German Firms Braced for Cyberattack Surge, Spending on IT Security Soars
German companies are bracing for a surge in cyberattacks, with 35 percent anticipating a significant increase in the coming year. This concern is reflected in a 9.7 percent rise in expenditure on IT security services, reaching 5.6 billion euros. Alarmingly, six out of ten businesses view cyberattacks as existentially threatening.
The global IT security market is projected to grow by 11.2 percent to 212.2 billion euros by 2025. In Germany, IT security spending has increased by 10.1 percent to 11.1 billion euros. This growth is driven by a 12.1 percent increase in spending on security software and cloud platforms, which now totals 4.8 billion euros. Germany's IT security market is expected to grow by 10.1 percent in 2025.
While 35 percent of German companies expect a strong increase in cyberattacks, 47 percent anticipate a slight increase. This widespread concern is understandable given the annual loss of 202.4 billion euros that cyberattacks inflict on the German economy. In response, companies are allocating 18 percent of their total IT budget to IT security, up from 9 percent in 2022.
The global IT security market is set to grow at a faster pace than Germany's, with the rest of Europe and the world expected to increase their spending by 10.9 percent and 11.4 percent respectively, compared to Germany's 10.1 percent. As cyber threats escalate, German companies are investing more in IT security, recognizing its critical role in protecting their businesses and the wider economy.
