Kuala Lumpur, September 3, 2025 — In an era defined by digital acceleration and geopolitical instability, cybersecurity has become one of the most resilient and fast-growing industries worldwide. Rising adoption of cloud computing, artificial intelligence (AI), and remote work has vastly expanded the attack surface for criminals, while intensifying geopolitical rivalries have amplified the risk of state-sponsored cyber threats.
According to Check Point Research, the global average number of weekly cyber attacks per organisation more than doubled in just four years, surging from 818 in Q1 2021 to 1,984 in Q2 2025. Meanwhile, IBM’s Cost of a Data Breach Report shows the financial toll climbing sharply, with the average cost rising 26% to US$4.88 million (RM20.7 million) in 2024.
AI-Driven Attacks Escalate Threats
The arrival of generative AI (GenAI) has dramatically reshaped the cyber landscape, empowering criminals to conduct attacks with greater scale and sophistication. Malicious actors now use large language models to identify targets, craft hyper-realistic phishing messages, and even write malicious code. Beyond text, AI tools generate deepfake audio and video, impersonating senior executives to defraud businesses.
One stark example occurred in Hong Kong when criminals used AI-generated deepfakes to impersonate a company’s CFO and colleagues during a video call, tricking an employee into transferring HK$200 million (RM108.7 million).
The emergence of agentic AI poses an even greater challenge. Unlike traditional bots, AI agents can dynamically adjust their tactics in real time, making detection harder and lowering the barrier for cyber criminals. This has created new vulnerabilities, including prompt injection attacks where attackers manipulate AI systems into performing unauthorised actions.
Rising Demand for Next-Gen Security Solutions
With the rapid escalation of AI-driven threats, demand for advanced cybersecurity tools is surging. Identity security—covering both human and machine identities—is becoming critical, while new GenAI-specific safeguards are entering the market. For example, Zscaler now offers prompt-level monitoring to block sensitive or policy-violating prompts in real time.
At the same time, the global shortage of skilled cybersecurity professionals is accelerating the need for automation. AI-powered platforms like CrowdStrike’s Charlotte AI are increasingly adopted to provide faster triage and investigation support. Yet, despite the growing risks, a survey by Ponemon Institute found that 69% of organisations have limited or no AI integration in their security strategies, underscoring significant untapped market potential.
Cybersecurity Spending Defies Economic Cycles
Unlike many IT segments, cybersecurity budgets remain largely immune to macroeconomic pressures. A recent Morgan Stanley CIO survey found that security software ranks third in IT spending priorities, behind AI/ML and cloud, and is considered the least likely to face budget cuts.
Recent incidents highlight the stakes: in July, Microsoft accused China-linked hackers of exploiting SharePoint vulnerabilities to steal sensitive data from global enterprises and government agencies, including the US National Nuclear Security Administration.
As governments increase spending to secure critical infrastructure, vendors like Rubrik, Fortinet, and Palo Alto Networks are expected to benefit. Regulatory regimes such as the EU’s GDPR and Singapore’s Cyber Security Act will also continue driving compliance-driven investment.
Sticky and Scalable Business Models
Cybersecurity vendors enjoy strong recurring revenue streams due to subscription-based models and high customer stickiness. Leading firms report gross retention rates above 95%, equating to average customer lifespans of nearly two decades. With net retention rates above 110%, cross-selling and upselling opportunities further strengthen growth.
The software-driven nature of the industry insulates it from tariff and supply chain risks, while long-term structural drivers such as digitalisation, AI adoption, and cloud migration are set to sustain robust double-digit growth. Grand View Research projects the global cybersecurity market to expand at a 12.6% CAGR, doubling from US$245.6 billion in 2024 to US$500.7 billion by 2030.
