Spain Cybersecurity Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.27 Billion |
| Market Size (2029) | USD 3.21 Billion |
| CAGR (2024 - 2029) | 7.16 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Spain Cybersecurity Market Analysis
The Spain Cybersecurity Market size is estimated at USD 2.27 billion in 2024, and is expected to reach USD 3.21 billion by 2029, growing at a CAGR of 7.16% during the forecast period (2024-2029).
The country is undergoing the digitalization of different business and operational sectors, exposing more entities to data breaches and cyber-attacks, creating demand for more services in the market. The companies are coming forward with new security offerings to provide a secure and protected experience.
- Like the rest of the world, Spain is undergoing digitalization, following the global Industry 4.0 trends. The industries and different business sectors are integrating with digital platforms, expanding their reach through the internet. This also makes many aspects of the supply chain vulnerable, creating demand for data protection and cybersecurity from the rampant cyber attacks reported in the country.
- According to Kaspersky's report on mobile malware, 1.55 percent of the Spanish users were attacked by mobile banking trojans, compared to 0.71 % of the users hit by the attacks in Turkey. Also, according to Sophos State of Ransomware Report 2021, 44 % of the organizations in Spain were hit by ransomware attacks 2021, which is more than the global average of 37 %. These statistics demand huge scope in the market for the companies to avail of more cybersecurity solutions.
- However, the market faces a scarcity of skilled workforce to tackle the cybersecurity requirements and growth. The heavy influx of bigger multinational business companies in the country takes away potential cybersecurity talent, creating a deficit of human capital for the rest of the potential market. According to ISC's 2021 Cybersecurity Workforce Study, the number of cybersecurity professionals in Spain accounted for 124,226, compared to 1,142,462 professionals in the US and about 51,349 in Brazil. Talent development is the need of the hour to match the increasing demand and cyber attacks.
- The COVID-19 pandemic witnessed an increase in the online traffic and digital participation of the country's population, increasing the risks of cyber-attacks and data breaches. According to the Spanish National Institute of Cybersecurity, the government has experienced more than 150,000 cyber attacks since the pandemic's beginning. This requires some serious measures for cybersecurity, creating considerable demands in the market for new entrants and flourishment of the existing players.
Spain Cybersecurity Market Trends
This section covers the major market trends shaping the Spain Cybersecurity Market according to our research experts:
E-Commerce and Digitalization to Drive the Market
- The increasing shifting of businesses of different sizes online calls for cybersecurity measures widely. The growing preference for the Spanish population to prefer online media for various purposes, utilizing the increasing market of e-commerce space, also comes with vulnerabilities like data breaches and cybersecurity threats, targeting the user data and other sensitive information. Hence, the growing e-commerce will drive the cybersecurity market in Spain and indicates its increasing demand in the market.
- Several companies are working to enhance the data handling and storage capabilities to strengthen the infrastructure, also ensuring strong data security through collaborations. For instance, in February 2022, Microsoft and NTT Data partnered to offer confidential hybrid solutions and services to migrate and optimize IT resources to the Microsoft Cloud. NTT DATA's first Innovation Hub in Barcelona is based on Microsoft technology, with the hybrid solutions committed to meeting data sovereignty and residency requirements of regulated companies and public administrations.
- Such developments also comply with the latest legal requirements, helping businesses extend operations under the law. These requirements are the building grounds for the platforms to tackle the increasing traffic indicated as a result of the rising online expenditure of the Spanish population. For instance, according to PPRO, the e-commerce expenditure as a share of the total GDP of Spain accounted for 4.7% in 2021, compared to 3.5% in the Netherlands, 2.8% in Germany, and similarly more than many other European countries.
- The government schemes are boosting businesses' transitions on digital platforms through new strategies and investments, creating space for cybersecurity. For instance, in December 2021, according to lamoncloa.gob.es, under the Digital Spain Agenda 2025, the Ministry for Economic Affairs and Transformation announced allocating EUR 8.8.billion through the European funds of the Recovery, Transformation, and Resilience Plan. The funds will be targeted for action areas, including the digitalization of SMEs, cybersecurity, 5G, digital skills, and others.
- Other schemes like the Digital Kit for supporting the digitalization of SMEs, launched by the Spanish government, motivate SMEs and freelancers to plan and execute digital transformation. Thus, the growing digitalization and e-commerce leveraging the latest technological alternatives available make many data and informatics vulnerable to cyberattacks, creating a parallel demand for cybersecurity in Spain.
Government Sector to Dominate the Market Growth
- Information and data are critical for safeguarding sensitive strategies and data in any government, and Spain is no different. However, the cybersecurity measures need to be upscaled to tackle the existing infrastructure and strengthen the internal operations. For instance, in April 2022, according to The Citizen Lab associated with the University of Toronto, a group of researchers indicated that at least 65 individuals were targeted or infected with mercenary spyware, including Pegasus and Candiru.
- The incidents of data breaches of highly decorated and important personnel of the country signifies how the prevailing political complexity targets the authoritative personnel, questioning their cybersecurity measures. For instance, in May 2022, according to theguardian.com, The Spanish Prime Minister's phone was targeted for Pegasus spyware infection in May 2021 and June 2021, and the Spanish defense minister's phone was targeted in June 2021. Since the spyware was available only to specialized government agencies, the matter was under investigation.
- However, the Spanish government is taking stringent measures to strengthen cybersecurity in the country by introducing new regulations and governing bodies to regulate the implementation accordingly. For instance, in March 2022, according to lamoncloa.gob.es, the Spanish government approved an investment of EUR 1.2 billion, with the transposition into national legislation of European regulations on security and integrity for the 5G deployment. This measure was taken in response to the arising risk in the geopolitical situation amidst the Ukraine-Russia war.
- Such measures ensure long-term strength for the new technologies like 5G to enter the country with much more assurance in cybersecurity. This further extends to laws dedicated to securing the networking infrastructure in Spain. For instance, in April 2022, according to lamoncloa.gob.es, the lower house of the Parliament approved the Royal Decree-Law on 5G Cybersecurity, or the 5G Cybersecurity law, stating specific cybersecurity requirements for the introduction and operations of 5G networks. The law also incorporates the toolbox agreed by the Member States of the European Union into the Spanish legal framework.
- The ongoing critical incidents of spyware and geopolitical unrest, along with the new regulations, create considerable scope for the companies offering cybersecurity-as-a-service to public and private companies and their subsidiaries for a safer digital operation. This boosts the market, inviting more service providers to strengthen the ecosystem by introducing different features to their services. This also creates more jobs and opportunities for cybersecurity professionals, helping address the challenge of a limited cybersecurity workforce in Spain.
Spain Cybersecurity Industry Overview
The Spanish cybersecurity market is highly consolidated, with a low concentration of major cybersecurity players. Many players compete in the market under intense competition to cater to the client companies' security needs. The companies partner with other service providers to offer innovative cybersecurity solutions, exchanging technologies that strengthen existing services and launch new services for different end-users. Strategic acquisitions are another medium for upgrading the technological capabilities in cybersecurity offered by the companies.
- June 2022 - Telefónica Tech, and Cisco Systems Inc., announced a strategic partnership for innovative global managed service, including security, SD-WAN, and Secure Access Service Edge (SASE) architectures. The two companies will jointly develop a broad portfolio of managed services based on Cisco SD-WAN, Security, and SASE solutions in the markets, including the Spanish company. The agreement will witness the creation of new technical, commercial, and operational capabilities based on the expertise and technologies shared by both companies.
- November 2021 - Indra incorporated a new capability into its toll back office system to record transactions on a blockchain through its Mova Collect solutions. The solution would offer operators and concessionaires a more robust and reliable solution, allowing them to record any operation quickly and efficiently, increasing data traceability, transparency, and integrity. Applying the new blockchain to the transactions and processes in the back office systems of a toll would help reduce conflicts between the different participants by protecting against possible cyber-attacks and possible disagreements and facilitating settlement and auditing tasks.
Spain Cybersecurity Market Leaders
Telefónica Cybersecurity & Cloud Tech, S.L.U.
IBM Corporation
Microsoft
Indra Sistemas, S.A.
Grupo S21Sec Gestión, S.A.U.
*Disclaimer: Major Players sorted in no particular order
Spain Cybersecurity Market News
- June 2022 - Telefónica Tech announced the launch of a security monitoring service for operational technology (OT) and Internet of Things (IoT) environments. The service scans network traffic to envision the network's assets, analyzes and highlights susceptibilities, and detects potential threats in the environment. The company's new offerings leverage the capabilities of its global network of 11 security operations centers for developing a managed OT and IoT security service based on Nozomi Networks technology. It obtains certification in Nozomi Networks' MSSP Elite program to provide managed services for industrial and IoT operations.
- January 2022 - Microsoft expanded its collaboration with Minsait, an Indra company, offering a complete range of hybrid cloud services and solutions, facilitating and accelerating the migration of Spanish companies and public administrations to the cloud. This joint offering includes monitoring and encryption services, extending the privacy and security of data in the Microsoft cloud, and meeting the most stringent legal and technical requirements for the principles of cloud trust (Trusted Cloud). This includes Minsait's data sovereignty services with encryption management technologies needed to manage the Microsoft cloud, including Microsoft 365, Microsoft Azure, and Dynamics 365.
Spain Cybersecurity Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption And Market Defination
1.2 Scope of the study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Value Chain Analysis
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of Covid-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Demand from Digitalization, e-Commerce, and Scaling IT Infrastructure for Businesses
5.1.2 Economic Catch-Up Effect Supporting Digital Businesses and Cybersecurity
5.1.3 Large Spanish Defense and Security Firms Driving the Growth
5.2 Market Restraints
5.2.1 Lack of Cybersecurity Workforce
5.3 Market Opportunities
5.3.1 Increasing Use of AI for Enhancing Cybersecurity and Risk Prediction Capabilities
6. MARKET SEGMENTATION
6.1 By Offering
6.1.1 Security Type
6.1.1.1 Cloud Security
6.1.1.2 Data Security
6.1.1.3 Identity Access Management
6.1.1.4 Network Security
6.1.1.5 Consumer Security
6.1.1.6 Infrastructure Protection
6.1.1.7 Other Types
6.1.2 Services
6.2 By Deployment
6.2.1 Cloud
6.2.2 On-premise
6.3 By End User
6.3.1 BFSI
6.3.2 Healthcare
6.3.3 Manufacturing
6.3.4 Government & Defense
6.3.5 IT and Telecommunication
6.3.6 Other End Users
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Telefonica Cybersecurity & Cloud Tech, S.L.U.
7.1.2 Microsoft
7.1.3 Indra Sistemas, S.A.
7.1.4 IBM Corporation
7.1.5 Grupo S21Sec Gestion, S.A.U.
7.1.6 Acuntia, S.A.U. (Axians)
7.1.7 Titanium Industrial Security S.L.
7.1.8 Alias Robotics S.L.
7.1.9 S2 Grupo
7.1.10 Outpost24 (BlueLiv)
7.1.11 Evolium Technologies, S.L.U (Redtrust)
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Spain Cybersecurity Industry Segmentation
Cybersecurity is a serious concern for data breaches and theft of sensitive information of businesses and users. The solution and service providers offer cybersecurity, identity, access management, and other provisions to ensure the modern IT infrastructure's safe internal and external functionality, supporting different end-user industries.
The Spanish cybersecurity market is segmented by offering (security type (cloud security, data security, identity access management, network security, consumer security, and infrastructure protection) and services), deployment (cloud and on-premise), and end-user (BFSI, healthcare, manufacturing, government and defense, and IT and telecommunication).
| By Offering | |||||||||
| |||||||||
| Services |
| By Deployment | |
| Cloud | |
| On-premise |
| By End User | |
| BFSI | |
| Healthcare | |
| Manufacturing | |
| Government & Defense | |
| IT and Telecommunication | |
| Other End Users |
Spain Cybersecurity Market Research FAQs
How big is the Spain Cybersecurity Market?
The Spain Cybersecurity Market size is expected to reach USD 2.27 billion in 2024 and grow at a CAGR of 7.16% to reach USD 3.21 billion by 2029.
What is the current Spain Cybersecurity Market size?
In 2024, the Spain Cybersecurity Market size is expected to reach USD 2.27 billion.
Who are the key players in Spain Cybersecurity Market?
Telefónica Cybersecurity & Cloud Tech, S.L.U. , IBM Corporation, Microsoft, Indra Sistemas, S.A. and Grupo S21Sec Gestión, S.A.U. are the major companies operating in the Spain Cybersecurity Market.
What years does this Spain Cybersecurity Market cover, and what was the market size in 2023?
In 2023, the Spain Cybersecurity Market size was estimated at USD 2.12 billion. The report covers the Spain Cybersecurity Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Spain Cybersecurity Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Spain Cybersecurity Industry Report
Statistics for the 2024 Spain Cybersecurity market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Spain Cybersecurity analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
