Spending on cybersecurity services is projected to continue its significant growth in 2025. Concerns over cyber talent shortages and advanced cyberattacks, including those powered by generative AI (GenAI), persist. Recent projections show total spending on information security expected to increase by 15.1 percent to $212 billion next year.
Security software will see the fastest spending growth in 2025. However, security services will remain a vital and growing segment due to the ongoing scarcity of cybersecurity talent. Analysts predict that spending on security services will rise by 13.8 percent in 2025 to reach $86.07 billion globally.
Scott Goree, senior vice president at Optiv, noted that the anticipated growth in cybersecurity spending is not surprising. Experts have highlighted the increasing sophistication of cyber threats driven by advancements in GenAI technologies as a key concern for organizations. These technologies are enabling threat actors to craft highly convincing phishing emails and other malicious activities.
Analysts estimate that by 2027, 17 percent of cyberattacks and data leaks will involve GenAI technologies. Beyond service investments, spending on security software is anticipated to grow by 14.2 percent next year, reaching $100.69 billion. Network security spending is also on an upward trajectory, with a projected increase of 9.6 percent in 2025, totaling $24.79 billion.
Spending increase driven by cyber threats
The cybersecurity landscape is poised for continued investment and growth as organizations strive to address evolving threats and mitigate risks. In the Middle East and North Africa (MENA) region, end-user spending on information security is projected to reach $3.2 billion in 2025, marking a 14 percent increase year-on-year.
The growth in security spending in the MENA region is primarily driven by the constantly evolving regulatory environment and the rise in cyberattacks. Digitalization and cloud migration are broadening the threat landscape for enterprises in the region. Chief information security officers (CISOs) are focusing on ensuring compliance with rapidly changing regulations and privacy frameworks, countering persistent threats, and addressing concerns regarding organizational resilience and cybersecurity posture.
The adoption of artificial intelligence (AI) and generative AI (GenAI) continues to increase investments in security software markets. GenAI is expected to trigger a spike in the cybersecurity resources required to secure it, leading to a 15 percent increase in security software spending by 2025. Organizations are currently assessing their endpoint protection platform (EPP) and endpoint detection and response (EDR) needs.
They are making adjustments to boost their operational resilience and incident response following recent cybersecurity incidents. Since the release of GenAI, attackers have increasingly employed tools and large language models (LLMs) to carry out large-scale social engineering attacks. As organizations continue to move to the cloud, analysts expect an increase in cloud security solutions, and the market share of cloud-native solutions will grow.
The total cloud access security brokers (CASB) and cloud workload protection platforms (CWPP) market is likely to reach $8.7 billion in 2025, up from the forecasted $6.7 billion in 2024. The global skills shortage in the cybersecurity industry is a major factor driving investment in the security services market, which is expected to grow faster than other security segments.
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