End-user spending on information security in India is expected to reach $3.4 billion in 2026, marking an 11.7 percent increase from 2025, according to research from Gartner. The rise in cybersecurity investment in India reflects growing concerns over AI-driven cyber threats, expanding digital operations, and stricter regulatory requirements.
Indian enterprises are increasingly strengthening their security posture as cybercriminals adopt more sophisticated attack techniques, including identity-based breaches and AI-powered fraud. At the same time, compliance obligations under India’s Digital Personal Data Protection Act are prompting organizations to adopt stronger data protection and identity security frameworks.
Rising Cyber Risks Push Security Spending Higher
According to Shailendra Upadhyay, senior principal at Gartner, security spending in India is accelerating as organizations confront evolving threats and regulatory pressure.
He noted that chief information security officers (CISOs) in India are shifting toward dynamic and proactive defense strategies instead of relying on traditional reactive models. Identity-based attacks, including credential compromise and deepfake-enabled fraud, are significantly expanding the attack surface for enterprises.
As a result, identity-first security strategies and identity threat detection and response (ITDR) are becoming critical priorities for security leaders.
Security Software to Remain the Largest Segment
Among the various cybersecurity segments, security software will remain the largest and fastest-growing category in India in 2026. Spending on security software is expected to grow 12.4 percent, reaching approximately $1.56 billion in 2026 from $1.385 billion in 2025.
Organizations are prioritizing technologies that strengthen infrastructure and cloud protection. Increased adoption of advanced solutions such as endpoint protection platforms and security monitoring tools is contributing to the expansion of this segment.
The growing shift toward cloud environments is also driving demand for AI-aware cloud security solutions, including tools designed to monitor AI workloads, secure runtime environments, and prevent cloud-related incidents.
Strong Growth in Security Services
Spending on security services in India is projected to reach $1.44 billion in 2026, growing 11.1 percent year-over-year, from $1.298 billion in 2025.
A major driver of this growth is the rapid adoption of managed security services, particularly managed detection and response (MDR) solutions. These services allow enterprises to strengthen their cybersecurity capabilities without making large internal investments in security infrastructure or specialized talent.
Organizations are also increasing their spending on advisory services, including:
Cybersecurity architecture frameworks
Digital forensics and investigations
Incident response services
Security risk assessments
These services help enterprises navigate complex threat environments while maintaining compliance with regulatory frameworks.
Network Security Spending Also Expanding
Network security spending in India is expected to reach $437 million in 2026, growing 11.1 percent compared with $393 million in 2025. This growth reflects rising demand for stronger network protection as businesses expand digital infrastructure and remote operations.
Key Cybersecurity Trends for Indian CISOs in 2026
Analysts at Gartner highlighted two major cybersecurity trends shaping security strategies for Indian enterprises in 2026.
1. Global Regulatory Volatility and Cyber Resilience
Cybersecurity leaders must adapt to rapidly evolving global regulations and compliance mandates. Regulatory frameworks across multiple markets are becoming stricter, increasing accountability for corporate boards and executives.
Experts warn that delays in meeting compliance obligations could result in significant financial penalties, operational disruption, and reputational damage.
To manage this complexity, cybersecurity leaders are encouraged to collaborate closely with legal, procurement, and business teams to build shared accountability for cyber risk management.
2. Identity and Access Management for AI Agents
The growing adoption of agentic AI systems is creating new challenges for identity and access management frameworks.
Autonomous AI agents require structured identity registration, governance models, and automated credential lifecycle management. Without these safeguards, enterprises risk increased access-related security incidents as machine actors gain deeper integration into enterprise environments.
Gartner recommends that organizations adopt risk-driven security investments and automation-driven controls to strengthen identity governance and support innovation in AI-enabled digital ecosystems.
RAJANI BABURAJAN
