Cybersecurity Market Size: Spending Surges Toward $300B by 2028
Global cybersecurity spending is accelerating as boards prioritize risk, regulators tighten rules, and attackers wield AI. New forecasts point to a market nearing $300 billion within five years, with cloud, identity, endpoint, and SASE leading the charge.
A market defined by scale—and speed
In the Cyber Security sector, Global demand for cyber defense has entered a new phase of scale and urgency. The cybersecurity market is projected to grow from roughly $190 billion in 2023 to nearly $300 billion by 2028, driven by persistent ransomware, cloud adoption, and AI-enabled threats, according to industry analysts at MarketsandMarkets. That implies a high single‑digit compound annual growth rate—well above many broader IT categories—as security remains one of the few non‑discretionary line items in technology budgets.
While methodologies differ, multiple datasets point in the same direction: up. Information security technology and services are set to top the $200 billion mark in 2024, with the long‑term trajectory remaining positive through the second half of the decade, based on data from analysts. These totals capture a widening perimeter that now spans cloud, SaaS, operational technology (OT), connected devices, and data security posture management.
The investment intensity reflects a structural shift. Organizations are moving from point solutions to integrated platforms and managed services in search of faster time‑to‑value and lower operating complexity. That transition is reshaping vendor lineups and elevating providers that can secure identities, endpoints, networks, and cloud workloads under a unified architecture.
Breach economics and regulation are setting the pace
Security spending is increasingly justified by hard economics. The average cost of a data breach rose again in 2024 to nearly $4.9 million globally, with detection, escalation, and post‑incident recovery driving the bulk of expenses, according to IBM’s 2024 Cost of a Data Breach Report. For many boards, the expected value of prevention now outweighs the downside risk of disruption, fines, and reputational damage.
Policy is amplifying that urgency. In the U.S., publicly listed companies face stricter reporting obligations under new SEC cybersecurity disclosure rules, which require timely disclosure of material incidents and expanded transparency around risk management, strategy, and governance. The compliance mandate is accelerating investment in governance, risk, and compliance (GRC) tooling, incident response, and third‑party risk platforms—especially in sectors with complex supply chains.
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