Security Budget Crunch Hits Cybersecurity Industry as Growth Hits 5-Year Low

The cybersecurity industry faces unprecedented financial pressure as security budget growth plummets to 4% in 2025, its lowest level in five years, according to the newly-released Security Budget Benchmark Report from IANS Research and Artico Search.

This significant slowdown, down from 8% growth in 2024, emerges amid global economic uncertainty, forcing CISOs to optimize their cybersecurity budget allocation strategies while maintaining robust security measures.

Critical Staffing Challenges in Resource-Constrained Environment

The impact on cybersecurity staffing is particularly severe. Only 47% of CISOs reported budget increases in 2025, a sharp decline from 62% in 2024. Team growth has slowed to 7%, reaching a four-year low. Most concerning, 89% of security teams report being understaffed or stretched thin.

"Security teams everywhere are feeling the pinch from tightening budgets," notes Matt Lee, Security and Compliance Senior Director at Pax8. Organizations increasingly turn to AI-powered security tools for routine tasks, allowing human analysts to focus on complex challenges.

Strategic Resource Allocation in Modern Security Landscape

For the first time in five years, security's share of IT budgets has declined from 11.9% to 10.9%. While IT departments increase investments in AI and cloud technologies, strategic cybersecurity investments remain crucial for organizational resilience.

Amy Lindenmeyer, CFO at Keeper Security, emphasizes the need for CFO-CIO collaboration: "Operational efficiency, profitability, and productivity all factor into the multifaceted pressures facing business leaders."

Maximizing Security Effectiveness Under Constraints

Despite budget constraints, experts emphasize that program effectiveness isn't solely budget-dependent. Implementing an effective cybersecurity strategy requires focusing on fundamental measurements:

• Threat detection and response
• Patch management efficiency
• Security awareness training programs
• Access management protocols
• Framework audit health metrics

The current climate demands strategic thinking from security leaders. As Pax8's Matt Lee concludes, "Organizations that achieve the optimal balance between human insight and AI capabilities maintain strong security postures despite budget limitations."