Germany's Cybersecurity and Security Industry

There is huge demand for IT security solutions in Germany. According to the Cisco Cypersecurity Readiness Index 2023, just 11 percent of all German companies are adequately prepared for cyberattacks - considerably below the world average of 15 percent of companies. Within Europe, Germany is ranked second place behind the UK (17 percent). According to German digital industry association bitkom, German companies suffer annual losses of around EUR 206 billion due to sabotage, espionage and data theft.  Of this sum, EU 148 billion can be attributed to cyber attacks.

"Tap into a market that is currently experiencing dynamic growth."

Oliver Seiler Director Mechanical & Electronic Technologies, Germany Trade & Invest

Spending and growth rates

• more than EUR 9.2 billion spent on IT security in 2023 in Germany
• plus 13 percent compared to 2022
• forecast spending 2024: more than EUR 10.3 billion
• forecast growth rate until 2024: 13 percent

Market segmentation 2023

• IT Security Services: EUR 4 billion (+ 12 percent)
• IT Security Software: EUR 4.3 billion (+18 percent)
• IT Security Hardware: EUR 1 billion (unchanged to previous year)

MARKET - Germany is Europe's economic engine with the highest industrial output level. The German security technologies market is Europe's largest in terms of consumers.

PERSONNEL - Our universities and universities of applied science produce some of the most highly qualified employees in the business. Strong research networks with the industry further improve the quality of German engineering skills.

R&D - Germany is the R&D leader in measuring and sensor technologies and a major RFID and biometrics research location. A raft of research incentives increases the attractiveness of Germany as a research site.

INCENTIVES - Germany offers a number of different incentives for all investors - regardless of whether they are from Germany or otherwise. There is a large selection of programs designed to support a wide variety of business activities at different stages of the investment process available. As an industry with many interfaces to traditional industries, security technologies benefit from the German government's "High-Tech Strategy" incentive package. With available research funding volume of EUR 15 billion, incentives are provided for research projects including "scenario-oriented security research" and "technology interconnections" for the detection of toxics and the development of integrated protection systems for emergency and security services.

PHYSICAL INFRASTRUCTURE - We offer an extensive and comprehensive logistics infrastructure that integrates state-of-the-art transportation networks with the most modern telematics, IT, and telecommunications systems.

STABLE INVESTMENT ENVIRONMENT - Social, economic, and political stability provide a solid base for your investment. Our judiciary and civil services are highly professional. Contractual agreements are secure and intellectual property is strictly protected in Germany.

• BITKOM - Federal Association for Information Technology, Telecommunications and New Media
• BSI - Federal Office for Information Security
• TeleTrusT - IT Security Association Germany