Mumbai, Indian enterprises are set to increase their spending on information security, with total end-user spending projected to reach $3.3 billion in 2025, a new report said on Tuesday.

This marks a 16.4 per cent increase from 2024, driven by rising cybersecurity threats, evolving regulations, and the growing adoption of cloud technology.

According to a Gartner report, businesses are investing more in security to tackle persistent challenges such as ransomware attacks, data breaches linked to generative AI (GenAI), and complex regulatory requirements.

Companies are focusing on real-time threat detection and incident response to secure their hybrid information technology (IT) environments.

Among all segments, security services are expected to see the highest growth, with spending projected to increase by 19 per cent in 2025.

Spending on security software is also set to rise, reaching $1.2 billion, as companies seek to consolidate their security platforms and improve cloud protection.

Gartner predicts that by 2028, 40 per cent of IT services contracts will include security components.

Additionally, by 2026, 75 per cent of organisations with GenAI initiatives will shift their spending focus from structured to unstructured data security.

The report also highlights two key cybersecurity trends that will shape 2025. The first is the growing impact of GenAI on data security, requiring companies to adopt new protection strategies.

Businesses are expected to invest in synthetic data tools to replace traditional anonymisation methods, reducing privacy risks and ensuring compliance.

The second major trend is the transition to cyber resilience. Organisations are moving beyond focusing solely on preventing cyberattacks and are now prioritising strategies to minimise the impact of security incidents.

This shift acknowledges that cyber threats are inevitable, and companies must be prepared to adapt and recover quickly.

Shailendra Upadhyay, Senior Principal at Gartner, said that these security challenges are pushing organisations to strengthen their security strategies.

“The chief information security officers (CISOs) in India are prioritising investments in cloud security, access management, and data privacy to improve their defenses and ensure business continuity,” he noted.