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DCMS Sectoral Report highlights continued strength of UK cyber sector

Annual sectoral analysis indicates record investment, increases in cyber companies with sector now worth £8.9billion.

The Department for Digital, Culture, Media and Sport has released its Annual Cyber Sector Report, highlighting that the sector attracted record investment last year, despite a difficult economic backdrop in the wake of continued COVID-19 disruption.

The annual research tracked the UK’s cyber security industry across a range of indicators between April 2019 and December 2020. It reveals a 21 per cent increase in firms operating in the field, bringing the total number to 1,483 and a nine per cent rise in employment with 3,700 new full time jobs created up to 46,683 altogether. Overall, the sector is now worth an estimated £8.9 billion, with a record £800 million of investment raised by firms last year

Digital Minister Matt Warman yesterday announced the findings at a CyberASAP event, which gives UK researchers the opportunity to showcase their innovative new cyber security products to potential buyers.

Key findings in the report include:

  • Despite the economic conditions, 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 7 per cent), reaching £8.9 billion within the most recent financial year.
  • The sector contributed more than £4 billion to the economy - up 6 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).

Significantly, 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, with cyber security clusters flourishing across all the nations and regions of the UK. This highlights the growing strength of the sector across the UK, highlighting the value of the sector in bringing regional prosperity as well as strengthening cyber resilience for all organisations and citizens.

Other key growth areas saw firms offering more 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 and rapid growth of IoT devices. Unsurprisingly, the data reveals that while nine in ten companies (89 per cent) felt COVID-19 had impacted their business, many of these firms have quickly adjusted and innovated within the current economic climate.

Digital Minister Matt Warman yesterday 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 3,700 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. 

“I am committed to supporting the industry to reach new heights, create more jobs and lead new innovations in this field.”

Julian David, Chief Executive Officer, techUK yesterday 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 eco-system and, perhaps most significantly, uptake of the technologies and services keeping UK citizens and business safe.

“One key finding is that 54% 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.”

To access a copy of the report click here.

On Cyber Exchange we will be highlighting the strength of the sector across all the nations and regions of the UK. 

 

Channel website: http://www.techuk.org/

Original article link: https://www.techuk.org/resource/dcms-sectoral-report-highlights-continued-strength-of-uk-cyber-sector.html

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