Investing.com — UBS raised its outlook for the global security and safety market, saying growing cyber threats, the rise of artificial intelligence, and tighter regulation should continue to drive spending on cybersecurity over the coming years.
The bank now estimates the addressable global security and safety market will reach $974 billion in 2026, up from previous forecasts, before expanding to $1.19 trillion by 2029, representing annual growth of about 7%. Cybersecurity is expected to remain the largest growth driver.
UBS said cybersecurity spending has remained resilient despite slower enterprise IT budgets in recent years, with organizations continuing to prioritize protection against increasingly sophisticated attacks.
The report highlighted generative AI as both a growing cybersecurity risk and a catalyst for additional investment. It said AI-powered attacks, including phishing campaigns and malicious use of large language models, are increasing the need for advanced security solutions.
According to UBS, the global cybersecurity market is expected to grow 12.5% this year to $240 billion, with Gartner forecasting it will reach $323 billion by 2029. Security software is expected to account for the largest increase in spending as companies shift toward platform-based security offerings.
The bank also said generative AI should increase cybersecurity spending as a share of overall IT budgets, with enterprises investing more to defend against new risks such as prompt injection, data leakage, and AI-powered malware.
Beyond cybersecurity, UBS expects steady growth across testing, inspection, and certification services, life science tools, and commercial and residential security markets, supported by urbanization, stricter regulations, and growing adoption of smart security technologies.
The report also introduced a new section on quantum computing, saying the technology could eventually reshape cybersecurity. UBS estimates the quantum computing market will grow from about $1.8 billion in 2026 to roughly $20 billion by 2030, though it said practical threats to current encryption standards remain years away.
UBS said cybersecurity remains one of the more defensive areas within technology, supported by recurring demand and resilient spending despite broader economic cycles.
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