domestic security market size in 2023
Your company is already operating in Germany and you would now like to export worldwide?
Key Facts
Facts & Figures
The ongoing digitalization of German industry and the country’s administrative services, smart and autonomous driving concepts, and the secure management of data required online are factors driving security demand.
Tightened regulations, increased awareness of emerging threats and the move to digital business strategies are driving forecast increases in international enterprise security spending.
A spate of high profile cyberattacks has also positively impacted on enterprise security budgets. Analogue attacks are also increasing significantly. In the past year, 74 percent of German companies have been harmed by digital data theft.
Some 65 percent of companies see their existence as being threatened by cyberattacks in 2024, compared to 52 percent in 2023. Financial losses caused by cyberattacks in 2024 amounted to EUR 178.6 billion – equivalent to 67 percent of total damage.
Opportunities
Digital Transformation in Germany
The catch-up process in the digitalization of all private and public sectors in Germany is in full swing. The country’s public administration is also embracing digitalization. This is best evidenced by the creation of the Federal Ministry for Digitalization and Government Modernization in 2025.
Critical Infrastructure Cyberattack Risk
The digital transformation in the public sector also leads to the creation of new entry points for attacks. Critical infrastructure (CRITIS) actors – in energy, logistics, water supply, and healthcare – are facing an increasing number of cyberattacks as they modernize for the digital age. Around 87 percent of CRITIS actors expect to be on the receiving end of cyberattacks within the next year. Other sectors report a 90 percent cyberattack expectation rate.
Artificial Intelligence Solutions
Artificial intelligence solutions represent a major challenge and investment opportunity as security systems are completely rethought. Private security is expected to become a major focal point of market growth due to rising crime rates, shifting social dynamics and advances in cloud-based security monitoring systems.
The anticipated upturn in aerospace and defense spending will similarly create new demand and increase spending in the area of IT security. Regulations – including the European Union’s Network and Information Systems Directive 2 – will intensify demand for advanced security solutions as companies seek to invest in resilient security frameworks to securely implement their respective digital transformation processes.
Business Environment
Strong and Stable Institutions
Germany’s Federal Office for Information Security (BSI) is widely considered as being one of the leading cybersecurity authorities in Europe. The BSI works with all stakeholders to identify appropriate measures to meet cybersecurity architecture requirements.
Stable Economic and Business Environment
Germany provides clear legal requirements and reliable enforcement for doing business. The country’s legal framework favors the principle of international trade and payment. There are no restrictions or barriers to capital transactions or currency transfers, real estate purchases, repatriation of profits, or access to foreign exchanges.
Skilled Workforce and Innovative R&D Landscape
Germany has excellent universities and globally renowned research institutes in the field of cybersecurity. The country is also home to a growing ecosystem of IT security companies.
Public Funding Programs
Generous government support for the research, development, and implementation of security solutions. The National Cybersecurity Coordination Centre Germany has been created to strengthen cybersecurity R&D and also provides information about available funding programs in the cybersecurity sector.
The “Development of Digital Technologies” funding program through to 2026 seeks to expand and strengthen future technologies including cybersecurity.
The SPRIND initiative supports product, service and systems innovations to meet the challenges of our time. Innovators and innovations receive finance and support as well as access to the appropriate networks from science, business and policymaking.
The Cyberagentur („Cyber Agency“) provides EUR 80 million in R&D funding each year to conduct research to secure Germany’s cyber sovereignty into the future while safeguarding the country’s internal and external security.
Network and Information Systems Directive 2 Implementation
The Network and Information Systems Directive 2 (NIS2) is a European Union directive aimed at enhancing cybersecurity across member states. It will be transposed into German law through the NIS2 Implementation and Cybersecurity Strengthening Act (NIS2UmsuCG). This law transposes the EU-wide NIS2 directive into domestic law and extends cybersecurity obligations to around 29,500 companies in Germany. It also introduces a three-level reporting system for security incidents and strengthens the supervisory powers of the BSI. It establishes binding minimum requirements such as risk analyses, backup management and encryption.
News
Contact Us
