Germany Cyber Security Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Germany Cyber Security Market Growth

The Hiscox report indicates a significant rise in the number of German companies reporting cyber attacks, escalating from 46% in 2021 to 85% in 2023. Additionally, the average frequency of attacks faced by these firms increased from six to ten. A study conducted by Comparitech examined various cybersecurity statistics, providing a comprehensive overview of the cybersecurity landscape across 75 nations. Within this analysis, Germany was positioned 44th in terms of overall cybersecurity. Additionally, the Sophos State of Ransomware Report 2023 revealed that 58% of organisations in Germany encountered malware attacks in 2023.

The surge in cyberattacks targeting both businesses and government entities has led to a heightened demand for cybersecurity solutions. Cybercrime has inflicted considerable financial losses, and the increasing sophistication of these attacks has compelled companies to allocate more resources towards security measures. Sophos's 2022 report highlighted that over three-quarters of German enterprises (81%) have incorporated cybersecurity into their policies.

The ongoing digital transformation, coupled with the growth of IT and telecommunications infrastructure, serves as a significant catalyst for the market. As organisations progressively embrace digital technologies, the necessity for robust cybersecurity protocols to safeguard sensitive information and maintain operational continuity becomes increasingly critical.

Key Trends and Development

Growing number of cyberattacks; the increasing popularity of remote work; favourable government initiatives; and rising demand for AI-powered cyber security solutions are favouring the Germany cyber security market expansion

June 2024

Applied Security GmbH, GCL-IT GmbH, ADDAG GmbH, it.sec GmbH, AV-Test GmbH, and ESC – Enterprise Security Centre GmbH merged to form SITS Deutschland GmbH to offer customers cybersecurity solutions from a single source.

April 2024

Germany announced the introduction of a dedicated cyber branch as a part of its military restructuring to combat increasing cyber aggression from Russia toward NATO members. The new branch’s responsibility includes combating hybrid threats and performing tactical tasks.

March 2024

Airbus Defence and Space entered into an agreement to acquire Cologne-based INFODAS, which provides cybersecurity and IT solutions for the public sector, including critical infrastructure and defence. Through the acquisition, the company aims to strengthen its cybersecurity portfolio to benefit European and global customers.

September 2023

Wipro Limited announced the launch of its Cyber Defense Center (CDC) in Dusseldorf, Germany, to meet customers’ compliance and cybersecurity requirements and provide localised support. The centre aims to offer round-the-clock cybersecurity monitoring, remediation support, and incident response to its clients.

Growing Number of Cyberattacks

Germany is experiencing an increasing number of cyberattacks, especially from countries like China, Russia, and Iran, driving the requirement for robust cyber security solutions. Moreover, rapid digital transformation in the country and the growing adoption of technologies like the Internet of things (IoT) make organisations vulnerable to cyber attacks.

Rising Popularity of Remote Work

The rising popularity of remote work and the increasing reliance on ICT technologies are boosting the risk of cyberattacks, necessitating the adoption of effective cyber security solutions to safeguard against vulnerabilities.

Favourable Government Initiatives

The German government is introducing various initiatives to increase resilience against cyberattacks, protect critical information infrastructure, set up a National Cyber Security Council, and ensure the safe use of new and advanced technologies.

Rising Demand for AI-Powered Cyber Security Solutions

Companies are increasingly leveraging AI-powered cyber security solutions to detect, analyse, and respond to cyberattacks effectively and proactively. The rise of more sophisticated attacks is surging the need for modern approaches such as behaviour analysis to monitor, detect, and respond to such attacks in real-time.

Germany Cyber Security Market Trends

Reportedly, 35% of companies in Germany have been victims of cyberattacks since 2022, with attacks on cloud services, phishing, and attacks via data leaks being the most common offences. With the growing awareness regarding the financial costs incurred due to cyberattacks among organisations, the adoption of cyber security solutions is on the rise.

The German government reports that around 70 new vulnerabilities in software products are discovered every day. This, coupled with the development of new attack methods, is surging incidences of cybercrimes.

Germany Cyber Security Industry Segmentation

Germany Cyber Security Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Offering

• Solutions
  • Identity and Access Management
  • Antivirus/Antimalware
  • Encryption and Tokenisation
  • Compliance and Policy Management
  • Firewall
  • Others
• Services

Market Breakup by Deployment Mode

• On-Premises
• Cloud

Market Breakup by Organisation Size

• Large Enterprises
• Small and Medium Enterprises (SMEs)

Market Breakup by Security

• Network Security
• Cloud Security
• End Point and IOT Security
• Application Security

Market Breakup by Industry Vertical

• BFSI
• Government
• Healthcare and Life Sciences
• Aerospace and Defence
• Manufacturing
• Others

Market Breakup by Region

• North Rhine-Westphalia
• Bavaria
• Baden-Württemberg

Germany Cyber Security Market Share

Based on the industry vertical, the market is segmented into BFSI, government, healthcare and life sciences, aerospace and defence, and manufacturing, among others. The BFSI sector is projected to grow at a CAGR of 9.2% during the forecast period of 2024-2032. The significance of cybersecurity within the BFSI sector lies in its role in safeguarding sensitive financial information, thwarting fraudulent activities, ensuring adherence to regulatory standards, protecting customer data, and preserving trust and operational integrity in the face of escalating cyber threats and vulnerabilities.

Leading Companies in Germany Cyber Security Market

Major players are focusing on the adoption of artificial intelligence and machine learning to gain a competitive edge in the market.

• IBM Corporation
• Cisco Systems Inc.
• Intel Corp.
• Dell Inc.
• Fortinet Inc.
• Trend Micro Inc.
• Oracle Corporation
• Fujitsu Ltd.
• Palo Alto Networks Inc.
• F5 Inc.
• Others

The comprehensive report looks into the macro and micro aspects of the market. The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.