Cybersecurity spending: How much are countries investing in their digital defenses?

• Belgium leads in cybersecurity readiness with a top score of 94.81, while the U.S. is at the top for cybersecurity spending, earmarking 71.79 billion USD for 2023—nearly half of Canada's total military budget.

• Countries with the weakest cybersecurity, like South Sudan and Palau, underscore the challenges faced by nations with limited resources.

• Cybercrime's staggering global impact is estimated to have been 8 trillion USD in damages for 2023, with countries like Germany suffering most significant financial losses, reaching 225 billion USD in 2023 alone.

• In the cybersecurity market, the U.S. maintains its dominance with a market value of 79.37 billion USD in 2023, expected to surge to 117.10 billion USD by 2028, showcasing its global leadership in digital defense.

• To stay secure online, adopting cybersecurity measures such as using a VPN on public Wi-Fi has never been more important, with other top tips including regular audits of app permissions and the use of hardware security keys. 

Cybersecurity is more than technology; it's the ability to foresee and combat threats that could destabilize economies and national security. And, as cyber attacks become a regular challenge, a country's defense against these threats is a crucial line of protection.

ExpressVPN dives into the cybersecurity readiness of nations. We explore who ranks the best, with countries like the U.S., Belgium, and Malaysia leading their regions, and also what separates the front-runners from the rest. We look into the challenges faced by countries like Turkmenistan and South Sudan, considering what can be learned from their experiences.

With an estimated 8 trillion USD in damages from cybercrime expected in 2023, understanding how much countries are spending on cybersecurity spending is also critical. We compare these investments to other key areas of national budgets, asking: does more spending translate to better security?

Jump to…
What makes a country cyber secure?
The countries with the best and worst cybersecurity
Countries that lose the most money to cybercrime
The most common cybercrimes
Cybersecurity powerhouses
Top 20 countries that invest the most in cybersecurity
12 cybersecurity tips to stay safe online
Methodology

What makes a country cyber secure?

A country's cyber resilience hinges on a multifaceted framework that integrates stringent laws, government commitment, strategic partnerships, and state-of-the-art infrastructure.

Legal framework

Effective cyber defense starts with a solid legal foundation. Laws establish the rules for data protection, dictate the response to breaches, and outline penalties for cybercrime, creating a secure environment for digital activities.

Government support

A proactive government strategy is the cornerstone of national cyber resilience. By leading the charge and providing resources, the government sets the tone for a unified national response against cyber threats.

Strategic partnerships

Cooperation is key. When governments, private companies, and educational institutions share intelligence and strategies, they create a stronger, more adaptable defense system against cyber threats.

Infrastructure investment

A modern and secure digital infrastructure acts as the first line of defense. Regular updates and maintenance of network security are essential to protect against evolving threats.

Awareness and education

Informed citizens and well-trained employees are vital in preventing cyber incidents. Educational initiatives reduce the risk of breaches caused by human error.

Monitoring and intelligence

Vigilant monitoring and smart analysis of cyber activities enable nations to detect and react swiftly to potential threats, minimizing the impact of attacks.

Cybersecurity research and development (R&D)

Investing in research is investing in the future. As cyber threats evolve, so must our defenses. R&D is crucial for developing innovative solutions to outpace potential attackers.

International cooperation

Cyber threats know no borders, making international collaboration essential. Sharing information and strategies with allies enriches a country's understanding and response to cyber incidents.

The countries with the best and worst cybersecurity 

Cybersecurity isn't just a part of national security; it's become a backbone of economic stability in our digital era. The National Cyber Security Index (NCSI) offers a snapshot of how well a country can fend off cyber threats and handle them if they occur. The index takes into account a nation’s laws, technology, organizational readiness, skill development, and international cyber relations.

How are NCSI scores calculated?

The NCSI database is constantly updated as cyber challenges and strategies progress. Nations with high NCSI scores are those with comprehensive cyber laws, cutting-edge tech defenses, and robust strategies for managing cyber risks. They invest heavily in training their cyber workforce and engage in global cyber defense collaborations.

On the flip side, a low NCSI score often points to gaps in these critical areas, which can leave a country more open to cyber threats.

It's important to note, however, that these scores don't tell the whole story. They focus on a country's preparedness to prevent and manage cyber incidents, not the entire breadth of its cyber activities. Understanding these scores helps us grasp a country's cyber readiness but is just one lens through which to view its overall cyber health.

Top cybersecurity performers

European nations dominate the top spots

Claiming 14 out of the 15 top spots, European nations lead the pack in cybersecurity—and this isn't by chance. Their long-standing commitment to digital infrastructure and the economic means to support advanced cyber defenses play a crucial role. Furthermore, the European Union fosters a culture of cooperation, allowing member states to exchange best practices and resources effectively.

Malaysia leads in APAC

Asian countries aren’t far behind. Malaysia’s notable ranking at 22nd with a score of 79.22, followed by Singapore at 31st with 71.43, signals a clear strategic emphasis on digital defense within the APAC region. These countries showcase a commitment to investing in technology and infrastructure crucial for thwarting cyber threats.

Where does the U.S. rank?

The U.S. sits at 46th with a score of 64.94. Despite not being at the very top, the U.S. has a substantial cybersecurity regime. Compared with that of smaller European nations, the vast and intricate nature of American digital systems makes it more difficult to apply comprehensive cybersecurity coverage, which is why the U.S. ranks further down the list, alongside Thailand and Georgia. 

The struggle at the bottom 

At the lower end of the index, we often find countries with fewer economic resources, which likely affects their cybersecurity investments. Financial constraints can force a government to allocate limited funds to more immediate issues, sidelining cyber defense.

Interestingly, the Vatican City ranks fourth on the list of countries with the most vulnerable cybersecurity. This is likely due to the holy city’s small size, limited resources, and reliance on outdated technology.

How much money is lost to cybercrime in each country 

A robust cybersecurity score isn’t a silver bullet against cyber threats. For example, the UK, despite being a leader in preparedness, finds itself suffering financial hits in the billions from cybercrime. This tells us that a high defense score doesn't necessarily translate to a lower risk. 

According to the International Data Corporation (IDC), in 2023 alone, cybercrime's global economic impact was projected to hit a staggering 8 trillion USD. To put that into perspective, that’s more than the GDP of most countries—surpassed only by giants like the U.S. and China.

Below, we delve into the losses incurred by these costly crimes in certain countries: