Amidst a digital arms race, the cybersecurity market is predicted to develop to US$500.7 billion by 2030.
The Investing Information Community spoke with analysts, market watchers and insiders to get their forecast for what traders can count on in 2025.
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A Sneak Peek At What The Insiders Are Saying
“Our on-line world is extra complicated and difficult than ever as a result of fast technological developments, rising cybercriminal sophistication and deeply interconnected provide chains. Collaboration between private and non-private sector stakeholders is paramount to safe the advantages of digitalization for all”
— Jeremy Jurgens, World Financial Discussion board
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Cybersecurity Outlook 2025
Cybersecurity Market Forecast: Prime Traits for Cybersecurity in 2025
Cybersecurity is turning into more and more necessary in at this time’s ultra-connected world. Discover out what insiders are saying concerning the cybersecurity forecast for 2025.
In at this time’s digital world, cybersecurity is not only necessary — it is important.
An alarming rise in cyberattacks is fueling demand for cybersecurity options; 2024 introduced knowledge breaches focusing on massive companies reminiscent of AT&T (NYSE:T), Constancy, Dell (NYSE:DELL) and Snowflake (NYSE:SNOW), and in January 2025, the US accused China of hacking into the Workplace of International Property Management and the Division of the Treasury.
Not solely is the frequency of cyberattacks rising, however they’re additionally costing corporations extra. In 2023, IBM (NYSE:IBM) discovered that throughout the earlier 12 months the common knowledge breach price was US$4.45 million.
A 2024 IBM report reveals that the value of an information breach had risen to US$4.88 million between March 2023 and February 2024, primarily as a result of enterprise disruptions and post-breach restoration efforts.
With cyber threats turning into more and more subtle and the price of incidents skyrocketing, what funding alternatives can be found for these trying to capitalize on this important and rising market?
Market analysis paints a compelling image. MarketsAndMarkets initiatives the scale of the worldwide cybersecurity market will attain US$298.5 billion by 2028, rising at a compound annual development price (CAGR) of 9.4 % from 2022. Grand View Analysis units the bar even increased, projecting a market worth of US$500.7 billion by 2030. Each companies spotlight rising alternatives within the areas of synthetic intelligence (AI) and machine studying for menace detection and response.
North America, which is at the moment dominating the cybersecurity market, is poised for continued development. Within the US, Statista initiatives income development at a CAGR of seven.12 % between 2025 and 2029.
In the meantime, Mordor Intelligence estimates Canada’s cybersecurity sector will attain US$24.23 billion by 2030.
AI a double-edged sword for cybersecurity
AI developments are altering the menace panorama, requiring AI-powered cybersecurity options. Whereas AI provides highly effective instruments to fight cybercrime, it additionally empowers malicious actors with new and complicated strategies of assault.
The IBM report highlights a regarding pattern: personally identifiable info from prospects stays the most typical goal for cybercriminals. AI amplifies the potential harm that may be brought on by personally identifiable info breaches, as attackers now have extra instruments to leverage this info.
The report additionally notes that, regardless of the advantages of AI and automation in lowering breach prices, solely 12 % of organizations say they’ve totally recovered from an information breach. Specialists see AI-powered assaults — together with ransomware, provide chain assaults, deepfakes and cloud jacking — as main cybersecurity threats within the coming years.
The weaponization of AI, reminiscent of the usage of deepfakes and AI-replicated voices, additionally poses a rising menace, as Mark Fernandes, international chief info safety officer at CAE, emphasised on the Toronto World Discussion board. This pattern is substantiated in a Monetary Instances article that examines AI-generated phishing makes an attempt focusing on company executives.
Moreover, IBM discovered that shadow knowledge, which is unmanaged knowledge inside organizations, was concerned in 35 % of breaches and led to increased prices and longer breach lifecycles. A multi-layered strategy combining numerous applied sciences and powerful knowledge governance practices is essential for successfully managing shadow knowledge dangers.
Fashionable cybersecurity packages leverage a mix of AI-powered options.
AI-driven assault floor administration offers steady visibility into potential vulnerabilities, whereas AI-powered safety info and occasion administration (SIEM) automates menace detection. AI additionally enhances posture administration by enabling automated red-teaming workout routines to proactively establish weaknesses.
Palo Alto Networks (NASDAQ:PANW), for instance, provides a platform strategy with Prisma Cloud, integrating AI throughout numerous safety domains, together with community safety, cloud safety and safety operations. The corporate initiatives its safety choices will result in continued development within the second quarter of 2025 after increasing its choices to the economic sector and buying a cloud-based model of IBM’s AI-enabled QRadar SIEM.
For its half, CrowdStrike Holdings (NASDAQ:CRWD) progressively integrated AI into its SIEM choices in 2024.
The agency unveiled new AI-powered features for its Falcon Subsequent-Gen SIEM platform in Could 2024, after which upgraded the mannequin in July by integrating generative AI with its Falcon Full Subsequent-Gen MDR service, which co-monitors the IT surroundings with knowledge collected by its SIEM system. Regardless of experiencing a main outage in July brought on by a defective replace to the Falcon sensor software program, CrowdStrike was named a chief and outperformer within the 2024 GigaOm Radar Report for Ransomware Prevention, with a number of analysis companies additionally recognizing it as an innovator on this sector.
As well as, AI can now simulate assaults to establish vulnerabilities. In Could 2024, IBM introduced new X-Pressure Purple testing companies that use generative AI strategies to establish and mitigate vulnerabilities.
AI-driven automation that repeatedly analyzes safety posture and recommends enhancements helps guarantee optimized defenses. Nevertheless, organizations should prolong their safety posture administration to embody the AI fashions themselves. In AI-powered purposes, a rising safety threat is immediate injection assaults, the place attackers insert malicious directions to manage AI fashions. Recognizing this want, Cisco Techniques (NASDAQ:CSCO) moved to purchase Strong Intelligence, an organization specializing in defending AI methods, in September 2024.
In response to a press launch saying the deal, the acquisition will “function a security layer for Cisco Safety Cloud, offering AI purposes and fashions with default safety.”
The ability of blockchain in cybersecurity
Blockchain provides distinctive capabilities for securing knowledge, constructing belief and enhancing resilience by its safe and immutable document of transactions. Every block within the chain accommodates transaction knowledge and a novel hash, relying closely on cryptography to make sure knowledge integrity and forestall tampering. That is notably essential within the realm of cryptocurrencies, the place encryption prevents double spending and secures the switch of funds.
This offers blockchain expertise main purposes in securing digital identities, transactions and provide chains. Recognizing its potential, tech corporations are investing in blockchain cybersecurity.
Main tech companies Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Oracle (NYSE:ORCL) and IBM are all making important contributions to the sector of blockchain cybersecurity.
Microsoft’s Azure Confidential Ledger offers a extremely safe surroundings for storing delicate knowledge, whereas Amazon, IBM and Oracle all provide enterprise-grade blockchain platforms and companies to facilitate the event of safe purposes for numerous use circumstances, together with provide chain administration and knowledge sharing.
Corporations like privately-held Guardtime are growing options to handle current challenges to implementing blockchain with cybersecurity, reminiscent of scalability points confronted by conventional blockchains like Bitcoin.
Guardtime’s Keyless Signature Infrastructure (KSI) is predicated on a particular sort of Merkle tree — an information construction that enables for environment friendly verification of knowledge integrity while not having to obtain all the blockchain — referred to as a hash calendar, which solely information the hashes of knowledge at particular time intervals.
Along with drastically lowering storage wants, KSI would not depend on a proof-of-work consensus mechanism, eliminating the necessity for energy-intensive computations with out compromising the pace of transaction processing.
The quantum leap in cybersecurity
Quantum computing, an rising expertise, makes use of the ideas of quantum mechanics to carry out calculations past the capabilities of conventional computer systems.
Quantum computing is predicated on qubits, which may exist in a state of superposition (being in a number of states directly till measured), in contrast to classical bits, which could be expressed as both 0 or 1. This permits quantum computer systems to course of extra knowledge in much less time than it might take conventional computer systems, giving them the potential to revolutionize cryptography.
Though NVIDIA (NASDAQ:NVDA) CEO Jensen Huang has prompt that “very helpful quantum computer systems” are doubtless nonetheless 20 years away, quantum computing poses each dangers and alternatives for cybersecurity.
Dr. Michele Mosca from the College of Waterloo’s Institute for Quantum Computing argues that whereas quantum computing could initially seem to threaten cybersecurity by doubtlessly breaking present encryption, it additionally presents a chance to determine stronger and extra resilient safety foundations for the digital financial system.
Google (NASDAQ:GOOGL), a frontrunner in quantum computing analysis since 2014, and the primary to declare quantum supremacy in 2019, achieved a breakthrough with its Willow quantum processor on the finish of 2024, when it demonstrated considerably improved error correction and scalability in quantum computing.
This introduced the potential of doubtlessly breaking present encryption strategies nearer to actuality, and underscored the urgency of growing and implementing quantum-resistant options.
Whereas established gamers reminiscent of IBM proceed to advance quantum computing with platforms like Qiskit, new entrants like Quantinuum, backed by traders together with JPMorgan Chase (NYSE:JPM), are rising to construct quantum computer systems and develop purposes for them. Different corporations, reminiscent of PQShield, ISARA and SandboxAQ, are growing post-quantum cryptography options utilizing mathematical algorithms which might be believed to be proof against assaults from each classical and quantum computer systems. SandboxAQ, which started as a workforce inside Google, held its newest US$300 million funding spherical in December, bringing its valuation to US$5.3 billion.
Investor takeaway
The cybersecurity market is a compelling space to look at in 2025. Traders ought to deal with corporations which might be adapting to rising developments, driving innovation and fostering collaboration to guard the way forward for the digital panorama.
Don’t neglect to comply with us @INN_Technology or actual time updates!
Securities Disclosure: I, Meagen Seatter, maintain no direct funding curiosity in any firm talked about on this article.
Cybersecurity Shares: 10 Largest Corporations in 2025
We profile the ten largest publicly traded cybersecurity corporations by market cap, together with Microsoft, Broadcom, Cisco Techniques and IBM.
Cybercrime is a rising concern, and it’s estimated that the annual price of preventing cyber crime will attain US$10.5 trillion by 2025. Cybersecurity corporations are working to deal with the problem.
As investor curiosity on this doubtlessly profitable sector will increase, the Investing Information Community (INN) is profiling the highest 10 largest cybersecurity corporations by market cap from eSecurity Planet’s listing of the highest cybersecurity corporations to look at.
The listing from eSecurity Planet options 20 privately held and publicly traded cybersecurity corporations throughout a spread of inventory exchanges. The agency employed standards reminiscent of consumer opinions, product options and advantages, analyst reviews, unbiased safety assessments and use circumstances to judge corporations within the cybersecurity sector.
The most important cybersecurity corporations by market cap proven beneath are all listed on the NASDAQ and NYSE. Inventory knowledge was present as of market shut on January 9, 2025.
1. Microsoft (NASDAQ:MSFT)
Market cap: US$3.16 trillion
Share worth: US$424.56
The most important cybersecurity firm by market cap is Microsoft. The tech large is a serious participant within the cloud safety market, which incorporates cloud native utility safety platform (CNAPP) services. The truth is, Microsoft is the biggest CNAPP resolution supplier, in accordance with KeyBanc Capital.
Outstanding cybersecurity agency Safety Threat Advisors lately turned a member of the Microsoft Clever Safety Affiliation.
2. Broadcom (NASDAQ:AVGO)
Market cap: US$3.16 trillion
Share worth: US$424.56
World expertise agency Broadcom has constructed a big portfolio of embedded and mainframe safety options, in addition to fee authentication software program.
The corporate broadened its choices with the Symantec Enterprise Cloud in November 2019 with the acquisition of the enterprise software program division of Symantec, which has since modified its identify to Gen Digital (NASDAQ:GEN). Broadcom’s Symantec choices embrace safe entry service edge applied sciences and zero-trust safety.
3. Cisco Techniques (NASDAQ:CSCO)
Market cap: US$235.78 billion
Share worth: US$59.20
For various years now, Cisco Techniques has more and more invested in boosting its cybersecurity companies. Immediately, the corporate provides an array of merchandise for cloud safety, endpoint safety and safety analytics. To deal with the cybersecurity expertise scarcity, Cisco provides certification packages for IT professionals.
In response to rising safety dangers in AI-powered purposes, Cisco acquired Strong Intelligence, an organization specializing in defending AI methods from vulnerabilities and assaults, in September 2024.
4. IBM (NYSE:IBM)
Market cap: US$206.36 billion
Share worth: US$223.18
IBM’s safety division provides prospects a complicated and built-in portfolio of enterprise safety services. IBM X-Pressure helps companies and organizations combine safety options into their on a regular basis features and offers assist with threat evaluation, incident detection and menace response. The corporate is harnessing the ability of AI to fight cybersecurity threats.
In Could 2024, IBM introduced new X-Pressure Purple testing companies that concentrate on figuring out and mitigating vulnerabilities in generative AI purposes and fashions. Like Cisco, IBM additionally provides cybersecurity certification packages.
5. Palo Alto Networks (NASDAQ:PANW)
Market cap: US$113.41 billion
Share worth: US$172.83
Palo Alto Networks payments itself as “the worldwide cybersecurity chief.” The corporate’s safety portfolio consists of superior firewalls and cloud-based choices that defend greater than 80,000 organizations throughout their clouds, networks and cell gadgets.
An instance of its extra lately launched choices embrace Prisma Cloud, which integrates AI throughout numerous safety domains, together with community safety, cloud safety and safety operations. In October 2024, Palo Alto expanded its choices to the economic sector.
6. CrowdStrike Holdings (NASDAQ:CRWD)
Market cap: US$88.36 billion
Share worth: US$358.72
CrowdStrike Holdings is a software-as-a-service options supplier. This workforce of cybersecurity professionals makes use of superior endpoint detection and response purposes and strategies in its machine-learning-powered antivirus safety choices to make sure breaches are stopped earlier than they happen.
That is one other main cybersecurity firm that’s incorporating AI, including it to its safety info and occasion administration (SIEM) choices.
Its new AI-powered features for its Falcon Subsequent-Gen SIEM platform had been first launched in Could 2024, together with the combination of its Charlotte AI. Then, in July, CrowdStrike introduced its Falcon Full Subsequent-Gen MDR service, which includes knowledge from its SIEM platform and AI capabilities.
7. Fortinet (NASDAQ:FTNT)
Market cap: US$73.61 billion
Share worth: US$96.04
Fortinet offers end-to-end cybersecurity infrastructure services, reminiscent of firewalls, antivirus instruments, intrusion prevention and endpoint safety. The corporate’s cybersecurity platform can handle important safety challenges and may defend knowledge throughout digital infrastructure methods, whether or not in networked, utility, multi-cloud or edge environments. Fortinet’s shopper base consists of main sports activities groups, together with the Vancouver Canucks NHL hockey workforce and the Pittsburgh Steelers NFL soccer workforce.
8. Zscaler (NASDAQ:ZS)
Market cap: US$28.74 billion
Share worth: US$187.78
Cloud safety firm Zscaler’s Zero Belief Change platform can be utilized to safe user-to-app, app-to-app and machine-to-machine communications over any community. The corporate additionally provides cloud migrating companies. Zscaler is understood for setting the usual within the area of safety service edge, and it claims the Zero Belief Change is the world’s most-used safety service edge platform.
In December 2024, the corporate expanded its partnership with IT companies and consulting firm Cognizant (NASDAQ:CTSH) because the pair work collectively to assist enterprises handle cyber threats by offering a complicated, AI-enabled zero belief cloud safety platform.
9. Test Level Software program (NASDAQ:CHKP)
Market cap: US$20.15 billion
Share worth: US$183.19
Test Level Software program is a part of the unified menace administration sector, and it provides all kinds of merchandise to guard customers on cell, networks and the cloud. It additionally offers customers with numerous safety administration companies to stop future cyber assaults and knowledge breaches.
Test Level acquired Avanan, a cloud electronic mail and collaboration safety firm, in 2021. On the finish of 2024, technological analysis and consulting agency Gartner acknowledged Test Level as a frontrunner within the 2024 Gartner Magic Quadrant for E mail Safety Platforms.
10. Okta (NASDAQ:OKTA)
Market cap: US$14.64 billion
Share worth: US$85.46
Okta is an identification and entry administration firm that gives cloud software program options for managing and securing consumer authentication, in addition to constructing identification controls into purposes, web site companies and gadgets. The corporate is investing in AI applied sciences to watch buyer indicators and proactively establish potential dangers.
Gartner acknowledged Okta as a Chief within the 2024 Gartner Magic Quadrant for Entry Administration for the eighth consecutive 12 months.
That is an up to date model of an article first printed by the Investing Information Community in 2016.
Don’t neglect to comply with us @INN_Technology for real-time information updates!
Securities Disclosure: I, Melissa Pistilli, maintain no direct funding curiosity in any firm talked about on this article.
4 Largest Cybersecurity ETFs in 2025
Discover the 4 largest cybersecurity ETFs that provide traders publicity to cybersecurity shares as cyberattacks enhance.
As knowledge breaches and cyberattacks rise, cybersecurity exchange-traded funds (ETFs) are gaining traction.
The time period cybersecurity originated in 1989, and at this time is outlined because the measures taken to guard a pc or pc system towards unauthorized entry or cyberattack threats. These measures can embrace folks, insurance policies and processes.
The variety of safety incidents is growing yearly, as are the prices corporations should pay. The truth is, in accordance with a 2024 analysis report from IBM (NYSE:IBM), the common price of a single knowledge breach occasion globally was US$4.48 million — up 10 % over the earlier 12 months and the very best price within the 19 years because the first report was issued.
These threats are unlikely to fade anytime quickly. The forecast for the cybersecurity market is robust by 2030, with developments within the house together with the threats posed by AI and quantum computing.
There are a number of methods to put money into the cybersecurity market, together with cybersecurity ETFs, which supply a low-cost method to enter the house. ETF charges and bills are sometimes decrease than these related to mutual funds or different sorts of actively managed monetary devices. What’s extra, ETFs present publicity to a basket of shares, that means traders can unfold their threat round.
In response to ETF.com, there are 9 cybersecurity ETFs listed within the US. Here is a more in-depth take a look at the highest 4 cybersecurity ETFs by belongings underneath administration (AUM). ETFs with belongings underneath administration above US$500 million are included on this listing. All numbers and figures had been present as of January 9, 2025.
1. First Belief NASDAQ Cybersecurity ETF (NASDAQ:CIBR)
AUM: US$7.08 billion
Expense ratio: 0.6 %
Launched in July 2015, this ETF tracks the NASDAQ CTA Cybersecurity Index (INDEXNASDAQ:NQCYBR) and has 33 holdings. The index, which incorporates corporations categorized by the Client Know-how Affiliation as cybersecurity, is basically composed of tech companies but additionally provides some publicity to the protection and aerospace sectors.
The First Belief NASDAQ Cybersecurity ETF’s prime holdings embrace Broadcom (NASDAQ:AVGO) at a weight of 10.95 %, Infosys (NYSE:INFY) at an 8.14 % weight, CrowdStrike Holdings (NASDAQ:CRWD) at 7.98 % and Cisco Techniques (NASDAQ:CSCO) at 7.85 %.
2. ETFMG Prime Cyber Safety ETF (ARCA:HACK)
AUM: US$1.81 billion
Expense ratio: 0.6 %
The oldest cybersecurity ETF on this listing is the ETFMG Prime Cyber Safety ETF, which started buying and selling in November 2014 and tracks the ISE Cyber Safety Index (INDEXNASDAQ:HXR). HACK is run by ETFMG, a lesser-known firm among the many goliath ETF managers, and it has had a 12.19 % annualized return over the previous 5 years.
The cybersecurity ETF has 27 holdings, and its prime holdings by weight embrace Broadcom at 13.87 %, Cisco Techniques at 7.18 %, CrowdStrike Holdings at 5.62 % and Palo Alto Networks (NYSE:PANW) at 5.45 %.
3. iShares Cybersecurity and Tech ETF (ARCA:IHAK)
AUM: US$921.99 million
Expense ratio: 0.47 %
Final on this cybersecurity ETFs listing is the iShares Cybersecurity and Tech ETF. Based in June 2019, it tracks the NYSE FactSet World Cyber Safety Index (INDEXNYSEGIS:NYFSSEC), and has a deal with developed and rising markets within the cybersecurity business.
The iShares Cybersecurity and Tech ETF has 37 holdings, together with CyberArk Software program (NASDAQ:CYBR) at a weight of 4.45 %, Accton Know-how (TPE:2345) at a 4.44 % weight, Juniper Networks (NYSE:JNPR) at 4.39 % and Okta (NASDAQ:OKTA) at 4.17 %.
4. GlobalX Cybersecurity ETF (NASDAQ:BUG)
AUM: US$786.78 million
Expense ratio: 0.51 %
The latest ETF on this listing is the GlobalX Cybersecurity ETF, which was based in October 2019. The ETF tracks a market-cap-weighted international index of corporations chosen based mostly on income associated to cybersecurity actions, as corporations should generate not less than 50 % of their income from cybersecurity to be included.
The ETF has 22 holdings, with the highest by weight being Fortinet (NASDAQ:FTNT) at a weight of 6.92 %, CrowdStrike at 6.87 %, Test Level Software program Applied sciences (NASDAQ:CHKP) at 5.95 % and Zscaler (NASDAQ:ZS) at 5.77 %.
That is an up to date model of an article initially printed by the Investing Information Community in 2018.
Don’t neglect to comply with us @INN_Technology for real-time information updates!
Securities Disclosure: I, Lauren Kelly, maintain no direct funding curiosity in any firm talked about on this article.
