UK Cybersecurity Revenue Reaches £14.7 Billion as Workforce Growth Slows
Summary
DSIT’s 2026 sector analysis estimates UK cybersecurity revenue rose 11% to £14.7 billion, while employment grew just 3%, the slowest rate since 2018. Investment in dedicated firms fell 11% to £184 million in 2025.
Key points
- Ipsos and Perspective Economics combined company accounts, web research, a survey of 230 firms conducted July–October 2025, and five investor consultations; financial accounts predominantly covered 2024/25.
- The study identified 2,603 cybersecurity providers, up 20%. The increase reflects new businesses, diversification into security and improved identification, not solely new company formation.
- Estimated annual cybersecurity revenue increased 11% to £14.7 billion, while gross value added rose 17% to £9.1 billion.
- Employment reached approximately 69,600 full-time equivalents, up 3%—the slowest growth since the series began in 2018. Product firms drove most employment growth, while service and MSSP employment remained broadly stable.
- Dedicated cybersecurity firms raised £184 million across 47 deals in 2025, down 11% by value. Funding shifted toward small and micro firms.
- Thirty-two dedicated providers securing AI systems accounted for an estimated £69.4 million in revenue and 417 full-time equivalents, with employment up 51% from the previous study.
- Investor consultations identified AI security and post-quantum cryptography as investment themes, while highlighting procurement barriers and limited UK growth-stage capital. These views are illustrative, not statistically representative.
Article Details
- Publisher
- Department for Science, Innovation and Technology
- Report Period
- 2025-01-01 to 2025-12-31
- Scope
- UK cyber security providers, economic contribution, employment, investment, exports, procurement, and AI and software security provision. Financial estimates use the latest available accounts; firm identification reflects December 2025.
- Sample Size
- 2,603 identified firms; representative survey of 230 firms; five investor consultations. Survey margin of error approximately 4–6 percentage points at 95% confidence.
- Key Statistics
- An estimated 2,603 active providers were identified, up 438 (+20%) from the previous study. The increase includes expanded identification coverage as well as new entrants and diversification.
- Estimated annual cyber security revenue reached £14.735 billion, a nominal increase of approximately 11% over the previous study; estimates combine accounts, survey data and modelling.
- Estimated cyber security employment reached 69,589 FTEs, up 3% from 67,299; this was the lowest employment growth rate recorded since the series began in 2018.
- Estimated annual GVA reached £9.131 billion, up 17%; estimated GVA per employee increased approximately 13% to £131,200.
- Dedicated cyber security firms raised £184 million across 47 deals in 2025, down 11% in value from £206 million across 59 deals in 2024.
- Recommendations
- Investors called for government procurement changes that make it easier for smaller cyber security suppliers and start-ups to compete.
- The report calls for support for early-stage firms, domestic scaling infrastructure and access to growth capital while retaining international investment and collaboration.
- Some consulted stakeholders proposed requiring Cyber Essentials across a broader range of supply-chain contracts to increase SME adoption.
- Some consulted stakeholders advocated mandatory cyber resilience reporting to improve adoption among SMEs.