Market Trends of Spain Cybersecurity Industry
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.
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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.
