Spending on information security worldwide is projected to increase by 15.1% in 2025, reaching an extraordinary total of $212 billion. This surge can be attributed to a persistently high-threat landscape, the widespread transition to cloud services, and a noticeable shortage of skilled cybersecurity professionals. Security services including consulting and managed services are expected to witness the highest growth rate of 15.6%. This trend stems from an intensifying skills gap, compelling organizations to seek external expertise. As the demand for security software and network security remains robust, spending on these critical areas is set to rise by 15.1% and 13.1%, respectively.
Factors Driving the Surge in Security Spending
High-Threat Landscape and Skills Shortage
The increase in global security spending is primarily driven by an ever-evolving threat landscape marked by increasingly sophisticated cyber-attacks. Companies worldwide are grappling with a high density of threats, which calls for intensified investment in robust security measures. Furthermore, the cybersecurity skills gap has created a significant challenge, prompting organizations to rely on external security services such as consulting and managed services. This gap is a major driving force behind the substantial growth in spending, as firms are increasingly outsourcing their security needs to mitigate risks and ensure continuous protection.
The shortage of skilled cybersecurity professionals is a major concern that exacerbates the issue. The rapid pace of technological advancements often outstrips the ability of existing personnel to keep up. As a result, organizations are compelled to turn to external providers to bridge this expertise gap. By leveraging external expertise, firms can ensure they have access to the latest security innovations and best practices. As the skills gap continues to widen, the demand for specialized consulting services and managed security services will only intensify, reflecting the projected 15.6% increase in spending on security services.
Transition to Cloud Services
Another significant driver of the increase in security spending is the mass migration to cloud services. Organizations worldwide are adopting cloud technologies to enhance flexibility, scalability, and efficiency. However, this transition brings with it unique security challenges that necessitate specialized solutions. As businesses move more critical workloads and sensitive data to the cloud, the need for advanced cloud security measures becomes paramount. This trend is evidenced by the increasing demand for cloud access security brokers (CASB) and cloud workload protection platforms (CWPP).
The market for CASB and CWPP is expected to grow substantially, from $6.7 billion in 2024 to $8.7 billion in 2025. This growth reflects the escalating need to secure cloud infrastructure against a backdrop of increasing cyber threats. Organizations are investing heavily in cloud security to safeguard their data and maintain regulatory compliance. As the adoption of cloud services continues to rise, the investment in specialized cloud security solutions will become increasingly critical, further driving the overall increase in security spending.
The Role of Generative AI in Cybersecurity
Enabling Both Defense and Offense
Generative AI (GenAI) is anticipated to play a dual role in the cybersecurity landscape, both enhancing defense mechanisms and enabling new forms of attacks. On one hand, GenAI is set to boost investments in cybersecurity software, providing organizations with advanced tools to detect and mitigate threats proactively. These AI-driven solutions offer unprecedented capabilities in terms of analyzing vast amounts of data, identifying patterns, and predicting potential security breaches before they occur. This proactive approach is crucial in an era where cyber threats are becoming increasingly sophisticated and complex.
Conversely, GenAI also poses a significant threat as it empowers malicious actors to conduct large-scale social engineering attacks. These AI-driven attacks can be highly effective, leveraging sophisticated techniques to deceive victims and compromise systems. Gartner predicts that by 2027, 17% of all cyber-attacks will involve GenAI, underscoring the urgency for enhanced cybersecurity measures. As attackers become more adept at using AI to bypass traditional defenses, organizations must invest in advanced security solutions capable of countering these new threats. This dual role of GenAI highlights the need for continuous innovation in cybersecurity.
Investments in Cybersecurity Software
The advent of GenAI is expected to drive significant investments in cybersecurity software, as organizations seek to fortify their defenses against increasingly sophisticated attacks. AI-driven security solutions offer a level of precision and efficiency that is unmatched by traditional methods, making them a critical component of modern cybersecurity strategies. These solutions can automate the detection and response to threats, reduce the time needed to identify vulnerabilities, and enhance the overall resilience of an organization’s security posture.
The ability of GenAI to analyze and interpret vast datasets enables it to identify anomalies and potential threats with high accuracy. This capability is particularly valuable in the context of the growing volume and complexity of cyber-attacks. By investing in GenAI-driven cybersecurity solutions, organizations can stay ahead of potential threats and protect their critical assets more effectively. The projected increase in spending on security software by 15.1% reflects this growing recognition of AI’s importance in the cybersecurity domain.
Rising Cyber Vulnerabilities and the Imperative for Enhanced Measures
Increased Cyber Vulnerabilities
Supporting Gartner’s forecast, a separate report by Flashpoint, a cyber-threat intelligence firm, reveals a disturbing trend: an 11% rise in cyber vulnerabilities in the first half of 2024. More alarmingly, 45% of these vulnerabilities are classified as high or critical according to the Common Vulnerability Score System v3 (CVSSv3). This increase in vulnerabilities underscores the pressing need for organizations to adopt more rigorous security measures. The higher the number of vulnerabilities, the greater the risk of exploitation by malicious actors.
The report also highlights a significant uptick in info-stealing malware, with more than 13 million devices infected during the first half of 2024. This surge in malware infections further amplifies the urgency for enhanced cybersecurity solutions. Organizations must not only protect against known vulnerabilities but also anticipate and defend against emerging threats. The rising number of cyber vulnerabilities and malware infections reflects the dynamic nature of the threat landscape, necessitating continuous investment in advanced security technologies and practices.
Proactive Measures for Future Security
Global spending on information security is expected to soar by 15.1% in 2025, reaching an impressive $212 billion. This robust growth can be attributed to several key factors, including a continuous high-threat environment, the widespread adoption of cloud services, and a significant shortage of skilled cybersecurity professionals. Among the different sectors, security services—particularly consulting and managed services—are projected to experience the highest growth rate at 15.6%. This spike is driven by an escalating skills gap, pushing organizations to rely on external expertise. Additionally, with persistent strong demand for security software and network security, spending in these crucial areas is anticipated to rise by 15.1% and 13.1%, respectively. The transition to cloud technology has created new vulnerabilities, making it imperative for organizations to invest heavily in robust security measures. Coupled with the shortage of specialized talent, firms are increasingly turning to external experts to navigate these complex challenges.
