Cybersecurity Services Market Review - June 2026

cybersecurity services market update

It’s Still a Human-Led World and the Bots Are Living in it

Momentum Cyber’s Cybersecurity Services Market Update highlights a historically active M&A market defined by durable enterprise demand, private equity consolidation, and rising interest in AI-enabled service models. With Cyber Services reaching a record 45 M&A deals in Q1 2026, deal count growing at a 15% 7-year CAGR, and enterprises projected to spend twice as much on services as products, the market remains one of the most attractive and resilient segments in cybersecurity.

Executive Summary

Cybersecurity Services M&A has entered a historic acceleration phase as AI increases, rather than replaces, demand for human-led expertise. As attackers use AI to scale phishing, automate attacks, and weaponize code generation, enterprises are relying more heavily on Security Consulting, MSSPs, and MDR providers to defend increasingly complex environments. Leading services firms are embedding AI into threat detection, SOC automation, incident response, offensive security testing, and more, creating operational leverage while preserving the human judgment customers still require. With a fragmented landscape, recurring revenue models, and strong EBITDA profiles, Cyber Services remains a durable roll-up opportunity for private equity and strategic buyers.

Key Report Takeaways.

Cyber Services deals in Q1 ’26 (most ever)

45

7-year deal count CAGR

15 %

Of Cyber Services deals completed by PE

52 %

Security Consulting deals since 2024

170

Enterprise spend on Services vs. Product

2: 1

Security Consulting deals since 2024

174

Projected YoY M&A growth for Advanced MSS & MDR firms

105 %

North American share of global Cyber Services M&A

48 %

Cyber Services share of Total Cyber M&A in 2026

39 %

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The complete Cybersecurity Services Market Update includes:

About

Momentum Cyber is the premier trusted advisor to the global cybersecurity industry, providing M&A advisory, capital raising, and strategic research services. With 68 cybersecurity transactions completed, $25B+ in cybersecurity deal value, and unparalleled industry relationships, Momentum Cyber delivers mission-critical advice to leading founders, CEOs, and decision-makers.

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