Netherlands Cybersecurity Market Size (2024 - 2029)

Netherlands Cybersecurity Market Analysis

The Netherlands Cybersecurity Market size is estimated at USD 1.99 billion in 2023, and is expected to reach USD 3.01 billion by 2028, growing at a CAGR of 8.61% during the forecast period (2023-2028).

The need for cybersecurity solutions increased in order to deal with the threat of an increase in the frequency and sophistication of cyber attacks. In the coming years, this trend is expected to probably be sustained as more businesses and individuals are made aware of the importance of safeguarding their digital assets.

• New opportunities and challenges in cybersecurity are expected to emerge with the growing use of emerging technologies like artificial intelligence, cloud computing, and the Internet of Things (IoT), which will require more innovative and advanced solutions to mitigate these risks. For instance, in 2023, Chinese operatives exploited a Dutch military network with malware. Fortunately, the compromised network was isolated from the leading defense ministry network, mitigating potential harm. This is the first time the Netherlands has publicly accused China of cyber espionage, encouraging the Netherlands to build comprehensive cybersecurity solutions to prevent such attacks.
• In 2023, the Royal Dutch Football Association (KNVB) became the victim of a ransomware attack by the Russian cybercriminal group Lockbit. The hackers demanded a ransom, threatening to expose sensitive documents. KNVB eventually paid the ransom, approximately EUR 1 million. Lockbit threatened to disclose crucial data of 300 GB, comprising passports and salary details of Oranje players. While KNVB confirmed the ransom payment, they also expressed concerns that the data might still be leaked. Such attacks encourage companies to invest in robust security solutions.
• In February 2024, the CIF-NL from the Netherlands Enterprise Agency offered funding to Dutch companies and research organizations working on projects that advance cybersecurity solutions. This consists of small and medium-sized enterprises, big enterprises, and research institutions. The Digital Trust Center (DTC) encourages collaborations between businesses in non-essential industries through a funding program.
• These potential partnerships could be environmentally friendly within the supply chain, local area, specific field, or business sector. Business projects in the Netherlands can get up to EUR 200,000 (USD 213,870) in funding to enhance their cyber resilience on a scalable basis.
• Moreover, the lack of professional cybersecurity staff in all sectors is a major factor behind the growing number of cyberattacks. In addition, there is a lack of skilled professionals in cybersecurity across Europe who are needed to deal with cyber risks in financial services organizations and government bodies, as well as the private sector.
• Post-COVID-19, there was a surge in cyberattacks, which included phishing attacks, ransomware, and other cybercrimes. Moreover, there was a rapid shift toward hybrid work setups and increased use of data on online platforms. Many organizations adapted quickly to cybersecurity measures for secure remote connections, leading to potential security gaps. These risks insisted that businesses and the government focus more on enhancing network security measures in the Netherlands, leading to the growth of the market.

Netherlands Cybersecurity Industry Segmentation

Cybersecurity solutions help organizations detect, monitor, report, and counter cyber threats to maintain data confidentiality. The adoption of cybersecurity solutions is expected to grow in line with the rising internet penetration among developing and developed countries. The need for cybersecurity has increased as every system in today's world is connected to the internet, making data more accessible to cybercriminals.

The Dutch cybersecurity market is segmented by offering (security type [cloud security, data security, identity access management, network security, consumer security, infrastructure protection, and other security types) and services), deployment (cloud and on-premise), and end user (BFSI, healthcare, manufacturing, government & defense, IT & telecommunication, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.