Europe Cyber Security Market Size (2025-2030)

The Europe Cyber Security Market was valued at USD 60 billion in 2024. Over the forecast period of 2025-2030, it is projected to reach USD 95.32 billion by 2030, growing at a CAGR of 9.7%.

Key Market Insights:

• A global rise in cyber-attack incidents, coupled with the expansion of e-commerce platforms and digital payment solutions, has significantly fueled the demand for cybersecurity solutions. Furthermore, the widespread use of smart devices and the growing reliance on cloud infrastructure have contributed to this upward trend. Additionally, the advancement of technologies like the Internet of Things (IoT) and artificial intelligence is anticipated to elevate the risk of cyber threats in the foreseeable future.

Europe Cyber Security Market Drivers:

The integration of advanced technologies, including the Internet of Things (IoT), machine learning, and cloud computing, is expected to propel market expansion.

This strategic move enables them to better interpret anomalous behaviors and attempts, enhancing their capability to identify and respond to potential threats.

As the IoT market continues to expand, IoT-based solutions are witnessing growing adoption across a wide range of information security applications. This trend underscores the rising integration of advanced technologies within the cybersecurity landscape. Furthermore, the use of big data analytics and cloud computing is assisting organizations in identifying and assessing emerging risk factors more effectively.

Europe Cyber Security Market Restraints and Challenges:

A shortage of skilled professionals and financial limitations among small and medium-sized enterprises (SMEs) are anticipated to impede market growth.

The increasing frequency of online security threats is driving a substantial demand for more advanced cybersecurity solutions. Traditional network security tools are no longer sufficient to protect organizations against sophisticated threats targeting networks, cloud environments, and endpoint systems. A significant barrier to progress in this area is the shortage of skilled professionals capable of developing and enhancing robust security measures. Additionally, the high costs associated with deploying and maintaining comprehensive internet security solutions pose challenges for Small and Medium-sized Enterprises (SMEs), limiting their ability to adopt effective cybersecurity measures.

Europe Cyber Security Market Opportunities:

The growing adoption of data-driven approaches and decision-making processes is generating new opportunities within the market.

The growing emphasis on data-driven decision-making is significantly transforming the cybersecurity domain. Enterprises are increasingly utilizing data analytics and artificial intelligence to strengthen their security infrastructures. These advanced technologies assist in detecting patterns and irregularities that may signal potential cyber threats, enabling organizations to respond promptly and effectively. Through the implementation of data-intensive strategies, businesses are not only enhancing the efficiency of their cybersecurity initiatives but also contributing to the evolution of more advanced security solutions. This shift highlights the pivotal role of data in reinforcing security systems and protecting critical information assets.

EUROPE CYBER SECURITY MARKET REPORT COVERAGE:

Europe Cyber Security Market Segmentation:

Europe Cyber Security Market Segmentation By Component:

• • Hardware
  • Software
  • Services
    • Professional Services
      5. Risk and Threat Assessment
      5. Design, Consulting, and Implementation
      5. Training & Education
      5. Support & Maintenance
    • Managed Services

The services segment held a leading position in the market, largely driven by the availability of tailored cybersecurity solutions specifically designed to meet diverse organizational needs. This growing preference for customized security deployments aligned with individual organizational frameworks has further fueled demand. With the rapid adoption of emerging computing technologies, nearly every business is now managing vast volumes of data, proprietary digital assets, and extensive network connectivity across multiple devices. These complex environments present attractive targets for cybercriminals operating globally through advanced technological tools. In response, a significant number of organizations are investing in cybersecurity services to establish resilient and comprehensive security infrastructures.

Meanwhile, the hardware segment is projected to witness substantial growth. The introduction of cutting-edge cybersecurity solutions by technology providers has underscored the necessity for sophisticated IT infrastructure. Advanced tools leveraging artificial intelligence and machine learning require next-generation security hardware to perform optimally, thus driving demand within this segment.

Europe Cyber Security Market Segmentation By Security Type:

• • Endpoint Security
  • Cloud Security
  • Network Security
  • Application Security
  • Infrastructure Protection
  • Data Security
  • Others (Wireless Security, Web & Content Security)

The infrastructure protection segment held a dominant position in the market. The rising implementation of initiatives such as Bring Your Own Device (BYOD) has led to an increased risk of cyberattacks, making organizational systems more susceptible to threats. In response, enterprises are placing greater emphasis on monitoring user activities to enhance accountability and reduce the likelihood of security breaches.

Meanwhile, the cloud security segment is projected to experience significant growth. This trend is driven by a growing reliance on cloud computing and the substantial cost-efficiency offered by cloud-based platforms. The ongoing shift of organizations and government entities from traditional systems to cloud infrastructures is further accelerating the demand for cloud-focused cybersecurity solutions. These solutions play a critical role in detecting, preventing, and responding to cyber threats in real-time.

Europe Cyber Security Market Segmentation By Solutions:

• • Unified Threat Management (UTM)
  • IDS/IPS
  • DLP
  • IAM
  • SIEM
  • DDoS
  • Risk & Compliance Management
  • Others (Firewall, Antimalware, Antivirus)

The Identity and Access Management (IAM) segment led the European cybersecurity market. This dominance is attributed to rising investments by multinational organizations and government bodies aiming to achieve regulatory compliance. The segment is expected to witness continued growth in the coming years, driven by the increasing need to manage and secure user identities and access rights across complex digital environments.

The Intrusion Detection Systems (IDS) and Intrusion Prevention Systems (IPS) segment is projected to register a strong compound annual growth rate (CAGR). This anticipated growth stems from heightened spending on IT security across the region, along with the expanding adoption of IDS/IPS technologies. These systems are favored for their ability to continuously monitor network traffic and swiftly detect suspicious or malicious activity, thereby enhancing real-time threat response capabilities.

Europe Cyber Security Market Segmentation By Deployment:

• • Cloud-based
  • On-premises

The on-premises segment held a dominant position in the market, driven by a growing preference for full ownership of security solutions to ensure maximum data protection. This deployment model minimizes organizations’ reliance on third-party providers, thereby enhancing control over security infrastructure.

Conversely, the cloud-based deployment segment is projected to experience notable growth. This expansion is primarily attributed to the high costs associated with on-premises cybersecurity solutions. Additionally, the increased adoption of remote working practices following the pandemic has further accelerated demand for cloud-based security platforms.

Europe Cyber Security Market Segmentation By Organization Size:

• • SMEs
  • Large Enterprises

The large enterprise segment dominated the market, driven by the critical need for robust cybersecurity measures within these organizations due to their extensive scale of operations. Their substantial financial capacity enables significant investment in cybersecurity solutions aimed at maintaining seamless business continuity. These enterprises manage extensive storage systems, multiple servers, numerous endpoints, and complex networks that are vulnerable to cyber threats if not adequately safeguarded.

Meanwhile, the Small and Medium Enterprises (SMEs) segment is projected to register the fastest growth during the forecast period. SMEs often face heightened cyber risks because of limited cybersecurity resources and lower security maturity. Additionally, the lack of formal security policies and insufficient skilled personnel further increases their susceptibility to cyberattacks. To mitigate such risks, many SMEs are increasingly adopting cybersecurity insurance, which offers protection against substantial financial losses resulting from targeted cyber incidents or data breaches.

Europe Cyber Security Market Segmentation By Vertical:

• • IT & Telecom
  • Healthcare
  • Retail
  • BFSI
  • Manufacturing
  • Defense/Government
  • Energy
  • Others (Education, Media & Entertainment)

 The defense and government segment dominated the market, primarily due to the critical importance of safeguarding sensitive government data, intellectual property, electronic communications, records, and other intangible assets. Developed economies extensively depend on digital technologies for these purposes. In recent years, numerous cyber-attacks have been reported, originating from security breaches that escalated into significant threats against national security data. This environment has fueled the demand for advanced, multi-layered, and adaptive cybersecurity solutions capable of self-learning and evolving to counter emerging threats.

The healthcare segment is expected to witness notable growth, driven by the increasing integration of technology within the industry. Factors contributing to this expansion include greater reliance on digital platforms for data storage and management, technological advancements in healthcare insurance, and the adoption of sophisticated healthcare technologies such as Electronic Health Records (EHR), the Internet of Medical Things (IoMT), robotics, digital health monitoring systems, wearable devices, technology-operated medical equipment, and smart implants.

Europe Cyber Security Market Segmentation- by region

• Germany
• France
• Italy
• Spain
• UK
• Rest of Europe

The United Kingdom led the market, driven by the rapid adoption of digital technologies and connected devices. The increasing shift toward remote and hybrid work models has further accelerated the demand for advanced security solutions capable of addressing evolving cyber threats.

The cybersecurity market in France is also projected to experience significant growth. This expansion is attributed to heightened vulnerabilities stemming from increased reliance on wireless networks and widespread internet usage across key European countries. Additionally, in February 2022, the French government inaugurated a new cybersecurity center in Paris. Spanning 20,000 square meters, this facility houses 60 organizations specializing in cybersecurity, bringing together experts from prominent public institutions and private sector companies across France.

COVID-19 Pandemic: Impact Analysis

The COVID-19 pandemic had a positive impact on the European cybersecurity market. The UK’s National Cyber Security Centre (NCSC) issued a public alert along with updated guidance in response to cybercriminals exploiting the increased online activity during lockdowns to steal sensitive information. Despite these challenges, government interventions and strategic measures effectively mitigated the threats. The pandemic also prompted key industry players to accelerate the adoption of advanced technologies, thereby driving market growth.

Latest Trends/ Developments:

In May 2024, Sophos Ltd., a prominent provider of next-generation cybersecurity solutions, announced a new distribution agreement with Infinigate, a leading technology platform and trusted cybersecurity expert. As Sophos’s primary distributor across Europe, the Middle East, and Africa, Infinigate is expected to play a crucial role in supporting Sophos’s growth strategy within the UK cybersecurity market.

In April 2024, Darktrace, a global leader in cybersecurity AI, introduced its latest innovation, the Darktrace ActiveAI Security Platform. This new product leverages artificial intelligence to transform cybersecurity operations from a reactive to a proactive approach, thereby significantly enhancing organizational resilience against emerging cyber threats.

Key Players:

These are top 10 players in the Europe Cyber Security Market

1. Sophos Ltd.
2. F-Secure
3. Darktrace Holdings Limited
4. SHIELD AI Technologies Pte. Ltd.
5. STORMSHIELD
6. Bridewell
7. Bitdefender
8. Hacken.io
9. SecurityHQ
10. InfoGuard AG