Germany Cybersecurity Market Size (2024 - 2029)

Germany Cyber Security Market Analysis

The Germany Cybersecurity Market size is estimated at USD 12.60 billion in 2024, and is expected to reach USD 21.47 billion by 2029, growing at a CAGR of 11.25% during the forecast period (2024-2029).

The rising number of cyberattacks with the emergence of e-commerce platforms, the proliferation of smart devices, and the deployment of cloud solutions are some factors driving the market's growth. Cyber threats are expected to evolve with the increase in the usage of devices with intelligent and IoT technologies. As such, firms are expected to adopt and deploy progressive cyber security solutions to detect, minimize, and mitigate the risk of cyber-attacks, thereby driving the market’s growth.

• Various government initiatives and strategies adopted by major players are expected to drive the market. Germany has a strong and diversified cybersecurity ecosystem, with a wide spectrum of established enterprises, startups, research organizations, and universities dedicated to cybersecurity. The country's government policy is particularly supportive, with efforts such as the National Cybersecurity Strategy and the Cybersecurity Act.
• The rise in the number of cyberattacks in the region is expected to drive the demand for cybersecurity solutions. For instance, the State of IT Security in Germany in 2022 by the Federal Office of Information Security states that consumers' general level of concern has recently risen slightly compared to the past three years. About 29% of the respondents stated that they had already been victims of crime on the internet. In previous years, the figure was 25%. In each case, a quarter of the respondents had experienced fraud when shopping online (25%), third-party access to an online account (25%), and infection with malware (24%). In contrast to online shopping fraud (2021: 19%), the figures for being affected by third-party access to an online account (2021: 31%) or infection with malware (2021: 29%) have decreased compared to the previous year. Only 19% of respondents were affected by phishing in the last year.
• Addressing risks associated with trends like third-party vendor risks, changes in managed security service providers (MSSPs), and a shift toward a cloud-first strategy is pivotal in the cybersecurity market. As businesses increasingly rely on external vendors for various services and technologies, the associated risks also rise.
• Over the past few years, security systems have made it difficult for an attacker to reach critical data. As a result, ordinary users are increasingly wary of the security of the internet. Solutions that may have worked a few years ago are irrelevant now. To identify and recover from cyberattacks, organizations need several resources and must be highly prepared. In many cases, to recover from a breach or attack, the organization may need to shut down its operations for days altogether. In case of poor planning and inadequate infrastructure, the time to recover from an incident may be considerably high.
• Cyberattackers saw the COVID-19 pandemic as a possibility to step up their criminal initiatives by exploiting the vulnerability of employees working from home. In the post-pandemic era, the need for cybersecurity increased as enterprises planning to execute months-long business continuity plans (BCP), including information security monitoring and response while operating under quarantine conditions, focused on enhancing cybersecurity. Thus, the market studied is growing rapidly with the increasing demand for digitalization and scalable IT infrastructure.

Germany Cyber Security Industry Segmentation

Cybersecurity solutions help an organization monitor, detect, report, and counter cyber threats, which are internet-based attempts to damage or disrupt information systems and hack critical information using spyware, malware, and phishing.

The German cybersecurity market is segmented by offering (security type [cloud, data security, identity access management, network security, consumer security, and infrastructure protection] and services), deployment (cloud and on-premise), and end user (BFSI, healthcare, manufacturing, government and defense, and IT and telecommunication). The market size and forecast are provided in terms of values (USD) for all the above segments.