Executive Summary

European cybersecurity was valued at USD 63.12 billion (Mordor Intelligence) to USD 81.81 billion (IMARC) in 2025, with forecast CAGRs of 7.1% to 10.62% depending on the publisher. No source publishes a SaaS-only figure, so the analysis rests on the wider cybersecurity market. Network security is the largest segment at 36.0% of the 2025 market. Data security grew fastest in 2025 at 13%, and managed services are forecast to expand at a 13.56% CAGR to 2031. Demand is driven by threat volume and spending: ENISA counted 4,875 incidents between July 2024 and June 2025, with phishing accounting for 60%, and Gartner projects European IT spending of USD 1,427.9 billion in 2026 (+11.1%), with public cloud growing 24%. NIS2 covers 18 sectors with a 24-hour notification duty, DORA has applied since 17 January 2025, and the Cyber Resilience Act reaches full application on 11 December 2027. The competitive field is fragmented: Mordor Intelligence puts the top five vendors at about 45% of the market, with none above 25%, and IMARC finds none above 8-10%. Adoption ranges from 93% in Finland to 52% in Greece, and Poland (+59%), Spain (+20%) and Italy (+15%) posted the fastest growth in 2025. Mordor Intelligence projects USD 115.66 billion by 2031, which points investors toward cloud, managed services and fast-growing Southern and Eastern European markets.

Market Overview

The European cybersecurity market underlying the SaaS segment covers security solutions and services protecting systems, networks, applications, data, endpoints and cloud environments, including IAM, endpoint security, network security, cloud security, data protection, SIEM, managed services and detection and response. Market estimates differ because providers use different taxonomies and scopes: MarketsandMarkets valued the broader European cybersecurity market at USD 50.22 billion in 2024, while Gartner reported USD 47 billion in European security spending for IT security and risk management.

Growth remains sustained across European cybersecurity spending, although estimates vary by publisher. IDC reported 12.3% growth in European security spending in 2024. Mordor Intelligence projects the market to increase from USD 63.12 billion in 2025 to USD 69.82 billion in 2026 and USD 115.66 billion by 2031, implying a 10.62% CAGR for 2026–2031. MarketsandMarkets forecasts growth from USD 50.22 billion in 2024 to USD 54.77 billion in 2025 and USD 83.14 billion in 2030, corresponding to an 8.7% CAGR for 2025–2030, while IMARC projects USD 81.81 billion in 2025 and USD 88.48 billion in 2026, with an 8.16% CAGR for 2026–2034. These differences reflect variations in market scope rather than a single standardized market taxonomy.

Cloud adoption, regulatory requirements and security investment are key structural factors. In 2023, 45.2% of EU enterprises purchased cloud services, including 78% of large enterprises and 44% of SMEs. In 2024, 92.76% of EU enterprises with at least 10 employees implemented at least one ICT security measure. ENISA reported that 70% of organizations identified NIS2, CRA and DORA compliance as their main investment driver in 2025, while the median cybersecurity allocation reached 9% of IT budgets, with median spending of EUR 1.5 million. NIS2 expands cybersecurity requirements to additional sectors, while the CRA introduces cybersecurity by design and by default.

Europe represented a substantial share of global security spending in 2024, with Gartner reporting USD 47 billion in Europe versus USD 215 billion worldwide. This corresponds to approximately 21.9%, calculated from Gartner's figures rather than separately published by Gartner.

Within Europe, the UK, Germany and France together account for more than 50% of the market. CBI reported 2025 market values of EUR 10.36 billion for the UK, EUR 6.87 billion for Germany and EUR 5.23 billion for France, followed by EUR 2.64 billion for the Netherlands, EUR 1.32 billion for Sweden and EUR 794.50 million for Poland. Growth is also pronounced in Central Europe, with IDC reporting 15.4% growth in the Czech Republic and 13.4% in Hungary versus 12.3% across Europe, while Eurostat recorded security-measure adoption of 93% in Finland, 90% in Denmark, and 87% in both the Netherlands and Germany.

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European B2B SaaS Market — Market Size, Growth Trends, Vertical Adoption and Forecast (2026-2031)

European B2B SaaS market analysis: sizing, product segments, vertical adoption, competitive landscape, AI integration and forecast 2026-2031.

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Key Findings

The European cybersecurity market is set for sustained structural growth through 2031. Mordor Intelligence estimates market value at USD 63.12 billion in 2025, rising to USD 69.82 billion in 2026 and USD 115.66 billion by 2031, representing a 10.62% CAGR. MarketsandMarkets projects a lower CAGR of 8.7%, from USD 54.77 billion in 2025 to USD 83.14 billion in 2030. The difference reflects variations in market scope between publishers.

Network Security remains the largest segment within the European MSS market, accounting for 31.3% in 2025. Cloud Security is the fastest-growing segment, with a 19.1% CAGR. The European MSS market is projected to increase from USD 11.38 billion in 2025 to USD 13.07 billion in 2026, with a 14.85% CAGR through 2034. These figures indicate differentiated growth across security service categories.

Regulation is a direct investment driver. NIS2 covers 18 sectors and was required to be transposed by 17 October 2024, while ENISA reported that 70% of organizations identify NIS2, CRA and DORA compliance as their primary investment driver. GDPR enforcement also remains material, with EUR 1.2 billion in fines recorded in 2025 and EUR 5.88 billion cumulatively by early 2025.

The competitive landscape includes IBM, Cisco, Fujitsu, Dell Technologies and Broadcom among the leading European players identified by Mordor Intelligence, while IMARC characterizes the market as moderately fragmented. European participants include Thales, Atos/Eviden, Siemens, Sophos, F-Secure and BAE Systems Applied Intelligence, alongside international providers such as Palo Alto, Check Point, Fortinet, CrowdStrike, Cisco, IBM and Microsoft.

Market development varies significantly by geography. The UK, Germany and France together represent more than 50% of the European market, while growth is higher in several Central and Southern European markets. IDC reported 15.4% annual growth in the Czech Republic and 14.1% in Hungary, while CONTEXT reported 59% growth in Poland, 20% in Spain and 15% in Italy. Security adoption also remains lower in Greece at 52% and Bulgaria and Romania at 53%, compared with 93% in Finland and 90% in Denmark.

Market Dynamics

Growth Drivers

The European cybersecurity threat environment is increasing demand for security solutions and services. ENISA analyzed 4,875 incidents between July 2024 and June 2025, with phishing accounting for 60% of intrusions, vulnerability exploitation for 21.3%, and botnets for 9.9%. During the same period, 42,595 new vulnerabilities were disclosed, representing a 27% increase from the previous period. As a comparison, ENISA recorded 2,945 incidents between July 2023 and June 2024 and 2,360 between July 2022 and June 2023, while ransomware generated more than 1,000 claims per quarter.

Digital transformation and cloud adoption are expanding the addressable security environment. Gartner forecasts European IT spending to increase by 11.1% in 2026, with AI, cloud and cybersecurity identified as growth drivers. Eurostat reports that 52.74% of EU enterprises with at least 10 employees used paid cloud services in 2025, up 7.4 percentage points from 2023, while adoption reached 84.67% among large enterprises. Gartner data reported via Articsledge indicate that European public cloud spending is expected to increase by 24% in 2026.

Regulatory requirements are converting compliance into a direct cybersecurity investment driver. NIS2 covers 18 critical sectors and required national transposition by 17 October 2024. ENISA reported that 70% of organizations identify NIS2, CRA and DORA compliance as their primary investment driver. GDPR enforcement also remains material, with EUR 1.2 billion in fines recorded in 2024 according to DLA Piper, while DLA Piper reported 443 data breaches per day in Europe in 2026, a 22% increase.

Digital sovereignty is creating additional demand for European-controlled cloud infrastructure and security. The European Commission launched a EUR 180 million tender in 2025 for sovereign cloud services over six years, supported by a European cloud sovereignty framework covering eight objectives. Red Hat reported that 31% of European organizations used sovereign cloud solutions in 2024, while 50% planned to do so in 2025. Gartner data reported via Techstrong indicate that European sovereign cloud infrastructure spending could rise from USD 7 billion in 2025 to more than USD 12 billion in 2026, a 70% increase.

The cybersecurity talent shortage is constraining organizations' ability to address growing security requirements internally. The European Commission estimated a shortage of 299,000 cybersecurity professionals in the EU in 2024, up 9% from 2023. ENISA reported that 76% of cybersecurity employees lacked formal qualifications, while the 2024 Eurobarometer found that 47% of 12,000 organizations surveyed faced recruitment difficulties. ENISA further reported in 2025 that 76% of organizations struggled to attract and 71% to retain cybersecurity talent.

Market Restraints

Cost and technical complexity can constrain cybersecurity adoption. PwC Germany reported in 2025 that 63% of companies lacked a complete view of their technology dependencies. PwC Switzerland also reported that all surveyed organizations used cloud services, while security and compliance requirements remained among the main obstacles to realizing cloud value.

The European cybersecurity market faces a significant shortage of qualified professionals. The European Commission estimated 299,000 cybersecurity professionals were missing in the EU in 2024, a 9% increase from 2023. ENISA reported that 76% of cybersecurity employees lacked formal qualifications, while 47% of 12,000 organizations surveyed by the 2024 Eurobarometer reported recruitment difficulties. In 2025, ENISA found that 76% of organizations struggled to attract and 71% to retain cybersecurity talent.

Regulatory fragmentation increases compliance requirements across European organizations. NIS2 covers 18 sectors and required transposition by 17 October 2024, while the European Commission issued reasoned opinions to 19 Member States in May 2025 over incomplete transposition. ENISA reported that 70% of organizations identified NIS2, CRA and DORA compliance as their primary investment driver, while DLA Piper recorded EUR 1.2 billion in GDPR fines in 2024.

Dependence on non-European cloud providers remains concentrated. The European Parliament estimated in 2025 that AWS, Microsoft Azure and Google Cloud accounted for approximately 70% of Europe's cloud infrastructure market, while EUISS estimated that three US hyperscalers represented approximately two-thirds of the European cloud market. The European Commission's EUR 180 million sovereign cloud tender over six years addresses this dependency.

Cloud adoption remains uneven across European markets. Eurostat reported that 52.74% of EU enterprises used paid cloud services in 2025, compared with 17.83% in Bulgaria, 24.33% in Greece and 24.94% in Romania. Adoption reached 79.2% in Finland and 75.6% in Italy, while PwC reported that security and compliance requirements remain obstacles to realizing cloud value.

Market Opportunities

High-growth security segments provide opportunities for expansion across the European market. Grand View Research projects Europe's Cloud Security market to increase from USD 8.1964 billion in 2024 to USD 18.0518 billion by 2030, with a 14.2% CAGR for 2025–2030, while Cloud Data Security is projected to reach USD 2.6145 billion by 2030 at a 15.4% CAGR. Mordor Intelligence reports a 15.58% CAGR for European Managed Security Services through 2031, while MarketsandMarkets projects a 16.5% CAGR for European MDR. PwC also identifies AI as a priority for cybersecurity investment.

Several European markets offer catch-up potential. CONTEXT reported 2025 growth of 59% in Poland, 20% in Spain and 15% in Italy, while IDC recorded 15.4% growth in the Czech Republic and 13.4% in Hungary in 2024. Cloud adoption remains below the EU average of 52.74% in Bulgaria at 17.83%, Greece at 24.33% and Romania at 24.94%, creating scope for further security adoption as cloud usage expands.

Underpenetrated sectors are supported by targeted European funding. The European Commission allocated EUR 145.5 million in June 2025 for SMEs, public administrations and organizations, including EUR 30 million reserved for hospitals and healthcare providers. Digital Europe provides EUR 1.3 billion for AI, cybersecurity and digital skills for 2025–2027, alongside EUR 1.6 billion dedicated to cybersecurity for 2021–2027.

Sovereign cloud creates opportunities for European providers and security solutions. The European Commission launched a EUR 180 million sovereign cloud tender covering six years in October 2025, while Gaia-X Germany supported 11 projects between February 2022 and June 2025. Red Hat reported that 31% of European organizations used sovereign cloud in 2024 and 50% planned to do so in 2025.

The cybersecurity talent shortage supports opportunities in training, certification, managed services and AI-enabled security. The European Commission estimated a shortage of 299,000 cybersecurity professionals in the EU in 2024, while ENISA reported that 76% of cybersecurity employees lacked formal qualifications. In 2025, ENISA found that 52% of organizations cited internal skills shortages as a demand driver for MSS, while ECCC reported changes to the Cybersecurity Act enabling future European certification schemes for managed security services.

Market Challenges

Supply-chain cybersecurity remains a material challenge as organizations depend on third-party providers and interconnected technology environments. ENISA reported that supply-chain risks represented 10.6% of analyzed threats between July 2024 and June 2025. NIS2 requires essential and important entities to manage third-party risks through assessments, contractual and technical controls, and incident reporting.

Multi-cloud and hybrid environments increase governance and integration requirements. PwC EMEA reported in 2025 that 82% of organizations were reviewing their cloud strategy to balance agility and control, based on a survey of 1,415 executives across 26 EMEA territories. PwC also identified multi-cloud, combining public, private and sovereign environments, as the prevailing model, while Flexera reported that 75% of organizations cited governance, licensing and expertise as challenges.

AI introduces additional security risks across European organizations. ENISA's Advisory Group identified malicious use of AI as one of three major risk areas, alongside AI system cybersecurity and the use of AI for cybersecurity. Deloitte-CSA reported in Italy that 86% of companies had no dedicated AI security budget and only 9% of security leaders had complete visibility into AI initiatives. The European Parliament also identified deepfakes as AI-generated or manipulated content presenting risks for businesses and institutions.

Critical infrastructure remains exposed to attacks with operational consequences. ENISA reported that public administration accounted for 38.2% of analyzed incidents in 2025, followed by transport at 7.5%, digital infrastructure at 4.8%, finance at 4.5% and manufacturing at 2.9%. ENISA recorded 454 incidents against EU critical infrastructure in 2024, compared with 337 in 2023, while ransomware remained the cyber threat with the highest operational impact.

SMEs face a technology adoption gap that affects their cybersecurity maturity. Eurostat reported in 2025 that 71% of European SMEs had only basic digital intensity, 19 percentage points below the 2030 target. Paid cloud adoption reached 52% among EU SMEs compared with 85% among large enterprises, while 47% of EU enterprises had intermediate or advanced cloud adoption.

Market Segmentation

By solution type, the European cybersecurity market includes Network, Cloud, Endpoint & IoT, and Application Security, with Endpoint & IoT recording the highest CAGR in the 2025–2030 period. Cloud Security is also a high-growth segment, with the European market projected to reach USD 18.0518 billion by 2030 at a 14.2% CAGR. Cloud Data Security is projected to reach USD 2.6145 billion by 2030 at a 15.4% CAGR. Other tracked categories include IAM, Firewall & VPN, SIEM, Antivirus, DLP, encryption, tokenization, patch management and compliance.

By enterprise size, large organizations represent the dominant market segment, accounting for 70.1% of the European cybersecurity market in 2025. ENISA also reports that large and very large organizations dominate demand for managed security services. The adoption gap with SMEs remains significant: 71% of European SMEs had only basic digital intensity in 2025, compared with 96% of large organizations, while paid cloud adoption reached 52% among SMEs versus 85% among large enterprises.

By sector, BFSI represents 24.15% of the European cybersecurity market in 2025. Public administration generates the largest share of analyzed cybersecurity incidents, accounting for 38.2%, followed by transport at 7.5%, finance at 4.5% and manufacturing at 2.9%. ENISA recorded 454 incidents affecting EU critical infrastructure in 2024, providing a further indicator of sector-specific security demand.

By deployment model, cloud adoption is the leading structural segment. Cloud accounted for 66.88% of the global cybersecurity software market in 2025, with a projected 14.73% CAGR through 2031. Cloud services represented 71.92% of the global MSS market in 2025 and are projected to grow at a 14.42% CAGR through 2031. In Europe, 52.74% of enterprises used paid cloud services in 2025, supporting continued migration toward cloud-based security environments.

By service type, managed security services represent a substantial European segment. The European MSS market is projected to increase from USD 9.7747 billion in 2025 to USD 16.1231 billion in 2030, corresponding to a 10.5% CAGR, while MSS represented 32.1% of the European managed services market in 2025. In public administration, solutions accounted for 63.38% of the market in 2025, while services are projected to grow at a 13.23% CAGR through 2031. ENISA reports that European entities allocate less than 10% of revenue to MSS.

Regional Analysis

The European cybersecurity market was valued at EUR 67 billion in 2025, with the UK, Germany, France, Italy and Spain forming the five largest national markets. The UK accounted for EUR 10.36 billion, followed by Germany at EUR 6.87 billion and France at EUR 5.23 billion. Italy reached USD 5.72 billion, while Spain stood at USD 4.57 billion, confirming the concentration of market value across these five countries.

Western Europe remains anchored by the UK, Germany and France, with additional scale in the Netherlands and Belgium. The UK market was valued at EUR 10.36 billion in 2025 and is projected to grow at a 6.3% CAGR through 2030. Germany and France reached EUR 6.87 billion and EUR 5.23 billion respectively, while the Netherlands and Belgium reached EUR 2.64 billion and EUR 1.06 billion. In 2024, 87% of enterprises in both Germany and the Netherlands had implemented at least three ICT security measures.

Southern Europe shows higher growth rates in both Spain and Italy. CONTEXT reported cybersecurity market growth of 20% in Spain and 15% in Italy in 2025. Spain is projected to increase from USD 4.57 billion in 2025 to USD 7.91 billion by 2031, representing a 9.56% CAGR. Italy is projected to rise from USD 5.7216 billion in 2025 to USD 9.6782 billion in 2030 at an 11.1% CAGR, while 75.6% of Italian enterprises used cloud services in 2025.

Central and Eastern Europe combines high market growth with lower cloud adoption in several countries. Poland recorded 59% cybersecurity market growth in 2025, while the Czech Republic and Hungary grew by 15.4% and 13.4% respectively in 2024. Cloud adoption remained below the EU average of 52.7% in Romania at 24.9% and Bulgaria at 17.8%. Bulgaria also recorded 31.28% of enterprises implementing at least five security measures, compared with 56.85% across the EU.

The Nordic markets show high levels of cloud and ICT security adoption. In 2025, paid cloud adoption reached 79.2% in Finland, compared with 52.7% across the EU, while 93% of Finnish and 90% of Danish enterprises had implemented at least three ICT security measures in 2024. As historical context, 66% of Swedish enterprises had intermediate or advanced cloud adoption in 2023, compared with 38.97% across the EU; adoption reached 65.32% among Swedish SMEs and 85.82% among large enterprises.

Competitive Landscape

The European cybersecurity market combines global technology providers with European cybersecurity specialists. Mordor identifies IBM, Cisco, Fujitsu, Dell Technologies and Broadcom among the five leading players in Europe. European participants include Thales, Eviden/Atos, Airbus Cyber, Darktrace, Stormshield, NVISO and Orange Cyberdefense. Thales Cyber generated EUR 1.455 billion in 2025, while Eviden reported EUR 1.039 billion in FY2025, up 6.7%, with the latter figure covering Eviden as a whole rather than cybersecurity alone.

The market is moderately concentrated, with multinational providers competing alongside specialized and regional suppliers. Exact market shares for the five leading companies are not published in the supplied data. Market structure is also supported by the concentration of demand among large enterprises, which represented 70.1% of the European market in 2025, while services accounted for 54.08% of the market.

Growth strategies increasingly include large-scale acquisitions and ecosystem partnerships. Google agreed to acquire Wiz for USD 32 billion in March 2025, while Palo Alto Networks agreed to acquire CyberArk for USD 25 billion in July 2025. European transaction activity included 106 M&A deals valued at USD 3.5 billion in 2025, compared with USD 9.8 billion in 2024. French cybersecurity startups raised EUR 289 million across 19 transactions between June 2024 and May 2025.

Competitive positioning varies by specialization and customer base. Thales Cyber focuses on data security, application security, IAM and services, while Airbus Cyber Programmes serves governments, armed forces and critical infrastructure. Airbus completed its acquisition of Infodas in September 2024. The market also includes specialized providers addressing cloud security and managed services, alongside broader technology vendors serving multiple cybersecurity requirements.

Competitive intensity is supported by both consolidation and continued investment in European security companies. Dealroom and NATO Innovation Fund reported USD 8.7 billion invested in European defense and security in 2025, up 55%, including USD 2.9 billion in the UK, USD 2.1 billion in Germany and USD 869 million in France. From June 2025 to May 2026, Bpifrance and Wavestone recorded 234 cybersecurity startups, 43 scale-ups, EUR 304 million raised and 36 transactions, indicating continued capital formation alongside consolidation.

Research Methodology

This report draws on a combination of specialized market research firms, official European institutions, and financial disclosures from listed companies.

Primary market estimates were sourced from Mordor Intelligence, IMARC, MarketsandMarkets and Grand View Research. Institutional data on threats, investment, skills and digital transformation were sourced from ENISA, Eurostat and the European Commission. GDPR enforcement data were sourced from DLA Piper. Complementary indicators relied on IDC, CONTEXT, Red Hat, PwC and Flexera. Corporate financial data were derived from annual reports and investor publications from Thales, Atos/Eviden, Palo Alto Networks, CrowdStrike and other listed actors.

The report covers historical evolution from 2021 to 2025, current market data for 2025–2026, and forecasts generally extending to 2030 or 2031, depending on publisher and scope. Geographic scope focuses on Europe, with distinctions between the EU, the UK, the EEA, Western, Southern, Central and Eastern Europe and the Nordics where sources allow. Sectoral scope covers the broader cybersecurity market, with emphasis on SaaS solutions, cloud security, managed security services, IAM, network security, endpoint security, data security and SIEM platforms.

Methodological limitations apply. Publishers report different market values for the same year due to differing definitions, currencies, calculation methods and scopes. The European cybersecurity market is valued at USD 63.12 billion in 2025 by one source and USD 81.81 billion by another; these figures are not summed or treated as directly comparable. The SaaS-only cybersecurity segment is generally not published separately from broader software, cloud and managed services. Categories such as Network Security, Cloud Security, Data Security, IAM, SIEM and Managed Services are not defined uniformly across publishers. Some competitive and regional data rely on secondary sources reporting IDC, Gartner, CONTEXT or Synergy Research Group figures. Revenues of diversified groups do not necessarily represent their cybersecurity business alone.

Market data were triangulated using at least two independent sources where comparable data were available. Geographic scopes, base years, currencies, product categories and forecast methods were verified before comparison. Institutional data from ENISA, Eurostat and the European Commission were used to validate indicators on incidents, cloud adoption, regulation and skills. Unresolved differences between sources are reported explicitly, and unavailable SaaS, national, sectoral or competitive figures are indicated as not published rather than estimated by extrapolation.

Frequently Asked Questions

What is the scope of this report?

This report covers the European cybersecurity market, with emphasis on the SaaS cybersecurity segment, covering the EU, the UK, the EEA, Western, Southern, Central and Eastern Europe and the Nordics. It includes cloud security, managed security services, IAM, network security, endpoint security, data security and SIEM. Forecasts extend to 2030 or 2031 depending on the source.

What is the market size and growth rate?

Market estimates for 2025 range from USD 63.12 billion (Mordor Intelligence) to USD 81.81 billion (IMARC), with a projected CAGR between 7.1% and 10.62% through 2030–2031 depending on the publisher. Differences reflect variations in market scope.

Why do market estimates vary between publishers?

Publishers use different definitions, currencies, calculation methods and scopes. For example, some include managed services and consulting, while others focus on software and platforms. The SaaS-only cybersecurity segment is not published separately by any of the retained sources.

What are the main growth drivers?

ENISA recorded 4,875 incidents in the EU between July 2024 and June 2025, with phishing accounting for 60% of intrusions. Regulatory obligations under NIS2, DORA, CRA and GDPR are directly driving investment, with 70% of organizations citing compliance as their primary investment driver in 2025.

Who are the main competitors in Europe?

The market is moderately concentrated. International players include IBM, Cisco, Palo Alto Networks, Check Point, Fortinet and CrowdStrike. European actors include Thales, Atos/Eviden, Airbus Cyber, Darktrace, Stormshield, NVISO and Orange Cyberdefense. Recent M&A activity includes Google/Wiz (USD 32 billion, March 2025) and Palo Alto/CyberArk (USD 25 billion, July 2025).

What are the key regional differences?

Western Europe (UK, Germany, France, Netherlands, Belgium) remains the most mature. Southern Europe (Spain, Italy) shows higher growth rates, with Poland growing 59% in 2025. Central and Eastern Europe combines high growth with lower cloud adoption. The Nordics show the highest cloud and security adoption levels.

European SaaS Cybersecurity Market — Market Size, Growth Trends, Competitive Landscape and Forecast (2026-2031)

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