Record year for UK’s £8.9bn cybersecurity sector

Record £800 million of investment raised by firms in the last year

The UK’s growing cyber industry attracted record investment last year despite the global pandemic according to a new government report.

The new figures reveal an increase in the number of cybersecurity 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 cybersecurity 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 £8.9bn, with a record £800 million of investment raised by firms. 

The main findings from the report are: 

• Despite the current economic climate, 2020 was a new record year for cybersecurity investment with UK cybersecurity 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 workforces are employed by large firms (250+ employees).

Digital Minister Matt Warman will announce the findings at a CyberASAP event today, which gives UK researchers the opportunity to showcase their innovative new cybersecurity products to potential buyers.

Ahead of the event, Warman commented on the findings: 

“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. 

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