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Government publishes annual Cyber Security Sectoral Analysis 2026
On the 12 May, the government published the annual Cyber Security Sectoral Analysis 2026 report, sharing insights on the size, growth and focus areas for the UK cyber security sector.
The report makes an assessment on several trends including:
- The amount of revenue generated rose by 11% since last year to $14.7 billion.
- 438 new firms were established, bringing the total to 2,603, up 20% from 2,165.
- 69,600 people are employed in the sector up 3% from last year.
- Total Gross Value Added (GVA) for the sector has reached c. £9.1 billon.
- GVA per employee increased by 13%.
- £184 million was raised across 47 deals within dedicated cyber security firms in 2025.
techUK’s Cyber Exchange directory, which enables cyber security providers to register an account and set out the products and services they provide to the market, was used as one of the data sources underpinning the sectoral analysis.
A particularly notable area of the report is the statistics that relate to the growth of the sector. Overall, there has been an increase in the number of companies operating in the space. We’ve seen the creation of new businesses, diversification in cyber services and improvements to the report’s identification and classification of companies.
The report also points to a growing trend of acquisitions across the sector. And the balance between dedicated and diversified cyber security providers which appears to be shifting, with larger firms increasingly offering cyber security as part of a broader portfolio of services rather than as a standalone specialism.
The procurement landscape also continued to expand significantly in 2025. A total of 967 contracts were awarded, with contract values increasing by 62% compared to 2024. This represents a 25% increase in the number of contracts awarded year-on-year and a six-fold increase in value since 2019. Meanwhile, cyber security exports grew to £8.6 billion in 2024.
Despite this strong growth, the report notes that cyber security adoption continues to present challenges for small and medium-sized enterprises (SMEs).
This year’s analysis also introduces a new chapter focused on AI and software cyber security.
techUK shoutout
When it comes to sector engagement, techUK was recognised as one of the key vehicles for business engagement across the sector. From the business survey, techUK activities accounted for around 1% of all recorded business collaboration activity. As the only organisation to be singled out for its own activity, it’s a positive recognition of the work being delivered on behalf of our members and the wider sector.
The full analysis can be found here.
Original article link: https://www.techuk.org/resource/government-publishes-annual-cyber-security-sectoral-analysis-2026.html
