Cybersecurity Market Report 2025

The cybersecurity market size has grown rapidly in recent years. It will grow from $243.15 billion in 2024 to $267.51 billion in 2025 at a compound annual growth rate (CAGR) of 10%. The growth in the historic period can be attributed to the increasing number of cyber-attacks, strong economic growth in emerging markets, the emergence of start-ups, and the COVID-19 pandemic.

The cybersecurity market size is expected to see rapid growth in the next few years. It will grow to $434.76 billion in 2029 at a compound annual growth rate (CAGR) of 12.9%. The growth in the forecast period can be attributed to increasing internet penetration, the rising number of e-commerce platforms, the Internet of Things (IoT), and the need for authentication techniques. Major trends in the forecast period include leveraging, artificial intelligence (AI), machine learning, and blockchain technologies for cyber defense, focusing on cloud-based cybersecurity strategies, offering app-based 2fa used to help organizations become safer and less vulnerable to cyber-attacks, taking up ITIL/ISO certifications to align software services with business requirements and focusing on automation and integration to improve efficiency.

The escalating volume of cyber threats has given rise to an increased demand for cybersecurity solutions. Incidents of cyberattacks targeting individuals, businesses, and governmental organizations are on the rise, resulting in substantial financial losses. For instance, Infosecurity Magazine reported a staggering 108.9 million breached internet user accounts in the third quarter of 2022, reflecting a 70% increase from the previous quarter. Consequently, the heightened expenditure on cybersecurity solutions, driven by the growing threat landscape of cyberattacks, is anticipated to fuel revenue growth in the cybersecurity market throughout the forecast period.

The increasing number of internet users is anticipated to drive the growth of the cybersecurity market in the future. Internet users are defined as individuals who have access to the Internet at home via a computer or mobile device. Cybersecurity is crucial for all internet users, as it helps safeguard their personal information, financial data, and online accounts. For example, in March 2023, the National Center for Biotechnology Information, a U.S.-based government agency, reported that in 2022, approximately 5.2 billion people were active internet users, accounting for 66% of the global population, with Asia having the largest number of online users. Consequently, the rising number of internet users is a significant driver of growth in the cybersecurity market.

The cybersecurity industry is witnessing a significant trend characterized by an upsurge in government investments in cybersecurity solutions. As an illustration, in September 2022, the Department of Homeland Security (DHS) in the United States, a federal executive department responsible for public security, initiated a groundbreaking $1 billion investment for its inaugural cyber grant program tailored for state, local, and territorial governments nationwide. This funding aims to assist governments in addressing cybersecurity risks, including the identification of vulnerabilities, threat mitigation, and fortification of critical infrastructure. Consequently, the increasing global investments by governments are poised to open substantial avenues for expansion for cybersecurity market players in the coming years.

Leading companies in the cybersecurity market are directing their efforts towards the development of cutting-edge technologies, such as generative AI, to deliver reliable services to their clientele. Generative AI refers to artificial intelligence capable of creating new content, encompassing text, images, videos, audio, and 3D models. For instance, in August 2023, Tenable Inc., a cybersecurity company based in the United States, unveiled ExposureAI. This innovative offering is purposefully designed to integrate Tenable's exposure management platform with Large Language Model (LLM) capabilities. Leveraging generative AI, ExposureAI empowers security teams to swiftly and efficiently detect and mitigate cyber risks by transforming Tenable's extensive threat data into actionable intelligence. It provides security teams with insights into their overall cyber risk exposure based on artificial intelligence, enhancing their capabilities in risk management.

In October 2022, Vista Equity Partners, an American investment firm, agreed to acquire KnowBe4 for $4.6 billion. This acquisition provides KnowBe4, a US-based cybersecurity company, with additional resources and support from Vista to fuel its next phase of growth and development.

Major companies operating in the cybersecurity market include Palo Alto Networks, CrowdStrike, Fortinet, Check Point Software Technologies, Cisco Systems, IBM Security, FireEye, McAfee, Trend Micro, Symantec, Darktrace, Okta, Tenable, Rapid7, Proofpoint, CyberArk, SentinelOne, RSA Security, Splunk, Zscaler, Bitdefender, Sophos, F5 Networks, Qualys, Avast, Kaspersky Lab, Veracode, ESET, Imperva, Mimecast.

Asia-Pacific was the largest region in the cybersecurity market in 2024. North America was the second largest region in the global cybersecurity market. The regions covered in the cybersecurity market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cybersecurity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Cybersecurity involves the practice of safeguarding computer systems, networks, and data from digital attacks, theft, and harm. It is employed to maintain the confidentiality, integrity, and availability of information, protecting both individual and organizational assets. Implementing effective cybersecurity measures helps prevent unauthorized access and reduces the risks linked to cyber threats.

Key cybersecurity solutions include network security, cloud application security, end-point security, secure web gateway, internet security, and other related measures. Network security employs technologies to defend a company's infrastructure, maintaining its usability and integrity by thwarting potential threats from entering or spreading within a network. These solutions are deployed via cloud and on-premises modes and are utilized by small, medium, and large enterprises across various sectors such as BFSI, IT, telecommunications, retail, healthcare, government, manufacturing, travel, transportation, energy, utilities, among others.

The cybersecurity market research report is one of a series of new reports that provides cybersecurity market statistics, including cybersecurity industry global market size, regional shares, competitors with a cybersecurity market share, detailed cybersecurity market segments, market trends and opportunities, and any further data you may need to thrive in the cybersecurity industry. This cybersecurity market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The cybersecurity market includes revenues earned by entities by offering software for protecting the network, computers, mobile devices, hardware, electronic systems, and data from digital or malicious attacks. It is also known as electronic information security and information technology security. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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