India’s Cybersecurity Boom: $3.4 Billion on the Line as AI Threats and New Laws Collide

A Market on the Move

India’s information security sector is set for a landmark year. End-user spending is forecast to hit $3.4 billion in 2026, marking an 11.7% jump from $3.07 billion in 2025, according to new data from Gartner. The surge is no accident — it reflects a perfect storm of AI-powered cyberattacks, sweeping new data protection legislation, and a corporate India finally treating cybersecurity as a boardroom issue rather than an IT afterthought.

Software Leads, Services Surge

Security software is both the largest and fastest-growing segment, projected to reach $1.56 billion — a 12.4% rise — as organisations pour money into endpoint protection and cloud security platforms.

Security services are close behind at $1.44 billion, growing 11.1%, powered by a sharp appetite for managed detection and response (MDR). Managed services are the breakout star of the segment, clocking an estimated 15.1% growth rate as enterprises seek scalable, cost-efficient alternatives to building in-house security teams from scratch.

Network security, while the smallest segment at $437 million, still posts a healthy 11.1% expansion.

The Identity Crisis at the Heart of It All

Gartner analysts point to a decisive shift in threats. Credential theft, deepfake-enabled fraud, and AI-assisted attacks are rapidly widening the attack surface. The response? Indian CISOs are now treating identity threat detection and response (ITDR) as a core security priority — not a niche consideration.

Underpinning all of this is compliance pressure. India’s Digital Personal Data Protection (DPDP) Act, alongside evolving global AI regulations, is placing personal liability on boards and executives, compelling organisations to act fast or face financial penalties and reputational fallout.

What CISOs Must Do Now

Gartner urges cybersecurity leaders to abandon IT-centric compliance thinking and build collaborative frameworks with legal, procurement, and business units. The organisations that thrive will be those that treat security not as a cost centre, but as an enabler of secure, scalable growth.


Source: Gartner Security & Risk Management Summit, Mumbai, March 2026

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