Cyber Security Market by Component (Hardware, Software, Services), By Security Type (Network Security, Content Security, Application Security, Endpoint & IoT Security, Others), By Deployment Mode (Cloud, On-Premises), By End User (BFSI, Healthcare, Aerospace & Defense, IT & Telecommunication, Government, Retail, Manufacturing, Others), By Region, Competition Forecast, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 251.32 Billion
CAGR (2026-2031)	10.05%
Fastest Growing Segment	Healthcare
Largest Market	North America
Market Size (2031)	USD 446.44 Billion

Market Overview

The Global Cyber Security Market will grow from USD 251.32 Billion in 2025 to USD 446.44 Billion by 2031 at a 10.05% CAGR. The Global Cyber Security Market comprises technologies, processes, and services designed to protect systems, networks, and data from digital attacks, unauthorized access, and damage. The expansion of this market is fundamentally supported by the rapid digitization of critical infrastructure and the widespread adoption of cloud computing which significantly broadens the potential attack surface. Furthermore, stringent government regulations regarding data privacy compel organizations across all sectors to invest heavily in compliance and robust risk management frameworks. These core drivers create a sustained demand for security infrastructure that functions independently of temporary technological trends or shifting consumer preferences.

Despite this robust growth trajectory, the market faces a significant challenge regarding the acute shortage of skilled professionals required to manage complex defense systems. This scarcity of qualified talent restricts the ability of organizations to fully implement and maintain effective security protocols against evolving threats. According to ISC2, in 2024, the global cybersecurity workforce gap reached 4.8 million professionals. This substantial disparity between the urgent industry demand for expertise and the available supply of capable personnel remains a primary obstacle that could impede the broader optimization of the market.

Key Market Drivers

Escalating frequency and sophistication of global cyber threats compel organizations to continuously upgrade their defensive capabilities. The sheer volume of attacks has rendered manual detection insufficient, necessitating advanced solutions to secure sensitive assets. According to Check Point Software Technologies, August 2024, in the '2024 Mid-Year Security Report', global cyber attacks rose by 30% in the second quarter compared to the previous year, with organizations facing an average of 1,636 weekly attacks. This surge forces businesses to increase spending to avoid the crippling financial consequences of an intrusion. Highlighting the severe financial risk relevant to the wider market, according to IBM, in 2024, the global average cost of a data breach reached USD 4.88 million.

Integration of artificial intelligence and machine learning in cyber defense represents a transformative shift in how enterprises predict and neutralize hostile activities. Security teams increasingly rely on these technologies to automate complex threat hunting protocols that exceed human speed. This adoption is accelerating as companies recognize the operational necessity of automated tools. According to Splunk, May 2024, in the 'State of Security 2024: The Race to Harness AI', 91% of surveyed security leaders reported that they are currently using generative AI tools for security operations. The widespread implementation of these intelligent systems ensures that the market continues to evolve toward more proactive resilience strategies.

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Key Market Challenges

The acute shortage of skilled professionals constitutes a primary barrier to the expansion of the Global Cyber Security Market. Although the demand for advanced security frameworks is rising due to digitization and regulatory compliance, organizations frequently lack the qualified personnel necessary to implement and manage these complex systems. This deficit limits the ability of businesses to fully utilize available security budgets, as the operational capacity to handle sophisticated defense tools falls short of the technological requirements. Consequently, the market experiences a bottleneck where potential growth is stifled by the practical inability to deploy and maintain essential security measures.

This workforce challenge effectively creates a ceiling on market optimization. According to ISACA, in 2024, 57% of organizations reported that their cybersecurity teams were understaffed. Such a substantial scarcity forces companies to delay security upgrades or operate with under-resourced teams, leading to increased vulnerability and a reluctance to invest in further infrastructure. This persistent gap between the urgent need for expertise and the available talent supply directly hinders the broader adoption of cybersecurity solutions.

Key Market Trends

The Widespread Adoption of Zero Trust Network Access (ZTNA) is fundamentally reshaping the market as organizations abandon legacy perimeter-based defenses. Traditional Virtual Private Networks (VPNs) often grant excessive network access, creating vulnerabilities that malicious actors exploit to move laterally across critical infrastructure. This operational weakness is accelerating the migration toward ZTNA frameworks, which enforce granular, least-privilege access policies restricted to specific applications rather than the entire network. Validating this shift, according to Zscaler, May 2024, in the 'ThreatLabz 2024 VPN Risk Report', 56% of organizations experienced one or more VPN-related cyberattacks in the preceding year, underscoring the urgent necessity for this architectural transformation.

The Focus on Machine Identity Management and Automation has emerged as a critical priority due to the explosive growth of non-human entities within modern digital environments. As enterprises scale cloud-native architectures, the volume of automated workloads, bots, and service accounts now vastly outnumbers human users, creating a massive, often unmonitored attack surface. Securing these credentials is essential to prevent unauthorized escalation of privileges and maintain the integrity of automated workflows. Highlighting the scale of this issue, according to Venafi, December 2024, in the report 'The Impact of Machine Identities on the State of Cloud Native Security in 2024', machine identities now constitute over 90% of the accounts in Active Directory, necessitating specialized automated solutions to manage their lifecycles.

Segmental Insights

The healthcare sector is anticipated to emerge as the fastest-growing segment within the global cyber security market due to the rapid digitization of medical records and the integration of internet-connected medical devices. These technological advancements create vulnerabilities that malicious actors exploit through ransomware and data breaches, directly threatening patient safety and privacy. Consequently, medical institutions are increasing their investment in security infrastructure to comply with stringent regulatory standards such as the Health Insurance Portability and Accountability Act. This urgent need to secure sensitive patient data against evolving threats drives the accelerated expansion of the healthcare security segment.

Regional Insights

North America maintains a leading position in the global cyber security market due to the high concentration of key technology firms and the widespread adoption of cloud infrastructure. This market dominance is reinforced by stringent regulatory frameworks established by institutions such as the National Institute of Standards and Technology, which mandate robust data protection measures across various industries. Consequently, organizations in the United States and Canada prioritize significant investment in security solutions to ensure compliance and mitigate operational risks. The continuous focus on securing critical digital assets against evolving threats further supports the region's sustained market leadership.

Recent Developments

• In September 2024, Mastercard agreed to acquire Recorded Future, a leading global threat intelligence company, in a transaction valued at $2.65 billion. This acquisition is designed to expand Mastercard’s cybersecurity services by incorporating advanced AI-driven analytics and real-time intelligence regarding potential digital threats. The Chief Services Officer at Mastercard emphasized that the deal would bolster security across the payments ecosystem and beyond, offering customers enhanced fraud prevention and risk scoring capabilities. The move underscores the payment corporation's strategy to strengthen trust in the digital economy by utilizing sophisticated data insights to proactively anticipate and neutralize cyberattacks before they impact businesses and consumers.
• In May 2024, Palo Alto Networks and IBM unveiled a broad strategic partnership aimed at delivering AI-powered security outcomes for enterprise customers. As part of this extensive collaboration, Palo Alto Networks agreed to acquire IBM’s QRadar SaaS assets, while IBM Consulting committed to becoming a preferred managed security services provider for the partner’s platforms. The Chairman and CEO of Palo Alto Networks noted that the alliance would accelerate the transformation of security operations centers by adopting next-generation technologies. This joint effort focuses on integrating their respective expertise to streamline threat detection and response, providing clients with a more effective, unified approach to managing cybersecurity risks.
• In April 2024, Microsoft announced the general availability of Copilot for Security, an industry-first generative artificial intelligence solution designed to assist security and IT professionals. The new tool leverages large-scale data and threat intelligence, processing trillions of signals daily to help analysts detect and respond to cyber threats with greater speed and accuracy. The Corporate Vice President of Security at Microsoft highlighted that the platform allows teams to assess risks and streamline operations through natural language processing. Available via a consumption-based pricing model, this product launch represents a significant advancement in applying AI to strengthen organizational defense mechanisms and reduce the complexity of security operations.
• In March 2024, Cisco Systems completed its acquisition of Splunk, a prominent software company specializing in cybersecurity and observability, for a total equity value of approximately $28 billion. This strategic transaction integrates Cisco’s extensive data and security portfolio with Splunk’s advanced analytics capabilities to create a unified view of digital environments for organizations. The Chair and CEO of Cisco stated that the combination would revolutionize how customers harness data to connect and protect their infrastructure. By merging their strengths, the companies aim to deliver comprehensive real-time insights and enhanced digital resilience, enabling global enterprises to better anticipate and mitigate complex security threats.

Key Market Players

• CrowdStrike Holdings Inc.
• Check Point Software Technologies Ltd
• Cisco Systems Inc.
• CyberArk Software Ltd
• Dell Technologies Inc.
• Mandiant Inc.
• Fortinet Inc.
• IBM Corporation
• Imperva Inc.
• Intel Corporation

By Security Type	By Deployment Mode	By End User	By Region
Network Security Content Security Application Security Endpoint & IoT Security Others	Cloud On-Premises	BFSI Healthcare Aerospace & Defense IT & Telecommunication Government Retail Manufacturing Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Cyber Security Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Cyber Security Market, By Security Type:

• Network Security
• Content Security
• Application Security
• Endpoint & IoT Security
• Others

• Cyber Security Market, By Deployment Mode:

• Cloud
• On-Premises

• Cyber Security Market, By End User:

• BFSI
• Healthcare
• Aerospace & Defense
• IT & Telecommunication
• Government
• Retail
• Manufacturing
• Others

• Cyber Security Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE