Top 10 fastest-growing segments from Gartner’s latest information security forecast Q4 2024
Gartner’s latest information security forecast reflects the optimism of most CISOs about their budgets increasing in 2025. Ninety percent of security and risk management leaders, including CISOs, told Forrester they expect a budget increase this year.
According to Gartner’s latest Q4 2024 forecast, end-user spending will surge from $183.7 billion in 2024 to $293.9 billion in 2028, reaching a 12.47% compound annual growth rate.
Information security spending will grow rapidly, driven by increasing investments in areas such as cloud security (25.9% CAGR) and managed security services (15.0% CAGR) as more enterprises face the many challenges of securing hybrid cloud environments.
Key segments, including infrastructure protection and professional services, underscore the urgency nearly all organizations have in securing their critical systems against increasingly lethal AI and generative AI (gen AI) attacks.
Below is a visual representation of the top 10 fastest-growing segments shaping the cybersecurity landscape.
Please click on the graphic below to expand it for easier reading.
The 10 fastest-growing information security market segments going into 2025
Infrastructure Protection
With spending projected to grow from $31.3 billion in 2024 to $51.2 billion in 2028 (CAGR: 13.1%), infrastructure protection leads the information security market. Securing infrastructure that will increasingly be used to manage model data, LLMs, and AI apps is one of the core drivers in this segment going into 2025. The latest Gartner forecast reflects the growing demand for infrastructure true protection as more organizations go all in on AI.
Security Professional Services
Spending on professional security services is expected to grow from $27.3 billion in 2024 to $42.3 billion in 2028, attaining a CAGR of 11.6%. These services are critical for implementing zero-trust policies and conducting proactive security assessments.
Managed Security Services
Managed security services spending will rise from $24.1 billion in 2024 to $42.1 billion in 2028, reflecting a CAGR of 15.0%. Outsourcing security to external providers has become essential as companies face a more lethal, AI-dominated threatscape while grappling with talent shortages.
Network Security Equipment
Spending on network security equipment will increase from $21.7 billion in 2024 to $32.8 billion in 2028, attaining a CAGR of 10.9%. This reflects the growing need to secure hybrid and multi-cloud networks as organizations expand their digital perimeters.
Security Consulting Services
Spending on security consulting services will grow from $23.0 billion in 2024 to $32.6 billion in 2028, delivering a CAGR of 9.1%. More organizations are looking outside for in-depth expert advice as they attempt to implement advanced security frameworks. Getting compliance right and ensuring consistency when reporting material events to the Security and Exchange Commission (SEC) are also drivers of this segment’s forecast.
Identity Access Management (IAM)
IAM spending will rise from $17.7 billion in 2024 to $25.4 billion in 2028, achieving a CAGR of 9.4% according to Gartner forecast. A key subsegment, Privileged Access Management (PAM), is projected to reach $2.9 billion by 2025 as growing regulatory compliance requirements on a global scale are expected to drive adoption.
Cloud Security
Cloud security spending will grow from $9.0 billion in 2024 to $22.6 billion in 2028, achieving a CAGR of 25.9%. As cloud environments become more complex, investments in Cloud Security Posture Management (CSPM) and Cloud Workload Protection Platforms (CWPP) will continue to accelerate growth.
Other Security Software
Spending on niche and innovative security software solutions will grow from $9.0 billion in 2024 to $14.7 billion in 2028, attaining a CAGR of 13.0%. This category includes specialized tools and apps used for combating advanced social engineering and adversarial AI-based attacks.
Data Security and Privacy
Spending on data security and privacy will increase from $6.1 billion in 2024 to $10.3 billion in 2028, reflecting a CAGR of 14.0%. Stringent data protection regulations and growing cyber threats are driving investments in this segment.
Application Security
Application security spending is forecasted to rise from $6.3 billion in 2024 to $10.1 billion in 2028, driving a CAGR of 12.7%. This segment addresses vulnerabilities in software applications, which remain a primary target for attackers.
Conclusion
Organizations are prioritizing agility and the ability to anticipate new threats while doubling down on cloud security. Predicted to grow at a 25.9% CAGR, cloud security is the fastest-growing segment in the forecast.
Spending on new tools to detect emerging threats is projected to jump from $9 billion in 2024 to $14.7 billion in 2028, further indicating that organizations are willing to invest in new technologies to stop emerging threats.
Ultimately, cybersecurity has become a more crucial business decision than ever before. While other organization budgets are being slashed going into 2025, cybersecurity continues to see gains and is increasingly seen as an investment in business resiliency.
