Identity threats, AI-driven attacks and new data regulations push enterprises to invest more in security software, cloud protection and managed services.
India’s spending on information security is projected to reach $3.4 billion in 2026, marking an 11.7% increase from 2025, as enterprises step up investments to counter AI-driven cyber threats and comply with tightening data protection regulations, according to research firm Gartner.
The forecast indicates that India’s total information security spending will grow from $3.07 billion in 2025 to $3.43 billion in 2026, reflecting increasing enterprise focus on identity protection, cloud security and managed cybersecurity services.
“Security spending in India is set to grow in 2026 as enterprises confront increasingly sophisticated AI-driven threats and comply with more stringent regulatory requirements,” said Shailendra Upadhyay, Senior Principal at Gartner.
He noted that Indian chief information security officers (CISOs) are shifting toward more dynamic and preemptive defence models to respond to emerging cyber risks.
The rise of identity-based cyberattacks, including credential compromise and deepfake-enabled fraud, is rapidly expanding the digital attack surface for enterprises.
As a result, organizations are prioritizing identity threat detection and response (ITDR), with identity-first security strategies gaining prominence in boardroom discussions.
The implementation of India’s Digital Personal Data Protection (DPDP) Act is also accelerating enterprise investments in stronger identity and access management frameworks to ensure regulatory compliance.
Among cybersecurity segments, security software will remain the largest and fastest-growing category in India’s market.
Spending in this segment is expected to reach $1.56 billion in 2026, representing 12.4% growth, as companies strengthen infrastructure protection and cloud security capabilities.
Enterprises are increasingly adopting technologies such as endpoint protection platforms (EPP) and security information and event management (SIEM) solutions to manage rising cyber risks.
Cloud security is also expanding to include AI-specific configurations and runtime protections, reflecting the growing role of artificial intelligence in enterprise environments.
Security services spending is projected to grow 11.1% to $1.44 billion in 2026, driven largely by rising demand for managed detection and response (MDR) and other managed cybersecurity services.
These services allow enterprises to access specialized cybersecurity capabilities without building large in-house teams, helping them manage costs while improving threat detection and response.
According to Gartner, advisory services around incident response, forensics, architecture frameworks and security investigations are also seeing increased demand.
Disclaimer: This is a press-release.