Cybersecurity Spending Set to Reach US$287.6 Billion by 2029

The global cybersecurity market is projected to grow at a compound annual growth rate (CAGR) of 11.6% from 2024 to 2029, reaching US$287.6 billion in revenue, says Futurum Group. The increase is driven by the rising complexity of cyberthreats and the need for businesses to invest in a broad range of technological solutions.

“As cybersecurity becomes a more strategic concern, organizations of all sizes are appreciating the simple fact that spending in all these areas needs to increase, especially as the size of the overall attack surface that needs to be defended continues to expand,” says Fernando Montenegro, Vice President and Practice Lead for Cybersecurity, Futurum Group, to Security Boulevard.

The rise in cybersecurity spending is a direct response to the growing and increasingly sophisticated nature of cyberthreats. As organizations become more aware of the vulnerabilities in their infrastructure, they are allocating more resources across various cybersecurity segments to mitigate risks and protect critical data. The forecasted growth reflects not only the increased frequency and severity of attacks but also the broadening range of technological solutions required to secure sensitive information.

The Cybersecurity Market Sizing and Forecast Report and the 1H25 Cybersecurity Decision Maker Survey reports outline the fastest-growing cybersecurity segments, with cloud security being the largest and most dominant sector. During 2024 cloud security was valued at US$37.1 billion, which accounts for 22% of the total cybersecurity market share. By 2029, the segment is expected to grow to US$55.8 billion, reflecting a 15.2% CAGR. 

Integrated risk management/security operations is another rapidly expanding segment, expected to grow from US$15.3 billion in 2024 to US$33.64 billion by 2029, at a CAGR of 17%. Similarly, identity and access management (IAM) will see growth from US$16.63 billion in 2024 to US$35.66 billion by 2029, representing a 16.5% CAGR.

Other notable sectors include application security, which will grow from US$8.6 billion in 2024 to US$16.68 billion by 2029 (a 14.2% CAGR), and data security, which is forecasted to increase from US$23.5 billion in 2024 to US$42.85 billion by 2029, reflecting a CAGR of 12.8%. 

While these segments are experiencing robust growth, some areas are expanding at slower rates. The network security market, valued at US$27.9 billion in 2024, is expected to grow to US$43.71 billion by 2029, with a 9.4% CAGR. Endpoint security, similarly, will grow from US$22.8 billion in 2024 to US$33.64 billion by 2029, reflecting an 8.1% CAGR.

The shift towards cloud-based cybersecurity platforms is one of the key drivers of growth, particularly as organizations seek to gain efficiencies. Cloud-based platforms are expected to see a significant increase in investment, rising from US$89.4 billion in 2024 to US$181.78 billion by 2029. This surge is attributed to the potential for resource consolidation and cost optimization while maintaining robust security measures.

Cybersecurity spending varies significantly across sectors. The financial services industry leads the way, with an estimated US$42.9 billion allocated to cybersecurity in 2024. The IT and telecommunications sectors are projected to spend US$35.9 billion, while healthcare, defense, and government will see investments of US$21.2 billion and US$23.1 billion, respectively, reads the report. Manufacturing, retail, and energy/utilities sectors will also allocate substantial budgets, with expected cybersecurity spending of US$14.3 billion, US$9.6 billion, and US$8.8 billion, respectively.

As organizations grapple with expanding attack surfaces and growing risks, optimizing resource allocation has become a priority. According to Montenegro, cybersecurity teams are focused on balancing risk management strategies to maximize ROI. “Via prudent stewardship of resources, some organizations may even be able to reduce costs because of consolidation efforts,” says Montenegro.