European Security Spending to Grow 10.6% in 2023, Driven by the Financial Sector

European security spending has been projected to grow 10.6% in 2023 and continue to see almost double-digit growth through to 2023, with total spending reaching $71 billion in 2026, according to security spending research by IDC.

Growing security needs, new regulations, and the increasing risk of ransomware attacks due to the current geopolitical situation have been highlighted as major factors that will continue to drive European security spending over the forecast period.

According to the report, the U.K., Germany, and France remain the top spenders on security, together accounting for over half of the European security market. However, the Czech Republic is expected to have the fastest growth in Central and Eastern Europe in 2023, recording over 12% YoY growth.

The report noted per segment, security services will see the largest spending in 2023, reflecting its key role for European organizations across industries while software spending will lead year-on-year growth in 2023, with approximately 11% YoY growth.

Per industry spending, the finance sector will have the highest spending in Europe, driven by the need for data protection and regulatory compliance. The finance sector will be followed closely by manufacturing, with the government sector having the third-largest spending in 2023.

According to Romain Fouchereau, research manager at IDC European Security, the IDC research indicates that European organizations are rethinking their cyber resilience efforts due to ongoing disruptions and a constantly evolving threat landscape. As a result, many organizations are prioritizing the adoption of zero-trust principles to enhance their cybersecurity measures and implement secure access controls across networks, applications, and devices.