According to the International Data Corporation (IDC), European security spending is set to rise by 11.8% annually in 2025, reflecting a critical response to evolving geopolitical landscapes, increasing cybercrime rates, and stricter regulations. This upward trend will persist throughout the period from 2023 to 2028, with total spending expected to approach $97 billion by 2028.
Regional Growth Trends
The Czech Republic and Hungary are anticipated to experience the most significant growth in security expenditures, with increases of 15.4% and 14.1%, respectively. This surge is attributed to organizations in these nations enhancing their security frameworks amid ongoing digital transformations. Ireland is also on track for a notable 13.3% growth, solidifying its reputation as a technology hub, particularly in security solutions.
Key Drivers of Security Spending
Security software will dominate this sector, constituting over half of overall spending and boasting a projected growth rate of 14.8%. The demand is largely driven by advancements in cloud-native application protection platforms, identity and access management software, and security analytics tools. Companies are increasingly leveraging these technologies to safeguard their expanding digital presence.
Sector-Specific Insights
In terms of industry-specific growth, both the Aerospace and Defense and Banking sectors are forecasted to lead with a 13.5% increase in security spending, followed closely by Capital Markets at 13.3%. The escalating geopolitical tensions in Europe and the rising sophistication of cyber threats necessitate enhanced security measures, particularly in critical sectors like Utilities.
Business Size Impact
Large enterprises (1,000+ employees) will continue to dominate security spending in Europe, accounting for nearly half of the market. However, small to medium-sized businesses (10-499 employees) are projected to grow at the fastest rate due to escalating cyber risks, greater regulatory demands, and an evolving understanding of security as a vital business enabler.
Expert Insights
Romain Fouchereau, a senior research manager at IDC, highlights the transformation of cybersecurity spending into a strategic business necessity rather than merely a technical requirement. Organizations are increasingly focused on building resilient security frameworks that not only address cyber threats but also support scalable digital transformations. Vladimir Živadinović, another IDC analyst, points out that regulatory measures like NIS2 are driving investment in cybersecurity, particularly in sectors that face heightened oversight.
About IDC’s Security Spending Guide
IDC’s Worldwide Security Spending Guide offers detailed insights into security expenditure across 28 industries, five company sizes, and multiple technology markets. These guides deliver a comprehensive view of the landscape, allowing stakeholders to track spending trends and identify opportunities within the security sector.