Next-generation Cybersecurity Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Offering (Solutions, Services), By Security Type (Network Security, Endpoint Security, Cloud Security, Application Security, Data Security, Others), By End User (BFSI, Healthcare, Government & Defense, Retail & E-commerce, IT & Telecom, Energy & Utilities, Manufacturing, Others), By Region, By Competition 2020-2030F

Market Overview

The Global Next-generation Cybersecurity Market was valued at USD 21.24 Billion in 2024 and is expected to reach USD 62.54 Billion by 2030 with a CAGR of 19.72% through 2030. The Global Next-generation Cybersecurity Market represents the advanced evolution of digital security solutions designed to protect enterprises, governments, and individuals against increasingly complex cyber threats. Unlike traditional security frameworks, next-generation cybersecurity leverages technologies such as artificial intelligence, machine learning, behavioral analytics, and zero-trust architectures to provide proactive defense mechanisms. These solutions focus on real-time threat detection, advanced malware prevention, identity management, and network resilience to secure cloud environments, data centers, and endpoint devices. With digital transformation accelerating worldwide, organizations require robust security strategies to safeguard sensitive information, intellectual property, and operational continuity from sophisticated cybercriminals.

This market is expected to rise due to several critical drivers, primarily the exponential increase in cyberattacks and data breaches targeting enterprises and government systems. The expansion of the Internet of Things, 5G connectivity, and cloud computing has significantly widened the attack surface, making advanced security solutions indispensable. Additionally, regulatory frameworks such as the General Data Protection Regulation in Europe and the Cybersecurity Maturity Model Certification in the United States are compelling organizations to invest in stronger cybersecurity systems. Furthermore, the integration of artificial intelligence and automation is enhancing the effectiveness of cybersecurity platforms, enabling faster response times and predictive defense against evolving threats.

The growth of the Global Next-generation Cybersecurity Market will also be fueled by the adoption of remote and hybrid work models, which increase vulnerabilities across networks and endpoints. Businesses across industries such as banking, healthcare, retail, manufacturing, and government are prioritizing next-generation solutions like cloud security, endpoint protection, and zero-trust frameworks to secure operations. With the rise of generative artificial intelligence and advanced persistent threats, cybersecurity vendors are continuously innovating to stay ahead of adversaries. Moreover, emerging economies in Asia Pacific, Latin America, and the Middle East are investing heavily in cybersecurity infrastructure to strengthen national resilience against digital threats. As a result, the Global Next-generation Cybersecurity Market is set for substantial long-term expansion, playing a pivotal role in securing the digital economy.

Key Market Drivers

Rising Sophistication and Frequency of Cyber Threats

The Global Next-generation Cybersecurity Market is being fueled by the rising scale and sophistication of cyberattacks that challenge traditional defense systems. Modern attackers employ ransomware-as-a-service, zero-day exploits, and advanced persistent threats that can bypass conventional firewalls and antivirus tools. These threats are no longer random but often highly targeted, aiming to disrupt critical infrastructure, steal sensitive data, or compromise national security. Enterprises and governments face increased vulnerability due to hyper-connected ecosystems, including cloud platforms, remote endpoints, and Internet of Things devices. Next-generation cybersecurity leverages artificial intelligence, machine learning, and behavioral analytics to detect anomalies in real time, proactively respond to threats, and reduce the window of exploitation.

Organizations today also realize that the reputational and financial impact of breaches is far greater than the cost of implementing strong cybersecurity. Industries like healthcare and finance, where sensitive data is at stake, are investing heavily in zero-trust frameworks, endpoint detection, and predictive security tools. Additionally, the digital acceleration driven by 5G networks and automation has created new entry points for attackers, making it essential for businesses to integrate next-generation cybersecurity into their operational models. This evolving threat landscape makes the sophistication of cybercrime one of the most pressing growth drivers for this market. The Federal Bureau of Investigation’s Internet Crime Report 2023 highlighted that cybercrime losses in the United States crossed 12.5 billion USD, a 22 percent surge from 2022. This rising financial toll demonstrates how sophisticated and persistent attacks are escalating economic risks, forcing businesses and governments to adopt next-generation cybersecurity to minimize damage.

Regulatory Compliance and Data Protection Mandates

Regulatory frameworks are playing a critical role in driving the Global Next-generation Cybersecurity Market. Governments and industry regulators across the globe are mandating strict compliance standards to safeguard sensitive data, particularly in sectors such as banking, healthcare, and government services. Regulations such as the European Union’s General Data Protection Regulation and the United States’ Cybersecurity Maturity Model Certification compel organizations to upgrade their security postures or risk severe penalties. These laws demand not only protection against data breaches but also proactive monitoring, timely reporting, and adherence to robust risk management frameworks, which traditional systems cannot fully deliver. This compels organizations to adopt next-generation security solutions that integrate real-time analytics, automated compliance reporting, and advanced encryption capabilities.

Beyond avoiding fines, enterprises view compliance as a competitive advantage. Customers and partners increasingly expect businesses to demonstrate strong cybersecurity practices before engaging in transactions or partnerships. As industries digitize, the demand for compliance-ready solutions is escalating, particularly in regions like Asia Pacific, where new data protection laws are being rapidly implemented. Next-generation cybersecurity solutions help enterprises stay ahead of evolving regulations while ensuring resilience against regulatory scrutiny, which in turn accelerates adoption globally. The European Data Protection Board reported that fines under the General Data Protection Regulation surpassed 1.6 billion euros in 2022, signaling the financial and reputational risks of non-compliance. Such stringent penalties encourage organizations to prioritize next-generation cybersecurity systems that ensure proactive compliance, advanced encryption, and real-time regulatory reporting capabilities.

Integration of Artificial Intelligence and Automation in Security

Artificial intelligence and automation are transforming the cybersecurity landscape, making them key drivers for the Global Next-generation Cybersecurity Market. With the volume and complexity of cyber threats increasing, human analysts alone cannot manage the scale of alerts and vulnerabilities. Artificial intelligence-powered tools provide predictive capabilities by analyzing vast datasets, identifying unusual patterns, and stopping threats before they escalate. Automated incident response further minimizes downtime by enabling systems to react instantly without requiring manual intervention. These technologies drastically improve detection accuracy, reduce false positives, and help organizations respond faster, reducing the risk of costly breaches.

Enterprises are particularly adopting artificial intelligence-driven cybersecurity because it ensures scalability in managing complex IT infrastructures and cloud environments. Automated patching, real-time vulnerability scanning, and machine learning-based fraud detection are some of the key features that support modern enterprises. As attackers themselves increasingly use artificial intelligence to craft more sophisticated attacks, businesses must counter with equally advanced defense mechanisms. This arms race ensures that artificial intelligence and automation will remain central to the evolution and growth of next-generation cybersecurity globally. Capgemini’s global survey found that 69 percent of organizations admit they cannot manage threats effectively without artificial intelligence-powered cybersecurity. This indicates the growing dependence on automation and machine learning to detect advanced threats, reduce false positives, and provide rapid incident response in increasingly complex digital ecosystems.

Growing Digital Transformation across Critical Industries

Digital transformation across sectors such as healthcare, finance, manufacturing, and government is fueling the demand for next-generation cybersecurity solutions. As organizations digitize operations, adopt Internet of Things devices, and connect mission-critical systems to the internet, the risk of cyberattacks increases exponentially. For example, hospitals adopting electronic health records must ensure data privacy and compliance with regulations, while manufacturers deploying smart factories must protect operational technology systems from disruption. Traditional firewalls and perimeter defenses cannot adequately protect these highly interconnected systems, necessitating advanced tools that can provide holistic visibility, real-time monitoring, and automated threat response.

The push for digital transformation is also driven by customer demand for faster, smarter, and more secure services. In banking, for instance, the rise of digital payments and online banking has created attractive targets for cybercriminals, forcing financial institutions to implement advanced fraud detection and identity management systems. Similarly, governments digitizing public services must secure citizen data against nation-state actors. The sheer scale of digitization across industries ensures sustained investment in next-generation cybersecurity solutions, making digital transformation one of the strongest market accelerators. The World Economic Forum estimated that 60 percent of global GDP in 2022 was enabled by digital technologies, showing how deeply industries now rely on digital ecosystems. As this transformation accelerates, the attack surface expands, requiring next-generation cybersecurity solutions to safeguard critical infrastructure, sensitive data, and interconnected networks from growing threats.

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Key Market Challenges

High Implementation and Operational Costs

One of the most significant challenges restraining the Global Next-generation Cybersecurity Market is the high cost of implementation and ongoing operations. Advanced cybersecurity tools such as zero-trust architecture, threat intelligence platforms, and artificial intelligence-powered detection systems require substantial upfront investments in infrastructure, skilled workforce, and integration. Small and medium-sized enterprises, which represent a majority of global businesses, often struggle to afford such sophisticated systems, leaving them exposed to attacks. Beyond initial costs, maintenance, upgrades, and the need for continuous monitoring further increase the financial burden. This creates a cost imbalance where larger enterprises are better positioned to invest in resilience, while smaller players remain vulnerable.

The economic challenge also extends to the scarcity of skilled cybersecurity professionals who can manage next-generation technologies effectively. Hiring or training such experts requires additional expenditure, and the global shortage of cybersecurity talent intensifies the problem. As a result, many businesses delay or limit adoption despite acknowledging the risks of cyber threats. For governments and regulators, this widening cybersecurity divide is alarming, as vulnerabilities in smaller enterprises can cascade into supply chain risks for larger corporations. While the demand for next-generation cybersecurity remains strong, cost-related hurdles significantly slow adoption, particularly in emerging markets and cost-sensitive industries.

Complexity of Integration and Lack of Standardization

Another pressing challenge in the Global Next-generation Cybersecurity Market is the complexity of integrating advanced solutions into existing IT ecosystems. Many enterprises operate with legacy systems, fragmented security tools, and siloed infrastructures that are difficult to unify under modern frameworks such as zero-trust or secure access service edge. Deploying next-generation solutions often requires reconfiguring networks, migrating data to cloud platforms, and retraining staff, which can disrupt operations and lead to temporary vulnerabilities. Organizations hesitant to undergo such large-scale transformations often delay implementation, creating a gap between perceived need and actual deployment.

the lack of global cybersecurity standards further complicates adoption. Different regions and industries have varying regulatory frameworks, technical requirements, and compliance obligations. This lack of uniformity creates uncertainty for businesses operating globally, as they must invest in tailored solutions for each jurisdiction. Vendors, too, face challenges in ensuring their products remain compliant and interoperable across multiple regions. Without standardized practices, interoperability issues persist, leading to inefficient deployments and higher integration costs. Consequently, many enterprises prefer to stick with traditional, albeit weaker, solutions rather than face the challenges of adopting next-generation cybersecurity.

Key Market Trends

Rise of Zero-Trust Architecture Adoption

Zero-trust architecture is rapidly emerging as a dominant trend in the Global Next-generation Cybersecurity Market. Unlike traditional perimeter-based security models, zero-trust operates on the principle of “never trust, always verify,” ensuring that every access request is authenticated and authorized regardless of location or user. With the surge in cloud adoption, remote work, and mobile devices, the traditional corporate perimeter has dissolved, exposing organizations to higher risks of unauthorized access and insider threats. Zero-trust frameworks address these vulnerabilities by enforcing strict identity verification, least privilege access, and micro-segmentation across networks. This shift is increasingly viewed as an essential component of digital resilience strategies.

Organizations are also motivated to adopt zero-trust by increasing regulatory pressure and industry mandates for stronger identity and access management. Governments worldwide are issuing guidelines for zero-trust adoption in critical infrastructure, including defense, healthcare, and finance. Enterprises that once considered zero-trust as optional are now prioritizing it to minimize breaches and align with compliance requirements. With the support of vendors integrating artificial intelligence and behavioral analytics into zero-trust frameworks, adoption is expected to accelerate rapidly.

Integration of Artificial Intelligence and Machine Learning in Cybersecurity

Artificial intelligence and machine learning integration is becoming a game-changer for the Global Next-generation Cybersecurity Market. Traditional rule-based detection methods are struggling to keep up with sophisticated and evolving cyberattacks. Artificial intelligence-driven systems provide predictive capabilities, anomaly detection, and automated incident response, enabling organizations to respond faster and with greater accuracy. These technologies reduce false positives, improve efficiency, and enhance decision-making for security teams overwhelmed by the sheer volume of alerts.

The reliance on artificial intelligence-powered cybersecurity is growing due to the shortage of skilled professionals. With advanced analytics and automation, artificial intelligence systems augment human expertise, helping organizations maintain resilience despite workforce gaps. Vendors are also embedding artificial intelligence into endpoint detection and response (EDR), extended detection and response (XDR), and threat intelligence solutions. This integration ensures a layered defense strategy capable of tackling modern cyber challenges.

Growth of Cybersecurity for Internet of Things (IoT) Ecosystems

The proliferation of Internet of Things devices is creating a massive new attack surface, driving demand for specialized next-generation cybersecurity solutions. IoT devices are often poorly secured and lack standardized protocols, making them attractive targets for cybercriminals. From healthcare wearables and connected cars to industrial IoT systems in manufacturing and utilities, these endpoints expose organizations to risks of data theft, sabotage, and operational disruption. As smart city initiatives and connected infrastructure expand globally, securing IoT ecosystems has become a critical priority.

Vendors are responding by designing solutions that focus on device authentication, secure firmware updates, and real-time anomaly detection across connected environments. Governments are also introducing IoT-specific security regulations, further accelerating adoption. Enterprises view IoT cybersecurity not just as a protective measure but as a business enabler that allows safe scaling of digital innovation.

Segmental Insights

By Offering Insights

In 2024, the solutions segment firmly established itself as the dominant offering in the Global Next-generation Cybersecurity Market, and it is expected to maintain its leadership during the forecast period. Solutions include advanced security platforms such as next-generation firewalls, endpoint detection and response, extended detection and response, secure access service edge, and identity and access management systems. With the increasing sophistication of cyberattacks and the growing attack surface created by cloud adoption, remote work, and the expansion of Internet of Things ecosystems, enterprises are prioritizing robust, scalable, and automated security solutions to safeguard critical infrastructure. These integrated platforms not only address evolving threats but also streamline operations, making them the preferred choice across industries.

The dominance of solutions is also being fueled by heightened regulatory mandates and compliance requirements across multiple geographies. Organizations face increasing pressure to protect sensitive data, particularly in industries such as healthcare, banking, finance, and defense, where breaches can result in severe financial and reputational damage. Solutions provide a proactive and preventive approach, leveraging artificial intelligence and machine learning for predictive threat detection, anomaly identification, and real-time response. This ability to combine compliance with cutting-edge protection is ensuring widespread adoption, particularly in large enterprises and government agencies.

While services such as consulting, managed detection, and incident response are growing rapidly, they often complement solution adoption rather than substitute it. Enterprises typically prioritize investment in core security platforms before turning to services for optimization and management. This positioning makes solutions the backbone of the Global Next-generation Cybersecurity Market, with strong growth expected as vendors continue to enhance capabilities through automation, cloud-native integration, and artificial intelligence. As digital transformation accelerates worldwide, the demand for advanced cybersecurity solutions will remain the primary driver of market dominance in this segment.

By Security Type Insights

In 2024, the network security segment dominated the Global Next-generation Cybersecurity Market and is projected to maintain its leadership during the forecast period. The rising frequency of network-based attacks, including ransomware, phishing, and distributed denial-of-service, has made robust network protection an indispensable priority for enterprises.

Network security solutions such as next-generation firewalls, intrusion prevention systems, and secure access service edge frameworks are increasingly deployed to protect complex and hybrid infrastructures. Enterprises with remote workforces and multi-cloud environments rely heavily on these tools to ensure secure connectivity and data integrity.

The dominance of this segment is further reinforced by the increasing adoption of zero-trust models and artificial intelligence-powered analytics. As cyber threats evolve, network security will remain the core defense layer in next-generation cybersecurity strategies.

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Regional Insights

Largest Region

In 2024, North America firmly established itself as the leading region in the Global Next-generation Cybersecurity Market, driven by its advanced digital ecosystem, high adoption of cutting-edge technologies, and heightened awareness of evolving cyber risks. The region is home to some of the world’s largest technology providers, financial institutions, and healthcare organizations, all of which remain primary targets for cybercriminals. This has led enterprises across North America to prioritize investments in next-generation solutions such as zero-trust security frameworks, extended detection and response systems, and artificial intelligence-powered analytics to safeguard critical digital infrastructure.

The dominance of North America is further reinforced by strong regulatory frameworks and government initiatives. Policies such as the United States Executive Order on improving national cybersecurity and Canada’s National Cyber Security Strategy are compelling enterprises to adopt advanced security measures. Additionally, the increasing prevalence of ransomware attacks and threats to critical infrastructure have accelerated enterprise adoption of innovative solutions. Supported by strong vendor presence, a thriving startup ecosystem, and rising demand from both commercial and government sectors, North America is expected to maintain its leadership throughout the forecast period.

Emerging Region

In 2024, South America rapidly emerged as a high-potential growth region in the Global Next-generation Cybersecurity Market, driven by increasing digital transformation across industries such as banking, healthcare, and government. The rise in cyberattacks targeting financial institutions and public services has accelerated the demand for advanced security frameworks, including cloud security, endpoint protection, and zero-trust solutions.

Governments across the region are also prioritizing stronger cybersecurity regulations and initiatives to protect critical infrastructure and citizen data. With growing cloud adoption, expansion of e-commerce, and rising awareness of cyber risks among enterprises, South America is poised to become a significant contributor to the market’s long-term growth trajectory.

Recent Developments

• In February 2025, Palo Alto Networks launched Cortex® Cloud, the next evolution of Prisma Cloud, integrating cloud detection, response, and CNAPP on a unified platform. Powered by AI and automation, it enhances real-time threat prevention, centralized visibility, and end-to-end remediation, addressing growing cloud security challenges amid rising AI adoption.
• In August 2024, Fortinet completed the acquisition of Lacework, a leading cloud security and cloud-native application protection platform provider. The integration enhances Fortinet’s Security Fabric, creating a comprehensive AI-driven cloud security platform. The deal adds 225 patents, advanced cloud expertise, and a skilled workforce, strengthening Fortinet’s innovation, technology leadership, and global cloud security capabilities.
• In March 2024, CrowdStrike announced its agreement to acquire Flow Security, the first cloud data runtime security solution provider. The acquisition integrates advanced data protection into the CrowdStrike Falcon® XDR platform, enabling real-time security for data at rest, in motion, and across applications, strengthening unified cloud-native cybersecurity and redefining modern cloud data protection standards.

Key Market Players

• Palo Alto Networks, Inc.
• CrowdStrike Holdings, Inc.
• Fortinet, Inc.
• Check Point Software Technologies Ltd.
• Zscaler, Inc.
• SentinelOne, Inc.
• IBM Corporation
• Cisco Systems, Inc.
• Okta, Inc.
• Darktrace Ltd.

Report Scope:

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

• Next-generation Cybersecurity Market, By Offering:

o   Solutions

o   Services    

• Next-generation Cybersecurity Market, By Security Type:

o   Network Security

o   Endpoint Security

o   Cloud Security

o   Application Security

o   Data Security

o   Others

• Next-generation Cybersecurity Market, By End User:

o   BFSI

o   Healthcare

o   Government & Defense

o   Retail & E-commerce

o   IT & Telecom

o   Energy & Utilities

o   Manufacturing

o   Others

• Next-generation Cybersecurity Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  Germany

§  France

§  United Kingdom

§  Italy

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  South Korea

§  Australia

o   Middle East & Africa

§  Saudi Arabia

§  UAE

§  South Africa

o   South America

§  Brazil

§  Colombia

§  Argentina

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Next-generation Cybersecurity Market.

Available Customizations:

Global Next-generation Cybersecurity Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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