Cybersecurity budgets tighten as economic anxiety rises

Dive Brief:

• Cybersecurity budgets grew 4% in 2025 on average, down from 8% in the previous year, likely driven by economic uncertainty, according to a report released Tuesday by cybersecurity firm IANS Research and executive search firm Artico Search.
• As a share of overall information technology budgets, cybersecurity spending declined from 11.9% to 10.9%, breaking a five-year upward trend, according to the research.
• “Once again, we find that security budgets are not immune to macro conditions,” Steve Martano, a partner in Artico’s cybersecurity practice, said in a press release. “Despite most companies identifying cyber as a top five business risk, most CISOs are not receiving budget increases commensurate with the increase in security program scope.”

Dive Insight:

CFO confidence plummeted in the second quarter of the year amid economic headwinds and geopolitical concerns, according to a July Deloitte report. The economy topped the list of external risks worrying CFOs, with 53% of respondents citing that category, followed by cybersecurity (51%) and interest rates (43%). 

Global market volatility, driven by geopolitical tensions, uncertain tariff policies and fluctuating inflation and interest rates are impacting cybersecurity spending, leading to stagnant or reduced budgets, according to the new study by IANS and Artico. 

“This year, the staffing constraints are especially significant with security leaders and their teams both reporting that they are stretched thin due to hiring freezes or limited budget for hiring,” Martano said.

Worldwide end-user spending on information security is projected to reach $213 billion in 2025, up from $193 billion in 2024, Gartner said last month.

“Established security spending will continue as normal, but some organizations are being more cautious with any new security spending in this highly uncertain and challenging climate,” Gartner Senior Director Analyst Ruggero Contu said in a press release on the research. “However, higher defense budgets, rising threats, increasing regulatory pressure and better cybersecurity awareness — especially among small and medium-sized businesses — will keep cybersecurity spending strong in the medium to long term.”