Official 2026 Cybersecurity Market Report: Predictions And Statistics

The crucial to guard more and more digitized companies, governments, faculties, Web of Issues (IoT) gadgets, and industrial management methods (ICS), in addition to semiconductors, medical gadgets, gaming methods, vehicles, ships, planes, drones, trains, ATMs, and shoppers from cybercrime will propel international spending on cybersecurity services to $1 trillion (USD) yearly by 2031, in response to the “2026 Cybersecurity Market Report” from Cybersecurity Ventures in partnership with Evolution Fairness Companions.

“In 2004, the worldwide cybersecurity market was value simply $3.5 billion,” says Steve Morgan, founding father of Cybersecurity Ventures, “and now it’s one of many largest and fastest-growing sectors within the data economic system.”

KEY STATISTICS

Cybersecurity Ventures predicts that international spending on cybersecurity services will exceed $520 billion yearly (USD) by 2026, up from $260 billion in 2021.

AI is increasing a $2 trillion complete addressable market (TAM) for cybersecurity suppliers, in response to a 2024/2025 examine by McKinsey.

Right now, practically 15 p.c of (company) cybersecurity spending comes from outdoors the chief data safety workplace (CISO), and non-CISO cyber spending is predicted to develop at a 24 p.c CAGR over the following three years, in response to McKinsey.

The U.S. and Western Europe will account for greater than 70 p.c of world data safety spending in 2025, in response to IDC.

Microsoft in fiscal 2025 generated round $37 billion in cybersecurity income, representing about 14 p.c of its complete income, in response to Investing.com, and its safety enterprise can attain $50 billion by 2030 if it grows at a mid-teens CAGR.

The U.S. spends greater than $25 billion on cybersecurity yearly to defend federal methods in opposition to growing threats from hackers, ransomware teams and state-sponsored actors, in response to Palo Alto Networks.

Cybersecurity Ventures predicts that cybercrime will value the world $10.5 trillion USD in 2025, up from $6 trillion in 2021, and $3 trillion in 2015.

MARKET OBSERVATIONS

A part of the rationale why these (cybercrime) losses are so excessive, in response to Adam Evans, Royal Financial institution of Canada’s SVP and CISO, is that companies too typically underestimate the dangers, and too typically under-invest in defending themselves.

“One of many areas that’s extraordinarily compelling is the chance to construct a safety layer round agentic AI,” says Richard Seewald, founder and Managing Companion at Evolution Fairness Companions. “If you consider the amount of brokers that might be put into the market, the chance to create cybersecurity firms that defend and defend that layer are vital.”

“We’re nonetheless within the early innings of a secular pattern within the cybersecurity area that entails elevated spend by massive enterprises, smaller companies and shoppers alike, a quickly increasing assault floor, market consolidation and demand for subsequent technology services that makes this a really compelling section for funding,” says Dennis Smith, founder and Managing Companion at Evolution Fairness Companions.

MORE THAN INFOSECURITY

Historic analyst stories are rooted in ‘IT safety’ (servers, networking gear, knowledge facilities and IT infrastructure, PCs, laptops, tablets, and smartphones) and never totally advanced to ‘cybersecurity,’ which incorporates non-computer gadgets and non-IT centric platforms and environments — which covers total sub-markets, i.e. aviation safety, automotive safety, IoT safety, and IIoT (Industrial Web of Issues) safety. All of these market segments, plus others, mix to make up the cybersecurity market, the best way Cybersecurity Ventures sees it.

Learn the Report