In 2024, European cybersecurity spending is expected to expand by 12.3%, indicating another year of high momentum with double-digit growth, according to the Worldwide Security Spending Guide issued by International Data Corporation (IDC). It is anticipated that spending in the region will rise steadily from 2022 to 2027, reaching $84 billion in that year.
Because of the ongoing threat of cyberattacks, the need to secure hybrid work environments, and the need to ensure compliance with both domestic and international standards (e.g., NIS2 and DORA), security thus emerges as a critical area of IT investment for European enterprises, stated IDC.
As a result of the software market’s continuous expansion, Central and Eastern European (CEE) countries will have the greatest growth rates – for instance, 15.4% in the Czech Republic and 13.4% in Hungary – across the whole European region in 2024. Indeed, all of Europe’s countries – including the top spenders, the United Kingdom, Germany, and France, who collectively own over half of the continent’s market – are predicted to see significant increase in security software and services.
“Every attack tool and service imaginable on the dark web, a turbulent geopolitical landscape, and a massive and voracious cybercrime economy are driving unprecedented levels of cyberthreats against European organizations,” said Mark Child, Associate Research Director, IDC European Security. “The European Union is working to boost cyber resilience throughout the region by enacting a number of laws that will, most significantly, also greatly increase executive management’s engagement in cybersecurity planning. All businesses must, however, engage seriously and comprehensively in order to confront the threat. The core elements of effective cybersecurity investment strategies should be enhanced cyber risk quantification, a balance between proactive and preventive measures, consideration of all user groups and business processes, and the availability of necessary resources and skills, both internally and externally.”
Banking, Media, Defense, Telecommunications, Government
This year, the industries that will spend the most on cybersecurity are banking, telecommunications, retail, local government, and federal government. When these five sectors are united, they will account for over 38% of the European security market. Media and entertainment (14.0%), finance (14.2%), and aerospace and defense (13.8%) will be the fastest rising industry in 2024.
“Security is becoming a critical strategic component for businesses in all industries to remain competitive in the market, as a result of the more advanced technologies at the disposal of cybercriminals, which now include generative AI,” said Stefano Perini, Research Manager at IDC European Data and Analytics. “This is especially true for verticals like banking, media, defense, telecommunications, and government, where hacks can have disastrous effects on both business operations and the organization’s reputation. Small and medium-sized enterprises (SMEs), who often possess lower cybersecurity readiness compared to larger corporations, will be especially vulnerable to the increasing number of cyberattacks. They will be concentrating more on managed services and preparing their staff to handle the new security threats as a result.”
As ransomware, extortionware, and exfiltration become more commonplace, banks will need to make more investments to safeguard both their new and ongoing digital transformation projects as well as their current business operations, stated IDC. Since the media and entertainment sectors are so visible to the public, they will be more vulnerable to malicious attacks, which can do greater harm than in other businesses. The aerospace and defense sector will place a greater emphasis on safeguarding both IT and OT assets and preventing data breaches as a result of the region’s continuous geopolitical concerns, concluded IDC.
