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Only 16% govern third-party AI: Gartner’s nine cybersecurity trends for 2027

Enterprises will spend $276.1 billion on information security in 2027. Gartner’s nine cybersecurity trends for the year explain where that money is already failing to keep up. Six of the nine trace to one cause. AI agents, frontier models and the machine identities they borrow are entering production faster than the controls built to govern, authenticate, test and train for them.

The readiness numbers behind the trends are blunt. For example, only 16% of organizations enforce workflows governing employee use of third-party AI applications. Likewise, 34% manage AI agent identity with tools designed for humans, and 15% have no approach at all. Fifty-one percent have not begun any post-quantum cryptography work, and 79% report no change to their PQC budget. Even so, Gartner dates the end of safe asymmetric encryption to 2029 through 2030. In its Cybersecurity Executive Outlook, 4Q26 (G00861818), it also predicts at least 200% higher migration costs for organizations that have not piloted PQC by 2027.

The budget is moving before the governance does

The three fastest-growing lines in Gartner’s 3Q26 security forecast are cloud security posture management at 29.1%, cloud access security brokers at 25.0% and zero trust network access at 22.3%. All three fund exactly the trends with the lowest readiness scores, while the legacy network controls they replace shrink. This analysis maps the nine trends in Gartner’s Top Trends in Cybersecurity, 2H26 (G00860263) to the 2027 forecast line by line. The pattern is consistent: the money is chasing the gaps, but the people and controls have not caught up.

Butterfly chart of Gartner's nine 2027 cybersecurity trends: on the left, the share of organizations still lacking the control each trend calls for, from 84% to 49%; on the right, 2026 to 2027 growth of the forecast lines that fund the response against the 11.6% market rate, with identity and SOC lines below market
The share of organizations still lacking each control, against 2027 growth of the forecast lines that fund the fix. Identity, SOC and consulting lines trail the 11.6% market rate despite gaps of 50% or more. Sources: Gartner, Top Trends in Cybersecurity, 2H26 (G00860263); 2027 Planning Guide for Cybersecurity (G00856222); Cybersecurity Executive Outlook, 4Q26 (G00861818); CISO Agenda for 2027 (G00859134); Forecast: Information Security, Worldwide, 2024-2030, 3Q26 (G00862059). Chart by softwarestrategiesblog.com. (Please click on the image to expand for easier reading)

Why the list grew from six trends to nine

In February I covered the six trends in Gartner’s 2026 cybersecurity trends list. Since then, it has stayed one of the most-read pieces on this blog all year. Gartner published its 2026 trends press release on February 5, 2026, and has not published a 2027 edition. So this is not a rewrite of a report that does not exist yet. Instead, it is built from the three documents CISOs are using to set 2027 budgets right now. The mid-year update to the trends list, Top Trends in Cybersecurity, 2H26 (G00860263, August 19, 2026), expands six trends to nine. The 2027 Planning Guide for Cybersecurity (G00856222, October 7, 2026) then narrows those into four planning areas. The Forecast: Information Security, Worldwide, 2024-2030, 3Q26 (G00862059, September 24, 2026) prices them. Where the three disagree on emphasis, I say so.

Horizontal bar chart of Gartner's nine cybersecurity trends for 2027 grouped in three themes and colored in three shades of blue by theme, ranked within each theme by the survey statistic behind it, with each bar tagged as a threat signal or a readiness gap
Gartner groups its 2H26 cybersecurity trends into three themes; each bar is the survey finding Gartner cites to explain the trend, ranked within its theme. Source: Gartner, Top Trends in Cybersecurity, 2H26 (G00860263). Chart, ranking and threat-versus-readiness classification by softwarestrategiesblog.com. (Please click on the image to expand for easier reading)

One trend from February is gone: global regulatory volatility dropped off the list. A second trend dropped with it. Collaborative data security governance appeared in the full 1H26 report but never made the six-trend press release. Three new trends replaced them. Software supply chain security for AI components, technical debt as a barrier to AI, and frontier AI models rewriting vulnerability management. The removals matter as much as the additions. Gartner folded regulation and data governance into resilience and the CISO’s remit rather than treating them as standalone forces.

The spending backdrop. $276.1 billion and the growth rate just peaked

Gartner’s 3Q26 forecast puts worldwide end-user spending on information security at $247.5 billion in 2026 and $276.1 billion in 2027. That is an 11.6% increase in current U.S. dollars by my calculation from the forecast dataset. By comparison, Gartner’s own constant-currency figure for 2027 is 11.2%. Either way, 2026 was the peak growth year at 13.6%. Growth then decelerates every year, landing at 9.9% in 2030 when the market reaches $372.8 billion. I covered the 3Q26 forecast in detail in October, including why post-quantum firewall refreshes are the only hardware upgrade Gartner expects through 2030.

Stacked bar chart of worldwide information security spending 2024 to 2030 by security software, security services and network security with totals and growth rates, plus a line chart of each market's share of total spending
Growth peaked in 2026 at 13.6% and decelerates every year to 9.9% in 2030. Security software adds $17.0 billion in 2027, more than security services and network security combined, and its share of total spending rises from 49.6% in 2024 to 55.6% in 2030 while services fall from 39.3% to 33.6%. Source: Gartner, Forecast: Information Security, Worldwide, 2024-2030, 3Q26 (G00862059). Totals, growth rates and shares computed by softwarestrategiesblog.com. (Please click on the image to expand for easier reading)

Software takes share from services

Security software carries the market. It grows 13.4% to $143.9 billion in 2027 and adds $17.0 billion of the $28.7 billion in new spending. Its share of total security spending rises from 49.6% in 2024 to 52.1% in 2027 and 55.6% in 2030, while security services fall from 39.3% to 33.6%. In other words, enterprises are substituting software for outside help. Services still grow 8.7% to $101.7 billion, but at the slowest rate of the three markets.

Network security grows 13.2% to $30.6 billion. Gartner also raised its long-term network outlook from a 9.8% to a 10.9% CAGR through 2030 on the strength of PQC-driven firewall replacements. Cloud security remains the fastest subsegment at 25.1% growth in 2027, reaching $20.8 billion. The securing-AI market Gartner tracks inside other security software grows from $3 billion in 2026 to $16 billion by 2030. Meanwhile, AI-amplified security products grow from $49 billion to $204 billion over the same period. I broke down the AI-amplified forecast in August.

Theme 1. Secure new frontiers

Trend 1. CISOs expand software supply chain security to cover AI models and agents

New to the list. Fifty-nine percent of CISOs rank third-party and supply chain attacks among their top five threats for the next 12 months. The figure comes from the 2026 Gartner CISO Role Survey (n=297) cited in the 2H26 trends report. Pressure to ship AI systems fast pushes teams onto open-weight and frontier models and the third-party components that wrap them. As a result, the security posture of the model itself usually goes unchecked. Gartner’s position is that point-in-time assessments and static controls cannot secure assets that update, drift and pull unverified dependencies continuously.

The 2027 Planning Guide adds the number that shows how far behind most programs are. Specifically, only 22% of organizations scan repositories for third-party component compromises that include models. Gartner’s actions are specific. Build an AI bill of materials and binary composition analysis into the CI/CD pipeline. Then extend third-party cyber-risk assessments to AI-specific software and its components. Finally, write incident response playbooks for AI supply chain disruptions that include isolating a service or deploying a workaround. Application security spending grows 10.6% to $10.7 billion in 2027, while vulnerability assessment within it grows 12.6%.

Trend 2. IAM adapts to secure and enable AI agents

Ninety-four percent of organizations report rising machine identity volumes over the past 12 months, per Gartner’s 2025 Machine Identity Survey (n=299). The growth is driven chiefly by AI and machine learning adoption (52%) and autonomous agents (35%). Fifty-eight percent have had at least one incident in which AI-linked machine identities were compromised. Those incidents caused moderate to significant business disruption at 42% of affected organizations. They also caused financial loss at 36% and reputational damage at 32%.

Gartner’s Theme: Cybersecurity at the AI Frontier (G00862284, November 3, 2026) puts the governance gap in two numbers from its 2026 Surviving the Agentic AI Era Survey. Thirty-four percent of organizations manage AI agent identity with tools designed for humans. Another 15% have no defined approach at all. The Cybersecurity Executive Outlook, 4Q26 goes further and finds 50% have no defined approach to limit AI agent access. Gartner’s Top Strategic Technology Trends for 2027, released at Gartner IT Symposium/Xpo in October, named AI agent identity one of the ten trends. It also predicted that by 2028, 25% of enterprise security breaches will trace back to AI agent abuse. The causes it names are unmanaged machine privileges and legacy credential practices.

However, the spending data says the money has not caught up. Identity and access management grows 8.6% to $25.5 billion in 2027, below the market rate. User authentication, the largest human-centric IAM line, grows 2.7%. By contrast, privileged access management grows 11.7% and identity governance 10.8%. The IAM budget is shifting from authenticating people to governing what machines are allowed to do. It is shifting slowly, though.

Trend 3. The quantum decryption threat advances while organizations lag

Gartner now dates a cryptographically relevant quantum computer to 2029 or 2030. Among CISOs who have started PQC work, fewer than 25% have made meaningful progress. That covers both a cryptographic inventory (24%) and a quantum risk assessment (22%). Sixty-five percent also say their board is unaware of or does not raise quantum threats, per the 2027 Planning Guide. The Cybersecurity Executive Outlook, 4Q26 sets the deadline in cost terms. Pilot PQC migration by 2027 or pay at least 200% more for the full migration later.

Still, budgets are moving ahead of CISOs here. The 3Q26 forecast expects at least 20% of customers in government, financial services and defense to upgrade firewalls to PQC-capable platforms in 2027. That share rises to more than 30% in 2028. The reason is that many installed firewalls cannot handle the processing demands of ML-KEM through a firmware update. Firewall equipment grows 13.7% to $22.4 billion in 2027. Encryption software, meanwhile, grows 10.4% to $1.7 billion. Gartner’s recommendation has not changed since February. Inventory cryptographic deployments, rank data by sensitivity and lifespan, and build crypto-agility so algorithms can be swapped without re-architecting systems.

Theme 2. Transform governance

Trend 4. Technical debt undermines organizational AI ambitions

New to the list. Forty-nine percent of cybersecurity leaders cite technical debt as a major barrier to executing their top functional priorities. Executive pressure to deploy AI forces teams onto unstructured data repositories without AI-ready controls. Oversharing and unauthorized access follow as a result. At the same time, frontier models are accelerating vulnerability discovery across infrastructure and enterprise software. Gartner names Anthropic’s Mythos, OpenAI’s Daybreak and Microsoft’s M-DASH. Each wave of discoveries then lands on legacy systems that cannot absorb the patches.

Gartner’s advice is to separate cybersecurity debt from enterprise technical debt. CISOs who try to own all of it will overwhelm their teams and open control gaps. The 2H26 report tells CISOs to inventory in-flight and short-term initiatives immediately. It then tells them to rank each one by how much risk it cuts from the dual threats of AI adoption and AI-discovered vulnerabilities. The Theme document is blunter. Closing the AI-Cyber Capability Gap will cost more than most enterprises have planned, because the bill includes the debt, not only the new tooling.

Trend 5. AI and cyber resilience redefine the CISO’s remit

Ninety-three percent of board directors view cyber risk as a threat to shareholder value. In addition, 98% expect it to increase over the next two years. This is where February’s regulatory volatility trend went. Gartner’s CISO Agenda for 2027 (G00859134, September 17, 2026) reports that 40% to 70% of CISOs now hold accountability for six adjacent areas, depending on the activity. Those areas are third-party risk, AI governance, disaster recovery, crisis management, business continuity and fraud prevention. Nearly half experienced burnout in the past 12 months, and nearly 60% say their team members did.

The same document counts the cost of AI vendor promises. Across 13 AI use cases in cybersecurity, only 39% of CISOs report significant ROI. In fact, 55% say vendor overpromise forced costly rework. Even so, boards are deliberately expanding their tolerance for technology risk to pursue AI growth. That is the finding of Gartner’s CISO Agenda Priority: Align Cybersecurity Investment With Board Risk Appetite (G00862663). The 2027 job is to measure business consequences rather than incident counts and to fund resilience for the risk the board has already accepted. Security consulting grows 7.8% to $31.7 billion in 2027 and professional services 8.5% to $34.5 billion. Those are the two slowest-growing of the three services subsegments in the forecast. Organizations are buying less outside strategy help as a share of spend. Instead, they are buying more software.

Trend 6. Agentic AI demands program oversight

Forty-six percent of senior cybersecurity professionals have observed production use of standalone SaaS GenAI agent platforms. Sixty-seven percent have also observed unsanctioned, employee-driven agent platforms through informal reports or monitoring. Meanwhile, 32% of IT workers using GenAI at work hide it. Only 16% of organizations have enforced workflows that govern employee use of third-party AI applications. That leaves what Gartner calls rogue automation running with excessive privilege. Despite the gaps, about 41% of GenAI prototypes reach production.

The Theme document reframes the whole category. Cybersecurity incidents are caused by AI agents taking ungoverned actions, not by how intelligent the model is. Gartner tells executives to treat every AI agent as an insider risk and to adopt risk frameworks built for nondeterministic systems. It also tells them to ban what it calls governance theater, meaning committees that can flag concerns but cannot block a launch. The Planning Guide’s version is to secure third-party agents first and extend application security to AI applications. Zero trust then becomes the architecture for agentic access. Zero trust network access grows 22.3% to $3.7 billion in 2027, the third-fastest category in the forecast. I covered the governance side in Gartner’s 2026 AI governance Hype Cycle and the testing side in the secure AI Hype Cycle.

Theme 3. Normalize AI adoption

Trend 7. Frontier AI models transform vulnerability management

New to the list, and the one most likely to change SOC metrics in 2027. Gartner’s argument is that frontier models created a supply-side shock. Vendors and open-source projects now use AI to find latent flaws in their own code. Consequently, the volume and frequency of urgent updates has jumped. The bottleneck is not patching capacity. Instead, it is testing and change management. Mandates to patch everything immediately therefore transfer risk into insufficient testing and self-inflicted downtime. Gartner calls patch speed a vanity metric and replaces it with maximum tolerable exposure time. I covered that shift in October in Gartner says frontier AI makes patch speed a vanity metric.

Maturity is still low. Fifty-two percent of organizations prioritize purely on CVSS ratings rather than active exploitability. Sixty-one percent still rely on traditional penetration testing, and only 39% use simulation technologies such as breach and attack simulation to confirm exploitability. The Planning Guide’s 2025 Impact of Emerging Tech on Infrastructure Security Operations Survey (n=249) finds only 48% weigh likelihood of exploitation and business impact when prioritizing. Similarly, only 41% use documented cross-team approval workflows to act on findings. Gartner’s Top Strategic Technology Trends for 2027 list adds autonomous exposure remediation. It predicts that by 2031 adopters will cut containment windows from weeks to within 48 hours. Threat intelligence spending grows 20.2% to $3.7 billion in 2027.

Trend 8. AI breaks traditional cybersecurity awareness tactics

Sixty percent of all data breaches involve the human element. Eighty-six percent of organizations also have standalone public SaaS GenAI in production. Over 57% of employees use personal GenAI accounts for work, and 33% admit inputting sensitive company information into them. The numbers from February have not improved. The threat side got worse. AI-assisted malicious emails, for instance, doubled in two years. Forty-one percent of organizations experienced at least one deepfake incident during an audio call with an employee. Likewise, 35% encountered one on a video call.

Gartner’s answer is to retire generic awareness training in favor of adaptive behavioral programs with AI-specific tasks. It also wants sanctioned GenAI tools to be easier to reach than unsanctioned ones. Cloud access security brokers grow 25.0% to $3.5 billion in 2027. CASB is the control most often used to see and govern SaaS GenAI usage. Enterprise data loss prevention grows 11.1% too. Those two lines are the budget expression of this trend.

Trend 9. AI-driven SOC solutions destabilize operational norms

Fifty percent of CISOs strongly agree that workforce resistance or talent gaps have slowed adoption of AI in security. The same gaps, they say, have cut the value of those investments. Similarly, only 17% of executive and AI leaders believe their organizations have enough talent to support AI initiatives. Inside the SOC, 26% have trained analysts to interpret enriched signals, and 35% have a structured skills transformation program. Meanwhile, 51% operate without a dedicated detection engineering function, which leaves them dependent on generic vendor rules.

Gartner’s forecast for the SOC workforce is the opposite of the headcount-cut narrative. By 2028, security operations teams will employ 50% more engineers than traditional analysts. By 2030 the SOC’s primary output will be validated cases with business impact and documented rationale rather than alerts reviewed. The Planning Guide also warns that AI SOC’s long-term value is unproven and that overpromising is the norm. Managed detection and response grows 9.8% to $12.6 billion in 2027, while managed security operations grows 10.7% to $17.3 billion. Organizations are still buying SOC capacity faster than they can build it.

What changed from the February list

Table graphic mapping Gartner's six February 2026 cybersecurity trends and one 1H26 trend to the 2H26 list, with status pills showing five kept, two removed and three new trends and a column describing where each trend went in the 2027 analysis
Five of February’s six trends survive into the 2H26 list, regulatory volatility is absorbed into the CISO remit trend, collaborative data security governance drops from the full 1H26 report, and three trends are new. Trend mapping by softwarestrategiesblog.com from Gartner’s Top Trends in Cybersecurity, 2H26 (G00860263) and the 2027 Planning Guide for Cybersecurity (G00856222). (Please click on the image to expand for easier reading)

Where the 2027 dollars move

Map the nine trends onto the forecast and a pattern shows up. The categories growing fastest in 2027 are the ones that reduce the attack surface AI agents and cloud workloads create. For example, cloud security posture management grows 29.1% to $8.1 billion. CASB grows 25.0%. ZTNA grows 22.3%. Cloud workload protection grows 21.8% to $9.2 billion. Threat intelligence grows 20.2%. Conversely, the categories shrinking are the legacy network controls those trends replace. Network access control falls 12.9% and intrusion detection and prevention systems fall 7.4%.

Horizontal bar chart of 2026 to 2027 growth rates for twelve Gartner security categories against the 11.6% market rate, from CSPM at 29.1% to network access control at minus 12.9%, each labeled with the 2027 trend it funds
The nine fastest-growing security categories in 2027 add $11.6 billion and fund attack surface reduction, agent access control and exposure management. The three slowest are human authentication and the legacy network controls those trends replace; NAC and IDPS lose $0.18 billion between them. Source: Gartner, Forecast: Information Security, Worldwide, 2024-2030, 3Q26 (G00862059). Growth computed and trend mapping by softwarestrategiesblog.com. (Please click on the image to expand for easier reading)

The Planning Guide’s fourth 2027 trend is attack surface reduction as a core part of defense in depth. It is the quietest of the four and also the best funded. Its planning considerations are endpoint hardening baselines and software supply chain controls. They also include CNAPP for the cloud attack surface, and DSPM plus AI security posture management for data overexposure. Endpoint protection platforms add $2.9 billion in 2027. That is the largest absolute increase of any category outside the other security software bucket where securing-AI tools sit.

What this means for CISOs planning 2027

Six of the nine trends describe the same failure from different angles. AI agents, the models behind them and the identities they borrow are operating inside enterprises faster than governance, identity, testing and training can adapt. Gartner’s Theme document gives that failure a name, the AI-Cyber Capability Gap, and a rule. You cannot scale AI value without scaling AI security first. The other three trends, quantum, technical debt and the CISO’s remit, are the structural debts coming due at the same time.

Diagram grouping Gartner's nine 2H26 cybersecurity trends into a four-step control chain for AI agents (verify components, bind identity, govern actions, validate exposure), two workforce trends and three structural debts, each card pairing a Gartner readiness statistic with the 2027 forecast line that funds it
Four of the nine trends form a control chain for AI agents, two describe the people who run it, and three are structural debts coming due at the same time. Each card pairs Gartner’s readiness figure with the 2027 forecast line that funds the response. Sources: Gartner, Top Trends in Cybersecurity, 2H26 (G00860263); 2027 Planning Guide for Cybersecurity (G00856222); Theme: Cybersecurity at the AI Frontier (G00862284); Forecast: Information Security, Worldwide, 2024-2030, 3Q26 (G00862059). Grouping and sequencing by softwarestrategiesblog.com. (Please click on the image to expand for easier reading)

Four moves for the 2027 plan

Four moves follow from the documents, in the order Gartner’s own numbers argue for.

Give every AI agent an identity you can trace to a human. Thirty-four percent of organizations run agents on human identity tools and 15% have no approach. Gartner’s 25%-of-breaches-by-2028 prediction is the cost of leaving that alone. Start with the agents carrying the most privilege and the least oversight.

Pilot PQC in 2027 or budget for triple the migration cost. Fifty-one percent have still not begun. Gartner’s 200% penalty applies to organizations that wait past 2027 to start piloting. The firewall refresh cycle already in the 3Q26 forecast is the first line item most CISOs will see.

Replace patch speed with tolerable exposure time. Fifty-two percent prioritize on CVSS alone. Frontier models will keep raising the volume of urgent fixes. The organizations that survive it will be the ones that validate exploitability first and then negotiate exposure-based SLAs with product teams.

Fund detection engineering before you fund AI SOC agents. Fifty-one percent of SOCs have no detection engineering function. Gartner’s 2028 forecast of 50% more engineers than analysts is a hiring plan, not a headcount cut. AI SOC agents, after all, amplify whatever the team already knows how to do.

Gartner’s six trends in February explained where $244.2 billion was going. The nine trends CISOs carry into 2027 explain where $276.1 billion goes. The fastest-growing lines in that forecast already match the trends with the lowest readiness scores. In short, the money is moving toward the gaps. The question for 2027 is whether the governance and the people move with it.

 

Gartner sees 57% of servers in 2,880 large data centers by 2029

Gartner data center forecast 2029 hero graphic: installed servers by site class 2023 to 2029 with large data centers rising from 42% to 57% of all servers, the 2023 and 2025 editions of the large data center site forecast with 535 sites added for 2027, change in servers by site class 2024 to 2029 with large data centers adding 15.9 million and the other four classes losing 5.1 million, and key figures of 2,880 large sites, 17,140 servers per large site, 10.9 servers per rack and 980 large data centers in China
Four views of Gartner’s October 2025 data center sites forecast. Installed servers by site class, 2023 to 2029, with large data centers rising from 42% to 57% of all servers. The 2023 and 2025 editions of the large site count, 535 sites apart for 2027. Change in servers by site class, 2024 to 2029. Key figures on sites, servers per site, servers per rack and China against North America. Click any chart to open it full size. Sources linked below, analysis by softwarestrategiesblog.com.

Gartner’s data center forecast now puts 2,880 large data centers worldwide in 2029. By then it expects them to hold 57% of every server installed anywhere, compared to 44% in 2024. Two years earlier the same forecast put 1,955 large sites in 2027. The new edition puts 2,490 there, a 27% increase for the same year. Every other class of site, whether a single server in a closet or a 500-rack enterprise data center, loses servers through 2029.

The total site count, by comparison, barely moves. Gartner counts 3.46 million data center sites in 2024 and 3.74 million in 2029, a 1.6% compound annual growth rate. Of the 288,000 sites added, 261,000 are single-server sites. The growth that matters is in the large sites, which grow five times faster than the total, from 1,951 to 2,880 at an 8.1% CAGR. The servers move with them.

This post compares the two editions of Gartner’s data center sites forecast, published October 2023 and October 2025. It then places them beside the public counts from Synergy Research Group, JLL, the IEA and Cushman & Wakefield. Each source counts a different unit, so the comparison takes some care. Gartner counts sites and servers. Synergy counts hyperscale facilities and capacity share. JLL and Cushman & Wakefield count gigawatts, while the IEA counts terawatt-hours. All five still point the same way.

Gartner raised its large data center count 27% in two years

Gartner large data center site forecast, 2023 edition versus 2025 edition: the 2027 count rose from 1,955 to 2,490 large sites, up 535 or 27%, with 2,880 large sites by 2029
Large data center sites in the 2023 and 2025 editions of Gartner’s forecast. The 2027 figure rose 535 sites, or 27%, between editions. Sources linked below, analysis by softwarestrategiesblog.com.

Gartner’s 2023 edition of the forecast covered 2021 through 2027 and projected 1,955 large data centers when that window closed. The 2025 edition covers 2023 through 2029 and projects 2,490 large sites in 2027. The two editions overlap for five years, and the gap widens every year. For 2023 the difference is 57 sites. By 2025 it is 238, and for 2027 it is 535.

Gartner defines a large data center as a site with more than 500 racks and more than 15,000 square feet. Both editions use the same definition, so the revision reflects changed expectations. Gartner attributes the growth to AI workloads, from training to inference, through 2027, with the forecast stabilizing in later years.

More large sites, fewer servers in each one

Servers moved far less than sites did between the two editions. The 2023 edition projected 40.6 million servers in large data centers in 2027, and its 2025 successor projects 41.9 million, an increase of only 3.3%. Gartner added 535 large sites to its 2027 count but only 1.3 million servers to fill them.

Divide one by the other and the average large site in 2027 shrinks rather than grows. It falls from 20,758 servers in the 2023 edition to 16,833 in the 2025 edition, a 19% drop. The 2025 edition holds that average flat through the forecast, at 17,155 servers per large site in 2024 and 17,140 in 2029. Density per rack falls too, from 12.2 servers in 2024 to 10.9 in 2029. Rack counts in large sites rise 64% over the period, from 2.75 million to 4.52 million, while server counts rise 47%. An AI server takes more rack space and more power than the box it replaces. So a count of servers understates what is being built.

The total server base was revised down

Worldwide, the 2023 edition projected 82.6 million installed servers in 2027, while the 2025 edition projects 80.0 million, a reduction of 2.6 million. All of that reduction, and more, comes out of the smaller site classes. Enterprise data center servers for 2027 fell from 23.2 million to 21.3 million between editions, and rack and computer room servers fell from 6.6 million to 5.8 million. Gartner’s 2029 figure of 86.2 million servers implies a 2.8% CAGR from 2024. That is far slower than the 8.1% CAGR for large sites because the rest of the base is shrinking.

Only the 2023 edition broke servers into x86 and non-x86 units. It projected non-x86 servers growing from 2.0 million in 2023 to 11.9 million in 2027, with 10.5 million of them in large data centers. The 2025 edition drops that split, as well as the storage and data center switch counts the older edition carried. The dataset now tracks sites, servers and server racks.

Every other site class shrinks

Change in installed servers by data center site class 2024 to 2029 from Gartner: large data centers add 15.9 million servers while enterprise data centers lose 2.16 million, rack rooms 1.46 million, midsize 0.87 million and single server sites 0.64 million
Change in the installed server base by site class, 2024 to 2029. Large data centers add 15.9 million servers while the other four classes lose 5.1 million between them. Sources linked below, analysis by softwarestrategiesblog.com.

Between 2024 and 2029 the installed server base grows by 10.8 million units. Large data centers add 15.9 million, while the other four classes lose 5.1 million between them. Enterprise data centers are the 101 to 500 rack sites that most companies would call their own data center. They lose 2.16 million servers during the period, falling from 23.0 million to 20.8 million. Rack and computer room sites lose 1.46 million, midsize data centers 0.87 million and single-server sites another 0.64 million.

Enterprise data centers multiply while they empty. The number of enterprise sites rises from 6,937 to 7,570, a gain of 633 sites, while the servers inside them fall 9.4%. An average enterprise data center drops from 3,314 servers in 2024 to 2,752 in 2029, a 17% decline. The same pattern holds for midsize sites, which grow from 15,037 to 17,097 while their server base falls 12%.

Large data centers held 42% of installed servers in 2023 by the dataset’s own figures, 44% in 2024 and 48% in 2025. The share crosses 50% in 2026, then reaches 57% in 2029. Measured in racks rather than servers, large sites move from 43% of all server racks in 2024 to 56% in 2029.

China closes in on North America

Large data centers by region 2024 to 2029 from Gartner: China grows from 468 to 980 sites at a 15.9% CAGR, North America from 819 to 1,001, Europe from 387 to 479, with Emerging Asia/Pacific at 15.2% and Middle East and North Africa at 12.0%
Large data center sites by region in 2024 and 2029. China adds 512 large sites, North America adds 182. Sources linked below, analysis by softwarestrategiesblog.com.

North America has the most large data centers in every year of the forecast. It has 819 in 2024 and 1,001 in 2029, a 4.1% CAGR, but its lead narrows every year. China grows from 468 to 980 over the same period, a 15.9% CAGR, and adds 512 large sites against North America’s 182. In 2024 China had 57% as many large data centers as North America. In 2029 it has 98% as many.

Asia/Pacific accounts for two thirds of the revision

Most of the revision landed in one region. The 2023 edition grouped China with the rest of Asia/Pacific outside Japan and projected 563 large data centers for that region in 2027. Its 2025 successor splits the region three ways instead. For 2027 it projects 756 in China, 91 in Emerging Asia/Pacific and 69 in Mature Asia/Pacific, a combined 916. That is 353 more large sites than the prior edition. It accounts for 66% of the 535 sites Gartner added to its 2027 worldwide count. North America’s 2027 figure, by comparison, rose from 845 to 917 over the same two years.

Europe grows from 387 large sites to 479, a 4.3% CAGR. Japan grows from 100 to 132, while Emerging Asia/Pacific more than doubles from 54 to 110 at a 15.2% CAGR. The Middle East and North Africa grows from 25 to 43 at 12.0%. Gartner names the Middle East and Africa the fastest-growing region across all site classes, at a 6.5% CAGR. It credits government initiatives, foreign direct investment and partnerships with hyperscalers. In the dataset, Middle East and North Africa rack and computer room sites more than double, from 15,082 to 33,862. That is the fastest growth of any site class in any region.

On sites above the single-server class, North America still leads, with 165,950 in 2024 against China’s 73,143. China leads on total sites because it has 940,909 single-server sites against North America’s 728,078.

Five counts measure five different things

Data center forecasts compared: Gartner 3.74 million sites and 2,880 large data centers by 2029, Synergy Research 1,360 hyperscale data centers and 67% capacity share by 2031, JLL 200 GW by 2030, IEA 950 TWh by 2030, Cushman & Wakefield 31.7 GW under construction
Five sources count the data center build-out in five different units. Latest and outer-year figures from each. Sources linked below, analysis by softwarestrategiesblog.com.

Gartner counts 2,107 large data centers in 2025, while Synergy Research Group counts 1,360 hyperscale data centers at the end of the same year. The two figures measure different things. Gartner counts any site above 500 racks, whoever runs it, which brings in colocation campuses and the largest enterprise and government sites. Synergy, in contrast, counts facilities operated by the hyperscale cloud and internet companies it tracks. So the 747 sites between the two figures are a rough estimate of how many large data centers are not hyperscale operated.

Synergy’s capacity shares also line up with Gartner’s server shares. Synergy put hyperscale operators at 37% of worldwide data center capacity in mid-2023, 41% in mid-2024 and 48% at the end of 2025, with 67% forecast for 2031. Gartner’s shares for 2023, 2024 and 2025 are 42%, 44% and 48%. The two firms measure different units, one in megawatts of critical load and one in installed servers. Even so, they land within five points of each other in every overlapping year.

Gartner share of servers in large data centers, 42% in 2023 to 57% in 2029, compared with Synergy Research hyperscale share of capacity, 37% in 2023 to 48% in 2025 and 67% by 2031, and enterprise on-premise share falling from 56% in 2018 to 19% by 2031
Gartner’s server share in large data centers and Synergy Research’s hyperscale capacity share, with Synergy’s enterprise on-premise share falling from 56% to 19%. Sources linked below, analysis by softwarestrategiesblog.com.

Enterprise on-premise capacity, in Synergy’s count, has fallen from 56% of the total in 2018 to 32% at the end of 2025. It forecasts 19% by 2031, roughly two points a year. Gartner’s enterprise data center class loses 2.16 million servers over five years, according to the 2025 dataset. Both firms see the enterprise data center shrinking as a share while the buildings themselves remain.

Gigawatts and terawatt-hours tell the same story

JLL’s 2026 Global Data Center Outlook puts worldwide capacity at 103 GW and projects 200 GW by 2030, which works out to a 14% CAGR. Roughly 100 GW of new supply arrives during those five years across colocation, hyperscale and on-premise sites. JLL expects AI workloads to represent half of all data center capacity by 2030, up from about a quarter in 2025. The IEA’s Key Questions on Energy and AI puts data center electricity consumption at 485 TWh in 2025, up 17% in a year. It then projects 950 TWh in 2030, around 3% of global electricity demand. AI-focused data centers grew their electricity use 50% in 2025 and triple it by 2030 in the IEA’s projection.

Cushman & Wakefield’s 2026 Global Data Center Market Comparison reports 31.7 GW under construction worldwide in 2025, up from 12.5 GW in the prior edition. During the same period, planned capacity across the Americas rose from 46.1 GW in 2024 to 191.3 GW at the end of 2025. Synergy’s pipeline of future hyperscale data centers stood at 915 facilities in August 2026, up from almost 800 in April.

Set against those figures, Gartner’s 8.1% CAGR for large sites is the most conservative growth rate in the group. JLL’s capacity doubles in five years, and so does the IEA’s electricity use. Synergy’s hyperscale capacity doubles in three. Gartner’s large site count grows 48% in five years, and its large site server base grows 47%. The difference is the unit rather than the direction. A site count cannot capture a 100 MW campus replacing a 10 MW building on the same ledger line. A server count cannot capture an 8-GPU system replacing a 2-socket x86 box.

How to read the Gartner data center forecast

  • Treat the site count as a floor. Gartner’s 2,880 large sites in 2029 says how many buildings cross the 500-rack line. It says nothing about the power or compute inside them, which is where JLL, the IEA and Synergy see the growth doubling.
  • Watch servers per site, not sites. The 2025 edition cut the expected server count of a 2027 large site by 19% while raising the number of sites 27%. Fewer, denser, more power-hungry systems per site is also the pattern every other source describes.
  • Expect the enterprise class to keep emptying. Gartner has enterprise data centers losing 2.16 million servers, while Synergy has on-premise capacity falling two points a year. New enterprise sites get built, and the workloads still leave.
  • Read the China number with its definition. Gartner’s 980 Chinese large sites in 2029 includes every operator above 500 racks. Synergy’s hyperscale count still puts the United States at well over half of worldwide capacity. Both can be true at the same time.
  • Match the unit before comparing growth rates. An 8.1% CAGR in sites, a 14% CAGR in gigawatts and a doubling of hyperscale capacity in three years describe the same build-out at three different resolutions.
  • Expect the next edition to move again. The 2023 edition undercounted 2027 large sites by at least 535 within two years. So far, nothing in the public pipelines from Synergy or Cushman & Wakefield points to the 2025 edition proving high.

Related comparisons

This post is the third in a series that places published forecasts side by side. AI infrastructure spending forecasts compared (October 22, 2026) covers what the build-out costs. AI revenue gap forecasts compared across Gartner, Goldman, Bain and JPMorgan (October 29, 2026) covers what it has to earn back. This post covers where it gets built. Gartner’s $4.05T AI forecast and Forrester’s Predictions 2027 (November 2, 2026) covers when the spending slows.

Key takeaways

  • Large data centers hold 57% of the world’s servers by 2029. Gartner’s dataset puts sites with more than 500 racks at 44% of installed servers in 2024 and 57% in 2029, when they hold 49.4 million of 86.2 million servers.
  • The large site count reaches 2,880 in 2029. That is up from 1,951 in 2024, an 8.1% compound annual growth rate, while total sites grow 1.6% a year to 3.74 million.
  • Gartner raised its 2027 large data center count by 535 sites in two years. The October 2023 edition had 1,955 large sites for 2027, while the October 2025 edition has 2,490, a 27% increase. The 2027 total server base fell from 82.6 million to 80.0 million at the same time.
  • Every other class of site loses servers. Large data centers add 15.9 million servers between 2024 and 2029, while enterprise data centers lose 2.16 million, rack rooms 1.46 million, midsize sites 0.87 million and single-server sites 0.64 million.
  • China nearly matches North America in large sites by 2029. Gartner’s dataset has China growing from 468 large data centers in 2024 to 980 in 2029, a 15.9% CAGR, while North America grows from 819 to 1,001 and keeps the lead by 21 sites.
  • Hyperscale operators already hold 48% of worldwide capacity. Synergy Research Group counted 1,360 hyperscale-operated data centers at the end of 2025, with a pipeline of 915 more as of August 2026 and a 67% capacity share forecast for 2031.
  • Data center electricity use doubles to 950 TWh in 2030. The IEA projects that figure from 485 TWh in 2025, about 3% of global electricity demand, with AI-focused sites tripling their consumption.

How I built this analysis

The Gartner figures come from the two forecast documents and their accompanying Excel datasets. I used the pivot tables in each dataset to total sites, installed servers and server racks by site class and region, and to calculate shares, differences between editions, compound annual growth rates and servers per site and per rack. The 2023 edition uses seven regions and the 2025 edition uses nine, so the Asia/Pacific comparison combines China, Emerging Asia/Pacific and Mature Asia/Pacific from the 2025 edition to match the older grouping.

Two figures in Gartner’s summary differ from the dataset. The summary says large data centers held 41% of servers in 2024, while the dataset gives 41.5% for 2023 and 44.4% for 2024. I use the dataset values throughout. The summary also gives the Middle East and Africa a 6.5% CAGR, while the dataset’s two sub-regions combined grow at 5.7%. I report Gartner’s stated figure and attribute it, since the two cannot be reconciled from the dataset. Synergy, JLL, IEA and Cushman & Wakefield figures come from the public releases linked below, while the charts are my own work.

More analysis from this blog

This post is my personal analysis of Gartner, Synergy Research Group, JLL, IEA and Cushman & Wakefield research and does not represent my employer.

Sources

Gartner

  • Gartner, Forecast: Data Center Sites, 2023-2029, Worldwide (G00808671), 17 October 2025, including the accompanying dataset.
  • Gartner, Forecast: Data Center Sites, Worldwide, 2021-2027, 2023 Update (G00799095), 31 October 2023, including the accompanying dataset.

Public research and market data

Why Gartner and IDC are $86B apart on 2027 cybersecurity spending

Chart comparing Gartner's and IDC's cybersecurity spending forecasts for 2027: $276.1 billion versus $361.9 billion, an $85.8 billion difference explained by scope, while 2027 growth rates sit within 1.2 points at 11.2 to 12.4 percent
Cybersecurity spending forecasts for 2027 compared. Gartner and IDC are $85.8B apart on market size, yet their 2027 growth rates sit within 1.2 points of each other. Click any chart to open it full size. Sources linked below, analysis by softwarestrategiesblog.com.

Four research firms have now published cybersecurity spending forecasts for 2027. Their numbers do not agree, and the disagreement itself is more instructive than any one total. Gartner’s 3Q26 forecast puts worldwide information security end-user spending at $276.1 billion in 2027. IDC’s latest published figure is $361.9 billion. Omdia has 2026 at $315 billion but keeps its 2027 figure behind a paywall. Forrester surveys the people who hold the budgets instead of sizing the market, and 60% of them expect at least a 5% increase next year.

Put side by side, the spread looks like a dispute about demand. Growth rates say otherwise. Every firm’s 2026 rate lands between 12.7% and 13.6%, while each 2027 rate sits between 11.2% and 12.4%. What separates a $276 billion market from a $362 billion one is what each firm decides to count. This post reconciles the four cybersecurity spending forecasts for 2027, shows where the scope differences come from and identifies the one place where the firms genuinely disagree. That place is the pace of deceleration after 2027.

Five takeaways from the cybersecurity spending forecasts for 2027

  • The 2027 gap is $86 billion, and it is almost entirely definitional. IDC’s $361.9 billion includes security hardware and spans 38 technology markets across 28 industries. Gartner’s $276.1 billion covers 41 categories of security software, security services and network security equipment but no other hardware. Neither firm is wrong. Each draws the market boundary in a different place.
  • Growth is the point of agreement. Gartner has 2026 at 12.7% in constant currency (13.6% in current dollars) and 2027 at 11.2%. IDC’s V2 release has 2026 at 13.2% and its event page has 2027 at 12.4%. Omdia also has 2026 at 13%. Any of the four cybersecurity spending forecasts for 2027 would describe the same healthy, low-teens market.
  • Omdia’s services share is the biggest single difference. Omdia puts services at roughly two-thirds of cybersecurity spending, against a 37.8% services share in Gartner’s forecast. In dollar terms, Omdia’s June 2026 services figure of $204.8 billion is $111 billion above Gartner’s $93.5 billion. That alone is more than the entire gap between the two firms’ totals.
  • The real disagreement is after 2027. Gartner’s constant-currency growth path declines every year, falling from 12.7% in 2026 until it reaches 9.6% in 2030. That is a 10.8% compound rate for 2025 to 2030. IDC describes a “12.5% five-year path to $512.9B by 2030.” By 2030 the two long-range numbers are $140 billion apart.
  • Forrester’s budget signal improved year over year. In its 2027 planning survey, 16% of security decision-makers expect a budget increase above 10%, while 44% expect 5% to 10%. A year earlier the figures were 15% and 40%. Budgets are growing faster in the minds of the people who set them than a year ago.

What each firm’s cybersecurity spending forecasts say for 2026 and 2027

The table below holds the figures each firm has made public, together with the scope that goes with them. Read the scope column first, because the totals mean little without it. Gartner’s number is end-user spending in current dollars from the detailed forecast file. IDC’s figures come from two places. Its V2 Worldwide Security Spending Guide release gives $310.42 billion for 2026. A separate IT Security event page then gives $361.9 billion for 2027 and $512.9 billion for 2030. Omdia’s 2026 figure appears in its October 1, 2026 channel analysis. Forrester’s numbers are survey percentages rather than dollars.

The published figures side by side

Table comparing Gartner, IDC, Omdia and Forrester cybersecurity spending forecasts for 2026 and 2027 with long-range figures, 2026 total bars and scope notes: Gartner $247.5bn and $276.1bn, IDC $310.4bn and $361.9bn, Omdia $315bn for 2026, Forrester 55 percent and 60 percent expecting at least a 5 percent budget increase
What each firm has published for 2026 and 2027, with the scope behind each number. Bars compare the firms’ 2026 totals on their own scopes. Gartner growth rates and CAGR are calculations from the detailed forecast file. Analysis by Louis Columbus, softwarestrategiesblog.com.

One caution on IDC’s published figures

IDC’s own public figures do not fully reconcile. A 2027 total of $361.9 billion that is “up 12.4% year on year” implies a 2026 base of about $322 billion. That is about $11.6 billion above the $310.42 billion in the V2 release. A 12.5% five-year path to $512.9 billion implies a 2025 base near $285 billion, while the V2 growth rate implies $274 billion. The likeliest explanation is that the event page draws on a later version of the guide. I show both as published and treat them as two snapshots rather than one series.

Line chart of Gartner's 2024 to 2030 worldwide security spending forecast against IDC's published points for 2026, 2027 and 2030 and Omdia's 2026 figure, showing gaps of $86 billion in 2027 and $140 billion in 2030
Gartner’s full 2024-2030 series against the points IDC and Omdia have published. The IDC-Gartner gap grows from $86B in 2027 to $140B in 2030. Analysis by Louis Columbus, softwarestrategiesblog.com.

Why IDC’s cybersecurity spending forecasts run $63 billion above Gartner’s in 2026 and $86 billion above in 2027

Start with what each firm counts. Gartner’s forecast is end-user spending across three markets. Security software is $126.9 billion in 2026, security services $93.5 billion and network security equipment $27.0 billion. That equipment is also the only hardware in a forecast Gartner publishes as 41 categories across 47 country and sub-regional rows. The 2026 total still includes $9.0 billion of consumer security software. Once the consumer line is stripped out, the business-only figure is $238.4 billion for 2026 and $266.8 billion for 2027.

IDC built its Worldwide Security Spending Guide on a wider frame. It covers 38 technology markets, including security hardware beyond network appliances, and then slices them by 28 industries and 48 countries. IDC said in March that software would be more than half of its $308 billion 2026 total and grow fastest, at 14%. The October V2 release lifted 2026 to $310.42 billion and the growth rate to 13.2%. That combination means IDC revised 2025 down and 2026 up at the same time.

Both firms tell roughly the same software-led growth story, although about differently sized markets. A $63 billion gap in 2026 that holds its proportion in 2027 is what a fixed scope difference looks like. Demand disagreements leave a different trail. If IDC saw stronger demand than Gartner, the gap would widen quickly. It does widen, but slowly, and almost entirely because of the long-range growth assumption discussed below.

Stacked bar chart showing how Gartner, IDC, Omdia and Forrester each divide cybersecurity spending in 2026: Gartner 51 percent software, 38 percent services, 11 percent network equipment. IDC more than half software. Omdia one-third technology and two-thirds services. Forrester 40 percent software and about 29 percent personnel
Each firm’s 2026 split of cybersecurity spending, in its own categories. Omdia’s two-thirds services share and Forrester’s personnel line have no equivalent in Gartner’s forecast. Analysis by Louis Columbus, softwarestrategiesblog.com.

Omdia’s two-thirds services share is the largest definitional split

Omdia’s $315 billion looks close to IDC’s $310 billion, but it gets there by a different route. Omdia says technology, meaning licenses, subscriptions and appliances, is roughly one-third of cybersecurity spending. Services spanning advisory, design and managed security are the other two-thirds. Its June 2026 figures were $106.4 billion for technology and $204.8 billion for services, out of $311 billion.

Gartner’s forecast inverts that ratio. Software plus network security equipment is $153.9 billion in 2026, $47.5 billion more than Omdia’s technology figure. Gartner’s security services total of $93.5 billion sits $111.3 billion below Omdia’s services figure, and that one difference is larger than the $63.5 billion gap between Omdia’s June total and Gartner’s.

Managed security shows how far apart the definitions sit. Gartner’s Managed Security Services subsegment is $32.3 billion in 2026, with managed detection and response at $11.5 billion of that and security operations at $15.6 billion. Omdia’s managed security services figure for 2026 is $106 billion, growing 14%, as cited by WithSecure’s MSP Cybersecurity Buyer’s Guide from Omdia’s MSSP Trends and Predictions. That one number is larger than Gartner’s entire security services market. Omdia is counting partner-delivered services that Gartner either books as product revenue or leaves outside the forecast.

For anyone selling security services, the implication is simple. Omdia’s figures describe the partner economy, and Gartner’s describe the services revenue that vendors recognize on their own books. Both are real answers, but to different questions.

Paired horizontal bar chart comparing Gartner and Omdia 2026 cybersecurity spending by type: technology $153.9 billion versus $106.4 billion, services $93.5 billion versus $204.8 billion, managed security $32.3 billion versus $106 billion
Gartner and Omdia 2026 figures by type. Omdia counts $111B more in services than Gartner, and its managed security figure alone is larger than Gartner’s total services market. Analysis by Louis Columbus, softwarestrategiesblog.com.

The one real disagreement is how fast growth slows after 2027

Once scope is set aside, the four cybersecurity spending forecasts agree on 2027 and differ on what follows. Gartner’s constant-currency growth falls every year in the 3Q26 file, from 12.7% in 2026 to 11.2% in 2027, 10.4% in 2028, 10.0% in 2029 and 9.6% in 2030, so the compound rate for 2025 to 2030 works out to 10.8%. The market adds $28.7 billion in 2027 and then $96.7 billion over the following three years, which is strong growth on a decelerating path.

IDC’s published path barely decelerates. After 13.2% in 2026 and 12.4% in 2027, the firm describes a 12.5% five-year compound rate to $512.9 billion by 2030. Getting from $361.9 billion in 2027 to $512.9 billion in 2030 requires 12.3% a year for three more years, which is flat growth rather than a slide toward single digits. By 2030 the gap between IDC’s compound rate and Gartner’s year-on-year rate reaches 2.9 percentage points.

Why the 2030 numbers are $140 billion apart

That difference compounds, so the dollar gap widens every year. In 2027 the two totals are $86 billion apart, and by 2030 the distance reaches $140 billion, or about 38% of Gartner’s own 2030 total. Had IDC’s figure grown at Gartner’s rates from 2027 instead, it would reach about $489 billion in 2030. The gap would then be $116 billion, leaving $24 billion that comes from the growth assumption alone.

That leaves the 2028 to 2030 call as a call about AI. Either AI-driven security demand sustains low-teens growth, or platform consolidation and budget pressure pull it toward 10%. Consolidation is the Gartner case, while sustained AI demand is IDC’s. Gartner’s own forecast assumptions also back that reading. By 2029 it expects 52% of organizations to use fewer than 10 cybersecurity tools, up from 21% in 2025, according to Forecast Analysis: Information Security, Worldwide, 2026 (G00838442).

Line chart of year-on-year growth in worldwide security spending showing Gartner's constant-currency path falling from 12.7 percent in 2026 to 9.6 percent in 2030 against IDC's 13.2 percent, 12.4 percent and 12.5 percent five-year compound rate
Growth rates in the cybersecurity spending forecasts for 2027 and beyond. Gartner’s path declines every year through 2030, while IDC’s published points and its 12.5% five-year rate stay above 12%. Analysis by Louis Columbus, softwarestrategiesblog.com.

Forrester measures budgets, not markets, and the mood improved

Forrester built its Budget Planning Guide 2027: Security And Risk Leaders Must Confront The AI Cost Explosion from a survey of more than 2,600 business and technology decision-makers. The guide produces no market size, and that is useful here. Budgets include headcount, training, insurance and now what Forrester calls “token economics,” the inference costs of running AI inside security operations, none of which any vendor forecast counts.

The headline is a modest, consistent improvement. For 2027, 60% of security decision-makers expect their budgets to rise by at least 5%, with 16% expecting more than 10% and 44% expecting 5% to 10%. A year earlier the same questions for 2026 returned 55%, split 15% and 40%. Across all technology decision-makers, 82% expect budgets to rise in 2027, although the regional detail for 2026 showed how uneven that optimism was. Only 9% of North American security leaders expected more than 10% growth, against 14% in Europe and 22% in Asia Pacific.

Forrester’s budget composition data explains why its figures do not map onto Gartner’s or IDC’s cybersecurity spending forecasts for 2027. Citing Information Services Group data for 2025, Forrester says software is about 40% of security budgets. That outpaces hardware and outsourcing combined and, in Forrester’s wording, exceeds personnel-related costs by 11%. Read as percentage points, that puts personnel near 29% of the budget, the second-largest line a CISO carries and one that no market forecast includes. A security budget growing 5% to 10% is consistent with a vendor market growing 11% to 13%, provided staff costs grow more slowly than software and services. Two years of consolidation and automation point that way.

Stacked bar chart of Forrester survey results showing 55 percent of security decision-makers expected at least a 5 percent budget increase for 2026 and 60 percent expect it for 2027, with a side panel showing 9 percent of North American, 14 percent of European and 22 percent of Asia Pacific leaders expecting more than 10 percent growth for 2026
Forrester’s security budget surveys for 2026 and 2027. The share expecting at least a 5% increase rose from 55% to 60%. Analysis by Louis Columbus, softwarestrategiesblog.com.

What Gartner’s CISO research adds to the demand picture

Gartner’s own planning research for the same cycle points the same way, and it adds two cost drivers that none of the market forecasts isolates. CISO Agenda Priority: Align Cybersecurity Investment With Board Risk Appetite (G00862663) states that the cybersecurity challenge “is no longer primarily a budget problem” and that boards are deliberately increasing risk appetite to accelerate AI adoption. The money is there, so the argument is about where it goes.

On staffing, the 2027 Planning Guide for Cybersecurity (G00856222) says the SOC workforce will transform rather than shrink as AI agents arrive. Gartner projects that by 2028 security operations teams will employ 50% more engineers than traditional analysts, which keeps Forrester’s personnel line intact even as vendor spending grows. The Cybersecurity Executive Outlook, 4Q26 (G00861818) reports that 51% of CISOs have not begun any post-quantum cryptography activity and predicts that organizations that do not begin piloting PQC by 2027 will pay 200% higher costs for full migration. Those are reasons for 2027 budgets to keep rising regardless of how a market is scoped.

The securing-AI gap is wider than the market gap

The sharpest divergence between the cybersecurity spending forecasts for 2027 is in the newest category. Gartner’s securing-AI forecast appears in Forecasting the $16.4 Billion Opportunity in Securing AI (G00853861) and carries into the 2Q26 and 3Q26 information security forecasts. It has spending on securing AI at about $3 billion in 2026 before rising to $16 billion in 2030. That implies growth of roughly 52% a year, although from a small base. The category sits inside Gartner’s security software total rather than beside it.

IDC’s IT Security event page states that spending on securing AI will reach $58.3 billion in 2027, “compounding at 37.8% a year.” It calls this “the fastest-moving segment in security.” The source is IDC’s Worldwide Artificial Intelligence Security Spending Forecast, 2025-2029. That 2027 figure is 3.6 times Gartner’s 2030 figure, three years earlier.

A gap of that size comes from definitions. IDC’s event page does not say what the $58.3 billion counts, and its scale points to a far broader set of spending than Gartner’s, plausibly including AI-enabled security tooling and services. Gartner’s securing-AI line covers only the spend on protecting AI models, agents and data. A third number, Gartner’s AI-amplified security forecast, reaches $204 billion by 2030 and is a different construct again. The firm’s February analysis says so itself, stating that AI-amplified security “is not additive spending and will not change security spending” (G00838442). I covered it in an earlier post linked below. Anyone quoting an “AI security market size” needs to say which of these three definitions they mean.

Bar chart comparing Gartner's securing AI forecast of $3 billion in 2026 and $16 billion in 2030 with IDC's $58.3 billion securing AI figure for 2027
Gartner’s securing-AI forecast against IDC’s. IDC’s 2027 figure is 3.6 times Gartner’s 2030 figure, a difference of definition rather than demand. Analysis by Louis Columbus, softwarestrategiesblog.com.

Nearly half of the gap sits in the United States

Regional detail shows where IDC’s extra scope lands. IDC’s March release put the United States at $150 billion for 2026. Gartner’s 3Q26 file has the United States at $119.5 billion, so the $30.5 billion difference is nearly half of the $63 billion gap between the two totals. Gartner then has the US rising to $133.6 billion in 2027 and $181.1 billion in 2030.

Europe is closer than the worldwide totals imply. IDC has Western Europe at $69 billion, while Gartner’s Europe region, which includes Central and Eastern European countries, sums to $64.0 billion. Even a broader Gartner region lands $5 billion below a narrower IDC one. In Asia/Pacific excluding Japan and China, IDC’s $26 billion sits $8.3 billion above the $17.7 billion in Gartner’s Mature and Emerging Asia/Pacific regions combined. As a ratio, that is the widest regional gap of the three. IDC runs at 1.47 times Gartner’s figure there, against 1.26 in the United States and 1.08 in Europe.

The US-heavy gap fits the scope story, because the United States has the deepest market for security hardware, managed services and industry-specific security spending. Those are also the three areas where IDC’s definitions extend furthest beyond Gartner’s.

Dumbbell chart comparing Gartner and IDC 2026 security spending by region: United States $119.5 billion versus $150 billion, Europe $64 billion versus $69 billion for Western Europe, Asia/Pacific excluding Japan and China $17.7 billion versus $26 billion
Gartner and IDC 2026 regional figures. The United States accounts for $30.5B of the $63B gap between the two firms’ worldwide totals. Analysis by Louis Columbus, softwarestrategiesblog.com.

How to use four cybersecurity spending forecasts for 2027 that do not agree

  • Pick the forecast that matches your question, then stay with it. Vendor revenue planning and competitive share analysis belong on Gartner’s end-user spending basis, because that is how most public security vendors are benchmarked. Channel and services strategy belongs on Omdia’s partner-centric total, while hardware-inclusive or industry-vertical sizing belongs on IDC. Switching bases mid-analysis is how a 12% growth market gets misreported as a 30% one.
  • Quote growth rates before you quote totals. The four cybersecurity spending forecasts agree that 2026 grows 12.7% to 13.6% and 2027 grows 11.2% to 12.4%. Those are the defensible numbers, while totals carry scope assumptions that most audiences will not check.
  • Treat 2028 to 2030 as the open question. Gartner’s path heads for 9.6% growth by 2030 while IDC’s stays near 12.5%. Plans built on the IDC trajectory have about $140 billion more market to divide by 2030 than plans built on Gartner. Watch Gartner’s 4Q26 update and IDC’s next guide version for which way the 2028 numbers move.
  • Use Forrester as the demand-side check. The share of security leaders expecting at least a 5% budget increase rose from 55% to 60%. If it keeps rising, the vendor forecasts’ low-teens growth has budget support. A decline would instead make Gartner’s deceleration the base case.
  • Never cite an AI security market size without its definition. $3 billion, $16 billion, $58.3 billion and $204 billion are all current analyst figures for some version of “AI security.” They describe four different things.

Frequently asked questions

What do the cybersecurity spending forecasts say the market is worth in 2027?

Among the published cybersecurity spending forecasts for 2027, Gartner’s is the lowest at $276.1 billion in worldwide information security end-user spending. That is up 11.6% in current dollars and 11.2% in constant currency. IDC’s published figure is $361.9 billion, up 12.4%. The $86 billion difference reflects IDC’s broader scope, which includes security hardware across 38 technology markets, and the two firms’ 2027 growth rates sit within 1.2 points of each other.

Why do IDC’s cybersecurity spending forecasts run higher than Gartner’s for 2027?

IDC’s Worldwide Security Spending Guide counts hardware, software and services across 38 markets, 28 industries and 48 countries. Gartner counts security software, security services and network security equipment in 41 categories. Nearly half of the 2026 gap, $30.5 billion of $63 billion, is in the United States, because hardware, managed services and industry-specific spending are largest there.

What does Omdia forecast for cybersecurity spending?

Omdia’s October 2026 figure is $315 billion for 2026, up 13%, with technology about one-third and services about two-thirds. Its earlier June 2026 breakdown was $106.4 billion for technology and $204.8 billion for services on a $311 billion total. Omdia’s 2027 and five-year figures remain available only to subscribers, unlike its 2026 headline.

What does Forrester say about 2027 security budgets?

In Forrester’s Budget Planning Guide 2027 survey, 60% of security decision-makers expect at least a 5% budget increase for 2027. Of those, 16% expect more than 10% and 44% expect 5% to 10%. The previous year’s survey for 2026 returned 55%, 15% and 40%.

Are the cybersecurity spending forecasts for 2026 and 2027 rising or falling?

For 2026, every firm’s number is higher than when the year began. Gartner’s went from $244.2 billion in 4Q25 to $248.2 billion in 2Q26, then eased to $247.5 billion in 3Q26. IDC’s rose from $308 billion to $310.42 billion, while Omdia’s rose from $311 billion to $315 billion. For the longer range, Gartner forecasts growth slowing to 9.6% by 2030, while IDC’s published five-year rate holds at 12.5%.

How I built this analysis

I computed the Gartner figures from the detailed data file behind Forecast: Information Security, Worldwide, 2024-2030, 3Q26 (G00862059). That file contains 13,489 rows of end-user spending by year, region, country, market, subsegment and category, in both current and constant currency. Its accompanying report confirms the totals and the 2029 and 2030 growth rates, and Forecast Analysis: Information Security, Worldwide, 2026 (G00838442) supplies the forecast assumptions quoted above. CISO and planning-guide statements come from CISO Agenda Priority: Align Cybersecurity Investment With Board Risk Appetite (G00862663), 2027 Planning Guide for Cybersecurity (G00856222) and The Cybersecurity Executive Outlook, 4Q26 (G00861818). Totals, growth rates, segment shares, regional sums and the 2025-2030 CAGR are my calculations from that file. Securing-AI figures come from Forecasting the $16.4 Billion Opportunity in Securing AI (G00853861), as carried into the 2Q26 and 3Q26 forecasts.

Where the IDC, Omdia and Forrester figures come from

IDC figures are as published in its March 3, 2026 press release, its October 28, 2026 blog on the V2 release of the 2026 Worldwide Security Spending Guide, and its IT Security event page. That page cites the spending guide and the Worldwide Artificial Intelligence Security Spending Forecast, 2025-2029. The implied 2026 base of about $322 billion in the event-page series is my calculation rather than an IDC figure.

Omdia figures come from its October 1, 2026 channel analysis as well as the June 2026 figures published by Omdia’s Jay McBain. The managed security figure is as cited by WithSecure from Omdia’s MSSP Trends and Predictions. Forrester figures come from its Budget Planning Guide 2027 press release and coverage, together with its July 2025 Security Planning 2026 blog and its Predictions 2027 release. The Forrester personnel share of about 29% reads Forrester’s statement that software exceeds personnel-related costs by 11% as a percentage-point gap below the 40% software share. Read as a relative 11%, personnel would be about 36%, and either reading leaves personnel as the second-largest budget line.

I built all charts comparing the cybersecurity spending forecasts for 2027 from these figures and labeled each with its sources. Where a figure is an estimate or a derived value, the chart and text say so.

Related comparisons

Sources

This post is my personal analysis and does not represent my employer.

Gartner’s secure AI Hype Cycle predicts twice the incidents without preproduction offensive GenAI testing

Secure AI Hype Cycle overview. Gartner forecasts twice as many incidents by 2028 without preproduction testing as among proactive users. Of 24 technologies, one is under two years from mainstream adoption, 17 are two to five years away and six are five to ten years away.
Gartner, Hype Cycle for Secure AI, 2026 (G00846820), October 12, 2026. Incident comparison is a forecast. Technology counts and shares are my calculations from the complete Priority Matrix. Analysis and graphic by Software Strategies Blog. Click to open full size.

Gartner’s secure AI Hype Cycle predicts that enterprises skipping preproduction offensive testing of generative AI deployments will face twice as many cybersecurity incidents by 2028 as proactive users. That is a forecast, not a measured outcome.

Funding is already a constraint. Among organizations piloting or implementing offensive AI security technologies, 50% have either not secured funding or diverted money from existing cybersecurity initiatives. This finding describes surveyed adopters, not half of all enterprises.

Meanwhile, my count of the complete Priority Matrix puts 23 of 24 technologies at least two years from mainstream adoption. Security teams therefore need to control deployed agents before most specialist markets mature. The immediate questions are what each agent can do, which controls enforce its limits and what a new product would add.

Gartner’s Hype Cycle for Secure AI, 2026 (G00846820), published October 12, 2026, separates controls for employee AI use, enterprise-built applications and agents acting across systems. Those distinctions make it useful for testing a security architecture, not simply compiling a vendor shortlist.

Gartner’s original Hype Cycle for Secure AI, 2026, with all technology labels, adoption markers and phase labels.
Gartner, Hype Cycle for Secure AI, 2026 (G00846820), October 12, 2026, Figure 1, page 6. © 2026 Gartner, Inc. Click to open the full-size graphic.

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Gartner’s $4.05T AI forecast and Forrester’s Predictions 2027 put the AI spending slowdown in 2028

Bar chart of Gartner's worldwide AI spending forecast rising from $1.80 trillion in 2025 to $7.01 trillion in 2030, with 2027 adding $1,304 billion, the most of any year, and growth slowing to 28% in 2028 and 15% in 2030
Gartner’s worldwide AI spending forecast, 2025 to 2030. The year 2027 adds $1.30 trillion, more than any other year, before growth falls to 28% in 2028. Click any graphic to open it full size. Source: Gartner (G00862061, Oct. 7, 2026), analysis by softwarestrategiesblog.com.

Gartner and Forrester both forecast AI spending rising in 2027. Gartner’s October 7 AI spending forecast puts worldwide AI spending at $4.05 trillion next year, up 47% from $2.75 trillion in 2026, while Forrester’s Predictions 2027, published October 21, says one dollar in five of business technology spending will go to AI.

Each firm places the slowdown somewhere specific. In Gartner’s model, 2027 adds $1.30 trillion in new AI spending, the most of any year through 2030, and growth then drops to 28% in 2028 and 15% by 2030. Forrester’s pressure lands on budgets instead. Only 53% of tech leaders expect their budgets to beat inflation, so leaders plan their deepest cuts in services.

I built this comparison from Gartner’s 3Q26 AI spending forecast (G00862061) and the workbook Gartner publishes with it, Gartner’s October 21 IT spending forecast and Forrester’s public Predictions 2027 materials. The subtractions, shares and dollars added are my calculations.

Four numbers that frame Gartner and Forrester AI spending in 2027

  • Gartner added $413 billion to its 2027 AI forecast in one quarter. AI infrastructure rose $420 billion from the July forecast, more than the total increase, because Gartner trimmed AI software by $8 billion.
  • 2027 is the peak year for new AI dollars in Gartner’s model. Spending adds $1.30 trillion in 2027, then $1.14 trillion in 2028, $920 billion in 2029 and $897 billion in 2030.
  • The two headline numbers measure different things. Gartner sizes the whole AI value chain, chips and consumer devices included. In contrast, Forrester sizes AI’s share of business technology spending.
  • Both firms see services absorbing the squeeze. Gartner forecasts IT services growing 4.9% in 2027 while data center systems grow 55.5%. Meanwhile, Forrester says leaders already plan their deepest cuts in services.

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AI revenue gap forecasts compared across Gartner, Goldman, Bain and JPMorgan

AI revenue gap comparison with Gartner’s cumulative shortfall above $6 trillion through 2032, Goldman’s $417 billion annual revenue requirement, Bain’s $6 trillion annual market in 2031 and JPMorgan’s older $650 billion annual estimate. Different scopes, not a ranking.
Four financial tests with different periods and revenue recipients. Gartner, Prepare for AI Market Consolidation: Capital Write-Downs Could Exceed $4 Trillion by 2032 (G00861169), September 14, 2026, alongside Goldman’s September 24 report, Bain’s Technology Report 2026 and J.P. Morgan’s January 2026 discussion. Shortfalls calculated from source inputs. Analysis and graphic by Software Strategies Blog. Click to open full size.

The AI revenue gap exceeds $6 trillion through 2032 in Gartner’s September consolidation model. Infrastructure owners need more than $14 trillion in cumulative revenue to cover capital, financing and a 12% return. Gartner forecasts no more than $8 trillion attributable to those assets. The difference is my calculation.

That shortfall is not a write-down forecast. Gartner separately estimates more than $4 trillion in asset value exposed to write-downs under that return assumption.

Meanwhile, Goldman’s $417 billion annual requirement and Bain’s $6 trillion annual 2031 market use different financial tests. My infrastructure comparison followed spending into the buildout. This analysis follows the returns.

  • Who earns the revenue matters. Application sales support infrastructure returns only insofar as they contribute to the owner’s economics.
  • The accounting clock changes the hurdle. Equipment lives, replacement cycles and financing affect how much revenue is needed, and when.
  • Higher demand can widen the funding gap. More sales may require more capacity, so spending growth alone does not establish returns.

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20 Cybersecurity Startups to Watch in 2027

Bar chart ranking the latest verified funding round of each of the 20 cybersecurity startups to watch in 2027, from Island and Cyera at $400 million to Opal Security at $23 million, colored by the six sections of the article
Eighteen of the 20 closed their latest round in 2026. Bars show announced rounds, not total funding or valuation. Click the chart to open it full size.

Cyera paid $1 billion for Oasis Security and closed the deal on Sept. 3, 2026, 37 days after Globes reported the agreement on July 28. In late June, Oasis had made CRN’s list of the 10 hottest cybersecurity startups of 2026 so far. Startup lists go stale fast. Notable Capital’s Rising in Cyber 2026 names 30 companies picked by 150 CISOs and security executives, with funding data as of Q1 2026. A CISO setting a 2027 budget needs something narrower from both lists. Which young vendors produced evidence this year that they will still be independent, shipping and staffed when the contract renews?

Dot chart of each company's latest 2026 funding round by announcement date, showing 14 of the 20 rounds landing after March 31 and 12 after CRN's June 26 list, with markers for Notable Capital's Q1 data, the CRN list and Cyera completing its Oasis acquisition on Sept. 3
Each dot is a company’s latest verified round, placed on its announcement date. Keycard and 7AI raised in late 2025 and are not shown.

That question picked these 20. Every company here produced at least one verified 2026 event beyond a valuation, whether a priced round, a named production customer, a shipped product or a public technical result. Valuation earned no one a spot. Eleven of the 20 appear on neither the CRN nor the Notable list.

Eighteen of the 20 closed their latest round in 2026. That money turns into hires, product launches and sales coverage next year, when buyers will feel it. Several companies here have already tied specific 2027 deliverables to the cash.

The research cutoff is Oct. 17, 2026. To qualify, a company had to be privately held and independent on that date. Late-stage companies qualify under the same rule as seed-stage ones, so Cyera and Island stay in. A completed acquisition disqualifies a company. So does an announced sale, which is why Oasis is out.

Securing AI agents company profiles for Onyx Security, HiddenLayer, Reco and Harmonic Security, showing each company's latest verified round, total funding where disclosed, buyer, 2027 watch item and what to validate
Securing AI agents at a glance. Bars share one scale across all six sections.

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AI infrastructure spending forecasts compared: every major firm raised its 2030 number in 2026

AI infrastructure spending forecasts compared, 2026 revisions: Dell'Oro raised 2030 data center capex from $1.7T to more than $3T, Gartner raised 2030 data center systems 58% to $2.16T, hyperscaler capex consensus rose 52% to $800B, IDC raised 2029 AI infrastructure 42% to $1.08T; Citi's $3.8T 2030 AI capex is 3.1x IDC's $1.21T
Four firms raised the same AI infrastructure forecast between editions, with 2030 figures from Dell’Oro, Gartner and IDC. Click any chart to open it full size. Sources linked below, analysis by softwarestrategiesblog.com.

Every major AI infrastructure spending forecast went up in 2026, and the biggest increases landed on 2029 and 2030. Dell’Oro Group nearly doubled its 2030 data center capex outlook in six months. Gartner raised its 2030 data center systems forecast 58% in a single quarter. IDC raised its 2029 AI infrastructure forecast 42% in nine months.

The firms still disagree on how big the build-out gets. For 2030, the published annual figures run from IDC’s $1.21 trillion to Citi’s $3.8 trillion, a 3.1x gap. Most of that gap comes from what each firm counts, not from different views of demand.

This post puts the public numbers from 12 firms side by side. They are Gartner, IDC, Dell’Oro, Goldman Sachs, Citi, Morgan Stanley, McKinsey, Bain, Forrester, JLL, the IEA and BloombergNEF. It shows what each one measures, how far each has moved, what the five largest buyers are actually spending, what the power grid can deliver and what the build-out has to earn back. Where a firm published only a range or a scenario, I say so.
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Gartner’s $9.76T IT spending forecast: servers will outspend all IT services by 2030

Gartner IT spending forecast 2024 to 2030 rising from $5.04 trillion to $9.76 trillion, stacked by data center systems, software, IaaS, IT services, communications services and devices, with six KPI tiles
Gartner’s 3Q26 worldwide IT spending forecast by segment, 2024-2030, with six tiles on the numbers that matter most. Click any chart to open it full size. Source: Gartner (G00862058, Sept. 25, 2026), analysis by softwarestrategiesblog.com.

Gartner’s latest IT spending forecast puts worldwide IT spending at $6.39 trillion in 2026 and $9.76 trillion by 2030. Spending grows 13.2% in 2026 in constant currency, or 14.5% in current dollars, and compounds at 11.2% a year from 2025 to 2030.

One subsegment drives that growth more than any other. Server spending grows from $386.5 billion in 2025 to $1.97 trillion in 2030. That $1.58 trillion gain is 38% of the $4.18 trillion the IT market adds over the period. By 2030, the world spends more on servers than on all IT services combined.

Gartner calls building AI compute capacity “the largest infrastructure build-out in history.” This edition makes the build-out bigger. Gartner raised its 2030 total by $816.8 billion from last quarter, and data center systems account for $794.9 billion of that increase.

I built this analysis from Gartner Market Databook, 3Q26 (G00862058), published September 25, 2026. Segment totals, growth rates and revisions come from the report. Subsegment and regional figures come from the 7,896-row dataset Gartner publishes with it, which covers 19 subsegments, nine regions and 47 countries. The shares, dollars added and comparisons are my calculations.
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Gartner’s $953B IoT forecast puts 81% of spending in endpoints and the fastest growth in software

Gartner IoT market opportunity forecast 2024 to 2030 rising from $620.9 billion to $953.3 billion, stacked by endpoint electronics, communication services, services, infrastructure software, application software and security, with six KPI tiles for 2026 and 2030 totals, new spending, application software growth, 5G growth and the 2028 revision
IoT market opportunity reaches $953.3B by 2030, with endpoint electronics carrying 81% of it. Click any chart to open it full size. Source: Gartner (G00858825, Sept. 25, 2026), analysis by softwarestrategiesblog.com.

The new Gartner IoT forecast puts four out of every five dollars in devices, and the fastest growth in the software that runs them.

Published September 25, the forecast sizes the worldwide IoT market opportunity at $736.6 billion in 2026, up 9.6%, and $953.3 billion by 2030. That is a 7.2% compound annual growth rate from 2025 through 2030, landing just under $1 trillion.

Endpoint electronics account for $769.2 billion of the 2030 total, or 80.7%. Application software grows at 20.4% a year and infrastructure software at 14.8%. Together, the two software segments compound at 16.3%, 2.3 times the market.

The trillion-dollar mark also moved. Gartner’s previous edition, published in June 2024, put the 2028 market at $990.5 billion. The new edition puts 2028 at $850.3 billion, a $140.2 billion reduction, and does not cross $1 trillion before 2030.

I built this analysis from Gartner’s forecast report (G00858825) and the full detailed dataset behind it: 73,493 rows covering 6 technology segments, 28 subsegments, 12 sectors, 47 use cases, 9 regions and 7 years.

Each bar in the hero chart stacks Gartner’s six technology segments in current U.S. dollars. Navy is endpoint electronics, mid-blue is communication services, sky blue is services, teal is infrastructure software, purple is application software and red is security. Italic figures above each bar give year-over-year growth.

Six tiles underneath carry the 2026 and 2030 totals, the $281.0 billion in new spending between 2025 and 2030, the application software growth rate, the 5G growth rate and the 2028 revision against the 2024 edition.
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