In 2023, spending in the cybersecurity industry reached around 80 billion U.S. dollars, with forecasts suggesting that the market will eclipse 87 billion U.S. dollars by 2024. Global spending on cybersecurity has been increasing since 2021.

Cybersecurity remains a priority

Since the outbreak of the COVID-19 pandemic, organizations worldwide have sent their employees into the home office for work. This decentralization of an organization’s IT landscape created new vulnerabilities of malicious actors to exploit which is concurred by IT professionals’ observation that there is an increase in cyber attacks following the COVID-19 pandemic. As a result, cybersecurity remains a priority among business leaders to ensure operability of the company and data security.

Cybersecurity solutions

Among solutions for cybersecurity are endpoint security, identity access management, data security, and network security. These technologies are leveraged to protect sensitive information and critical systems from attacks. More specifically, these measures are designed to protect threats originating both from inside and outside an organization. This underscores the need to think of cybersecurity as a comprehensive strategy made up of practices and technologies.

From 2019 to 2026, the annual growth rate of spending on cybersecurity, worldwide, ranged from seven to fourteen percent across various industries. The highest highest increase in spending in cybersecurity was within the healthcare sector, with an annual compound growth rate of 14 percent. On the other hand, the lowest growth rate was found in the sector of Aerospace and defence.

Percentage of enterprises that identified specific main reasons for spending time or money on cyber security measures or related skills training by the North American Industry Classification System (NAICS) and size of enterprise.

The Cyber Security Market report segments the industry into By Offering (Solutions, Services), By Deployment (On-Premise, Cloud), By End-User Industry (IT and Telecom, BFSI, Retail and E-Commerce, Oil Gas and Energy, Manufacturing, Government and Defense, Other End-user Industries), and By Geography (North America, Europe, Asia, Latin America, Middle East and Africa). Get five years of historical data and market forecasts.

In 2023, the average spend per employee in the cybersecurity market in Singapore reached about 128 U.S. dollars, slightly up from the previous year. The Statista Technology Market Outlook estimates that the average spend per employee in the cybersecurity market will further increase to around 204 U.S. dollars in 2029.

Average spending on specific measures to prevent or detect cyber security incidents by the North American Industry Classification System (NAICS) and size of enterprise.

IT Security Spending Market Outlook

The global IT security spending market size was valued at approximately $145 billion in 2023 and is projected to reach over $282 billion by 2032, growing at a robust CAGR of 7.5% during the forecast period. This surge in the market size can primarily be attributed to the increasing frequency and sophistication of cyber threats, which has necessitated heightened investments in IT security infrastructure across various industries. The escalating adoption of cloud-based services and the proliferation of Internet of Things (IoT) devices have further contributed to the expansion of this market, as organizations strive to protect sensitive data against breaches and unauthorized access. Additionally, regulatory requirements and compliance mandates continue to drive businesses towards more robust security solutions, adding further momentum to market growth.

One of the key growth factors propelling the IT security spending market is the rapid digital transformation across industries. As businesses increasingly shift towards digital platforms for operations, customer engagement, and data management, the risk of cyber threats escalates correspondingly. The transition to digital channels has opened new pathways for cyber criminals, necessitating advanced security measures. Another critical driver is the persistent evolution of cyber threats. Cybercriminals are becoming more sophisticated in their methods, leveraging advanced technologies such as artificial intelligence to carry out targeted attacks. This has compelled organizations to continuously upgrade their security frameworks, thereby escalating spending on IT security solutions and services. Furthermore, the rise in remote work environments due to the global pandemic has significantly increased the attack surface, prompting the need for enhanced security measures to protect remote endpoints and networks.

Moreover, regulatory and compliance requirements play a crucial role in driving IT security spending. Governments and industry bodies worldwide have implemented stringent data protection regulations, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). These regulations mandate organizations to implement robust security measures to safeguard sensitive customer data, leading to increased investments in security solutions. Additionally, insurance companies are increasingly demanding higher security standards from businesses to provide coverage for cyber risks. This has further spurred organizations to allocate more resources towards IT security to meet the compliance demands and mitigate potential financial liabilities arising from data breaches and cyber incidents.

Also, the growing awareness of the potential financial and reputational damage caused by cyber-attacks has compelled organizations to prioritize IT security spending. High-profile data breaches and ransomware attacks have underscored the significance of robust cybersecurity strategies. As a result, organizations are increasingly recognizing IT security as a strategic investment rather than a cost center. The need to protect intellectual property, customer trust, and business continuity has led to a heightened focus on strengthening security infrastructure. Furthermore, the integration of emerging technologies, such as artificial intelligence and machine learning, into security solutions is expected to drive market growth by enabling proactive threat detection and response capabilities.

Component Analysis

In the IT security spending market, the component segment is broadly categorized into solutions and services. Solutions encompass a wide array of security products, such as firewalls, antivirus software, intrusion detection systems, and encryption tools, which form the backbone of an organization's security framework. The demand for comprehensive security solutions is driven by the need to protect increasingly complex IT infrastructures from sophisticated cyber threats. Organizations are investing heavily in solutions that offer real-time threat detection and prevention capabilities, thereby enabling them to respond swiftly to potential attacks. The increasing adoption of advanced security solutions, such as security information and event management (SIEM) systems and unified threat management (UTM) systems, is a testament to the growing emphasis on integrated security strategies.

Services, on the other hand, play a pivotal role in the IT security ecosystem by providing organizations with the expertise and resources needed to design, implement, and maintain effective security strategies. These services encompass

Cyber Security Market size is expected to be worth around USD 608.3 Billion by 2033, growing at a CAGR of 12.2% during the forecast period.

The Cyber Security Market size is expected to reach a valuation of USD 655.8 billion in 2033 growing at a CAGR of 12.60%. The Cyber Security Market research report classifies Market by share, trend, demand, forecast and based on segmentation.

In 2025, small and mid-sized businesses (SMBs) were forecast to spend 29.8 billion U.S. dollars on managed security services. Overall, SMBs were expected to spend 90 billion U.S. dollars on cyber security in 2025, up from 57 billion U.S. dollars in 2020. The regions with the highest anticipated spend are North America, the Asia Pacific region, and western Europe.

The average spend per employee in the cybersecurity market in Israel is estimated to increase between 2024 to 2029, from 204.6 to 284.4 U.S. dollars. The average spending in this sector gradually increased during the period observed. Cybersecurity is a prominent industry within the high-tech sector in Israel. In 2024, the value of investment in cyber companies in the country surpassed 3.6 billion U.S. dollars.

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US Government Cyber Security Market Size 2025-2029

The US government cyber security market size is forecast to increase by USD 4.18 billion, at a CAGR of 6.1% between 2024 and 2029.

The U.S. government cyber security market is driven by escalating cyber threats and advancements in security technology. Key factors include a shift toward proactive defense measures as agencies prioritize data protection, alongside innovations like AI-driven threat detection that enhance response capabilities. The growing adoption of Bring Your Own Device (BYOD) policies in government organizations, which necessitates additional cyber security measures to protect sensitive data.
This report provides a detailed view of market size, growth forecasts through 2029, and key segments such as network security and endpoint protection, offering practical insights for shaping strategies, engaging stakeholders, and optimizing operations. It highlights the trend of zero-trust architecture as a critical shift in securing systems, while addressing challenges like budget constraints that can limit technology adoption. Enterprise security solutions are in high demand to safeguard against cyber threats in academia, manufacturing, banking, financial services, healthcare, IoT, travel and transportation, energy and utilities, and other industries. For businesses aiming to stay competitive in the U.S. government cybersecurity market, this report delivers essential data and analysis to navigate evolving threats and address operational complexities effectively.

What will be the Size of the market During the Forecast Period?

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The US government cyber security market is experiencing significant growth due to escalating digital attacks on critical infrastructure and increasing regulatory compliance demands across various sectors. Moreover, hybrid cloud settings present unique challenges, necessitating advanced security measures. Cyber Centers play a crucial role in developing and implementing strong defense strategies. The IoT market, with its proliferation of connected devices, poses new vulnerabilities, driving the demand for IoT solutions. Regulatory compliance and data protection are top priorities, particularly in sectors handling sensitive information. Remote work and digital transactions further expand the attack surface, necessitating continuous innovation in cyber security solutions.
Threat deception, network firewalls, and BYOD policies are essential components in safeguarding modern enterprises from cyber threats and data breaches. The evolution of AI has revolutionized security practices, enabling smarter threat detection and response strategies. Cloud platforms, hybrid cloud infrastructures, and secure gateways ensure flexibility and scalability while maintaining robust cybersecurity. Single sign-on (SSO) solutions enhance user authentication, simplifying access management while protecting confidential data. IoT security and endpoint security measures are critical in securing a growing range of connected devices across the enterprise. Application security and regulatory compliance are key to ensuring data protection and meeting legal requirements. The rise of cyber espionage and advanced cyber threats necessitate continuous innovation in security technologies. Security innovations are driven by the need to adapt to the ever-changing market evolution and the increasing sophistication of attackers. As IT services evolve, integrating comprehensive security strategies and advanced technologies becomes more critical than ever in mitigating risks and safeguarding sensitive information.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  US intelligence community
  Department of homeland security
  Department of defense


Deployment

  On-premises
  Cloud-based


Product

  Services
  Solutions


Security Type

  Network Security
  Endpoint Security
  Application Security
  Cloud Security


Threat Type

  Cyber-Attacks
  Data Breaches
  Espionage
  DDoS Attacks


Geography

  US

By End-user Insights

The US intelligence community segment is estimated to witness significant growth during the forecast period. The US Intelligence Community is a collective of 17 US government agencies responsible for conducting intelligence activities to support American foreign policy and national security. Agencies involved include intelligence services, military intelligence, and civilian intelligence entities. Notable members are the Central Intelligence Agency, National Security Agency, Army Military Intelligence, and the Federal Bureau of Investigation's National Security Branch. These entities collabo

Average spending on specific measures to recover from cyber security incidents by the North American Industry Classification System (NAICS) and size of enterprise.

Global spending on information security has been growing from 2017 to 2023, increasing from just under 100 billion U.S. dollars in 2017 to almost 200 billion U.S. dollars in 2023. Most spending has concentrated in security services, infrastructure protection, and network security equipment. Spending on security services is expected to reach nearly 90 billion U.S. dollars by 2024.

Continued growth in global information security market   

The information security technology market is forecast to grow in the next few years. By 2030, the worldwide spending on information security is expected to be more than triple that of 2017. Information security refers to the practice of managing access to information, whether that is securing information from unauthorized access, or verifying the identity of those who claim to have authority to access information. The rise of new markets such as the Internet of Things (IoT) is shaping securing trends, creating a shift towards managed security services and other segments of IT security. Worldwide revenue from cloud management and security services is forecast to reach almost 52 billion U.S. dollars in 2024, compared to just five billion in 2015.

As of February 2023, governmental institutions accounted for approximately 20 percent of the total spend on cyber security solutions in the Asia-Pacific region. At the same time, the banking sector accounted for over 15 percent of cyber security spending in APAC.

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The cyber security market in North America has the potential to grow by USD 66.66 billion during 2021-2025, and the market’s growth momentum will accelerate at a CAGR of 15.54%.

This cyber security market in North America research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers market segmentation by deployment (on-premise and cloud) and geography (the US, Canada, and Mexico). The cyber security market in North America report also offers information on several market vendors, including AO Kaspersky Lab, Booz Allen Hamilton Holding Corp., Broadcom Inc., Check Point Software Technologies Ltd., Cisco Systems Inc., Corporation Service Co., Fortinet Inc., General Dynamics Corp., McAfee LLC, and Northrop Grumman Corp. among others.

What will the Cyber Security Market Size in North America be in 2021?

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Cyber Security Market in North America: Key Drivers and Trends

The increase in the use of mobile devices is notably driving the cyber security market growth in North America, although factors such as high cost of deployment may impede market growth. To unlock information on the key market drivers and the COVID-19 pandemic impact on the cyber security market in North America industry get your FREE report sample now.

      With the increasing adoption of mobile devices, such as mobile phones, laptops, and tablets, the need for cybersecurity solutions is rising.
      One of the major reasons for the rising need for cybersecurity solutions is the increasing use of devices such as mobile phones and laptops to access the Internet, which is increasing the chances of cybercrimes. 
      The use of mobile devices for personal and professional use is increasing the access to critical data and information, which will increase the chance of unauthorized access in case of a stolen mobile device.
      With technological advances, the acceptance of mobile devices for m-commerce, bill payment, and GPS is also increasing.
      The confidential information accessed by mobile devices requires high-level security against hacking.




      Implementing firewalls as a disruptive deception capability is another key driver influencing the cyber security market growth in North America.
      Advancements in technology have led to the introduction of firewalls with advanced capabilities such as intrusion prevention, blacklists, reputation feeds, and URL filtering. 
      The implementation of a firewall helps end-users to leverage threat detection and provide an enhanced opportunity to secure the network. 
      The implementation of a firewall further results in the generation of deception responses that further allows deception technology providers to offer deception hosts designed specifically to be attacked. 

This cyber security market in North America analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. Get detailed insights on the trends and challenges, which will help companies evaluate and develop growth strategies.

Who are the Major Cyber Security Market Vendors in North America?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

AO Kaspersky Lab
Booz Allen Hamilton Holding Corp.
Broadcom Inc.
Check Point Software Technologies Ltd.
Cisco Systems Inc.
Corporation Service Co.
Fortinet Inc.
General Dynamics Corp.
McAfee LLC
Northrop Grumman Corp.

The cyber security market in North America is fragmented and the vendors are deploying growth strategies such as investing in R&D and branding to compete in the market. Click here to uncover other successful business strategies deployed by the vendors.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

Download a free sample of the cyber security market in North America forecast report for insights on complete key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Which are the Key Regions for Cyber Security Market in North America?

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72% of the market’s growth will originate from US during the forecast period. The US is the key market for cyber security in North America. Market growth in this region will be faster than the growth of the market in Canada and Mexico.

The expanding IT, healthcare, BFS

The Internet of Things has changed how society operates, from businesses undertaking their activity online to transferring financial information via online data packets. However, the digital age has also allowed cyber-attacks and malware to obtain unauthorised access to computer networks for financial gain or personal data, threatening businesses and public resources. The Cyber Security Software Development industry has rapidly gained prominence as cyber threats continue to evolve in complexity and volume. The government's cybercrime statistics reveal that in 2023, UK businesses faced approximately 7.8 million cybercrimes, pushing organisations to ramp up their cyber defences. High-profile cyber breaches have sped up investment in intrusion prevention systems and given a boost to innovation-led cyber start-ups pioneering a new era of security software. The influx of public funding, like the £2.6 billion National Cyber Security Strategy (NCSS) 2022-2025, has supported sustained growth and development in an increasingly vulnerable digital landscape. Over the five years through 2024-25, cyber security software developers' revenue is set to climb at a compound annual rate of 7.3% to reach £1.2 billion. Revenue is anticipated to swell by 8.9% in 2024-25 as demand for cyber security continues to soar. A recurring revenue model has supported profit, although it's been held back by high wage costs and considerable investment in R&D. As malware becomes more and more complex, spending on defence software will continue to swell. Over the five years through 2029-30, revenue is forecast to grow at a compound annual rate of 8.7% to reach £1.9 billion. The government's ongoing NCSS will continue to facilitate UK cyber security initiatives, helping to close the current skills gap in the cyber market. New data protection laws, which come with hefty fines, will make businesses think twice about their cyber security solutions; they'll boost their spending on new IT defence software to ensure they don't break the rules. However, the long-term success of next-generation cyber start-ups depends on their ability to attract equity investment.

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Cyber Security Market Size 2025-2029

The cyber security market size is forecast to increase by USD 164 billion, at a CAGR of 12.5% between 2024 and 2029.

The market is witnessing significant growth, driven by the increasing use of mobile devices and the adoption of the Internet of Things (IoT) technology. These trends are expanding the attack surface for cybercriminals, necessitating robust security solutions. However, the high cost of deployment remains a formidable challenge for market growth. Despite this, opportunities abound for companies specializing in advanced threat protection, network security, and endpoint security. As the digital landscape evolves, organizations must invest in cybersecurity to safeguard their critical assets and maintain customer trust.
The integration of artificial intelligence and machine learning into cybersecurity solutions is a promising development, offering enhanced threat detection and response capabilities. Companies focusing on these innovative technologies are well-positioned to capitalize on the market's potential and navigate the challenges effectively.

What will be the Size of the Cyber Security Market during the forecast period?

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The cybersecurity market continues to evolve, with dynamic market activities shaping the industry's landscape. Artificial intelligence (AI) is increasingly integrated into security solutions, enhancing threat detection and response capabilities. Security awareness training remains a crucial component, mitigating risks from social engineering attacks. Secure web gateways safeguard against web-based threats, while red teaming simulates attacks to identify vulnerabilities. Security operations and monitoring provide real-time threat intelligence, enabling swift response to zero-day exploits and data breaches. Threat modeling and risk assessment are essential for proactive security strategies, addressing potential vulnerabilities in applications and infrastructure. Supply chain attacks pose significant risks, necessitating robust security measures throughout the supply chain.

Log analysis and security auditing are crucial for maintaining regulatory compliance and ensuring the integrity of data. Cybersecurity insurance and cloud security are growing areas of focus, with organizations seeking to mitigate risks in the cloud environment. Endpoint security and machine learning are integral to securing the perimeter and detecting advanced threats. Security orchestration streamlines security operations, enabling efficient response to threats. Network security and vulnerability management are ongoing priorities, with the threat landscape continually evolving. Anomaly detection and behavioral analytics offer valuable insights into potential threats, complementing traditional security measures. Denial-of-service (DoS) attacks and biometric authentication are among the various challenges shaping the cybersecurity market.

Threat intelligence and security automation are essential tools for staying ahead of emerging threats. The cybersecurity landscape is ever-changing, requiring continuous adaptation and innovation.

How is this Cyber Security Industry segmented?

The cyber security industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Government
  BFSI
  ICT
  Manufacturing
  Others


Deployment

  On-premises
  Cloud-based


Product

  Solution
  Services


Sector

  Large enterprises
  SMEs


Type

  Cloud
  End-point and IOT
  Network
  Application


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan


  South America

    Brazil


  Middle East and Africe 

    UAE


  Rest of World (ROW)

.

By End-user Insights

The government segment is estimated to witness significant growth during the forecast period.

The market encompasses various solutions and services, including penetration testing, password management, wireless security, incident response, serverless security, zero trust, multi-factor authentication, secure coding practices, anomaly detection, behavioral analytics, network security, vulnerability management, security analytics, and more. In 2024, the government sector holds the largest market share, driven by the surge in security installations in developed and developing countries, as well as the significant contributions from homeland security and defense sectors. The increasing need for data security and confidentiality further propels market growth.

Notably, many governments worldwide have dedicated cybe

Cyber Security Market Outlook

The global Cyber Security market size was valued at approximately USD 202 billion in 2023 and is expected to reach a staggering USD 424 billion by 2032, with a compound annual growth rate (CAGR) of approximately 8.6% from 2024 to 2032. This remarkable growth trajectory is primarily driven by the increasing digitization across sectors, which has led to a surge in cyber threats, thereby necessitating robust cyber security measures. The rapid increase in sophisticated cyber attacks, combined with the advent of new technologies like IoT and cloud computing, has put tremendous pressure on organizations to enhance their security infrastructure, thus propelling the market growth.

One of the significant growth factors for the cyber security market is the increasing adoption of cloud-based solutions. As more businesses move towards cloud computing for its scalability and cost-effectiveness, the need for advanced security solutions becomes paramount. Cloud security has emerged as a critical requirement to protect sensitive data from breaches and unauthorized access. Additionally, the rise in the number of connected devices through IoT has expanded the attack surface, compelling organizations to invest in advanced security solutions. Furthermore, governments and regulatory bodies worldwide are implementing stringent regulations and data protection laws, driving organizations to comply and invest in comprehensive cyber security measures.

Another crucial factor contributing to the market's growth is the rising awareness of the potential financial and reputational damage caused by cyber breaches. Companies are increasingly recognizing the importance of safeguarding their digital assets and customer data. This awareness has led to increased expenditure on cyber security solutions and services, as businesses seek to build a more resilient IT infrastructure. Moreover, advancements in technologies such as artificial intelligence (AI) and machine learning (ML) are fostering the development of sophisticated security solutions capable of predicting and mitigating cyber threats in real-time, further fueling market expansion.

Technological advancements and innovations in the field of cyber security, including the development of next-generation firewalls, intrusion detection systems, and advanced threat intelligence solutions, are also playing a vital role in driving the market forward. With the increasing complexity of cyber-attacks, traditional security measures are no longer sufficient. Organizations are looking for innovative solutions that can offer a multi-layered defense mechanism. Furthermore, the integration of blockchain technology in cyber security is gaining traction, providing a secure and transparent way to safeguard data, which is likely to contribute to market growth in the coming years.

In the realm of Enterprise Cyber Security, organizations are increasingly prioritizing the protection of their digital assets and sensitive information. As businesses expand their digital footprints, the complexity and scale of cyber threats have grown exponentially. This has led enterprises to adopt a multi-layered security approach, integrating advanced technologies such as AI and machine learning to detect and respond to threats in real-time. Furthermore, enterprises are investing in comprehensive security frameworks that encompass network security, endpoint protection, and data encryption to safeguard their operations. The focus on enterprise cyber security is not only about preventing breaches but also about ensuring business continuity and maintaining customer trust in an increasingly interconnected world.

Regionally, North America currently holds the largest share of the cyber security market, driven by the presence of a large number of key players and the early adoption of advanced technologies. However, the Asia Pacific region is expected to witness the highest growth rate during the forecast period. The rapid digital transformation, coupled with increasing cyber threats in countries like India and China, is driving the demand for robust security solutions in this region. Governments in the region are also actively investing in cyber security infrastructure, further propelling market growth. Europe is also a significant market for cyber security solutions, with stringent data protection regulations like GDPR pushing organizations to enhance their security measures.

Component Analysis

The cyber security market can b

Industrial Cybersecurity Market size was valued at USD 29,404.76 Million in 2024 and is projected to reach USD 38083.3 Million by 2032, growing at a CAGR of 4.89% from 2026 to 2032.The threat landscape in the Industrial Cybersecurity Market has evolved dramatically as industrial systems have become more digital and connected. Furthermore, the Industrial Cybersecurity Market is being fueled primarily by the growing use of Internet of Things (IoT) solutions in industrial control systems and cloud security applications. The increased adoption of emerging technologies such as 5G networks, big data, and artificial intelligence (AI) across industries will further help to drive market expansion. Increased need for advanced solutions such as firewalls, antivirus, intrusion detection systems (IDS), and others will help to drive up demand for cybersecurity solutions across industries. Furthermore, increased investment by major actors in developing and implementing advanced industrial cybersecurity solutions, as well as an increase in cyber threats, are expected to drive the Industrial Cybersecurity Market growth. Broadcom Inc., CyberArk Software Ltd., Schneider Electric SE., and others have made significant investments in developing advanced and innovative solutions for industries.