European cybersecurity market sees 2% growth in 2024

The European cybersecurity distribution market marked a 2% year-on-year growth in 2024, according to new insights from the global market intelligence firm CONTEXT.

Software solutions were pivotal in driving this growth, marking an increase of 4%, while the sector for hardware appliances experienced a 6% decline. Infrastructure protection notably surged with a 14% rise over the year, and a standout 20% growth in the fourth quarter, indicating heightened investment in sophisticated data security measures. Network security grew by 4%. However, endpoint protection had a tougher year, finishing with a 7% decline in 2024.

Among the European countries, France led the way with a 12% growth, attributed to a complete National Cybersecurity Strategy and initiatives such as Cyber PME. Both the UK and Germany maintained steady growth of 1%. Conversely, Italy's market shrank by 8%, exacerbated by a challenging fourth quarter which saw a year-on-year decline of 28%, influenced by corruption scandals. Spain recorded a modest 3% growth, whereas Poland remained relatively flat with a 0.2% decline.

The analysis noted a significant change in delivery models, with Software as a Service (SaaS) adoption increasing by 6% and Managed Service Providers (MSPs) growing by 9%. This trend highlights a preference for flexible, service-based cybersecurity solutions, particularly among small and mid-sized businesses. On the other hand, traditional licenses experienced a growth of 4%.

Commenting on the market's performance, Joe Turner, Global Director of Research & Business Development at CONTEXT, remarked, "The 2024 performance of the European cybersecurity market demonstrates both resilience and adaptability. Infrastructure Protection's stellar growth reflects a proactive approach to increasing data complexities, while the rise of MSPs highlights the importance of accessible, scalable security solutions for businesses of all sizes."

CONTEXT further indicated that compliance requirements under the NIS2 directive significantly influenced infrastructure investments as businesses increasingly leaned on Security Information and Event Management (SIEM) systems. Joe Turner noted, "The preference for service-oriented models like SaaS and MSPs further underscores the shift towards scalable and flexible cybersecurity strategies."

Breaking down the regional dynamics of infrastructure protection growth, Germany, the largest market, recorded a 20% year-on-year growth in 2024, alongside a 53% rise in France. In contrast, Italy saw a 26% decline, while Poland and Switzerland posted increases of 2% and 53% respectively.

For network security, Germany saw a 5% year-on-year growth, accompanied by 4% in the UK, and 12% in France. Spain grew by 4%, and Poland by 8%, whereas Italy and Switzerland noted decreases of 6% and 15% respectively.

Endpoint protection faced challenges, particularly in Germany with a 12% decline, and in Italy with an 11% fall. Poland recorded a minor 1% decrease, while Switzerland saw an increase of 6%.

The growth of MSPs was particularly strong in the UK with a 22% increase and Switzerland with 45%, whereas France and Italy recorded growths of 18% and 13% respectively. Meanwhile, Poland experienced a significant decline of 60%.

SaaS adoption was driven by Southern European countries including Italy with a 16% rise, France with 19%, and Spain with 11%. Poland saw a 2% decline, and Switzerland experienced a 10% decrease in SaaS adoption.