The European Cybersecurity Market

Last updated: 23 February 2024
Over the past decade, Cybersecurity has become a priority for European governments, companies and citizens. The digital threat to national security is seen as a permanent issue with nearly all vital processes and systems digitized.


The 'Cyber Security Assessment Netherlands' pointed to countries such as China, Iran and Russia posing the greatest digital threat to national security in the form of espionage, disruption and sabotage. Also, the famous global Wannacry ransomware and NotPetya wiper malware attacks are clear examples of real threats and affected more than 320.000 victims globally.


Effective protection against these threats is a priority and nations and companies across Europe are heavily investing in this over the next decades. If you want to know what your chances are as a North American solution provider in the European Cybersecurity market, continue reading this article!


EU cybersecurity

European legislation


Europe has adopted a Directive in 2016 that sets mandatory minimums for Cybersecurity capabilities in Member States. Seven critical sectors are identified in this Directive; Financial market infrastructures, Banking, Transport, Drinking water supply and distribution, Healthcare, Energy and Digital Infrastructure. The second major legislative evolution took effect in June 2019; the EU Cybersecurity Act. It follows an array of regulations setting the legal framework of the Digital Single Market, updating the mandate of the EU Agency for Cybersecurity (ENISA) and enabling the creation of an EU Cybersecurity certification scheme for IT products, services and processes.



Market-entry considerations


In Europe, the countries that are large and competitive and supported by strong regulative frameworks are the United Kingdom, Germany, The Netherlands and France. These markets are highly competitive and the role of national authorities is significant. Other large European economies like Spain, Italy and Poland are relatively small in the Cybersecurity market. There is a lack of structural public investment. This may change in the near future.


When entering these markets with Cybersecurity solutions there are two options to consider first. One is entering the highly competitive markets which will have a significantly higher market-entry price. The other option is 'betting' on the future and focus on countries that are currently less developed in Cybersecurity. Deciding on the best approach is of course a detailed process that needs many considerations to be taken into account, looking at specific products and value propositions.



Bonus read: Strategic Insights: Market Entry for North American Tech Manufacturers in Europe



Top 3 European markets


Countries below are selected on their attractiveness for Cybersecurity solution providers coming from North America. This assessment was made on experience coming from the sales teams here at EuroDev. It also looks at several market characteristics like total market value, growth and the competitive environment.


United Kingdom


The UK IT market is valued 97 bn. EUR and is, therefore, the largest market in Europe and about the fifth market globally. The market is open and legally structured to welcome North American solution providers in Cybersecurity. This also makes it a highly competitive market, seen in the enormous growth in the number of IT firms. The financial sector is the largest consumer of Cybersecurity products in the UK, but also the Defense industry is a significant player. Threats when entering this market are a reduced talent pool and an increasingly complex business environment, specifically with governmental initiatives in Cybersecurity.




Germany offers opportunities for Cybersecurity firms that offer niche, high-quality technology, especially in the industrial sector. With an IT market value of 85 bn. EUR, this is the second-largest market in Europe. The Cybersecurity market accounts for 5,7 bn. EUR. Competition grows with Germany having the highest share of Cybersecurity startups in Europe. Germany also has the highest share of global patent applications in digital security (2013 – 2017) with about 8%.




The Netherlands is regarded as a highly digitalized economy and one of Europe's leading Cybersecurity markets. Driven by the presence of global firms and a proactive role of the government in supporting this. Most of the global leading IT companies have established operations here as the country offers quality IT infrastructure, a talent pool and knowledge institutes. One drawback is that there is a relatively small market that can become overcrowded and highly competitive.



European funding


We see increasing investments in Cybersecurity on a European scale. We can note here that the European Union has proposed investments in digital technologies of almost 150 billion euros, within the financial framework period from 2021 to 2027. The Horizon Europe program has the largest investment sum related to this.


horizon EU program



How to sell Cybersecurity solutions to Europe


EuroDev helps you outline your European game plan. We equip you with all the knowledge, network and expertise to not only succeed in your business growth but to develop a thriving strategy to lead the European market. If you want to know more about EuroDev's sales outsourcing services, feel free to give us a call! We will be happy to assist you, as we have done for North American companies for over 25 years.


About EuroDev


EuroDev, established in 1996 with offices in The Netherlands and France, has a single, defined purpose to help mid-sized North American solution providers, expand their business in Europe. We have created a proven, successful business development model and since our founding, have partnered with over 300 companies to help them define and meet their European business goals. Services provided include Sales Outsourcing, HR Outsourcing, and Digital Marketing.



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