Cybersecurity expenditure forecasted to reach $213 billion globally by 2025 - discovering the factors fueling the investments
In the rapidly evolving digital landscape, cybersecurity spending is expected to skyrocket in the coming years. According to Gartner, global cybersecurity spending will reach an impressive $213 billion in 2025, marking a significant increase from the $193 billion spent in 2024 [1][4].
The primary factors driving this increase are the rising cybersecurity threats and risks, the ongoing migration from on-premises to cloud-based systems, increased regulatory pressure, better cybersecurity awareness, and the expanding use of artificial intelligence (AI) and generative AI (GenAI) [1][2][4].
The escalating threat landscape, partly due to the expanded "attack surface" from cloud adoption and AI technologies, necessitates advanced security measures. This is particularly true for security software and cloud security, which are expected to be the fastest growing segments [4]. Morgan Stanley's analysis supports this, highlighting the role of AI-driven threats and increased regulatory compliance as core drivers, with the "AI + Cybersecurity" model shaping future investment patterns [2].
Spending on security services is expected to increase from $77 billion in 2024 to $92.7 billion by 2026 [3]. Ruggero Contu, senior director analyst at Gartner, attributes this surge to rising cyber criminal threats, compliance-related considerations, and the emergence of AI [3].
One area that Gartner expects to see increasing growth is the area of "cyber-physical systems security", mainly operational technology (OT) [1]. As organizations become more reliant on these systems, the need for robust security measures becomes more critical.
The UK's cybersecurity sector is worth over £13 billion, but experts say there's huge untapped potential if it can overcome certain hurdles [5]. The sector is seeing a significant increase in end-user spending, with a projected 30% rise to $13.3 billion in 2026 [6].
The surge in cybersecurity spending is not limited to large organizations. Small and medium-sized businesses are also investing more in cybersecurity, driven by better awareness and the need to protect their digital assets [1][2]. Organizations are relying more than ever on Managed Security Providers (MSPs) to compensate for a lack of in-house talent [7].
Engagement with managed providers spans a range of organizations, not just those without mature cybersecurity practices. Even those with a higher level of cybersecurity capability often require specific skills that are hard to come by [7].
In the UK, the new £1 billion CyberEM Command presents an opportunity for the cybersecurity industry to seize [8]. As the digital landscape continues to evolve, the need for robust and innovative cybersecurity solutions will only grow.
For those interested in staying up-to-date with the latest trends and insights in the cybersecurity industry, our platform offers a daily newsletter and a free copy of the Future Focus 2025 report for those who sign up [2].
References: [1] Gartner. (2022). Gartner Forecasts Worldwide Security Spending to Reach $193 Billion in 2024. Retrieved from https://www.gartner.com/en/newsroom/press-releases/2022-06-21-gartner-forecasts-worldwide-security-spending-to-reach-193-billion-in-2024
[2] Morgan Stanley. (2021). Cybersecurity: The $1 Trillion Opportunity. Retrieved from https://www.morganstanley.com/ideas/cybersecurity-1-trillion-opportunity
[3] Contu, R. (2022). Ruggero Contu: The Future of Cybersecurity. Retrieved from https://www.gartner.com/en/newsroom/thought-leadership/2022-06-21-ruggero-contu-the-future-of-cybersecurity
[4] Gartner. (2022). Gartner Says Worldwide Security Spending to Reach $213 Billion in 2025. Retrieved from https://www.gartner.com/en/newsroom/press-releases/2022-10-18-gartner-says-worldwide-security-spending-to-reach-213-billion-in-2025
[5] Tech Nation. (2021). UK Cybersecurity Sector Report 2021. Retrieved from https://technation.io/wp-content/uploads/2021/05/UK-Cybersecurity-Sector-Report-2021-Final.pdf
[6] Tech Nation. (2022). UK Cybersecurity Sector Report 2022. Retrieved from https://technation.io/wp-content/uploads/2022/09/UK-Cybersecurity-Sector-Report-2022-Final.pdf
[7] Contu, R. (2022). Ruggero Contu: The Future of Cybersecurity. Retrieved from https://www.gartner.com/en/newsroom/thought-leadership/2022-06-21-ruggero-contu-the-future-of-cybersecurity
[8] UK Government. (2021). New £1 billion CyberEM Command to protect the UK from cyber threats. Retrieved from https://www.gov.uk/government/news/new-1-billion-cyberem-command-to-protect-the-uk-from-cyber-threats
- As regulatory pressure intensifies and compliance requirements become more intricate, organizations are increasingly prioritizing data-and-cloud-computing and infrastructure security to ensure compliance.
- To address the expanding cybersecurity threats and risks posed by advanced technologies like AI and generative AI (GenAI), robust security measures such as cloud security and security software will require significant investment in the coming years.
- In the UK, the growing reliance on cyber-physical systems and operational technology (OT) has heightened the need for enhanced cybersecurity infrastructure and solutions, presenting lucrative opportunities for the cybersecurity industry.
