EUROPE CYBER SECURITY MARKET (2025 - 2030)

The Europe Cyber Security Market was valued at USD 65.86 Billion in 2024 and is projected to reach a market size of USD 118.15 Billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 10.23%.

The rising incidence of cybersecurity threats and attacks is a key factor propelling market growth.

Increasing compliance-related expenditures are placing pressure on mid-market enterprise budgets, thereby impeding market growth. Key players include Sophos Ltd., F-Secure and Darktrace Holdings Limited. The United Kingdom region has the biggest share in the Europe Cyber Security Market.

Key Market Insights:

A robust center within the European region can effectively manage cyber threats while also positioning itself as a leading destination for skilled professionals to excel, technological innovation to flourish, and enterprises to sustain operations with increased efficiency and profitability.

The adaptive nature of AI, with its ability to learn from evolving attack techniques, provides a dynamic and responsive approach to cybersecurity challenges. As a result, organizations across Europe are increasing investments in AI-powered security solutions to strengthen their cyber defenses, accelerate incident response, and reduce reliance on manual intervention—minimizing the risk of human error in security operations.

Market Drivers:

The rising incidence of cybersecurity threats and attacks is a key factor propelling market growth.

The growing number of high-profile cybersecurity incidents is heightening concerns across both public and private domains, thereby accelerating the expansion of the cybersecurity market in Europe. Notably, targeted attacks on critical infrastructure, healthcare systems, and governmental organizations underscore the vulnerability of essential sectors. Malicious actors are increasingly leveraging advanced techniques—such as phishing campaigns, distributed denial-of-service (DDoS) attacks, and state-sponsored cyber espionage—to exploit security gaps.

The escalating frequency and sophistication of these cyber threats are driving the widespread adoption of automated and collaborative cybersecurity frameworks across the region. Security solutions are becoming indispensable for organizations aiming to strengthen their threat detection and incident response capabilities. These technologies enable faster and more accurate identification of potential threats, significantly reducing the time needed to contain incidents and prevent costly data breaches.

The growing focus on integrating Artificial Intelligence (AI) and Machine Learning (ML) into cybersecurity strategies is a significant driver of market growth.

Amid the rising complexity and scale of cyber threats, Artificial Intelligence (AI) and Machine Learning (ML) are increasingly being utilized to improve the speed, accuracy, and effectiveness of threat detection, prevention, and response. These technologies enable the analysis of vast datasets to identify patterns and anomalies, facilitating quicker identification of potential vulnerabilities or malicious activity. AI-driven security tools—such as behavioral analytics and automated threat intelligence platforms—are becoming critical components of proactive cybersecurity strategies.

Market Restraints and Challenges:

Increasing compliance-related expenditures are placing pressure on mid-market enterprise budgets, thereby impeding market growth.

Achieving full compliance with the NIS2 directive can cost mid-sized enterprises up to EUR 2 million—a significant financial strain, particularly in regions such as Southern Europe and Central and Eastern Europe (CEE), where IT budgets remain constrained. With the average cost of a data breach estimated at EUR 4.8 million, small and medium-sized enterprises (SMEs) are compelled to balance the financial implications of preventive investments against the potential risks of security incidents.

Insurance providers, such as Coalition, have expanded into markets like Germany, offering cyber insurance policies bundled with integrated security services. This reflects a broader industry shift where risk transfer mechanisms now serve as a supplement to—rather than a substitute for—foundational cybersecurity measures. Due to heightened price sensitivity, SMEs are increasingly turning to subscription-based security solutions and cloud-native controls to mitigate the need for substantial upfront capital expenditures.

Market Opportunities:

The expansion of 5G private networks within manufacturing hubs across Germany and the Nordic region is generating new opportunities in the market.

Automotive and heavy machinery manufacturing facilities are increasingly leveraging private 5G networks to connect robots and sensors, merging operational technology (OT) with IT infrastructure—thereby expanding the potential attack surface. German engineering firm SMS Group, for example, protects its 5G-enabled sites through robust device authentication and encrypted telemetry, ensuring the security of real-time data analytics. The trend toward long-term investment continues, as manufacturers reinforce the cybersecurity of connected production environments and embed threat detection capabilities across decentralized plant operations.

EUROPE CYBER SECURITY MARKET

Market Segmentation:

Segmentation By Component:

• • Software
  • Hardware
  • Services

The services segment has led the market, largely driven by the availability of tailored cybersecurity solutions developed to meet specific organizational needs, along with a growing preference for implementations aligned with internal operational frameworks. With the rapid advancement of computing technologies, most enterprises now manage vast volumes of data, proprietary assets, and networked systems spread across multiple devices simultaneously. These networks present an attractive target for cybercriminals, who can exploit them remotely using sophisticated tools. To mitigate such risks, a growing number of organizations are adopting cybersecurity services aimed at establishing resilient security frameworks.

Meanwhile, the hardware segment is projected to witness the fastest growth. The introduction of technologically advanced cybersecurity solutions by leading providers has created a demand for robust and high-performance IT infrastructure capable of supporting these innovations.

By Security Type:

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

The infrastructure protection segment held a dominant position in the market. With the increasing adoption of initiatives such as Bring Your Own Device (BYOD), the risk of cyberattacks is anticipated to escalate steadily. Consequently, organizations are proactively monitoring and managing user activities to ensure accountability and reduce the likelihood of security breaches.

The cloud security segment is projected to register the highest growth. This expansion is driven by the growing preference for cloud computing and the considerable cost savings associated with cloud-based platforms. The migration of an increasing number of organizations and government entities from traditional technologies to cloud environments is fueling demand for cloud-centric cybersecurity solutions. These solutions primarily focus on the detection, response, and prevention of cyber threats.

By Solutions:

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

Identity and Access Management (IAM) has emerged as the leading segment within the European cybersecurity market. The growth of this segment is expected to be driven by increased investments from multinational organizations and government bodies aimed at achieving regulatory compliance over the coming years.

Meanwhile, the Intrusion Detection Systems (IDS) and Intrusion Prevention Systems (IPS) segment is projected to experience significant growth, supported by rising IT security expenditures across the region and broader adoption of these technologies. These systems are favored for their continuous monitoring of network traffic and their ability to rapidly detect and respond to malicious activities.

By Services:

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

Professional services have maintained a dominant position in the market. This is largely driven by the rising demand for offerings such as enterprise risk assessments, physical security testing, cybersecurity defense, and penetration testing. Additionally, organizations increasingly utilize these services to enhance employee training on IT security best practices. Delivered by highly skilled experts, these professional services thoroughly evaluate business requirements alongside potential cyber threats and risks to provide the most cost-effective and tailored cybersecurity solutions.

Managed cybersecurity services are also anticipated to witness substantial growth. This trend is primarily fueled by a growing preference for outsourcing security functions to specialized providers rather than relying on in-house teams. These service providers focus on optimizing overall security operations by continuously monitoring threat patterns and implementing appropriate security measures.

By Deployment:

• • Cloud-based
  • On-premises

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

Conversely, the cloud-based deployment segment is projected to experience the highest growth. This is attributed to the substantial costs associated with on-premises cybersecurity solutions and the increasing adoption of remote working practices in the post-pandemic era, both of which are accelerating demand for cloud-based security platforms.

By Organization Size:

• • SMEs
  • Large Enterprises

The large enterprise segment has dominated the market, driven by the critical need for robust cybersecurity measures due to their extensive scale of operations. These organizations’ substantial investment capacity results in significant spending on cybersecurity solutions to ensure uninterrupted business continuity. Large enterprises manage extensive storage systems, numerous servers, endpoints, and networks that are vulnerable to cyber threats if not adequately secured.

Conversely, the Small and Medium Enterprises (SMEs) segment is expected to register the fastest growth during the forecast period. SMEs typically face heightened risks of cyberattacks due to limited cybersecurity resources and lower security maturity levels. Additionally, the lack of formal security policies and insufficient expertise further exposes them to cyber threats. To mitigate these risks, SMEs are increasingly investing in cybersecurity insurance, which provides financial protection against losses resulting from organized cyberattacks or data breaches.

By Vertical:

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

The defense and government segment has dominated the market, primarily due to the critical importance of safeguarding sensitive governmental data, electronic communications, records, and other intangible assets. Developed economies heavily depend on digital technologies in these areas. Recently, numerous cyber-attacks originating from security breaches have escalated into significant threats to national security data. This has intensified the demand for robust, multi-layered, and adaptive cybersecurity solutions capable of self-learning and evolving to counter emerging threats.

The healthcare segment is anticipated to experience substantial growth, driven by the increasing integration of technology within the industry. Factors contributing to this growth include the rising reliance on technology for data storage and management, the adoption of technology in healthcare insurance, and the deployment of advanced healthcare innovations such as Electronic Health Records (EHR), the Internet of Medical Things (IoMT), robotics, digital health monitoring, wearable devices, technology-operated medical equipment, and smart implants.

Market Segmentation: Regional Analysis:

• Germany
• France
• Italy
• Spain
• UK

Europe’s cybersecurity market generates significant revenue in its mature digital economies, while exhibiting the fastest percentage growth in digitally intensive mid-tier markets. The United Kingdom holds the largest market share, supported by its robust financial services sector, a talent pool of approximately 67,300 professionals, and a revenue base of GBP 13.2 billion. Germany stands as the leading continental contributor, driven by annual growth fueled by the modernization of operational technology (OT) security among its automotive and machinery industries.

The Netherlands records the highest growth rate, bolstered by the presence of the Amsterdam Internet Exchange and a concentration of cybersecurity institutions based in The Hague. France is preparing for an expansion in its public quantum technology program, which is expected to accelerate advancements in cryptographic research and development. While Southern European and Central and Eastern European (CEE) markets face budget constraints, inflows from EU structural funds and increased cloud adoption are contributing to above-average growth. The Nordic countries combine advanced digital infrastructure with heightened threat awareness, maintaining high per capita spending on premium cybersecurity solutions.

Pan-European policy initiatives further promote alignment and convergence across the region. The Cyber Solidarity Act enforces coordinated emergency response efforts, while the EU vulnerability database centralizes security disclosures, thereby raising the overall baseline of security maturity. Additionally, national programs subsidizing workforce development and supporting sovereign cloud infrastructure contribute to harmonizing growth across Europe’s varied economic landscapes.

COVID-19 Impact Analysis:

The transition to remote work and hybrid business models across the region in the wake of the COVID-19 pandemic has significantly increased the demand for endpoint security solutions. Another major growth driver is the incorporation of Artificial Intelligence (AI) and blockchain technologies into cybersecurity frameworks. These advancements improve threat detection capabilities and ensure data integrity, making them highly attractive to enterprises. Consequently, elevated investments in advanced technologies such as AI, Machine Learning (ML), and related innovations are contributing to the sustained expansion of the market.

Latest Trends and Developments:

CrowdStrike Holdings, Inc. announced an expansion of its cybersecurity services in Europe through a partnership with Ignition Technology. This initiative includes the launch of CrowdStrike’s Falcon cybersecurity platform in Ireland, alongside the deployment of AI Red Team Services designed to enhance the security of artificial intelligence systems.

Meanwhile, Vienna Insurance Group (VIG) has launched a Cyber Defence Center (CDC) initiative, supported by the European Union, to address the escalating threat of cyberattacks. The program focuses on detecting, analyzing, and preventing cyber incidents to safeguard both user data and VIG’s IT infrastructure.

Key Players in the Market:

Sophos ltd,

F-secure,

darktrace holdings limited

 shield ai technologies

 stormshield

 bridewell

bitdefender

hacken.io

securityhq

 infogurad ag