Cybersecurity Ventures predicts that the world will spend $522 billion on cybersecurity products and services in 2026

2026 Cybersecurity Market Report from Cybercrime Magazine and Evolution Equity Partners

SAUSALITO, CA, UNITED STATES, December 3, 2025 /EINPresswire.com/ -- The imperative to protect increasingly digitized businesses, governments, schools, Internet of Things (IoT) devices, and industrial control systems (ICS), as well as semiconductors, medical devices, gaming systems, cars, ships, planes, drones, trains, ATMs, and consumers from cybercrime will propel global spending on cybersecurity products and services to $1 trillion (USD) annually by 2031, according to the “2026 Cybersecurity Market Report” from Cybersecurity Ventures in partnership with Evolution Equity Partners.

“In 2004, the global cybersecurity market was worth just $3.5 billion,” says Steve Morgan, founder of Cybersecurity Ventures, “and now it’s one of the largest and fastest-growing sectors in the information economy.”

Cybersecurity Ventures predicts that global spending on cybersecurity products and services will hit $522 billion annually (USD) in 2026, up from $260 billion in 2021. This includes all countries globally, B2B and B2C, plus a portion of any markets that are converged with cybersecurity such as quantum security, physical security and surveillance, government information security and military cyber defense technology (all nations), space cyber defense, and also counts in cyberinsurance policies.

The increasing complexity and frequency of cyberthreats—accelerated by generative AI (GenAI) and AI in general—are driving organizations worldwide to adopt more advanced defensive measures.

“One of the areas that is extremely compelling is the opportunity to build a security layer around agentic AI,” says Richard Seewald, founder and Managing Partner at Evolution Equity Partners. “If you think about the volume of agents that will be put into the market, the opportunity to create cybersecurity companies that defend and protect that layer are significant.”

Several IT analyst firms project worldwide information security spending for 2026 at between $200 billion and $240 billion. The delta between the spending figures from Cybersecurity Ventures and the IT analyst firms are due in large part to the number of security categories and attack surfaces that are covered.

“Historic analyst reports are rooted in ‘IT security’ (servers, networking gear, data centers and IT infrastructure, PCs, laptops, tablets, and smartphones) and not fully evolved to ‘cybersecurity,’ which includes non- computer devices and non-IT centric platforms and environments — which covers entire sub-markets, i.e. aviation security, automotive security, IoT security, and IIoT (Industrial Internet of Things) security,” says Morgan. “All of those market segments, plus others, combine to make up the cybersecurity market, as we see it.”

Despite its current market size, cybersecurity has a lot of headroom to grow. "We are still in the early innings of a secular trend in the cybersecurity space that involves increased spend by large enterprises, smaller businesses and consumers alike, a rapidly expanding attack surface, market consolidation and demand for next generation products and services that makes this a very compelling segment for investment," says Dennis Smith, Founder and Managing Partner at Evolution Equity Partners.

ABOUT

Cybersecurity Ventures is a leading cybersecurity market watcher and the publisher of Cybercrime Magazine, Page ONE for the global cyber economy, and a trusted source for cybersecurity facts, figures, and statistics.

Evolution Equity Partners is an international venture capital investor led by technology entrepreneurs who have built software companies around the world and who leverage tremendous operating, technical, product development and go-to-market expertise to help entrepreneurs win.

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