Global spending on cybersecurity is expected to grow by 12.2% by 2025, according to the latest IDC Worldwide Security Spending Guide. This increase is driven by the rising threat of cyberattacks, which compels organizations to invest more in protection. The advancement of Artificial Intelligence (AI)-based tools has sophisticated cyber threats, heightening the need to invest in defense measures. IDC notes that this growth in spending will continue through 2028, reaching $377 billion in that year.
Regions on the Rise
The United States and Western Europe will continue to account for more than 70% of global cybersecurity spending in 2025. However, regions such as Latin America, Central and Eastern Europe, and the Middle East and Africa are showing strong growth. This surge is particularly notable in the Middle East and Africa (MEA), where digital transformation and the adoption of emerging technologies are driving demand for security solutions to address the evolving threat landscape.
Eman Elshewy, senior research manager at IDC Data and Analytics, mentioned that the increasing adoption of technology in Gulf Cooperation Council (GCC) countries has created strong demand for security solutions, with significant government and private investments aimed at mitigating cyber threats.
Sectors with the Highest Cybersecurity Spending
The security software market will be the largest segment in 2025, accounting for more than half of the global market. Additionally, it will experience the highest growth, with an annual increase of 14.4%. This growth will be driven by the demand for cloud-native application protection platforms (CNAPP), identity and access management, and security analytics software, reflecting the growing focus on detecting and responding to cyber threats across organizations.
Security services will also experience strong growth, particularly managed services, as companies of all sizes continue to adopt these solutions as a flexible and efficient way to face new security challenges. On the other hand, security hardware will also see steady growth, though to a lesser extent.
Cybersecurity Investment by Sector
The industries projected to invest the most in cybersecurity globally by 2025 include banking, government, telecommunications, capital markets, and healthcare. However, the sectors expected to experience the highest growth in their security investments will be capital markets, media and entertainment, and life sciences, with expected annual growth rates of 19.4%, 17.1%, and 16.9%, respectively.
Cybersecurity in SMEs
While large enterprises dominate cybersecurity spending, small and medium enterprises (SMEs) are increasing their security investments to address protection gaps as they progress in their digital transformation.
Adam Casey, security director at Qodea, emphasized that the increase in cybersecurity investment is encouraging, especially among SMEs. “Historically, SMEs have been easy targets for cybercriminals due to their limited cybersecurity resources,” Casey said. However, with the acceleration of digitization during and after the pandemic, many of these businesses still lack the resources and expertise needed to adequately address the security implications stemming from this transformation.
A Continuing Challenge for SMEs
Although many SMEs are investing more in security, Casey warns that simply adding new technologies does not always translate into greater protection. Instead of just adding technological tools, businesses need to consider people and processes as integral parts of their cybersecurity strategy.
The expert noted that an approach that merely adds more technology can lead to alert fatigue, overlapping capabilities, and difficulties in making data-driven decisions, ultimately increasing costs and affecting efficiency in responding to security incidents.
Conclusion: The Future of Cybersecurity
As cyber threats become more complex and frequent, organizations are significantly increasing their investment in cybersecurity. Large enterprises will continue to lead spending, but SMEs are also recognizing the need to protect their digital assets in an increasingly digital world.
The increase in cybersecurity spending in 2025 reflects growing concerns about digital security, but as Adam Casey pointed out, more investment does not always guarantee greater protection. Companies must integrate technologies, processes, and staff training to effectively close security gaps. This comprehensive approach will be key to addressing the challenges of an increasingly perilous digital landscape.
via: Security News