Cyber Security Sectoral Analysis 2025 reveals explosive growth

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A surge in revenue and employment highlights the UK’s booming cyber security sector. A new government report, ‘Cyber Security Sectoral Analysis 2025‘ reveals significant growth, with £13.2 billion in revenue, and 6,600 new jobs, solidifying the UK’s position as a cyber leader

The UK’s cyber security industry has experienced significant growth over the past year, according to a newly released report by the Department for Science, Innovation and Technology, in collaboration with Feryal Clark MP. The “Cyber Security Sectoral Analysis 2025” reveals a surge in revenue, employment, and overall economic contribution, highlighting the sector’s vital role in protecting the UK’s digital landscape.

Cyber Security Sectoral Analysis 2025: Research and analysis

The 73-page report, building upon a series of previous analyses dating back to 2018, provides a comprehensive overview of the UK’s cyber security sector.

It meticulously details the number of businesses, their economic contribution, employment figures, and the diverse range of products and services offered.

The UK cyber security sector generated revenue of £13.2 billion, up 12% since last year

The AI market

The analysis is part of the government’s ongoing effort to bolster the UK’s cyber defenses, cultivate a thriving cyber ecosystem, and safeguard its growing digital economy. Alongside this report, an “Analysis of the AI and software cyber security market” has also been published, providing deeper insights into specific market segments.

The report emphasizes the strategic importance of the sector, noting its critical role in protecting the UK’s digital infrastructure and promoting economic growth.

Cyber security sectoral analysis 2025: Key findings

The 2025 analysis paints a picture of robust growth. The UK’s cyber security sector generated a staggering £13.2 billion in revenue, marking a 12% increase from the previous year. This surge is further evidenced by the addition of 74 new cyber security firms, bringing the total to 2,165, a 3.5% rise.

Employment within the sector has also seen a substantial boost, with 67,300 people now employed (full-time equivalents), representing an 11% increase and the creation of approximately 6,600 new jobs.

The sector’s contribution to the UK economy, measured by Gross Value Added (GVA), has reached approximately £7.8 billion, a remarkable 21% increase. Furthermore, GVA per employee has risen from £106,300 to £116,200, an 8% improvement, showing increased productivity. Investment in dedicated cyber security firms remained strong, with £206 million raised across 59 deals in 2024. The Cyber Security Sectoral Analysis 2025 report highlights the increasing demand for advanced cybersecurity solutions driven by the growing sophistication of cyber threats.

These figures underscore the sector’s dynamism and its growing importance to the UK’s economic health. The continued publication of these reports allows for the tracking of the growth of this sector and also the ability to see trends develop over time. The research also points to the UK’s strengthening position as a global hub for cybersecurity innovation.

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