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As our world becomes increasingly digital and interconnected, the frequency and severity of security breaches and threats continue to rise. Recent attacks on many high-profile targets have highlighted the need to strengthen our cyber defenses, and spending on these products and services is likely to rise significantly in the coming years.

According to McKinsey research, damage from cyberattacks will amount to about $10.5 trillion annually by 2025, and the total addressable market could reach $1.5 trillion to $2.0 trillion in the coming years.

Most companies cut discretionary spending last year amid rising economic uncertainty, but cybersecurity is an area they cannot afford to ignore. Governments around the world also plan to increase spending in these areas.

Recent advances in AI present significant advantages for cybersecurity enforcement. However, hackers are also using the technology to amplify and intensify cyberattacks.

Cisco Systems CSCO recently announced the acquisition of Splunk SPLK for $28 billion, as the networking equipment giant hopes to boost AI-powered cybersecurity monitoring tools. We could see more M&A activity in this space.

To learn about the First Trust NASDAQ Cybersecurity ETF CIBR, the ETFMG Prime Cyber Security ETF HACK, the iShares Cybersecurity & Tech ETF IHAK and the Global X Cybersecurity ETF BUG, please watch the short video above.

Palo Alto Networks PANW, Zscaler ZS, CrowdStrike CRWD, CyberArk Software CYBR, and Check Point Software CHKP are among the top holdings in these ETFs.

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iShares Cybersecurity and Tech ETF (IHAK): ETF Research Reports

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.