The UK cybersecurity industry experienced significant growth in the past financial year, with a 12% increase in revenue, reaching £13.2bn. This growth, as highlighted in the UK Cyber Security Sectoral Analysis 2025, underscores the sector’s crucial role in the national economy. The report, compiled from various data sources, revealed that there are currently 2165 cybersecurity firms operating in the UK, showing an increase of 74 from the previous year. The majority of these firms (59%) offer services, while 26% focus on products, 12% are managed security service providers (MSSPs), and 3% are resellers.
Despite this impressive growth, the report also pointed out ongoing challenges faced by the cybersecurity industry, particularly in terms of workforce development. The top challenges identified by firms included a lack of technically skilled candidates (47%) and unaffordable salary demands (46%). Competition from rival businesses was also cited as a persistent issue by 39% of firms. This shortage of skilled talent has led to a widening skills gap, which grew by 27% last year, resulting in 93,000 unfilled positions in cybersecurity, according to an ISC2 study. This gap includes cybersecurity professionals working outside the sector, highlighting the industry’s struggle to meet demand.
On a positive note, the UK’s cybersecurity sector has made significant contributions to the broader economy, recording a 21% increase in gross value added (GVA) to £7.8bn. This metric reflects the sector’s contribution to the economy, excluding the value of the inputs used in its production. The industry also saw a noteworthy addition of 6600 full-time jobs, marking an 11% annual increase. With a total of 67,300 employees now in the sector, the UK’s cybersecurity industry shows promising signs for further growth. While 26% of UK cybersecurity firms operate internationally, the majority focus on the EU and the US markets, indicating the global demand for cybersecurity expertise.
However, the report also highlighted significant challenges that need to be addressed to sustain future growth. Regional disparities in terms of resources and investment continue to pose challenges, with some areas lacking the necessary support for research and startups. Many small and medium-sized enterprises (SMEs) still underestimate the importance of cybersecurity, assuming they are not targets for cyberattacks. Historically, smaller businesses did not prioritize cybersecurity services, and the sector did not cater enough to their needs. However, the increasing recognition of cybersecurity threats is changing this mindset, making these businesses a key area for future development in the sector. Overcoming these long-standing challenges will be crucial for the continued growth and success of the UK cybersecurity industry.
In conclusion, the UK cybersecurity industry’s remarkable growth and contributions to the economy are evident. However, addressing challenges such as the skills gap, regional disparities, and SME awareness will be essential for ensuring sustained growth and success in the future. With the global demand for cybersecurity expertise on the rise, the UK cybersecurity sector has the potential for further expansion and innovation in the coming years.
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