Germany Cybersecurity Market Size

Germany Cybersecurity Market Analysis

The Germany Cybersecurity Market size is estimated at USD 11.40 billion in 2024, and is expected to reach USD 19.53 billion by 2029, growing at a CAGR of 11.36% during the forecast period (2024-2029).

In the current market scenario, Cybersecurity clusters can grow organically or develop through intentional, often top-down actions taken by local governments, and government regulations and policies play a significant role in their development. However, several market failures require government attention and action, beginning with concerns about imperfect markets. In Japan, for example, the cybersecurity industry has grown slowly due to dependence on large firms with strong ties to government ministries and the practice of top-down policymaking.

• In terms of cybersecurity, Germany is pushing itself as a technologically independent country like the United States and China. In August 2020, the country's government announced the launch of a federal agency dedicated to handling cyberattacks and strengthening the country's digital security. The agency is also slated to receive total funding of USD 412 million by 2023, aimed toward continuous innovation and solutions to cyber-attacks.
• According to statistics in the Cost of Data Breach Report published by IBM in 2022, Germany was among the top five nations with the highest average total cost of a data breach. The country's average cost of data breaches stood at USD 4.89 million in 2021, increasing from USD 4.45 million in 2020.
• Kaspersky's study on spam and phishing highlighted the prevalence of malicious correspondence across different geographies. It was discovered that Germany was previously the most popular target for several years until 2020 and was the sixth most frequently targeted nation by malicious emails in 2021. A 4.83% proportion of fraudulent email campaigns were sent to it.
• As more government and commercial personnel work remotely, the coronavirus pandemic has accelerated the trend of rising cybercrime. Information technology makes it evident that cyberattacks have increased in cost and frequency. Blackmail and system failure losses, according to Bitkom a Germany based IT industry association, have increased 358 % from 2019-2021.
• Over the past few years, the security systems have focused on making it difficult for attackers to reach critical data. Some would say that even this has not happened. As a result, the ordinary user is increasingly wary of the security of the Internet. Solutions that may have worked a few years ago are irrelevant now. Organizations need several resources to identify and recover from cyberattacks and be highly prepared. In many cases, the organization might need to shut down its operations for days to recover from a breach or attack. With poor planning and inadequate infrastructure, the time to recover from an incident may be considerably high.