Cybersecurity is undergoing a major transition, and small and midsize businesses (SMBs) are now playing a central role.

Recent industry data projects that managed security services will reach $99B in 2025, reflecting 15% year-over-year growth, the fastest expansion across the security landscape. Even more notably, SMBs are expected to make up 60% of global cybersecurity spending by 2026.

This rapid growth is not a temporary spike. It signals a long-term shift in how SMBs view risk, resilience, and the role of security in day-to-day operations.

Why SMB Cybersecurity Adoption Is Accelerating

For years, smaller organizations believed cyberattacks primarily targeted large enterprises. But that mindset has changed, because attackers have changed.

1. Automated threats now target everyone

Cybercriminals use automation, AI tools, and phishing kits to scan for weaknesses at scale. That means any business running digital systems, storing data, or managing remote users can be targeted, regardless of size.

In today’s landscape, being “too small to target” no longer exists.

2. Cyber insurance and compliance standards are rising

Cyber insurance carriers and regulatory frameworks now require stronger security controls, including:

• Multifactor authentication (MFA)

• Endpoint detection and response (EDR)

• 24/7 monitoring

• Documented incident response plans

This is especially relevant for industries like healthcare, finance, legal, and professional services. Outsourcing security gives SMBs access to expertise that accelerates compliance readiness and insurance qualification.

3. Hybrid work expanded the attack surface

With employees working from homes, airports, coffee shops, and co-working spaces, the traditional office perimeter disappeared. Modern security must now protect:

• Devices

• User identities

• Cloud applications

• Remote access points

Continuous monitoring and zero-trust access models have become essential.

4. The cybersecurity talent gap is real

Cybersecurity expertise is expensive and difficult to hire, and retaining that talent is even harder for growing organizations.

Managed security services give SMBs access to:

• Security analysts

• Threat intelligence

• 24/7 monitoring

• Rapid incident response

This approach is not only cost-effective, it ensures round-the-clock protection that internal teams often cannot support alone.

Why Managed Security Has Become the New Standard

SMBs investing in managed security are not simply spending more, they are spending more strategically.

Key advantages include:

• Predictable monthly costs vs. large capital expenses

• Faster detection and response to threats

• Reduced burden on internal IT teams

• Better insurance readiness

• Stronger compliance posture

• Continuous monitoring instead of reactive fixes

In short: managed security has become foundational to modern business operations.

How SMBs Are Strengthening Their Cybersecurity Programs

Forward-thinking SMBs are adopting layered, proactive security practices such as:

• Security awareness and phishing training

• Modern endpoint protection and EDR

• Multifactor authentication and identity security

• Vulnerability scanning and patching routines

• Continuous monitoring and threat response

• Reliable backup and disaster recovery processes

These are no longer enterprise-only standards. They are essential safeguards for every business today. Cybersecurity has shifted from a one-time investment to an ongoing program.

The Bottom Line

Cybersecurity is no longer just an IT function. It is a core business strategy.

SMBs are investing because they recognize:

• Breach recovery costs far more than prevention

• Customers and partners expect security maturity

• Downtime damages operations and trust

• Compliance and insurance requirements are rising

• Resilience is now a competitive advantage

The growth in managed security spending reflects a larger industry realization: ongoing cybersecurity expertise is essential for long-term success.

SMBs are no longer reacting to cyberattacks. They are proactively building defense and resiliency into their business models. Partnering with security experts and adopting continuous protection strategies gives smaller organizations the same strategic advantage once reserved for large enterprises.

As security threats evolve, so will SMB security maturity. Those making proactive investments today will be best positioned for tomorrow’s digital-first environment.