Indian enterprises are set to ramp up their investment in information security, with total end-user spending projected to hit $3.3 billion in 2025, according to a new report released on Tuesday. This marks a 16.4% increase from 2024, driven by escalating cybersecurity threats, evolving regulatory requirements, and the rapid adoption of cloud technology.

The latest Gartner report highlights that businesses are prioritizing security investments to combat persistent challenges such as ransomware attacks, data breaches linked to generative AI (GenAI), and increasingly complex compliance mandates. Companies are particularly focusing on real-time threat detection and incident response to safeguard their hybrid IT environments.

Among various segments, security services are expected to witness the highest growth, with spending projected to surge by 19% in 2025. Meanwhile, spending on security software is also set to rise, reaching $1.2 billion, as enterprises consolidate security platforms and enhance cloud protection.

Gartner predicts a significant shift in IT service contracts, forecasting that by 2028, 40% will incorporate security components. Additionally, by 2026, 75% of organizations implementing GenAI initiatives will redirect their focus from structured to unstructured data security.

The report identifies two key cybersecurity trends shaping 2025. The first is the increasing impact of GenAI on data security, compelling companies to adopt new protection strategies. Businesses are expected to invest in synthetic data tools as an alternative to traditional anonymization techniques, reducing privacy risks and ensuring regulatory compliance.

The second major trend is the transition towards cyber resilience. Organizations are moving beyond mere prevention and are now focusing on minimizing the impact of security breaches, recognizing that cyber threats are inevitable.

Commenting on the evolving security landscape, Shailendra Upadhyay, Senior Principal at Gartner, emphasized the proactive stance of Indian enterprises. “Chief Information Security Officers (CISOs) in India are prioritizing investments in cloud security, access management, and data privacy to strengthen defenses and ensure business continuity,” he noted.