Annual global cybersecurity growth rate to halve to 6.3% by 2029, according analytics and investor tracking firm Stocklytics.
Although companies and organizations worldwide are putting maximum effort into preventing cyberattacks, the global cybercrime cost remains gigantic compared to total cybersecurity spending, according to data presented by analytics and investor tracking firm Stocklytics.com.
Over the past six years, the global cybercrime cost has grown 12 times faster than total cybersecurity spending, totaling $9.2 trillion in 2024. Even more worrying is that this difference could become bigger in the future.
The annual growth rate in the cybersecurity market is expected to halve and drop to 6.3% by 2029, according to Stocklytics’ data.
Security Services Revenue vs. Cyber Solutions Growth
Companies and organizations will spend more than $185 billion on cybersecurity tools and services this year, but it’s still just a drop in the ocean compared to the total cost of global cybercrime. However, there is another worrying trend.
While the cost of global cybercrime continues rising, global cybersecurity spending is slowing down. According to Statista Market Insights survey, this trend will continue through the end of the 2020s.
Global economic instability and rising inflation have caused many organizations to tighten their budgets, including cybersecurity. Also, companies are increasingly looking to optimize existing cybersecurity infrastructure rather than investing in new, expensive solutions.
The surging trend of moving to cloud solutions environments has also affected cybersecurity spending because cloud providers, such as Amazon Web Services (AWS) and Microsoft Azure, offer built-in security features, reducing the need for traditional security solutions.
These factors have all led to a new trend of making smarter, more efficient cybersecurity spending rather than increasing the budget year over year, causing a considerable slowdown in the market.
According to Statista, the annual growth rate in the global cybersecurity market will drop from 11% in 2024 to 6.35% in 2029, the lowest point in almost a decade. Consequently, the annual spending on cybersecurity services and solutions will increase by 46% to $271 billion in the next five years, down from a 60% growth in the five years leading to 2024.
The annual growth rate in the security services segment is forecasted to drop from 7.8% to 3.7%. Cyber solutions will see a similar decline, with the growth rate falling from 14.6% in 2024 to 8.6% in 2029.
Global Cybersecurity Spending to Hit $271B by 2029
The slowdown in cybersecurity spending is even more worrying when looking at the expected global cybercrime cost by 2029. According to Statista, cyber attacks, including ransomware, data breaches, cyber espionage, and phishing, will inflict damages totaling more than $15.6 trillion by 2029, almost 70% more than this year.
This cost includes stolen money, damage and destruction of data, lost productivity, theft of intellectual property, theft of personal or financial data, post-attack disruption to the ordinary course of business, restoration and deletion of hacked data and systems, and reputational harm.
Cybersecurity spending will increase by 46% to $271 billion in the next five years. This means the total cybersecurity spending five years from now will be 57 times smaller than the expected annual cybercrime cost.
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