The report projects that end-user spending on information security in India will grow by 11.7 per cent from 2025, taking total expenditure to around $3,435 million in 2026.

Security software to drive growth

Gartner said security software will remain the largest and fastest-growing segment in India's cybersecurity market in 2026, with spending expected to increase by 12.4 per cent. The growth will be driven largely by organisations prioritising cloud security and infrastructure protection as cyber threats evolve.

Spending on network security and security services is also projected to expand significantly, each expected to grow by 11.1 per cent.

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Rising demand for managed security services

According to the report, spending on security services in India will be largely fuelled by the increasing demand for managed security services, which is expected to be the fastest-growing subsegment with a 15.1 per cent growth rate.

Shailendra Upadhyay said Indian enterprises are increasing their cybersecurity budgets as digital risks grow more complex.

"Security spending in India is set to rise in 2026 as enterprises confront increasingly sophisticated AI-driven threats while also meeting stricter regulatory requirements," he said.

Upadhyay noted that many Chief Information Security Officers (CISOs) in India are shifting their strategies towards dynamic and pre-emptive defence models rather than relying solely on traditional security controls.

Identity-based cyberattacks rising

The report highlighted that identity-based cyberattacks - including credential theft and deepfake-enabled fraud - are expanding rapidly, increasing the attack surface for organisations.

As a result, Identity Threat Detection and Response (ITDR) is becoming a key priority for cybersecurity teams.

Identity-first security strategies are also gaining traction due to regulatory requirements under the Digital Personal Data Protection Act, 2023.

Alex Michaels said the implementation of the DPDP Act, along with emerging global regulations on artificial intelligence, is creating new compliance challenges for organisations.

"The implementation of India's DPDP Act, combined with evolving AI regulations worldwide, is increasing compliance complexity and placing new accountability pressures on CISOs," Michaels said.

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Cybersecurity leaders urged to rethink strategies

Gartner advised cybersecurity leaders to move beyond a control-centric approach and instead position themselves as enablers of secure digital innovation.

The firm also recommended stronger collaboration between IT security teams, legal departments, business units and procurement teams to ensure shared accountability for cyber risk.

According to Upadhyay, many Indian enterprises are increasingly adopting Managed Detection and Response (MDR) and other outsourced cybersecurity solutions to address the growing complexity of digital threats while maintaining cost efficiency.

The report indicates that as businesses accelerate digital transformation and artificial intelligence adoption, cybersecurity spending in India is likely to remain a top priority for enterprises in the coming years.

IANS