Cyber Security Sectoral Analysis 2024
The Department for Science, Innovation and Technology (DSIT) commissioned Ipsos and Perspectives Economics, with support from glass.ai and the Centre for Secure Information Technologies (CSIT) at Queen's University Belfast, to conduct the review.
This report takes a methodological approach to analyse the sector's performance, using various data sources, including Cyber Exchange - a joint venture between DSIT and techUK that allows cyber security providers to showcase the products and services they provide to market.
The findings reveal that there are 2,091 active cyber security practices in the UK. The vast majority of these are small (24% or micro-sized (55%) businesses, reflecting the broader composition of UK businesses. Over half of these companies (56%) are service providers, 27% are product-focused and 16% are managed service providers (MSPs), with just 1% focused on reselling.
In terms of economic contribution, the UK cyber security sector's annual revenue is estimated at £11,859 million, reflecting an increase of 13% from last year's study. Of this amount, 75% is attributed to large firms, which only make up, 8% of the overall market. In contrast, small firms saw a reduction in revenue from £893 million to £862 million.
The report acknowledges record levels of investment in cyber companies between 2019 and 2021. However, these levels, influenced by broader macroeconomic conditions, saw a decline in 2023, with organisations across all sectors facing challenges in raising investment. In cyber security, there was a decrease of 10% decrease from 2022 figures. This investment was also heavily concentrated in London, with 54% of the share, while other regions such as the South East, North West, East of England, Yorkshire and the Humber and Northern Ireland saw more evenly distributed investments.
The final section of the report reviews recent government investments and support initiatives in the cyber sector. It highlights the work of programmes like the Cyber Exchange, UK Cyber Cluster Collaboration (UKC3), NCSC for Start-ups and the Cyber Runway, which support start ups in raising funds and increasing their profile in the sector.
This section also examines the barriers faced by cyber security businesses in securing talent. The three most common barriers are:
- Competition for candidates within the cyber sector
- Salary demands not affordable
- Candidates lacking technical skills
While the report draws several similar conclusions to previous iterations, its shows that there continue to be a significant number of challenges impacting cyber companies, from large multinationals to SMEs and start-ups.
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Dan Patefield
Dan Patefield
Dan leads the techUK Cyber Security programme, having originally joined techUK in August 2017 as a Programme Manager working across the Cyber and Defence programmes. He is responsible for managing techUK's work across the cyber security eco-system, bringing industry together with key stakeholders across the public and private sectors. Dan also provides the industry secretariat for the Cyber Growth Partnership, the industry and Governmnet conduit for supporting growth across the sector. A key focus of his work is to strengthen the public-private partnership across cyber security to support further development of UK cyber security policy.
Before joining techUK he worked as Forum Lead for the Westminster eForum. In this role he had a focus on the technology and telecoms space, on issues ranging from Broadband and Mobile Infrastructure, the Internet of Things, Cyber Security, Data and diversity in tech. Dan has a BA in History from the University of Liverpool.
- Email:
- [email protected]
- Phone:
- 020 7331 2165
Jill Broom
Jill Broom
Jill is techUK’s Programme Manager for Cyber Security, working across the cyber eco-system to bring industry together with key stakeholders across the public and private sectors.
Prior to focusing in on techUK's cyber security work, Jill was also part of techUK's Central Government programme team, representing the supplier community of technology products and services to Whitehall departments.
Before joining techUK, Jill worked as a Senior Caseworker for an MP, advocating for local communities, businesses and individuals, so she is particularly committed to techUK’s vision of harnessing the power of technology to improve people’s lives. Jill is also an experienced editorial professional and has delivered copyediting and writing services for public-body and SME clients as well as publishers.
- Email:
- [email protected]
- Twitter:
- @honeybroom
- Website:
- www.techuk.org
- LinkedIn:
- https://www.linkedin.com/in/jill-broom-19aa824
Annie Collings
Annie Collings
Annie joined techUK as the Programme Manager for Cyber Security and Central Government in September 2023.
Prior to joining techUK, Annie worked as an Account Manager at PLMR Healthcomms, a specialist healthcare agency providing public affairs support to a wide range of medical technology clients. Annie also spent time as an Intern in an MPs constituency office and as an Intern at the Association of Independent Professionals and the Self-Employed.
Annie graduated from Nottingham Trent University, where she was an active member of the lacrosse society.
- Email:
- [email protected]
- Twitter:
- anniecollings24
- LinkedIn:
- https://www.linkedin.com/in/annie-collings-270150158/