Market Trends of Europe Security Services Industry
Cloud Adoption to Hold Significant Market Share
- Multiple European organizations are increasingly transitioning their data and applications into the cloud. Compliance with stringent data protection regulations, such as the General Data Protection Regulation (GDPR), necessitates providing security and privacy services to protect sensitive data and ensure compliance. Organizations increasingly recognize the cost and resource savings that can be achieved by transitioning their data into the cloud instead of constructing and sustaining new data storage. Due to their numerous advantages, cloud-based solutions are expected to be a significant driver of digital innovation.
- Cloud services offer users the advantage of accessing data from any location. However, this also raises the risk of cybercriminals being able to access the data. According to CESIN, as of January 2023, the number of cyberattacks detected by companies in France varied across different ranges. Approximately 32% of companies reported detecting between one and three cyberattacks, while 7% experienced between four and nine attacks.
- Cyber-attacks are becoming increasingly frequent and sophisticated, necessitating the development of cybersecurity solutions. Furthermore, the increasing regulatory requirements in the European Union, such as the GDPR (General Data Protection Regulation), are leading many organizations to invest in and adopt cybersecurity solutions. The development of cloud-native technologies and architectures necessitates providing specialized security services to address the specific security threats they pose.
- Cloud providers operate on the principle of shared responsibility, meaning they are responsible for infrastructure security and customers for protecting data and applications. As a result, security services are necessary to fulfill the role of the customer. Cloud services are most commonly employed in Europe's information and communication industry and the professional, technical, and scientific sectors.
- Organizations across Europe that utilize a cloud-based infrastructure gain access to advanced technologies that are secure, expandable, and highly productive. This step eliminates the need to allocate resources, transforms investment costs into operational costs, and increases operational flexibility.
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United Kingdom to Witness Significant Growth
- The UK government has established various cybersecurity regulations and benchmarks, including NIS regulations and cyber essentials certification. These regulations require that organizations invest in security services to meet the necessary requirements. The proposed changes will increase security standards and enhance the reporting of significant cyber incidents to reduce the likelihood of attacks causing disruption. Laws may be amended to include new organizations or sectors when they become essential for essential services.
- The United Kingdom is experiencing a period of digital transition across various industries, such as healthcare, finance, and government. As businesses transition to digital operations and embrace new technologies, the need for security services to safeguard digital resources and data has significantly increased. One of the primary reasons for the rise in cyberattacks is a need for more qualified cybersecurity personnel in each sector. The number of skilled cybersecurity professionals, particularly in Europe, is low compared to the demand for security professionals to address cyber threats for financial institutions, government entities, and private sector/industrial enterprises.
- Organizations in Europe are increasingly turning to managed security services due to the growing threats to their cybersecurity, such as IT ransomware attacks and data exfiltration. Furthermore, the increased media coverage of significant cyberattacks is driving conventional industries' adoption of MSS (managed security services). As a result, the demand for Internet center services is also rising, further contributing to the market's growth.
- The recent breaches in the United Kingdom have highlighted the importance of safeguarding confidential data. Several companies are investing in security measures to protect the information and prevent unauthorized access.
- For instance, according to the UK government, by January 2023, approximately 20% of organizations in the country reported a data breach incident occurring monthly. Additionally, 29% of organizations reported a data breach event occurring less than once per month in the preceding 12 months. On the other hand, 11% of organizations reported weekly data breach incidents.
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