Cybersecurity Teams Experience Least Budget Increase in Half a Decade
In a recent study conducted by the International Data Corporation (IDC) and IANS and Artico, security budgets have experienced a slower growth rate compared to previous years. The survey, which polled 587 security executives from April to August 2025, revealed that the average annual security budget growth was 4%, a significant decrease from the 8% increase recorded in 2024.
The report attributes this reversal to a rebound in core IT spending, driven by investments in artificial intelligence and increased cloud infrastructure. However, global market volatility, fueled by ongoing geopolitical tensions, has also been cited as a cause for restricted budgets.
Growth rates were higher than average in sectors such as financial services, insurance, and technology. Conversely, the lowest annual security budget increases were observed in healthcare, professional and business services, and retail and hospitality.
Staffing shortages have been a major concern, leading to delays and cancellations of security initiatives, causing morale issues, increasing the risk of noncompliance, and elevating organizational risk in general. The survey found that nearly all (89%) of the CISOs reported low or understaffed security teams.
Hiring and budget constraints are the primary causes of staffing shortages, according to the surveyed CISOs. Around half (47%) of firms have kept their team size flat, with just 45% able to add to their headcount in 2025. Staff salaries make up 39% of the average CISO's budget, followed by 29% on software and 12% on outsourcing.
The IANS report, dated August 5, found that the growth of security team sizes has fallen to its lowest level in four years, at an average of 7%. Between 2020 and 2024, security budget as a percentage of IT spending grew steadily from 8.6% to 11.9%, but this year saw a drop of one percentage point to 10.9%.
Categories such as project budgets, hardware, and training consume smaller shares of the CISO's budget. Just 47% of CISOs reported any increase in budget this year, down from 62% in 2024. The budget breakdown for CISOs has remained relatively stable over the past five years.
The report does not mention any specific changes in the annual security budget growth compared to the earlier mentioned facts. The researchers believe that this trend is likely to continue, as businesses navigate through economic uncertainties caused by factors such as global tariff policies, fluctuating inflation, and interest rates.
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