Global spending on cybersecurity is expected to exceed $300 billion in 2026 as companies increase investments in artificial intelligence (AI)-driven security platforms to defend against increasingly sophisticated cyberattacks.
Market intelligence firm International Data Corp. (IDC) projected that worldwide security spending will reach $308 billion in 2026, representing 11.8% year-over-year growth, and could climb to $430 billion by 2029.
The growth shows an increasing demand for integrated cybersecurity platforms that combine threat detection, identity protection, and automated response as organizations face more complex digital threats.
“Organizations are moving beyond isolated security tools toward more integrated and intelligence-driven security architectures as threat complexity, regulatory pressure, and AI adoption accelerate,” said Monika Soltysik, senior research analyst, Security & Trust at IDC.
IDC expects security software to account for more than half of global cybersecurity spending in 2026, making it the largest technology category in the market.
Identity and access management software, endpoint security software, and security analytics platforms are projected to represent more than half of global security software investments this year as organizations focus on protecting critical data, preventing breaches, and improving visibility across their IT systems.
Security software is also forecast to be the fastest-growing segment in 2026, expanding 14% year over year.
Fast-growing technologies include cloud-native application protection platforms (CNAPP), identity and access management systems, and information and data security tools. These technologies help protect AI workloads, secure cloud environments, and verify the identities of both human users and automated systems operating within enterprise networks.
Services will also see strong demand. Managed security services are expected to record the highest growth among service categories as many organizations rely on external providers to address the global shortage of cybersecurity professionals.
“Investment is increasingly focused on technologies that improve visibility, automate response, and strengthen identity and data protection across hybrid and cloud environments,” Soltysik said. “Over the next several years, security strategies will increasingly prioritize operational resilience and platform consolidation as organizations seek measurable risk reduction rather than incremental tool expansion.”
The Asia-Pacific excluding Japan and China (APeJC) region is expected to spend $26 billion, supported by rapid digital transformation, cloud adoption, and expanding digital economies across the region.
The United States will remain the largest cybersecurity market in 2026, with spending projected to reach $150 billion. IDC attributed the growth to heavy investments from the financial services, healthcare, and government sectors, which face increasing regulatory and security requirements.
Western Europe will rank second with $69 billion in security spending, driven partly by stricter cybersecurity regulations such as NIS2, DORA, and the AI Act.
IDC also identified the Middle East and Africa, Latin America, and the United States as the fastest-growing regional markets for cybersecurity investments.
Banking, federal and central government, capital markets, telecommunications, and healthcare providers will be the largest industries for cybersecurity spending in 2026. Together, these sectors are expected to account for more than one-third of global security spending.
The capital markets sector is projected to be among the fastest-growing segments because financial institutions remain frequent targets of ransomware, fraud, and AI-driven cyberattacks. Companies in the sector are increasingly investing in zero trust security frameworks, regulatory compliance tools, and AI-based threat detection.
Media and entertainment companies are also increasing cybersecurity investments as digital content distribution expands. Their spending focuses on protecting intellectual property, preventing piracy, and minimizing service disruptions on streaming platforms.
Software and information services firms are investing heavily in DevSecOps, cloud security, identity and access management systems, and automated threat detection to protect customer data and secure the rapidly expanding AI supply chain.