European cybersecurity market sees 18% growth in sales

CONTEXT has reported a robust growth in the European cybersecurity market through Q1 2025, with Germany and Italy demonstrating significant increases in sales.

The findings from CONTEXT indicate an 18% year-on-year rise in cybersecurity sales, a continuation from a strong end to 2024 with sales increasing by 5.8%. Germany has shown itself to be a strong presence in the market, with a 23% rise in sales during Q1 2025, following a 9% increase in Q4 2024. Italy made a notable recovery with a 37% growth, recovering from a 23% decline in the previous quarter, which marked one of the most substantial rebounds in the region.

France achieved a 12% growth in Q4 2024, whereas the UK's cybersecurity distribution market saw a contraction in early 2025, decreasing by 7% year-on-year. CONTEXT attributes this decline partially to a previous year-on-year comparison that set a high bar for achievement in the UK market.

Joe Turner, Global Director of Research & Business Development at CONTEXT, commented, "Cybersecurity continues to dominate channel priorities in Europe, fuelled by both regulation and rising threats. The story of Q1 is clear: proactive investment is paying off in key regions like Germany and Italy. These markets are doubling down on security infrastructure in response to tighter regulations and growing awareness."

Germany's performance in network security has been highlighted, reporting a 30% growth in Q1 2025 subsequent to an 18% rise in Q4 2024. Public and private sectors are driving investment in response to Germany's robust GDPR implementation and the early adoption of the EU's NIS2 directive. Infrastructure protection also gained momentum, showing a 16% increase in Q1 following a 24% increase in Q4.

Despite these positive trends, endpoint protection saw a downturn, falling by 7% in Q1 2025 and 12% in Q4 2024. Expectations hinged on hardware refresh cycles have not been realised, and anticipated tariff changes may present further challenges.

Joe Turner further noted, "Behind the figures lies a broader policy shift across Europe. While compliance developments such as the EU Cyber Resilience Act and others continue to shape market dynamics, CONTEXT's data shows it is the countries investing early and deeply in security infrastructure that are pulling ahead. Regulation sets the tone, but it's investment through the channel that drives outcomes. Distributors and vendors aligned with national priorities and enterprise demand are best positioned for success in 2025."

The data from other countries showed varied performance. Spain achieved a 35.5% growth in Q1 2025, and Switzerland marked a 34% increase. The Netherlands also showed a surge with a 25.3% rise, while Sweden reported a 10.8% growth.