The cybersecurity market, as threats become more complex, is forecasted to grow at a compound annual growth rate (CAGR) of 11.6% from 2024 to 2029 to reach $287.6 billion in revenue as investments are spread across multiple classes of technologies and solutions.
Based on an analysis of revenue growth forecasts provided by cybersecurity vendors that make up 70% of the market to The Futurum Group, the five fastest growing cybersecurity segments will be integrated risk management/security operations, identity and access management, cloud security, application security and data security.
Cloud security, currently the largest segment at $37.1 billion in 2024, or 22% of the total share, is forecasted to grow to $55.8 billion, representing 15.2% CAGR, according to the report.
Integrated risk management/security operations will grow slightly faster at a 17% CAGR, representing 9.2% of the total market at $15.3 billion in 2024, to reach $33.64 billion by 2029, followed closely by the identity and access management (IAM) market that will grow from $16.63 billion in 2024 to $35.66 billion in 2029, representing a 16.5% CAGR.
Application security is forecasted to grow from $8.6 billion in 2024 to $16.68 billion by 2029, representing a 14.2% CAGR, while data security is expected to grow from $23.5 billion in 2024 to $42.85 billion by 2029, representing a CAGR of 12.8%.
In contrast, the network security market valued at $27.9 billion in 2024 will grow to $43.71 billion by 2029, representing a CAGR of 9.4 %, while endpoint security will grow from $22.8 billion in 2024 to $33.64 billion by 2029, for an 8.1% CAGR, according to the report.
Fernando Montenegro, vice president and practice lead for cybersecurity for The Futurum Group, said 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. The pace at which that spending increases may vary, however, depending on the level of risk encountered by the number of organizations operating in various vertical industries, he added
For example, cybersecurity spending in the financial services sector is estimated at $42.9 billion, followed by $35.9 billion across the IT and telecommunication sectors. Healthcare, meanwhile, comes in at $21.2 billion, followed by defense and government at $23.1 billion, manufacturing at $14.3 billion, retail at $9.6 billion and energy and utilities at $8.8 billion.
Savvy cybersecurity teams will be focusing a lot more on making the best use of resources to balance risk management initiatives in a way that maximizes the return on investment (ROI), said Montenegro. Via prudent stewardship of resources, some organizations may even be able to reduce costs because of consolidation efforts.
In fact, one of the primary reasons that spending on cloud-based cybersecurity platforms is expected to increase from $89.4 billion to $181.78 billion by 2029 is to gain those types of efficiencies, the Futurum Group report noted.
There will, of course, always be pressure to contain the cost of cybersecurity, but the one thing that remains certain is that cyberattacks will, in the age of artificial intelligence (AI), only continue to increase in terms of both volume and sophistication. As such, the real challenge is determining where and how to best thwart those attacks within the context of a limited set of resources.
