that our security market has been completely over saturated with products. There are numerous suites, customizables, add-ons and supertools and it's very confusing at times. I believe we will continue to see the death of mediocre vendors and the slow amputation of security analyst firms from our industry. More and more companies are turning toward capable staff to handle security issues and less and less are relying on the big analyst firms.