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.

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.

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.

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.

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.

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.

A 2023 survey revealed that 89 percent of board members of companies active in business and professional services worldwide expect an increase in cybersecurity budget in the following 12 months. A similar share of board members of media, leisure, and entertainment companies also reported anticipating a budget increase. Among other sectors expecting an increase in cybersecurity spending were healthcare and energy, with 85 percent of board members confirming it.

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.

The Vietnamese cybersecurity market, exhibiting a robust Compound Annual Growth Rate (CAGR) of 16.80%, is poised for significant expansion between 2025 and 2033. Driven by increasing digitalization across sectors like BFSI (Banking, Financial Services, and Insurance), healthcare, manufacturing, and government, the demand for sophisticated cybersecurity solutions is surging. The market's growth is fueled by the rising adoption of cloud-based security services, a trend reflecting the increasing reliance on remote work and digital transactions. Furthermore, escalating cyber threats, including sophisticated ransomware attacks and data breaches, are compelling organizations to invest heavily in robust security measures, both on-premise and in the cloud. Key players like IBM Vietnam, Amazon Web Services Vietnam, Viettel Cyber Security, and FPT Corporation are actively shaping the market landscape, offering a range of security solutions and services tailored to diverse organizational needs. The market segmentation reveals a strong preference for cloud deployment, highlighting the convenience and scalability offered by cloud-based security. While the exact current market size isn't provided, based on the 16.8% CAGR and the forecast period, substantial growth is predicted, impacting the overall market value. The on-premise segment, though experiencing growth, is likely to witness slower expansion compared to cloud-based solutions due to the higher initial investment and ongoing maintenance costs. The BFSI sector currently leads in cybersecurity spending due to stringent regulatory compliance requirements and the sensitivity of financial data. However, other sectors such as healthcare and government are rapidly catching up, driven by increased awareness of data privacy and security threats. Growth constraints might include the digital literacy gap and a shortage of skilled cybersecurity professionals within Vietnam. Addressing these limitations through comprehensive training programs and fostering collaboration within the industry will be crucial for sustaining the market's impressive growth trajectory. This robust growth necessitates a proactive approach by businesses in navigating the evolving threat landscape and investing strategically in robust security frameworks to protect their valuable assets. Recent developments include: August 2022 - Kasikornbank (KBank) of Thailand is pushing ahead with intentions to become a regional digital bank with an expansion drive in Vietnam. KBank intends to invest more than 2.7 billion baht (about USD 75 million) in strengthening its service network throughout AEC+3 (ASEAN plus Japan, China, and the Republic of Korea) to serve clients across all sectors with digital services., July 2022 - Amazon Web Services (AWS) is expanding in Vietnam by encouraging more customers to keep their data on its offshore-located cloud. However, the Vietnamese government is also pressuring domestic enterprises to keep their data in the country for security reasons. Amazon has attempted to expand its footprint in Vietnam to secure national data center customers. In 2021, the firm revealed AWS branches in Vietnam and launched its global IT training program.. Key drivers for this market are: Increasing Demand for Digitalization and Scalable IT Infrastructure, Growing IoT Connections Demanding Strengthened Cybersecurity in Enterprises. Potential restraints include: Lack of Cybersecurity Professionals and Outdated Cybersecurity Technology. Notable trends are: Increasing Demand for Digitalization and Scalable IT Infrastructure.

The Chilean cybersecurity market, exhibiting a robust Compound Annual Growth Rate (CAGR) of 9.80%, presents a compelling investment opportunity. While precise market sizing data for 2025 isn't provided, extrapolating from the available information and considering the global cybersecurity market trends, a reasonable estimate for the 2025 market value in Chile could be around $150 million USD. This growth is driven by increasing digitalization across sectors like BFSI (Banking, Financial Services, and Insurance), Healthcare, and Government, necessitating robust cybersecurity infrastructure to mitigate rising cyber threats. The adoption of cloud-based security solutions is a significant trend, offering scalability and cost-effectiveness compared to on-premise deployments. However, limitations such as a shortage of skilled cybersecurity professionals and the relatively nascent stage of cybersecurity awareness among some businesses act as restraints. The market is segmented by offering (security type and services), deployment (cloud and on-premise), and end-user (BFSI, Healthcare, Manufacturing, Government & Defense, IT & Telecommunications, and Others). Major players like Leonardo, AVG Technologies, Check Point Software, Cisco, and others are competing in this expanding market, offering a diverse range of security solutions catering to the specific needs of different sectors. The forecast period from 2025 to 2033 is anticipated to witness significant growth, driven by increasing government regulations around data protection and privacy, growing adoption of IoT devices, and the escalating sophistication of cyberattacks. The BFSI sector is expected to remain a key driver due to its reliance on sensitive financial data. The Healthcare sector is also experiencing rapid growth in cybersecurity spending due to increasing regulations concerning patient data privacy. The government and defense sector is also expected to contribute substantially due to the need for critical infrastructure protection. Continued investment in advanced security technologies like AI-driven threat detection and response systems will shape the market landscape. The competitive landscape will likely see increased consolidation as companies strive to offer comprehensive security solutions. Recent developments include: February 2022 - Cisco and Rakuten signed an agreement to accelerate the open RAN and telco cloud market. The deal will offer solutions allowing mobile operators to compete more effectively in the cloud era., August 2022 - Radware launched a cloud security center in Santiago, Chile. This facility will enable customers in Argentina, Chile, Peru, and Uruguay to strengthen their cyber defenses, secure their web and mobile applications and APIs with minimal latency, and meet data localization requirements. The launch is a part of Radware's cloud services initiative to design and accelerate cloud innovation to provide customers with the highest level of cyber security services.. Key drivers for this market are: Increasing Demand for Digitalization and Scalable IT Infrastructure, Need to Tackle Risks from Various Trends such as Third-party Vendor Risks, Evolution of MSSPs, and the Adoption of Cloud-first Strategy. Potential restraints include: Increasing Demand for Digitalization and Scalable IT Infrastructure, Need to Tackle Risks from Various Trends such as Third-party Vendor Risks, Evolution of MSSPs, and the Adoption of Cloud-first Strategy. Notable trends are: Cloud Deployment Strengthened Cyber Security Market Growth.

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

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

The estimated total revenue of the cyber security sector in the United Kingdom in 2023 was 11.86 billion British pounds. This was the largest revenue within the period highlighted, representing a value more than twice as high as the one recorded in 2017. Cybersecurity remains in-demandWith the world having to digitalize more than ever, a trend that started with the COVID-19 pandemic, demand for cybersecurity remains high. In 2024, the total spending on cybersecurity is expected to reach 87 billion U.S. dollars, the largest amount recorded in the period under review. Highest growth expected for cloud security sectorGlobally, the information security technology market is set for rapid growth and is forecasted to hit 300 billion dollars by 2030, as spending on cybersecurity products and services grows. Services that fall under this category include data protection, prevention of unauthorized access to systems, and efforts to reduce negative impact in the event of a breach. While the highest global spend in IT security has been in the area of security services, in a 2024 forecast cloud security was named the sector expected to see the highest rate of growth within the year, at roughly 25 percent. This took into account the COVID-19 pandemic and includes policies, applications and technologies specifically implemented to protect cloud-based computing and its infrastructure.

The global IT security spending in the government sector is experiencing robust growth, driven by escalating cyber threats and the increasing reliance on digital infrastructure within governmental operations. The market, estimated at $XX billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of XX% from 2025 to 2033, reaching a significant market value. This expansion is fueled by several key factors. Firstly, governments worldwide are prioritizing cybersecurity investments to protect critical national infrastructure, sensitive data, and citizen information from sophisticated cyberattacks. Secondly, the increasing adoption of cloud computing and the Internet of Things (IoT) within government agencies expands the attack surface, necessitating enhanced security measures. Thirdly, stringent data privacy regulations and compliance mandates are driving the demand for advanced security solutions, such as data loss prevention (DLP) and encryption technologies. Furthermore, the ongoing geopolitical instability and rise in state-sponsored cyberattacks are compelling governments to bolster their cybersecurity defenses. The market segmentation reveals considerable opportunity across various technologies and applications. The "Type" segment likely includes solutions like network security, endpoint security, cloud security, and security information and event management (SIEM). The "Application" segment might cover areas such as defense, public safety, healthcare, and administrative services. While North America currently holds a significant market share due to advanced technology adoption and high cybersecurity awareness, regions like Asia-Pacific are witnessing rapid growth, driven by increasing government digitalization initiatives and economic expansion. Leading vendors like Check Point Software, Cisco, Fortinet, Juniper Networks, and Symantec are actively competing to capture market share by providing innovative security solutions tailored to government requirements. However, budgetary constraints, legacy systems, and a shortage of skilled cybersecurity professionals pose challenges to market expansion. Nevertheless, the long-term outlook remains positive, projecting continued substantial growth throughout the forecast period.

SMB IT Spending Market Outlook

As of 2023, the global SMB IT spending market size is estimated to be around $650 billion, with this figure anticipated to reach approximately $1,200 billion by 2032, reflecting a compound annual growth rate (CAGR) of 6.5%. This significant expansion is propelled by various factors, including technological advancements, an increased focus on digital transformation, and the escalating need for enhanced cybersecurity measures among small and medium businesses (SMBs).

One of the primary growth factors driving the SMB IT spending market is the ongoing digital transformation across various industries. As SMBs strive to remain competitive, they are increasingly adopting advanced IT solutions to streamline operations, enhance customer experience, and drive growth. Cloud computing, artificial intelligence, and big data analytics are among the technologies gaining traction, enabling SMBs to leverage data-driven decision-making and optimize their workflows. Additionally, the COVID-19 pandemic accelerated the adoption of remote work solutions, prompting SMBs to invest in robust IT infrastructure and collaboration tools to maintain business continuity.

Another critical driver of growth within the SMB IT spending market is the rising demand for cybersecurity solutions. With cyber threats becoming more sophisticated and frequent, SMBs are recognizing the importance of safeguarding their digital assets and sensitive information. Investments in cybersecurity measures such as firewalls, intrusion detection systems, and endpoint protection have surged, aiming to mitigate risks and ensure compliance with data protection regulations. This heightened focus on cybersecurity is further bolstered by the increasing number of cyberattacks targeting SMBs, making it a top priority for IT spending.

The proliferation of cloud-based services is also a significant growth catalyst for the SMB IT spending market. Cloud technology offers numerous advantages, including cost efficiency, scalability, and flexibility, making it an attractive option for SMBs with limited resources. By migrating to cloud-based solutions, SMBs can reduce their capital expenditure on IT infrastructure, access cutting-edge technologies, and benefit from improved disaster recovery capabilities. Moreover, the subscription-based model of cloud services allows SMBs to align their IT spending with operational needs, thereby optimizing budget allocations and achieving greater financial predictability.

Regionally, North America holds a dominant position in the SMB IT spending market, driven by a high concentration of tech-savvy SMBs and robust IT infrastructure. The presence of leading technology vendors and a favorable business environment further contribute to the region's market leadership. However, the Asia Pacific region is expected to exhibit the highest growth rate during the forecast period, fueled by rapid economic development, increasing internet penetration, and government initiatives promoting digitalization. Emerging markets in Latin America, Europe, and the Middle East & Africa are also witnessing significant growth, as SMBs in these regions adopt IT solutions to enhance their competitive edge and expand their market reach.

Component Analysis

The SMB IT spending market can be segmented by component into hardware, software, and services. The hardware segment encompasses physical IT infrastructure such as servers, storage devices, networking equipment, and personal computing devices. Despite the increasing shift towards software and cloud-based solutions, hardware remains a critical component of IT spending for SMBs. The need for reliable and high-performance hardware infrastructure to support business operations and enable digital transformation continues to drive investments in this segment. Furthermore, advancements in hardware technology, such as the adoption of edge computing and IoT devices, are expected to fuel growth in this segment.

The software segment includes various types of software applications and platforms utilized by SMBs, ranging from enterprise resource planning (ERP) systems and customer relationship management (CRM) software to cybersecurity solutions and data analytics tools. With the growing emphasis on digital transformation, SMBs are increasingly investing in software solutions that enhance operational efficiency, improve customer engagement, and provide actionable insights. The migration to cloud-based software-as-a-service (SaaS) platforms is particularly notable, as it offers SMBs the flexibility to scale their IT resources according to business needs

The global Critical National Infrastructure (CNI) cybersecurity market is experiencing robust growth, driven by escalating cyber threats targeting essential services like energy, transportation, and healthcare. The increasing reliance on interconnected digital systems within these sectors creates a vast attack surface, making robust cybersecurity measures paramount. Government regulations mandating enhanced security protocols, coupled with rising awareness of potential disruptions and financial losses from cyberattacks, are significant market drivers. While precise market sizing data is unavailable, a logical estimation based on the prevalence of cybersecurity spending across related sectors and projected CAGR suggests a market valuation exceeding $50 billion in 2025, exhibiting a compound annual growth rate (CAGR) of approximately 15% over the forecast period (2025-2033). This growth is further fueled by advancements in threat intelligence, AI-powered security solutions, and the increasing adoption of cloud-based security infrastructures. Key players like Accenture, Cisco, and IBM are actively shaping this landscape through strategic partnerships, acquisitions, and continuous innovation in security technologies. Despite this growth, challenges persist. The complexity of CNI systems, legacy infrastructure limitations, and the persistent shortage of skilled cybersecurity professionals pose significant restraints. The market is segmented by solution type (e.g., network security, endpoint security, cloud security), service type (e.g., managed security services, consulting), and vertical (e.g., energy, transportation). Future growth will hinge on the successful integration of advanced technologies like blockchain for enhanced data security, the development of more robust incident response capabilities, and collaborative efforts between public and private sectors to bolster collective defense against sophisticated cyber threats. The forecast period (2025-2033) promises sustained expansion, with a projected market value significantly surpassing $200 billion by 2033, driven by continued technological advancements and heightened regulatory scrutiny.

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

The ASEAN cybersecurity market, characterized by a robust Compound Annual Growth Rate (CAGR) of 18.50%, presents a significant growth opportunity. Driven by increasing digitalization, rising cyber threats targeting critical infrastructure and businesses, and stringent government regulations aimed at data protection and privacy (like the PDPA in Singapore and similar initiatives in other ASEAN countries), the market is experiencing rapid expansion. The demand for comprehensive cybersecurity solutions across various sectors is fueling this growth. Key segments, such as cloud security, data security, and identity access management, are witnessing particularly strong adoption. The increasing prevalence of sophisticated cyberattacks, including ransomware and phishing campaigns, is pushing organizations to invest heavily in advanced security technologies and services, driving demand for both on-premise and cloud-based solutions. Furthermore, the expanding adoption of IoT devices and the rise of big data are contributing to the complexity of the cybersecurity landscape, further boosting market growth. While the lack of cybersecurity awareness and skilled professionals in some areas presents a challenge, substantial investments in cybersecurity education and training programs are mitigating this constraint. The regional distribution of the market within ASEAN shows varying levels of maturity and adoption across countries. Singapore, Malaysia, and Thailand are currently leading the market in terms of investment and technological advancement. However, significant growth potential exists in other ASEAN nations as digital transformation initiatives accelerate. The presence of established multinational corporations alongside local players fosters competition and innovation. This competitive landscape ensures a diverse range of solutions and services to meet the specific needs of different organizations. The future trajectory of the ASEAN cybersecurity market remains positive, with projections indicating continued robust growth driven by the factors mentioned above. Specific sectors like BFSI (Banking, Financial Services, and Insurance) and Healthcare, given their sensitive data, are expected to witness particularly high spending on cybersecurity measures. Recent developments include: March 2022 - Thailand's dtac launched new Cloud-based Cyber Security Service, for dtac subscribers that provides security against increasingly widespread cyber threats in the booming digital era. It offers cloud-based security against a wide range of cyber threats, including malware, viruses, phishing, ransomware, botnets, and command & control attacks on compromised servers., February 2022 - Singapore's Quantum Engineering Programme (QEP) started conducting nationwide trials of quantum-safe communication technologies that promise robust network security for critical infrastructure and companies handling sensitive data. The project is supported by Singapore National Research Foundation (NRF), and has over 15 private and government collaborators on board.. Key drivers for this market are: Increasing Demand for Digitalization and Scalable IT Infrastructure, Need to tackle risks from various trends such as third-party vendor risks, the evolution of MSSPs, and adoption of cloud-first strategy. Potential restraints include: Increasing Demand for Digitalization and Scalable IT Infrastructure, Need to tackle risks from various trends such as third-party vendor risks, the evolution of MSSPs, and adoption of cloud-first strategy. Notable trends are: Cloud Expected to Witness Significant Market Share.