100+ Must-Know Cybersecurity & MSP Market Stats for 2025: SMB Breaches, MSP-to-MSSP Growth, and Compliance Trends

Global Cybersecurity Market Growth

1. Cybersecurity Market to Surpass $298 Billion by 2028

According to MarketsandMarkets, the global cybersecurity market is witnessing substantial growth. It is expected to rise from $190.4 billion in 2023 to $298.5 billion by 2028, representing a compound annual growth rate (CAGR) of 9.4%. This growth underscores the increasing need for robust digital defenses as organizations expand their online operations. Key contributors include the rapid adoption of cloud technologies and the evolving threat landscape.

2. MSS Market Set to Reach $87.5 Billion by 2030

Based on recent data from MarketsandMarkets, the managed security services (MSS) market is projected to grow from $30.6 billion in 2023 to $52.9 billion by 2028, with a CAGR of 11.5%. A separate analysis by Grand View Research places this figure even higher, projecting $87.5 billion by 2030 at a CAGR of 15.4%. This surge reflects enterprises’ increasing reliance on third-party providers for proactive security monitoring and threat mitigation. It also points to the widening talent gap in cybersecurity roles.

3. Industry Could Reach $562.7 Billion by 2032

From the research published by BD Emerson, the broader cybersecurity industry is forecasted to hit $562.7 billion by 2032, experiencing a CAGR of 14.3%. This staggering projection shows how digital risk management is becoming a board-level priority across industries. Organizations are significantly expanding their security budgets as cyber threats grow more sophisticated. This upward trajectory also mirrors the rise of ransomware, phishing, and data leakage incidents.

4. North America Leads the Cybersecurity Market

According to Fortune Business Insights, North America currently dominates the global cybersecurity landscape. The region holds over 43% of the total market share, driven largely by advanced digital infrastructure and strict regulatory frameworks. The United States, in particular, continues to lead innovation in threat intelligence and enterprise security. This regional leadership is further fueled by high-profile cyberattacks, pushing federal and private sector investment.

5. Varying Estimates Place Market at $172 to $299 Billion in 2024

Cybersecurity market estimates for 2024 show notable variance depending on the research source. For instance, Fortune Business Insights pegs the value at $172.24 billion, while IMARC and Grand View Research offer a higher estimate of up to $299.6 billion. These discrepancies stem from differing assumptions around growth rates, regional dynamics, and technology adoption. Regardless, all sources indicate a strong and accelerating expansion across cybersecurity verticals.

6. Cybersecurity Market on Track to Hit $644 Billion by 2033

As reported by IMARC Group, the global cybersecurity market is on track to hit $644.4 billion by 2033, growing at a projected CAGR of 8.9% between 2025 and 2033. This consistent expansion illustrates how long-term investments in cyber defense are becoming indispensable. Businesses worldwide are moving from reactive security measures to proactive strategies. This growth trajectory is reinforced by escalating regulatory requirements and digital transformation.

7. Market to Grow by $164 Billion Between 2025–2029

Insights from Technavio reveal that between 2025 and 2029, the cybersecurity market is anticipated to grow by an additional $164 billion. This marks an estimated compound annual growth rate of 12.5%, fueled by increased enterprise cloud adoption and rising geopolitical cyber threats. The rapid digitalization across industries—from healthcare to fintech—is intensifying the need for advanced threat detection. As a result, security spending is becoming a strategic imperative.

8. U.S. Cybersecurity Market to Reach $166 Billion

According to Fortune Business Insights, the U.S. cybersecurity market alone is expected to reach $166.73 billion by 2032. The country’s leadership in tech innovation, coupled with regulatory pressure and frequent high-profile breaches, continues to drive domestic security investments. This positions the U.S. as both the largest spender and a primary innovator in the global cyber defense ecosystem.

9. Hardware Holds Over 55% of Cybersecurity Revenue

A report by Grand View Research highlights the dominance of hardware in cybersecurity investments. In 2024, hardware solutions are estimated to hold a 55.6% revenue share, while infrastructure protection accounts for 25.7%. This trend reflects the continued demand for physical devices like firewalls and secure gateways in enterprise architectures. It also underscores the hybrid nature of modern security environments, balancing hardware, software, and cloud-based solutions.

10. Security Spending to Rise by 12.2% in 2025

According to IDC, global security spending is set to grow by 12.2% in 2025. The report indicates that the U.S. and Western Europe alone will contribute over 70% of this total investment. This increase is a direct response to evolving threat vectors and the rise in ransomware and supply chain attacks. It also mirrors the boardroom prioritization of cybersecurity as a business enabler, not just an IT concern.

11. Cyber Insurance Market to Double by 2027

According to the World Economic Forum, the cyber insurance sector is rapidly scaling. It's projected to nearly double in size, jumping from $14 billion in 2023 to $29 billion by 2027. This growth is being fueled by rising corporate awareness of liability and recovery costs post-breach. As threat actors become more sophisticated, insurers are also refining their underwriting models to reflect new digital risks.

12. Key Drivers Include Cloud, IoT, and Regulations

Reports from Fortune, IMARC, and Grand View Research collectively point to several underlying growth factors. These include the rapid expansion of e-commerce, the proliferation of IoT devices, widespread cloud adoption, and the enforcement of stricter data protection laws. Together, these elements are pushing enterprises to bolster their cyber posture at every layer of their stack. The digital transformation journey is inseparable from cybersecurity preparedness.

13. AI and ML Reshape the Threat Landscape

According to Nasdaq and Grand View Research, artificial intelligence and machine learning are playing a pivotal role in cybersecurity evolution. These technologies are not only strengthening threat detection systems but are also being exploited by attackers to automate and amplify attacks. The arms race between defenders and threat actors is increasingly being fought with algorithms, making AI the next battlefield in cyber warfare.

14. Innovation from Leading Cybersecurity Vendors

As per Fortune, IMARC, and Grand View Research, the cybersecurity industry is undergoing a wave of innovation. Companies like IBM, Microsoft, Cisco, and Palo Alto Networks are leading the charge with next-generation security platforms. From zero-trust frameworks to behavior-based analytics, these vendors are reshaping the future of enterprise protection. Their contributions are redefining best practices across cloud, endpoint, and network defense.

15. Cybersecurity Spending to Surpass $350 Billion by 2026

According to CyVent, global cybersecurity expenditures are expected to exceed $350 billion by 2026. This represents a 24% increase from 2024, driven largely by the shift from reactive defense postures to board-level strategic investments. As threat vectors expand and risk appetite narrows, organizations are pouring more resources into securing digital infrastructure. What was once an IT issue is now a line item in every CEO’s agenda.

16 . Zero-Trust Architecture Market Set to Reach $97 Billion by 2030

Based on research by CyVent, the global market for zero-trust security platforms is poised to skyrocket from $28 billion in 2024 to $97 billion by 2030. This rapid 23.1% CAGR highlights how traditional perimeter-based defenses are being phased out in favor of identity- and access-centric models. With hybrid work, BYOD policies, and insider risk growing, zero-trust has become the go-to framework for forward-thinking enterprises.

17. Security to Consume $147 per $1,000 of IT Spend in 2025

CyVent suggests that for every $1,000 companies spend on IT in 2025, $147 will be allocated specifically for cybersecurity solutions. That’s a sharp jump from just $94 in 2022, indicating the elevated priority security now commands. The increasing sophistication of attackers, combined with rising compliance pressure, is making security investments a non-negotiable part of digital strategy. The budget shift reflects an overdue mindset change: security is enablement, not overhead.

18. Cloud-Native Security to Account for 44% of Security Software Sales by 2027

According to CyVent’s projections, cloud-native security tools will make up 44% of all security software revenue by 2027. That’s a notable leap from 29% in 2023, as organizations move away from legacy systems in favor of scalable, API-first platforms. This trend reflects the growing need for agile, real-time protection across ephemeral environments like containers and serverless functions. Simply put, security is evolving to match the fluid nature of modern infrastructure.

19. Security Automation & Orchestration Spend to Triple by 2028

As reported by CyVent, annual investments in security automation and orchestration platforms are set to triple from $6.2 billion in 2024 to $18.8 billion by 2028. The driver? Fatigue from alert overload, talent shortages, and rising breach costs. Organizations are realizing that manual security operations can’t scale. Automated workflows, low-code runbooks, and AI-powered decision-making are becoming essential to SOC resilience.

20. OT/IIoT Security Startups Attracted $7.5B in Venture Capital

According to CyVent, venture capital activity targeting OT and IIoT security startups surged 41% year-over-year in 2024, topping $7.5 billion. With the convergence of IT and operational technology, industries like manufacturing, utilities, and energy have become high-priority targets for attackers. Investors are betting on firms that can defend legacy equipment, ICS networks, and edge-connected devices. The physical-digital convergence is redefining what “critical infrastructure” really means.

21. Cybersecurity M&A to Average $65 Billion Annually Through 2028

Based on research by CyVent, cybersecurity M&A deals will average $65 billion annually from 2025 through 2028. That’s a steep increase from the $38 billion yearly average seen between 2021 and 2024. Consolidation is being fueled by platform plays, VC exits, and vendor fatigue among CISOs. As the security landscape fragments with hundreds of tools, buyers are gravitating toward integrated suites and single-pane-of-glass solutions.

22. XDR to Cannibalize 18% of SIEM Spending by 2027

CyVent suggests that Extended Detection and Response (XDR) platforms will eat into 18% of traditional SIEM (Security Information and Event Management) spend by 2027. The shift is being driven by buyers’ desire for turnkey correlation, faster deployment, and built-in response actions. Legacy SIEMs, which are often slow, siloed, and log-heavy, are being replaced by intelligent, integrated platforms. The result is better visibility, operational simplicity, and reduced alert fatigue.

SMB Breach & Attack Trends

1. 43% of Cyberattacks Target Small Businesses

According to BD Emerson and Astra Security data, small businesses remain a major target for threat actors. An estimated 43% of all cyberattacks are directed at SMBs annually. These organizations often lack enterprise-grade defenses, making them easier to exploit. This underscores the urgent need for improved security awareness and baseline protections among SMBs.

2. 46% of Cyber Breaches Impact Businesses with Fewer Than 1,000 Employees

Research from BD Emerson and StrongDM highlights a troubling vulnerability in smaller firms. This occurs in businesses with fewer than 1,000 employees. This suggests that limited internal resources and lean IT teams contribute to increased exposure. The data reinforces that size is not a shield against advanced digital threats.

3. 60% of SMBs Shut Down Within Six Months of a Cyberattack

A sobering statistic from BD Emerson reveals the existential threat cyberattacks pose to small enterprises. Alarmingly, 60% of SMBs shut down within six months of experiencing a significant cyberattack. The financial and reputational damage proves too severe for many to recover. This drives home the importance of proactive defense rather than reactive damage control.

4. Only 14% of Small Businesses Are Prepared to Handle a Cyberattack

Findings from Astra Security show a troubling confidence gap in the SMB community. Only 14% of small businesses report feeling prepared to handle a cyberattack. This lack of preparedness is often due to limited budgets, no dedicated cybersecurity team, and minimal incident response planning. Bridging this gap is essential to improving resilience in the sector.

5. Average Financial Loss per Cyberattack for an SMB is $25,000

The average financial loss per cyberattack for an SMB is $25,000, according to Astra Security. But the bigger picture is even more alarming: total annual damages inflicted on SMBs exceed $2.8 billion. These costs include business downtime, recovery, legal fees, and lost customer trust. For many small companies, even a single incident can be financially crippling.

6. 95% of Cybersecurity Incidents Are Attributed to Human Error

The combined data of BD Emerson and Astra Security shows that human mistakes remain the weakest link. An overwhelming 95% of cybersecurity incidents are attributed to human error. Employee behavior plays a critical role, whether it’s weak passwords, phishing clicks, or misconfigured systems. Investing in training may be one of the highest ROI defenses available to SMBs.

7. Malware, Phishing, and Data Breaches Are the Most Frequent Attack Types

According to BD Emerson, the most frequent cyberattack methods targeting SMBs include malware, phishing, and data breaches. Malware accounts for 18% of incidents, phishing for 17%, and data breaches for 16%. These types of attacks are often automated and exploit common vulnerabilities. Understanding this distribution can help businesses prioritize the right technical safeguards.

8. SMBs Receive One Malicious Email per 323 Messages

The email inbox remains a high-risk environment for small businesses. According to BD Emerson, SMBs receive one malicious email for every 323 messages, with firms under 250 employees being most vulnerable. This illustrates how attackers use scale to exploit weaker filters and user awareness. Email security solutions and staff training are key to minimizing these threats.

9. 94% of SMBs Attacked in 2024, Up from 73%

A recent study by Genatec reveals a dramatic spike in cyber incidents among small businesses. In 2024, 94% of SMBs reported being attacked, up from 73% just the year prior. This steep rise indicates that threat actors are intensifying their focus on less-protected organizations. It also reflects how more SMBs are becoming aware and reporting security incidents.

10. Over 50% of Cyberattacks Are Directed at SMBs

As documented by PurpleSec, over 50% of all cyberattacks are aimed at small to midsize businesses. Despite limited media visibility, SMBs face the same sophisticated threats as large enterprises. These attacks can include ransomware, DDoS, credential stuffing, and more. The difference lies in their ability to absorb and recover from the impact.

11. 37% of Ransomware Demands Against SMBs Are Under $25K

Based on research by CyVent, more than one-third of ransomware demands targeting SMBs in 2024 were under $25,000. This suggests attackers are adapting their pricing to increase payment rates among smaller, less-prepared firms. By keeping the ransom within “affordable” limits, cybercriminals are optimizing for volume and velocity over big payouts. It's a dangerous new kind of ransomware-as-a-service economics.

12. Credential Reuse to Drive Nearly Half of SMB Breaches by 2026

CyVent warns that by 2026, 46% of all successful cyberattacks on SMBs will originate from credential reuse, up from 33% in 2023. Many small companies lack identity management tools, leaving reused passwords and shared logins as easy attack vectors. This trend underscores the importance of enforcing MFA and adopting basic password hygiene. It's not a matter of if, but when reused credentials will be exploited.

13. Only 19% of SMBs Run Phishing Simulations Quarterly

According to CyVent, fewer than 1 in 5 small businesses conduct phishing simulations at least once per quarter. Yet those that do report 63% fewer successful credential thefts. The gap between awareness and implementation is alarming, especially when phishing remains the #1 attack vector. Training doesn’t have to be expensive; it just has to be consistent.

14. 58% of Cloud-First SMBs Exposed by Misconfigurations in Past Year

CyVent has analyzed that 58% of SMBs running cloud-native operations suffered at least one security exposure due to misconfiguration in the past 12 months. As companies migrate to AWS, Azure, and GCP, they often assume built-in security is enough. But even a single unchecked bucket or permissive API setting can open the door for a breach. Misconfigurations remain low-hanging fruit for attackers.

15. Downtime After a Cyberattack Now Averages 21 Business Days

From recent data by CyVent, the average recovery time for an SMB after a major cyberattack now stands at 21 business days. That’s nearly a full month of operational disruption, lost revenue, damaged customer trust, and stressed-out teams. Downtime is one of the most underestimated consequences of cyber incidents. For many SMBs, it can be harder to survive than the breach itself.

16. 72% of SMB Ransomware Attacks Now Include Data Leak Threats

According to CyVent, 72% of all ransomware incidents targeting SMBs in 2024 involved double-extortion tactics. That means attackers encrypt data and threaten to leak it unless payment is made. This dual-pronged strategy amplifies psychological pressure on victims, especially in sectors like healthcare and finance. It’s no longer just about recovery but reputation and regulatory exposure.

17. 81% of SMBs Believe They Encrypt Customer Data — But Only 12% Actually Do

CyVent reports a dangerous perception gap: while 81% of SMBs say they encrypt customer data at rest, only 12% have full encryption across all storage systems. The disconnect stems from overreliance on partial tools and assumptions about cloud provider defaults. This overconfidence exposes sensitive data and makes regulatory compliance more fragile than many realize.

18. Cyber Insurance Premiums for SMBs Rose 34% in 2024

As reported by CyVent, cyber insurance premiums for small and midsize firms rose an average of 34% in 2024. Carriers are tightening underwriting criteria and charging more for the same coverage, reflecting heightened claim activity. SMBs are caught in a difficult position: either absorb the cost or strengthen controls to qualify for discounts. Insurance is no longer a safety net; it’s now part of the security stack.

19. Remote-First SMBs See 2.3× More Phishing Emails Than Office-Based Peers

CyVent says companies with predominantly remote teams receive 2.3 times more phishing attempts than those operating mainly in-office. With scattered endpoints and fewer security controls at home, attackers see remote SMBs as easier marks. The digital perimeter has dissolved, and bad actors are exploiting the gaps. In the remote era, employee inboxes are the new frontlines.

MSP-to-MSSP Growth & Market Trends

1. Cybersecurity Skills Shortage Driving MSSP Outsourcing

According to reports by MarketsandMarkets and Mordor Intelligence, organizations are increasingly outsourcing their cybersecurity needs. This is driven by a global shortage of skilled professionals and the rising complexity of threats. Businesses of all sizes are now looking to Managed Security Service Providers (MSSPs) for 24/7 threat monitoring and incident response. The shift reflects a growing trend toward managed detection and response (MDR) solutions for operational efficiency and speed.

2. MSSPs Leveraging AI and Real-Time Monitoring

MSSPs are embracing cutting-edge technologies like artificial intelligence and machine learning to defend against sophisticated threats. As cited by MarketsandMarkets and Mordor Intelligence, these providers use real-time analytics to detect and neutralize zero-day exploits and advanced persistent threats (APTs). Their advanced tooling allows for faster identification of attack patterns and anomalies. This technological edge is what distinguishes MSSPs from traditional IT support vendors.

3. MSSP Market Growth in Asia Pacific

Research from MarketsandMarkets also indicates that the Asia-Pacific region is emerging as a hotspot for MSSP growth. Rapid digital transformation across countries like India, China, and Southeast Asia is driving demand. As businesses in the region adopt cloud-first strategies, MSSPs are stepping in to fill the cybersecurity gap. The region’s regulatory tightening is also playing a pivotal role in accelerating MSSP uptake.

4. 29% of SMBs Hire Cybersecurity Help After a Breach

A report by StrongDM shows that SMBs are reacting to breaches by seeking outside help. In fact, 29% of small businesses that experienced a cyberattack chose to hire a dedicated cybersecurity firm or IT staff afterward. This shows a shift from reactive to strategic investment in long-term protection. For many, this represents their first step toward engaging a Managed Service Provider (MSP) or MSSP.

5. MSP Market to Surpass $1 Trillion by 2033

The scale of the managed services market is also evolving rapidly. According to JumpCloud, the global MSP sector is expected to hit $350 billion by the end of 2024 and surpass $1 trillion by 2033, growing at a CAGR of 12.9%. This massive expansion highlights how vital managed services have become in the era of hybrid work, SaaS proliferation, and increased compliance burdens. The figures reflect not just market demand, but vendor adaptation to meet that demand.

6. Cybersecurity Is the Top Driver for MSP Adoption

As noted by JumpCloud, cybersecurity is the number one concern pushing companies to partner with MSPs. Approximately 60% of organizations cite it as the primary reason for outsourcing IT services. With ransomware and phishing attacks at an all-time high, internal teams are struggling to keep up. Partnering with an MSP provides not just protection, but also peace of mind and scalability.

7. 48% Rely on MSPs for Device Management and Cloud Migration

Device management and cloud migration remain two of the biggest operational challenges for IT teams. According to JumpCloud, 48% of businesses rely on MSPs for help with these specific tasks. As organizations shift to hybrid work models, centralized control over endpoints and seamless cloud access become critical. MSPs are stepping in to offer structured frameworks and technical support that internal teams may lack.

8. MSPs Expanding Services into Compliance and Automation

MSPs are evolving their service portfolios in response to increased competition and customer demands. Reports from JumpCloud indicate that many now offer advanced features such as compliance automation, threat detection, and proactive monitoring. These added-value services help MSPs transition from traditional support roles to trusted security advisors. The shift also sets the stage for MSPs to enter the MSSP space.

9. North America Leads MSP Market; Asia-Pacific Fastest-Growing

North America currently leads the MSP market with a projected CAGR of 12.2% through 2033, while Asia-Pacific remains the fastest-growing region, as per JumpCloud. This divide highlights varying levels of digital maturity and regulatory evolution across regions. In North America, mature enterprises are scaling up their partnerships, whereas in Asia, new adopters are rapidly onboarding MSP services.

10. MSPs Evolving into Full MSSPs

Finally, JumpCloud notes that a growing number of MSPs are transitioning into full-fledged MSSPs. This evolution is driven by rising client expectations for 24/7 threat detection, compliance monitoring, and incident response. As cyber threats become more targeted and persistent, this shift is not just strategic, it’s essential. Clients now demand integrated, scalable solutions that go beyond simple IT support.

11. One-Third of Traditional MSPs Plan to Launch MDR Services Within a Year

According to industry research from Huntress and Canalys, an increasing number of MSPs are evolving into MDR providers. While exact figures vary, CyVent analysts suggest that over one-third of traditional MSPs have begun offering managed detection services or partnering with SOC vendors to remain competitive in an evolving threat landscape.

12. Average Monthly Revenue per Security Client Hits $8,900

CyVent has analyzed that hybrid MSP/MSSP firms reported an average monthly recurring revenue of $8,900 per security client in 2024. This is more than double the revenue generated from traditional IT clients. The stark difference highlights how security services, especially those offering continuous monitoring, compliance, and incident response, are more profitable and valued than reactive IT support.

13. MSSPs Using AI Detect Threats 37% Faster

Based on research by CyVent, MSSPs with integrated AI-based triage and detection capabilities identify threats 37% faster than those relying solely on human analysts. This speed gap has enormous implications for containment and remediation. AI isn’t replacing analysts, it’s supercharging them. For clients, that means faster alert handling, fewer false positives, and better outcomes.

14. Analyst Utilization Rate Rose from 61% to 74% in Two Years

CyVent reports that analyst utilization, meaning the percentage of billable or productive time, has risen from 61% in 2022 to 74% in 2024 among MSSPs. This increase is largely attributed to process automation, better tooling, and case management improvements. Higher efficiency enables MSSPs to scale without proportional headcount increases, improving both margins and service levels.

15. 56% of MSSP Contracts Are Now Compliance-Driven

According to CyVent, over half (56%) of new MSSP agreements signed in 2024 were initiated due to compliance needs rather than direct breaches. With regulatory pressures increasing across industries, organizations seek partners who can help navigate frameworks like ISO 27001, SOC 2, HIPAA, and PCI-DSS. MSSPs are shifting from being “clean-up crews” to strategic compliance advisors.

16. Analyst Turnover 70% Higher in Non-Automated MSPs

CyVent warns that SOC analyst turnover at MSPs that lack automation capabilities is 70% higher than at their MSSP counterparts. The constant barrage of alerts and manual processes is driving burnout in traditional MSP environments. In contrast, AI-augmented SOCs show lower churn, higher morale, and faster incident resolution. Automation isn’t just about scale, it’s about retention.

17. Security Stack Cross-Sell Rates Reach 48% in Mid-Market Accounts

According to research published by CyVent, cross-selling security services like endpoint protection, SIEM, and vulnerability scanning hit 48% of mid-market clients in 2024. This suggests growing trust in MSPs as full-spectrum providers rather than point-solution vendors. The ability to layer services and offer bundled pricing is helping MSPs increase client lifetime value while deepening account stickiness.

18. Zero Trust Consulting Offered by 35% of MSSPs, Projected to Hit 64% by 2027

CyVent suggests that 35% of MSSPs currently offer zero-trust architecture consulting, with that number expected to rise to 64% by 2027. As companies embrace perimeter-less security strategies, MSSPs are stepping up to design and implement frameworks that enforce granular access controls. Zero trust is no longer a buzzword; it’s becoming the backbone of modern enterprise security.

19. Managed EDR Services Deliver 42% Gross Margins in 2024

According to CyVent, managed endpoint detection and response (EDR) services yielded average gross margins of 42% in 2024, 18 percentage points higher than traditional antivirus support services. The higher margins stem from streamlined deployment, strong vendor relationships, and automation of response workflows. EDR is proving to be both a revenue generator and a client retention driver.

20. Only 120 of the Top 200 MSSPs Expected to Remain by 2028

CyVent forecasts that industry consolidation will reduce the current top 200 MSSPs to about 120 by 2028. With increased private equity interest and larger players acquiring regional MSPs, the market is rapidly centralizing. While consolidation can enhance service consistency, it may also lead to pricing pressures and reduced differentiation. Smaller firms will need to niche down or scale up to survive.

Compliance & Spending Trends

1. Compliance Is a Major Driver of Cybersecurity Spending

Reports from MarketsandMarkets and Mordor Intelligence indicate that compliance is no longer just a legal checkbox—it’s a core driver of cybersecurity investments. Heightened regulatory scrutiny across industries has made adherence to data protection laws a strategic imperative. From GDPR in Europe to HIPAA in the U.S., frameworks are expanding. As a result, compliance-related spending is accelerating across sectors and company sizes.

2. SMB Cyberattack Costs Range from $826 to Over $650K

Small and midsize businesses are feeling the cost of cyber incidents, according to BD Emerson and Astra Security. The financial toll can range from as low as $826 to over $653,587, depending on the scale of the breach. These figures include not only immediate recovery costs but also long-term impacts such as customer attrition and regulatory fines. This cost variability often leaves SMBs underestimating their risk exposure until it’s too late.

3. 22% of SMBs Increased Cybersecurity Budgets in 2021

Research by StrongDM shows that security awareness is rising in the SMB sector. In 2021, 22% of small businesses increased their cybersecurity budgets, and most now allocate between 5% and 20% of their total IT spend toward security. This shift marks a significant change in how SMBs perceive cyber threats—from a rare inconvenience to a recurring operational challenge. Budgeting proactively for cyber resilience is becoming standard practice.

4. Antivirus, Firewalls, VPNs, and Password Managers Lead SMB Adoption

The same StrongDM study highlights the most commonly adopted security tools among small businesses. Antivirus software, firewalls, VPNs, and password managers top the list. While these tools form the foundation of a good defense, they are often deployed in silos. SMBs are now beginning to look toward integrated platforms that unify these controls under centralized dashboards.

5. 78% of C-Suite Leaders Now Use AI for Cyber & Compliance

A 2024 study by A-LIGN found that 78% of C-suite leaders are actively using artificial intelligence and machine learning to manage cybersecurity and compliance challenges. These technologies help reduce manual workloads, monitor environments in real-time, and provide predictive insights into vulnerabilities. As regulations become more dynamic and data footprints grow, automation is proving to be indispensable in remaining compliant at scale.

6. Continuous Monitoring Replaces Point-in-Time Audits

The same report from A-LIGN also shows a notable shift in audit methodology. Organizations are moving away from traditional, one-time audits and adopting continuous monitoring as a more efficient compliance strategy. This approach allows teams to catch violations in real-time rather than waiting for periodic reviews. It also aligns better with cloud-native architectures and dynamic data environments.

7. UK’s Cyber Security Bill Expands Digital Supply Chain Coverage

As reported by ISMS.online, new compliance mandates like the UK’s Cyber Security and Resilience Bill are broadening the scope of regulation. These updated rules require mandatory ransomware reporting and include digital supply chain coverage, impacting vendors and subcontractors alike. The new regulatory frameworks are forcing businesses to consider third-party risk and invest in vendor risk management platforms.

8. Skills Shortages and Complexity Are Top Compliance Challenges

That same ISMS.online report underscores the difficulty SMBs and MSPs face in keeping up with regulations. Skills shortages and regulatory complexity are cited as major barriers to effective compliance. Many firms are now turning to compliance-as-a-service solutions or engaging MSSPs to navigate the ever-changing landscape. This is especially true in industries where multi-framework compliance (e.g., SOC 2, ISO 27001, PCI-DSS) is required.

9. Zero-Trust Architecture Accelerating in Remote Work Era

According to Cyber Magazine and PurpleSec, organizations are increasingly adopting zero-trust architectures in place of traditional perimeter-based defenses. This shift is largely driven by the need for granular access controls, especially in remote and hybrid work environments. Zero-trust helps enforce the principle of “never trust, always verify,” ensuring tighter internal segmentation and authentication.

10. AI and Zero-Trust Save Millions Per Breach

Research by PurpleSec shows that organizations adopting AI-driven security and zero-trust models are seeing measurable cost benefits. On average, AI-driven security saves $3.81 million per breach, while zero-trust policies reduce breach costs by $1.76 million. These savings stem from faster threat detection, minimized lateral movement, and more efficient response coordination. Financially and operationally, modern security frameworks are proving their worth.

11. Security Compliance Now a Core Budget Driver

According to CyVent, compliance is no longer viewed as a bureaucratic formality; it’s now one of the top three reasons companies increase cybersecurity budgets. Regulatory scrutiny from GDPR, HIPAA, PCI-DSS, and other mandates has made it impossible to ignore governance requirements. Security spending is increasingly influenced by audit-readiness and legal accountability, not just breach response.

12. SMB Breach Costs Range Widely—From $826 to Over $650K

Based on CyVent’s analysis, SMBs that suffer cyber incidents report a wide cost range, from as little as $826 to over $653,000, depending on the severity of the breach and the industry. Many of these costs come from indirect losses: customer churn, reputation damage, legal fees, and compliance fines. Most SMBs underestimate the “true cost” until it's too late—and by then, recovery is often out of reach.

13. 22% of SMBs Increased Security Budgets in 2021, Trend Continues Through 2025

CyVent reports that 22% of small businesses increased their cybersecurity spending in 2021, and this trend has only accelerated in the years since. By 2025, that figure is expected to rise past 40% as digital-first operations become the norm. These increases signal a shift in mindset: cybersecurity is not a cost center, it’s a resilience enabler.

14. Antivirus, VPNs, Firewalls, and Password Managers Still Top the SMB Stack

From CyVent’s 2024 survey data, the four most commonly adopted cybersecurity tools among SMBs are antivirus software, VPNs, firewalls, and password managers. While these tools offer a decent baseline, they’re often deployed in isolation without centralized management. As threats evolve, SMBs migrate toward integrated, policy-driven platforms that combine visibility with enforcement.

15. 78% of C-Suite Executives Now Use AI for Cyber & Compliance Monitoring

According to CyVent, 78% of C-suite leaders in mid-sized and large firms are leveraging artificial intelligence and machine learning tools to stay on top of cybersecurity and compliance. These technologies help reduce the noise of alerts, speed up audits, and spot issues in real time. Leaders no longer rely solely on IT teams; they’re demanding dashboards, analytics, and automated insights to make informed, board-level decisions.

16. Continuous Compliance Monitoring Replacing Annual Audits

CyVent’s latest analysis reveals a growing shift away from annual point-in-time audits toward continuous compliance monitoring. Instead of scrambling for documents once a year, organizations now use automated systems to track controls in real time. This shift is especially valuable for companies in fintech, healthcare, and SaaS, where the pace of change and the pressure to prove security posture is relentless.

17. UK Cyber Bill Expands Regulatory Scope to Third Parties and Ransomware

As reported by CyVent, the UK’s latest Cyber Security and Resilience Bill marks a major expansion in compliance expectations. It mandates ransomware incident reporting and extends cybersecurity obligations to the entire digital supply chain, including vendors and contractors. This kind of third-party accountability is likely to spread globally, pushing companies to invest in vendor risk management and supply chain monitoring tools.

18. Skills Shortages and Regulatory Complexity Among Top Compliance Obstacles

According to CyVent, two of the biggest challenges SMBs and mid-market firms face with compliance are a lack of internal expertise and the complexity of overlapping regulatory frameworks. Many companies struggle to navigate SOC 2, GDPR, ISO 27001, and others all at once. As a result, there’s a growing demand for compliance-as-a-service offerings from MSPs and MSSPs.

19. Zero Trust Adoption Accelerated by Remote Work Policies

From CyVent’s market observations, the remote work revolution has become the tipping point for widespread adoption of zero-trust architectures. Traditional perimeter-based security simply doesn’t apply when employees access sensitive systems from unsecured home networks. Businesses are shifting toward identity-based access control and continuous authentication to protect data regardless of location.

20. AI and Zero Trust Save Millions Per Breach in Cost Avoidance

According to CyVent, organizations that have deployed both AI-powered threat detection and zero-trust frameworks are saving an average of $3.8 million per breach. AI reduces time to detect and contain incidents, while zero-trust minimizes lateral movement within compromised systems. These technologies aren’t just theoretical; they’re delivering real-world ROI in the form of avoided damage and faster recovery.

Emerging Threats & Technology

1. Supply Chain Attacks Expected to Rise 300% by 2025

According to NinjaOne, supply chain attacks are rapidly becoming one of the most concerning forms of cyber threats. By 2025, 45% of organizations are expected to have experienced a software supply chain attack—a staggering 300% increase since 2021. These attacks exploit trusted third-party software or vendors to breach internal systems. Their stealth and scale make them particularly dangerous for both SMBs and enterprises.

2. Global Cybercrime Costs to Hit $10.5 Trillion by 2025

As reported by Astra Security, the economic toll of cybercrime is growing at an exponential rate. Global cybercrime costs are projected to reach $10.5 trillion by 2025, with a 15% year-over-year increase. These numbers include ransom payments, recovery costs, regulatory penalties, and intellectual property theft. The statistic highlights why cybersecurity investment is no longer optional—it’s a survival strategy.

3. Average Cost of a Data Breach Hits $4.88 Million in 2024

According to a 2024 study from Varonis, the average cost of a data breach has reached $4.88 million, the highest figure on record to date. This figure includes direct damages, legal consequences, customer notification, and lost revenue. For organizations without cyber insurance or an incident response plan, the financial fallout can be devastating. It also underscores the importance of breach containment and rapid detection.

4. Ransomware & Supply Chain Threats Surge in Multi-Cloud Setups

Cyber Magazine reports that ransomware and supply chain threats are escalating, particularly in hybrid and multi-cloud environments. These complex infrastructures expand the potential attack surface, making security orchestration more difficult. The rise in targeted campaigns leveraging remote infrastructure shows that attackers are evolving. Organizations need adaptive, cloud-native security to counteract these shifting threats.

5. IoT and AI-Driven Threats Challenge Traditional Security

A joint report from Cyber Magazine and A-LIGN shows that Internet of Things (IoT) vulnerabilities and AI-enhanced attacks are both on the rise. These threats challenge the effectiveness of traditional security tools. As more devices connect to enterprise networks, attackers are finding new weak points. AI-enabled attacks can mutate faster than rule-based systems can respond.

6. 66% of SMBs Have Experienced a Cyber Incident Since 2018

From PurpleSec, over 66% of U.S. SMBs have experienced at least one cyber incident between 2018 and 2020. This statistic reveals a growing pattern of repeated exposure over time. It also shows that smaller organizations are not flying under the radar of cybercriminals. In fact, their limited defenses make them frequent and profitable targets.

7. AI Now Powers Phishing, Malware, and Vulnerability Exploits

Sources including USD, CyberProof, and Sattrix point to a disturbing trend: threat actors are using AI to their advantage. They’re leveraging it to automate phishing, vulnerability scanning, and malware generation. These tactics make attacks faster, more scalable, and harder to detect. Defenders must now use AI just to keep pace with their adversaries.

8. AI-Powered Malware Adapts in Real Time to Evade Defenses

A collection of insights from WEF, IBM, and CyberProof confirms that malware is evolving faster than ever before. AI-powered malware can mutate in real time, evade sandboxes, and bypass endpoint defenses. This renders traditional signature-based antivirus tools nearly obsolete. Cybersecurity teams must now rely on behavior-based analytics and threat intelligence feeds to stay protected.

9. Deepfake Phishing Attacks to Surpass 8 Million by 2025

From studies conducted by USD, CyberProof, and Sattrix, it’s evident that deepfake and AI-generated phishing attacks are becoming widespread. The number of deepfake instances is expected to surpass 8 million by 2025. These AI-powered deception techniques exploit both visual and emotional cues, making them harder to spot. As misinformation and impersonation tactics advance, identity verification solutions will become essential.

10. AI-Enhanced Ransomware Increases Attack Speed and Impact

According to the Cloud Security Alliance and Forbes, cybercriminals are increasingly using AI to supercharge ransomware campaigns. These AI-optimized attacks evade detection and deploy faster, maximizing damage before systems can respond. In some cases, malware even adapts based on the defense mechanisms it encounters. This makes static or rule-based defenses ineffective, especially at scale.

11. Attackers Now Target AI Models Themselves

Finally, Sattrix highlights a new front in cyber warfare: attackers are now targeting the AI models themselves. These adversarial attacks manipulate AI algorithms, feeding them poisoned data or causing them to leak sensitive information. As more security tools rely on machine learning, their models become attractive targets. This calls for rigorous model validation, input sanitization, and adversarial resilience testing.

12. AI-Powered Phishing Lures Boost Click Rates by 67%

According to CyVent, phishing emails generated by AI models have shown a 67% higher click-through rate than traditional templated attempts. These messages mimic tone, context, and phrasing convincingly, often outperforming human-written scams. The implications are clear: attackers no longer need to be persuasive; they just need algorithms that sound familiar. Defense now depends on behavior-based filters, not just keyword detection.

13. 24% of Malware Samples Contain AI-Generated Code Fragments

CyVent’s malware lab analysis reveals that nearly a quarter of malware samples collected in Q4 2024 contain segments of AI-generated code. This trend points to the increasing use of LLMs and code-synthesis tools by malicious actors to speed up payload development. As malware becomes more modular and polymorphic, detection systems must evolve beyond signature-based engines.

14. Quantum-Resistant Encryption to Protect 28% of Financial Systems by 2028

Based on research by CyVent, 28% of core financial infrastructure is expected to be protected by quantum-resistant encryption by 2028. With quantum computing on the horizon, financial institutions are already piloting post-quantum cryptographic algorithms. This forward-looking shift is driven by the need to safeguard long-term data, even against threats that don’t yet exist.

15. Autonomous Vehicles Will Emit 11GB of Security Telemetry per Hour by 2030

CyVent estimates that by 2030, the average autonomous vehicle will generate over 11GB of cybersecurity-related telemetry data every hour. This includes sensor validation, firmware monitoring, AI decision logs, and anomaly detection. Securing that volume of data in real-time will require massive edge-processing capabilities and a rethink of how SIEMs handle mobility.

16. API-Centric Attacks Rose 41% in 2024 Alone

According to CyVent, the volume of API-specific cyberattacks surged 41% in 2024. APIs have become the most targeted interface in SaaS and cloud-native environments, often exposing business logic flaws or excessive permissions. As companies rush to integrate services, they’re leaving blind spots in authentication, rate limiting, and input sanitization—exactly what attackers look for.

17. Deepfake Audio Fraud Exceeds $2.1 Billion in Losses

As reported by CyVent, enterprise losses due to deepfake audio impersonation scams crossed $2.1 billion globally in 2024. Attackers are synthesizing the voices of executives to authorize fake wire transfers, share credentials, or manipulate staff. The realism of these attacks is making voice authentication obsolete, pushing companies to adopt multi-factor verification for critical requests, even internally.

18. 82% of ICS Operators Targeted by OT Credential-Stuffing Attacks

CyVent’s threat telemetry reveals that 82% of industrial control system (ICS) operators experienced credential-stuffing attacks on operational technology in the last 12 months. These often exploit default passwords, legacy protocols, and weak segmentation. As factories and utilities modernize, attackers are pivoting to OT networks where the consequences of a breach can be physical and immediate.

19. 35% of Ransomware Variants Will Be Wormable by 2025

According to CyVent, over one-third of new ransomware strains expected in 2025 will include worm-like propagation capabilities, allowing them to spread across networks in under a minute. This speed means even a single compromised device can infect hundreds of systems before alerts go out. It emphasizes the need for lateral movement detection and rapid isolation controls in any organization’s security posture.

20. 40% of Datacenter Traffic Monitoring Will Be Agentless by 2030

From CyVent’s infrastructure trend analysis, by 2030, 40% of datacenter traffic inspection will occur via agentless, sidecar-based architectures rather than traditional inline appliances. The shift reflects a desire to reduce performance overhead and deploy more flexibly across VMs, containers, and microservices. As infrastructure becomes more ephemeral, visibility must decouple from hardware.

21. Privacy-Preserving AI Startups Saw 53% Surge in Funding

Based on venture capital tracking by CyVent, startups focused on privacy-preserving machine learning (PPML), such as federated learning, homomorphic encryption, and secure aggregation, saw a 53% increase in funding in 2024. As AI adoption grows, so does the need to train models without exposing sensitive data. Enterprises are investing in solutions that can offer insights without sacrificing compliance or customer trust.