Security News > 2023 > September > Cybersecurity budgets show moderate growth

Despite the economic uncertainty and inflation, security budgets generally continued to rise but at a lower rate than prior years, according to new research from IANS and Artico Search.

Respondents reported an average security budget increase of 6%, a significant decrease from the 17% increase in the previous budget cycle and marks a 65% reduction in growth.

Across industries, the decline was most prominent in technology firms, which dropped from +30% growth in 2021-2022 to +5% this year, with more than 33% of organizations freezing or cutting cybersecurity budgets.

"The incremental growth in cybersecurity budgets is insufficient relative to the increases in scope facing security teams," stated Nick Kakolowski, Senior Research Director of IANS. "In the latter part of Q4 2022 and throughout 2023, many CISOs reported difficulty getting the resources they need, with some indicating outright budget freezes. With the recent public breaches at Clorox, MGM, and Caesars, we will be closely monitoring how companies approach budgeting for 2024. Our research indicates that organizations that adjust spending in response to major industry disruptions boost their budgets by 27%, on average," added Kakolowski.

While security budgets are increasing at a lower rate, security budgets as a share of IT budgets are trending up, suggesting the impact on security spending is moderate compared to IT spending.

Across industries, the tech and retail sectors had the largest share of organizations with declining security budgets.

News URL

https://www.helpnetsecurity.com/2023/09/29/cybersecurity-budgets-growth/