Germany Cybersecurity Market Trends

Market Trends of Germany Cybersecurity Industry

Data Security Segment is Expected to Hold Significant Market Share

• The growth of Germany's data protection law has forced enterprises to adopt data security solutions to become operational in the country, which shows the increasing importance of data security awareness.
• Industrial automation and data monetization trends in Germany's enterprise segments are fueling the risk of data privacy breaches and financial losses for end-users, which is driving the demand for data security solutions in the country.
• For instance, in November 2023, the German Federal Office for Information Security published a report stating that Germany has been experiencing a significant increase in cyber threats, with the risk of ransomware attacks considered exceptionally high among SMEs, which account for approximately 80% of the German economy.
• Therefore, organizations are expected to actively invest in data security solutions in the coming years largely due to the need to protect and safeguard their sensitive information across multiple environments, meet regulatory compliance, and simplify operational complexity. According to DLA Piper, the maximum number of personal data breaches as of January 2023 were reported in the Netherlands, a total of approximately 117,434. Germany ranked next, with more than 76,000 personal data breach notifications.
• The emergence of the digital economy in European initiatives for digital transformations of the business landscape of the region, including the Digital Decade targets for 2030, has raised the number of electronic data in the area, which has raised the risk of data breaching.
• For instance, in October 2023, the European Commission published the first report on the State of the Digital Decade, showing the progress toward achieving the digital transformation to empower a digitally sovereign, resilient, and competitive European Union, supporting the demand for data security solutions to protect the digital infrastructures from cyberattacks in Germany.

IT and Telecommunication End-user Segment is Expected to Hold Significant Market Share

• Information technology (IT) and telecommunications are vital in businesses, government agencies, and organizations. The need for robust cybersecurity measures has become crucial with the increasing reliance on interconnected networks, cloud computing, and digital communication. IT and telecom end-users form a substantial portion of the global cybersecurity market as they seek to protect their sensitive data, networks, and communications from evolving cyber threats.
• Germany is a developed economy with significant connectivity through mobile phones. For instance, Deutsche Telekom, one of the prominent players in the telecom industry, recently noted that 99% of Germans have access to LTE service. In comparison, 92% of homes can now access the carrier's 5G network. Deutsche Telekom said it offers 5G services in over 2,000 places across Germany using 3.6 GHz frequencies.
• In December 2023, Whalebone and O2 Telefonica entered a new partnership in Germany. It will give O2 Telefonica customers a cybersecurity solution called Aura. This move will strengthen Whalebone as a leader in the telecommunications industry's cybersecurity space and an ally of its customers.
• According to the European 5G Observatory, as of 2023, Germany had the most 5G base stations among EU (European Union) member states, with approximately 90,000 base stations installed.
• The IT and telecom end-user segment in the cybersecurity market significantly contributed to the market’s growth, owing to the rising frequency and complexity of cyber threats posing significant risks to IT and telecom infrastructures, gaining prominence in cloud deployment, corporate partnerships, and acquisitions. Furthermore, IT and telecom end-users in the global cybersecurity market are expected to continue investing in innovative solutions. As technology advances, the proactive adoption of advanced cybersecurity measures is expected to be essential for maintaining the integrity and security of global IT and telecom operations.