Market Trends of Europe Cybersecurity Industry
Cloud Security to Witness Rapid Growth
- The growth of cloud computing services and the emergence of cloud-based solutions adoptions by end-users in European countries are fueling the risk of cloud security breaches, including Distributed denial of service (DDoS), Hypervisor DoS Attacks, Hypercall Attacks, among others, in the cloud environments, fueling the adoption of cloud security solutions among the enterprise segment of Europe, which would drive the market growth in the future.
- Additionally, in December 2023, the European Commission has planned to provide USD 1.29 in funding for cloud computing and Edge development in France, Germany, Hungary, Italy, the Netherlands, Poland, and Spain. This fund would include 19 projects from 19 companies and 90 indirect partners to build a healthier European cloud community with European requirements for interoperability, data privacy, sustainability, and cybersecurity, showing the region's demand for cloud security solutions during the forecast period.
- The growth of digital services in European countries to benefit the citizens, public administrations, and businesses is fueling the growth of cloud-based IaaS, PaaS, and SaaS business models in the region, which is raising the vulnerability of the digital infrastructure to cloud-based cyber-attacks and fueling the need for cloud cyber security solutions in the region.
- For instance, in December 2023, the European Commission amended the Digital Europe work programs for 2024, assigning EUR 762.7 million (USD 818.54 million) in funding for digital solutions, including cloud services. Additionally, the commission has stated that EUR 214 million (USD 229.67 million) for 2024 would be used for cybersecurity to enhance the European Union's collective resilience against cyber threats, showing the demand for cloud security in the market.
- Additionally, in November 2023, the European Commission adopted the proposed EU Cybersecurity Certification Scheme for Cloud Services, which the EU cybersecurity agency has developed, as an implementing act in Q1 2024. It would support adopting cloud security solutions for all the end users in Europe because EU- and non-EU-based cloud service providers must comply with the cyber security regulations to offer their cloud services in the European region during the forecast period.
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United Kingdom Holds a Significant Market Share
- The United Kingdom is constantly confronted with new cyber threats. The country has become a target for nation-state hacking groups worldwide, which have targeted various government and defense agencies. In September 2023, Darkbeam, a London-based company, revealed that over 3.8 billion records had been exposed after the company left an interface containing the exposed records unprotected.
- Moreover, the country faces diverse cyber threats in the public and private sectors, including ransomware, phishing attacks, and nation-state-sponsored cyber espionage. For instance, as of 2023, the UK Government estimated that, on average, the most disruptive breach for each business resulted in a loss of around EUR 1,100 (USD 1193.41). Breaking that down further, the average charity cost for the most severe breach was estimated to be approximately EUR 530 (USD 575). This resulted in a loss of approximately EUR 4,960 (USD 5381.18) for medium and large businesses.
- According to money.co.uk, cyberdependent crime indicates different forms of hacking and cybercrime, followed by over 8100 reported cases. With the increasing cyber threat, the United Kingdom has established a regulatory framework for cybersecurity, including the General Data Protection Regulation (GDPR), which strongly emphasizes protecting personal data. Compliance with GDPR and other regulations drives the adoption of cybersecurity solutions. As the market grows, government agencies and private companies in the country establish partnerships and launch new products.
- Moreover, more than 50% of employees in the United Kingdom work from home and use different devices. Due to this, cybercriminals have more entry points to target, including home networks and personal devices. Cybercriminals often leverage phishing attacks, and remote workers can be more susceptible to falling victim to these scams when outside the corporate network. Phishing emails may trick employees into revealing sensitive information or login credentials. Hence, adopting cyber security for every company has become mandatory in the country.
- In addition, by the end-user industry, the demand for cyber security in the IT and Telecom sectors is growing. With the ever-increasing 5G and total fiber broadband networks in the country, the government, in collaboration with telecommunication companies, is taking initiatives to tackle cyberattacks and improve security standards and practices across the United Kingdom's telecoms sector. For instance, in October 2023, BT Group PLC announced its collaboration with Google, focusing on an enhanced commitment to cybersecurity innovation. As part of the partnership, BT will become a managed services delivery partner for Google's Autonomic Security Operations (ASO) offering based on Google Chronicle.
- Due to these factors, the cybersecurity market in the United Kingdom is characterized by a complex threat landscape, regulatory imperatives, and a proactive approach to addressing cybersecurity challenges. Organizations across sectors invest in advanced cybersecurity solutions and services to mitigate risks and protect against cyber threats.
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