Global cybersecurity spending is projected to reach a staggering $212 billion in 2025, reflecting a 15 per cent growth from the estimated $183.9 billion spent in 2024. This upward trend highlights the growing importance of robust cybersecurity measures for businesses of all sizes.
As cyberattacks become more sophisticated and targeted, organizations can ill-afford to neglect their digital defenses. These forecasts were made by Gartner in its report released on August 28, 2024 which serves as a stark reminder that investing in cybersecurity is no longer an option, but a necessity.
Factors Driving Cybersecurity Spending
Several key factors are contributing to the projected surge in cybersecurity spending. Here’s a closer look at some of the most significant:
- The Rising Threat Landscape: Cybercriminals are constantly developing new methods to exploit vulnerabilities, making it more crucial than ever for companies to stay ahead of the curve. The increased adoption of cloud computing, internet of things (IoT) devices, and remote work models further expands the attack surface for malicious actors.
- The Impact of AI-powered Threats: The emergence of artificial intelligence (AI) presents a double-edged sword for cybersecurity. While AI can be leveraged to automate security tasks and identify patterns in malicious activity, cybercriminals are also increasingly using AI to launch more targeted and effective attacks. This necessitates investments in AI-powered security solutions to counter these evolving threats.
- The Global Skills Shortage: The cybersecurity industry continues to face a significant talent shortage, making it challenging for organizations to find and retain qualified security professionals. To address this gap, companies may be forced to invest in upskilling existing employees or outsource security services, leading to increased spending.
- Regulatory Compliance: Data privacy regulations like GDPR and CCPA are prompting businesses to invest in security measures to ensure compliance and avoid hefty fines. Additionally, critical infrastructure sectors face increasingly stringent regulations requiring them to bolster their cybersecurity defenses.
“The continued heightened threat environment, cloud movement and talent crunch are pushing security to the top of the priorities list and pressing chief information security officers (CISOs) to increase their organization’s security spend,” said Shailendra Upadhyay, Senior Research Principal at Gartner.
“Furthermore, organizations are currently assessing their endpoint protection platform (EPP) and endpoint detection and response (EDR) needs and making adjustments to boost their operational resilience and incident response following the CrowdStrike outage.”
Breakdown of Security Spending
The report further breaks down the projected spending growth across different security segments:
- Security Software: Expenditure on security software is expected to rise by 15.1% in 2025, reaching $100.7 billion. This growth can be attributed to the increasing demand for solutions like endpoint security, network security, and cloud security tools.
- Security Services: Spending on security services is anticipated to experience the fastest growth, rising by 15.6% to reach $88.1 billion in 2025. This surge reflects the aforementioned skills shortage and the growing need for managed security services, security consulting, and threat intelligence.
- Network Security: The network security market is projected to reach $24.8 billion in 2025, representing a growth of 13.1%. This segment includes firewalls, intrusion detection and prevention systems (IDS/IPS), and secure access service edge (SASE) solutions.
Recommendations for Businesses
In light of these trends, businesses are advised to take a proactive approach to cybersecurity by:
- Conducting a thorough security risk assessment: This will help identify vulnerabilities in your systems and infrastructure.
- Developing a comprehensive cybersecurity strategy: This strategy should outline your security goals, policies, and procedures to mitigate identified risks.
- Investing in a layered security approach: This includes deploying security software, implementing security awareness training for employees, and establishing a robust incident response plan.
- Staying informed about the latest threats: Regularly update your security software and educate employees on emerging cyber threats.
Considering outsourcing security services: Managed security service providers (MSSPs) can offer invaluable expertise and resources to businesses struggling with the cybersecurity skills gap.