UBS has revised its forecast for the global security and safety market upward, stating that cybersecurity spending will continue to increase in the coming years due to rising cyber threats, the rise of artificial intelligence, and stricter regulations.

The bank forecasts that the addressable global security and safety market will reach $974 billion in 2026, a higher figure than previous estimates, and will rise to $1.19 trillion by 2029. This represents approximately 7% annual growth. Cybersecurity will remain the biggest driver of this growth.

According to UBS, cybersecurity spending has remained resilient despite a slowdown in corporate IT budgets in recent years. Companies continue to prioritize protection against increasingly sophisticated attacks.

The report highlights generative AI as both a growing cybersecurity risk and a catalyst for additional investment. Factors such as AI-powered attacks, phishing campaigns, and the misuse of large language models are increasing the need for more advanced security solutions.

UBS states that the global cybersecurity market will grow by 12.5% ​​this year, reaching $240 billion, while Gartner predicts it will reach $323 billion in 2029. As companies shift towards platform-based security solutions, security software will see the largest increase in spending.

The bank also says that generative AI will increase the share of cybersecurity within IT budgets. Companies will invest more in new risks such as prompt injection, data leakage, and AI-powered malware.

Beyond cybersecurity, UBS expects steady growth in testing, auditing and certification services, life sciences tools, and the commercial and residential security markets. This growth will be supported by urbanization, stricter regulations, and the widespread adoption of smart security technologies.

The report also includes a new section on quantum computing. UBS states that this technology could fundamentally change cybersecurity in the future, estimating that the quantum computing market will grow from approximately $1.8 billion in 2026 to $20 billion in 2030. However, it emphasizes that practical threats to current encryption standards are still several years away.

UBS notes that cybersecurity remains one of the more defensive areas in the technology sector, supported by spending that is resilient to recurring demand and general economic fluctuations.