Large Enterprises Dominate with 70.1% Share: BFSI Leads Europe Cybersecurity Market at 24.15% Amid Banking Attacks

Market Overview

The Europe cybersecurity market size was valued at USD 81.81 Billion in 2025 and is forecasted to reach USD 165.73 Billion by 2034, growing at a CAGR of 8.2% during the forecast period 2026-2034. Driven by escalating cyber threats and stringent regulatory frameworks such as NIS2 and DORA, the market growth is propelled by increasing ransomware attacks and digital transformation initiatives, including expanded cloud adoption and IoT deployment. The Europe cybersecurity market is thus witnessing robust growth.

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Study Assumption Years

Base Year: 2025
Historical Year/Period: 2020-2025
Forecast Year/Period: 2026-2034

Europe Cybersecurity Market Key Takeaways

The Europe cybersecurity market was valued at USD 81.81 Billion in 2025, with a CAGR of 8.2% expected from 2026 to 2034.
Services dominate the market with a 54.08% share in 2025, driven by reliance on managed security providers and professional consulting.
On-premises deployment leads the market with a 58.12% share reflecting data sovereignty and compliance needs.
Large enterprises hold the largest segment by user type with a 70.1% market share in 2025.
BFSI sector leads industry verticals with a 24.15% share in 2025 due to stringent regulations and critical infrastructure needs.
Germany is the leading country segment with a 22% market share, supported by a robust industrial base and proactive security adoption.

Market Growth Factors

Critical Infrastructure Protection and National Security Imperatives

European countries are investing heavily in cybersecurity measures to protect critical infrastructure from geopolitical cyberattacks by nation-state adversaries Russia, China, Iran, North Korea. These attacks target the energy grid, transportation systems, telecommunications systems and government services and may lead to spillover risks across Europe. In response, the European Commission has allocated 01.3 billion under the Digital Europe Programme (2025-2027) for the essential technologies critical to Europe's future and tech sovereignty, and to reinforce infrastructure resilience and economic security.

Expansion of Cybersecurity Insurance and Risk Quantification Frameworks

The adoption of cybersecurity insurance as a risk transfer mechanism and the respective attachment conditions imposed by insurers are driving the market, as insurers seek to establish baseline security practices to strengthen their cybersecurity. In 2024, the Paris-based insurer Stoik secured EUR 25 million in Series B funding. Funding helps Stoik's platform expand in Europe, particularly targeting small-medium businesses. Cyber insurance provides financial protection, enabling faster recovery and transferring some post-breach risk to insurers beyond the organization's control.

Proliferation of Connected Devices and Internet of Things Ecosystems

The sheer scale of the Internet of things (IoT) in industrial, commercial, and consumer environments is driving the need for security. Industry 4.0 manufacturing installations depend on thousands of sensors that need to be segmented and monitored. Healthcare, which combines medical devices with patient care networks, has its own security vulnerabilities. 5G Standalone (SA) networks, such as those launched by Virgin Media O2 in 14 UK cities in 2024, enable real-time transmission and edge computing, thus further converging and complicating the Internet of Things.

Market Segmentation

Component:

Solutions: Identity and Access Management (IAM), Infrastructure Security, Governance, Risk and Compliance, Unified Vulnerability Management Service Offering, Data Security and Privacy Service Offering, Others.
Services: Professional Services, Managed Services. Services dominate with 54.08% market share in 2025, as organizations rely on third-party expertise for threat detection and response, especially SMEs.

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Deployment Type:

Cloud-based
On-Premises: Leading with 58.12% share in 2025, influenced by data sovereignty and regulatory compliance. On-premises preferred for defense, public-sector workloads, and financial institutions maintaining core banking infrastructure.

User Type:

Large Enterprises: Command a dominant 70.1% share in 2025, driven by large cybersecurity budgets and regulatory obligations. They adopt zero-trust architectures and advanced threat intelligence platforms.
Small and Medium Enterprises

Industry Vertical:

BFSI: Leading with a 24.15% share, prioritized for cybersecurity funding to safeguard critical infrastructure and compliance with financial regulations including DORA. Emphasis on identity and access management.
IT and Telecom
Retail
Healthcare
Defense/Government
Manufacturing
Energy
Others

Country:

Germany: Largest segment with 22% market share in 2025, supported by industrial base, cybersecurity adoption, and early NIS2 directive implementation.
France
United Kingdom
Italy
Spain
Others

Regional Insights

Germany dominates the Europe cybersecurity market with a 22% share in 2025. Its leadership stems from a strong industrial base, proactive cybersecurity measures, and significant investments in network security driven by GDPR and NIS2 directive adoption. Collaborative efforts between government, research, and private sectors propel innovation and threat intelligence sharing, focusing on zero-trust and supply chain risk management amidst industrial espionage threats.

Recent Developments & News

In December 2025, Capgemini was selected by the European Commission's Directorate-General for Digital Services (DIGIT) to deliver extensive cybersecurity services to 71 European Institutions, Bodies, and Agencies (IBAs). The MC17 FREIA Cyber Framework Contract is a multi-million Euro, four-year deal in collaboration with Airbus Protect, PwC, and NVISO. In September 2025, Atos secured a contract under Lot 1 (Technical Operations Services) of the EU's CLOUD II Dynamic Purchasing System Mini-Competition 17 (MC17) focused on Cybersecurity, valued up to 083.26 million, marking one of Europe's largest cybersecurity service deals.

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Key Players

Microsoft
Darktrace
Capgemini
Airbus Protect
PwC
NVISO
Atos

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