Cybersecurity remains a critical priority for businesses across Europe, with the distribution market growing by 2% year-on-year (YoY) in 2024. This growth highlights the evolving demands for cybersecurity solutions, driven by technological advancements, regulatory changes, and regional disparities.

When we look at our analysis, it’s clear that software solutions led the market, growing by 4%, while demand for hardware appliances declined by 6%. Infrastructure Protection was the standout segment, achieving 14% YoY growth in 2024, supported by investments in advanced systems to manage increasing data volumes. Network Security maintained steady growth at 4%, whereas Endpoint Protection faced challenges, ending the year with a 7% decline due to a weak Q4.

Regionally, France emerged as the leader with 12% growth, spurred by its National Cybersecurity Strategy and related initiatives. The UK and Germany recorded modest growth of 1%, while Italy, after years of strong performance, experienced an 8% decline attributed to corruption scandals in Q4.

The delivery landscape is shifting as businesses increasingly adopt flexible, service-oriented models. While traditional licenses grew by 4%, SaaS adoption rose by 6%, and Managed Service Providers (MSPs) surged by 9%, reflecting their importance in enabling small- and mid-sized businesses to access reliable security solutions.

We believe that regulatory pressures, such as the NIS2 directive, have compelled companies to invest in infrastructure protection, particularly in Security Information and Event Management (SIEM) systems. The growing preference for SaaS and MSP models underscores the market’s shift towards scalable, service-based approaches.

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