Global cybersecurity spending (including enterprise products and services) will increase by 13.2% in 2023 and remain a key growth sector for channel partners, according to Canalys’ latest cybersecurity forecasts.

The IT market intelligence group forecasts total spending in 2023 to hit $223.8 billion in the best-case scenario, with growth in the delivery of cybersecurity services outpacing product shipments.

While ransomware remains the biggest threat to organizations, the evolving threat with the emergence and abuse of generative AI models, such as ChatGPT, will increase the risk of attack to another level in 2023. This will keep cybersecurity high on the list of investment priorities for organizations.

Spending among governments and enterprises will rise, but investment by smaller businesses will weaken as economic conditions deteriorate.

The delivery of cybersecurity services, including consulting, outsourcing, deployment, integration, maintenance and managed services, is forecast to grow by 14.1% to $144.3 billion in 2023. This will account for 64.5% of the worldwide cybersecurity market in 2023.

On the other hand, shipments of cybersecurity products, including endpoint security, network security, web and email security, data security, identity and access management, and vulnerability and security analytics, will increase by 11.7% to $79.5 billion in 2023.

The report concluded that although the forecast increased spending represents robust growth for the technology sector, total cybersecurity spending will still fall short of the level needed to turn the tide against threats after years of chronic underinvestment.