Managing cybersecurity and IT budgets is a critical element of organizational strategy. With increasing threats to data security, the rise of ransomware, and the need to protect IT infrastructure, organizations must invest wisely in cybersecurity to stay secure.
This article shares key insights from cybersecurity budget surveys conducted in 2024.
Despite massive security spending, 44% of CISOs fail to detect breaches
Despite global information security spending projected to reach $215 billion in 2024, 44% of CISOs surveyed reported they were unable to detect a data breach in the last 12 months using existing security tools.
End of an era: Security budget growth slows down
The period of double-digit growth in security budgets seen in 2021 and 2022 has not returned. During those years, many organizations were still in catch-up mode regarding their cybersecurity programs. Over the past five years, the security budget as a percentage of IT spending has steadily increased, rising from 8.6% in 2020 to 13.2% in 2024.
Companies spend more on cybersecurity but struggle to track expenses
The top three areas of investment for 2024 cybersecurity budgets are internal security assessments (60%), identity and access management (IAM) programs (58%) and the acquisition of additional cybersecurity tools (51%). Despite increasing budgets, only 36% of respondents have a formal approach to determining cybersecurity budgets. This lack of formal budgeting practices can lead to inefficiencies and missed opportunities to address critical security gaps.
Despite increased budgets, organizations struggle with compliance
92% of organizations reported an increase in their allocated budgets. Among these organizations, a significant portion (36%) witnessed budget increases of 20% to 49%, and a notable 23% saw increases exceeding 50%. Many organizations still doubt their compliance readiness, with only 40% feeling confident their organization has made the necessary investments in resources, tools, and personnel to fully comply with relevant cybersecurity regulations.
93% of security leaders have increased SaaS security budgets
96% security leaders have made SaaS security a top priority and 93% have increased SaaS security budgets in 2024.
92% of companies eyeing investment in AI-powered software
92% businesses are considering investing in AI-powered software in 2024. According to Gartner, by 2027, spending on AI software will grow to $297.9 billion, with a compound annual growth rate of 19.1%.