European Security Spending Surge

Summary

European security spending is projected to grow by 11.8% in 2025, reaching nearly $97 billion by 2028. This growth is fueled by increasing cyber threats, stricter regulations, and the growing adoption of advanced security measures. The Czech Republic, Hungary, and Ireland are leading the growth, while security software is the fastest-growing technology group.

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** Main Story**

European Security Spending to See Double-Digit Growth in 2025

Europe’s investment in security is poised for an 11.8% surge in 2025, driven by the escalating cyber threat landscape, evolving regulatory demands, and increasing adoption of sophisticated security solutions. This projection, according to the International Data Corporation (IDC), underscores the growing recognition of security as not just a technical necessity, but a crucial business enabler. By 2028, the European security spending is estimated to reach nearly $97 billion.

Factors Fueling the Growth

Several factors contribute to this upward trend:

• Geopolitical Instability: The dynamic geopolitical situation in Europe, marked by recent tensions and conflicts, influences the rise in security spending, especially in critical industries like Aerospace and Defense and Utilities, which prioritize protecting their infrastructure from cyberattacks.

• Increased Cybercrime: The intensification of cybercrime and the growing sophistication of attacks necessitate stronger defensive measures. Small and medium-sized businesses, in particular, are increasing investments to address security gaps, recognizing their vulnerability to opportunistic cybercriminals.

• Stringent Regulations: A tightening regulatory environment, including regulations like NIS2 and DORA, compels organizations to enhance their security posture for compliance. This reinforces security as a strategic priority aligned with broader business goals.

• Digital Transformation: As organizations accelerate their digital transformation journeys and expand their digital footprint, they require robust security solutions to protect sensitive data and critical systems. This fuels the demand for technologies like cloud-native application protection platforms (CNAPP), identity and access management software, and security analytics software.

Regional and Industry Trends

Growth in security spending varies across Europe. The Czech Republic and Hungary are expected to witness the fastest growth in 2025, with year-on-year increases of 15.4% and 14.1%, respectively. Ireland follows closely with a 13.3% growth, solidifying its position as a technology hub with a strong focus on security. Aerospace and Defense, Banking, and Capital Markets are the industries projected to lead the European growth, each exceeding a 13% year-on-year growth rate.

Security Software Leads the Charge

Security software emerges as the largest and fastest-growing technology group in Europe. Accounting for over half of total security spending, it is projected to grow at 14.8% year-on-year. This growth is primarily driven by the increased adoption of CNAPP, identity and access management software, and security analytics, reflecting the focus on integrated cyber threat detection and response.

Backup Technology: A Crucial Component of Security Spending

While the IDC report doesn’t explicitly mention backup technology, it forms an integral part of a robust security strategy. The rise in ransomware attacks, data breaches, and other cyber threats underscores the importance of reliable backup and recovery solutions. As organizations invest more in security, backup technology is expected to see a corresponding increase in demand.

The Importance of a Strategic Approach

While increased spending is essential, a strategic vision for security is paramount. Organizations must move beyond merely reacting to threats and adopt a proactive approach. This includes assessing their specific risks, aligning security investments with business objectives, and fostering a security-conscious culture. Furthermore, collaboration between governments, organizations, and security providers is crucial to effectively address the evolving cyber threat landscape.