The UK’s growing cyber industry attracted record investment last year despite the global pandemic, according to a new government report.
With Covid-19 forcing more business and social activity online, the new figures reveal an increase in the number of cyber security companies and people working for them, as the government continues its drive to build back safer from the pandemic.
The DCMS Annual Cyber Sector Report, which tracks the UK’s cyber security industry across a range of indicators between April 2019 and December 2020, reveals a 21 per cent increase in firms operating in the field, bringing the total number to 1,483.
There was a nine per cent rise in employment in the industry with more than 3,800 new full time jobs created, bringing the total number of people working in the sector to 46,683.
The sector is now worth an estimated £8.9 billion, with a record £800 million of investment raised by firms.
Digital Minister Matt Warman said: “The need for cutting-edge cyber security has never been greater and this resilient sector is growing, diversifying and solidifying its status as a jewel in the UK’s tech crown.
“With more than 3,800 new jobs created, firms – large and small – are doing vital work keeping people and businesses secure online so we can build back safer from the pandemic.”
The main findings from the report are:
- Despite the current economic climate, 2020 was a new record year for cyber security investment with UK cyber security businesses raising over £821 million across 73 deals – more than twice that raised in 2019
- The sector’s total annual revenue has continued to rise (by seven per cent), reaching £8.9 billion within the most recent financial year
- The sector contributed more than £4 billion to the economy – up six per cent in the last year, with mainly mature firms driving growth
- The majority (65 per cent) of the 46,683 cyber workforce are employed by large firms (250+ employees).
This year’s survey also suggests that more than half of firms (54 per cent) are now based outside of London and the South East.
The most commonly provided cyber security products and services include cyber professional services, threat intelligence, monitoring, detection and analysis. The research highlights particular growth in firms offering solutions for industrial control systems and IoT security, demonstrating the sector’s ability to adapt and meet emerging challenges, such as the need to secure smart cities.
The data reveals that while nine in ten companies felt Covid-19 had impacted their business, many of these firms have quickly adjusted and innovated within the current economic climate.
Despite some firms in the sector feeling the pressure, many have still found the capacity to offer vital technical support to the NHS, and other critical national services, sometimes on a pro-bono basis.
Julian David, Chief Executive Officer, techUK said: “Reliable Cyber Security is essential for all organisations as they accelerate digital transformation in the wake of ongoing COVID-19 disruption and the UK industry is responding to that need. This research shows a sector going from strength to strength, with increasing investment in our growing cyber ecosystem and, perhaps most significantly, uptake of the technologies and services keeping UK citizens and business safe.
“One key finding is that 54 per cent of cyber companies are now based outside London and the South-East, an encouraging change which will improve cyber resilience across all the nations and regions of the UK, as well as sharing the economic prosperity offered by this fast-growing sector. This regional development is one area which techUK will continue to actively partner with DCMS, through initiatives like Cyber Exchange, as Government and industry continue to strengthen the UK’s position as a leading cyber nation.”