What's happening in the cybersecurity market?

Report outlines key factors contributing to escalating complexity in cyberspace

What's happening in the cybersecurity market?

Cyber

By Roxanne Libatique

The World Economic Forum (WEF) has released its “Global Cybersecurity Outlook 2025,” highlighting the growing complexities of the digital landscape and the challenges these pose for organisations and governments globally.

The report attributed these challenges to rapid technological development, geopolitical tensions, regulatory fragmentation, supply chain vulnerabilities, and a widening shortage of cybersecurity professionals.

According to the WEF, these factors not only increase risks but also exacerbate disparities in cyber readiness. The divide between developed and developing economies, as well as between small and large organizations, continues to grow.

Jeremy Jurgens, managing director at the WEF, noted that cyberspace has become increasingly complex due to technological advancements, more sophisticated cybercriminals, and interdependent supply chains.

“Collaboration between public and private sector stakeholders is paramount to secure the benefits of digitalisation for all,” he said.

Drivers of cybersecurity complexity

The report identified six core factors contributing to the escalating complexity in cyberspace and their implications for security strategies.

Supply chain vulnerabilities

As supply chains become more interconnected, new vulnerabilities emerge. More than half (54%) of large organisations surveyed consider supply chain risks the biggest barrier to achieving cyber resilience.

Geopolitical risks

Rising geopolitical tensions have significantly influenced perceptions of cyber risks. A third of CEOs cited cyber espionage and intellectual property theft as top concerns, while 45% of cybersecurity leaders are focused on the potential disruption of critical business operations.

AI and security risks

Artificial intelligence (AI) is expected to play a significant role in shaping cybersecurity by 2025, with 66% of organisations predicting a major impact.

However, only 37% report having established processes to evaluate the security risks of AI tools before deploying them, leaving organisations exposed to unaddressed vulnerabilities.

Advanced threats

Cybercriminals are using emerging technologies to refine their tactics, including ransomware, disinformation campaigns, and social engineering. Nearly 47% of organisations view generative AI-powered threats as a primary risk factor.

Regulatory challenges

While regulatory initiatives are designed to strengthen cyber resilience, 76% of chief information security officers (CISOs) have reported that fragmented regulations create significant compliance burdens, complicating efforts to maintain security across jurisdictions.

Cyber workforce shortages

The gap in cybersecurity skills continues to widen, increasing by 8% since 2024. Two-thirds of organizations surveyed said they lack the talent necessary to meet current cybersecurity demands, with only 14% expressing confidence in their workforce’s capabilities.

Paolo Dal Cin, global lead at Accenture Security, commented that cybersecurity is no longer just an IT issue – it has become a financial and operational challenge for organisations worldwide.

“The disruptive force of AI, coupled with supply chain vulnerabilities and geopolitical tensions, calls for a more proactive and collaborative approach to ensure a strong cyber resilient posture across all industries,” he said.

Focus on resilience over defence

The report stressed the importance of shifting from a traditional cybersecurity approach to one that emphasises resilience – ensuring organisations can sustain their operations and achieve their objectives even when cyberattacks occur. This approach involves assessing risks not only from a technical standpoint but also from a broader socioeconomic perspective to improve resource allocation and long-term preparedness.

Paula Bogantes Zamora, Costa Rica’s minister of science, innovation, technology, and telecommunications, highlighted the lessons learned from her country’s 2022 cyberattacks.

“Through this journey, we have recognised the need to strengthen our ecosystems by collaborating with our neighbours to enhance resilience not only in Costa Rica but also across the region,” she said.

The business imperative for cybersecurity leadership

The WEF report underscored the role of leadership in addressing cybersecurity challenges, urging executives to integrate security into their business strategies.

The findings suggest that viewing cybersecurity as a business enabler, rather than a cost, is critical to navigating a volatile digital environment.

The report also calls for greater cooperation between the public and private sectors to address global skills shortages and secure interconnected systems that underpin the digital economy. By focusing on resilience and collaboration, organisations can better prepare for the risks ahead and maintain their operations in an increasingly complex cyber environment.

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