UBS Forecasts $1.19 Trillion Security Market by 2029, Cybersecurity to Drive Growth
UBS•UBS raised its outlook for the global security and safety market to $974 billion in 2026 and $1.19 trillion by 2029, forecasting 7% annual growth led by cybersecurity. It expects cybersecurity spending to grow 12.5% to $240 billion in 2026 and reach $323 billion by 2029, driven by AI-related threats and resilient enterprise budgets.
1. Market Outlook
UBS now projects the global security and safety market will reach $974 billion in 2026, up from prior estimates, and expand to $1.19 trillion by 2029, representing roughly 7% annual growth. This revised outlook reflects sustained demand for broader security solutions across enterprises, governments, and critical infrastructure.
2. Cybersecurity Growth Dynamics
Cybersecurity spending is forecast to climb 12.5% this year to $240 billion and continue rising to $323 billion by 2029. Security software is expected to account for the largest increase in outlays, as organizations shift toward integrated, platform-based offerings to counter evolving threats.
3. Generative AI Risks and Investment
Generative AI is boosting both risk and spending, with AI-powered attacks—such as sophisticated phishing campaigns, prompt injection, data leakage, and AI-driven malware—prompting enterprises to allocate larger shares of IT budgets to advanced security solutions. Tightening regulation and heightened breach consequences are further fueling investments.
4. Quantum Computing Prospects
UBS forecasts the quantum computing market to grow from about $1.8 billion in 2026 to nearly $20 billion by 2030, underscoring long-term opportunity in post-quantum encryption and specialized security services. Despite this projection, widespread quantum-enabled threats to existing encryption standards remain several years off.
