Cybersecurity Services Market Update (Momentum Cyber)

Summary

• Deal count has grown at a 15% 7-year CAGR and is projected to reach 170 deals in 2026.p.4
• 2026 Cyber Services M&A activity is projected to grow 34% YoY.p.4
• 52% of all Cyber Services M&A deals are completed by PE firms.p.4
• Enterprises are projected to spend 2x on Cyber Services versus Cyber Products in 2026.p.4
• Cyber Services represents 39% of all M&A activity in the Cybersecurity industry.p.4

Key insights

1. Security Consulting leads all sub-sectors with 174 tracked M&A deals since 2024.p.4
2. Advanced MSS & MDR firms are projected to see 105% YoY M&A growth.p.5
3. North America accounts for 48% of global Cyber Services M&A.p.5
4. Cyber Services has been the most active segment in Cybersecurity M&A over the past two years.p.11
5. PE favors this segment due to predictable recurring revenue, EBITDA, and straightforward integration dynamics.p.11
6. Private equity represents the majority of Cyber Services M&A deal activity because of the highly fragmented market and roll-up driven growth model.p.14