Cyber is now the third-largest economy in the world – June 2025 Report

A innovative report released in June 2025 has sent shockwaves through global economic circles, revealing that “cyber” has ascended to become the world’s third-largest economy. With projected damages from cybercrime alone expected to reach a staggering $10.5 trillion annually by the end of 2025, this digital leviathan now trails only the economic powerhouses of the United States and China.

This unprecedented economic shift, according to Cybersecurity Ventures and echoed by various industry analyses, signifies the largest transfer of wealth in history. The illicit profits generated by cybercrime dwarf the financial toll of natural disasters annually and surpass the combined global trade of all major illegal drugs.

The “cyber economy” encompasses not only the nefarious activities of cybercriminals but also the booming industry dedicated to combating them. Global spending on cybersecurity products and services is projected to reach $212 billion in 2025, with cumulative investments expected to hit $1.75 trillion for the five-year period from 2021 to 2025.

This surge in expenditure is a direct response to the escalating volume and sophistication of cyber threats, ranging from financially motivated attacks like ransomware and phishing to state-sponsored cyber espionage and critical infrastructure targeting.

The report highlights that the rapid digital transformation across all sectors has created an expansive attack surface. The pervasive use of the internet, cloud services, IoT devices, and interconnected digital systems in businesses and daily life has made organizations and individuals increasingly vulnerable. The rise of generative AI and machine learning, while offering immense potential, also presents new avenues for cyberattacks, including deepfakes and automated phishing.

Experts emphasize that cybersecurity is no longer merely a cost center but a critical investment in economic growth and resilience. Nations and organizations are urged to prioritize robust data governance, implement AI-specific security controls, and foster public-private collaboration to stem the tide of cybercrime.

The sheer scale of the cyber economy, particularly its dark underbelly, underscores the urgent need for heightened vigilance, innovation in defensive technologies, and a significant investment in a skilled cybersecurity workforce globally.