The European cybersecurity market is exhibiting substantial expansion, reporting an 11% year-on-year increase in sales through distribution channels in the first quarter of 2025. This follows a robust conclusion to 2024, which registered an overall growth of 5.7%, indicating a clear upward trend.

Germany and Italy are the primary drivers of this growth. Germany continues to be a dominant force in the European cybersecurity market, achieving a notable 15% growth in Q1, building upon a strong 9% growth in the preceding quarter. Simultaneously, Italy has demonstrated a remarkable recovery. Following a significant -23% contraction in Q4 due to localised market factors, the nation has rebounded strongly with a 26% increase in Q1 – one of the most pronounced recoveries observed across the region.

France also registered double-digit growth at 12% in Q4. In contrast, the UK's cybersecurity distribution market has experienced a deceleration in early 2025, with a 12% year-on-year decrease. It is important to consider that this is partly due to a more challenging year-on-year comparison for the UK market.

CONTEXT’s analysis indicates that cybersecurity remains a key priority for European channels, driven by both regulatory mandates and the escalating threat environment. The trend in the first quarter clearly demonstrates that proactive investment in security infrastructure is yielding positive results in prominent regions such as Germany and Italy. These markets are demonstrably increasing their focus on security infrastructure in response to more stringent regulations and heightened awareness of potential vulnerabilities.

Germany’s strong performance is particularly evident within the network security sector, which experienced a substantial 30% growth in Q1, following an 18% increase in Q4. The nation’s rigorous implementation of GDPR and its early adoption of the EU's NIS2 directive are significant factors in driving investment across both the public and private sectors. Infrastructure protection also displayed strong momentum, with a 16% increase in Q1 after a 24% rise in the previous quarter.

Conversely, endpoint protection is exhibiting slower growth, registering a 7% decrease in Q1 and a 12% decline in Q4. While it was anticipated that this segment would benefit from hardware refresh cycles, the expected growth has not yet materialised and may be further influenced by impending tariff adjustments.

These figures reflect a broader policy evolution across Europe. While ongoing compliance developments, such as the EU Cyber Resilience Act, are undoubtedly shaping market dynamics, the data suggests that those countries making early and substantial allocations to their security infrastructure are achieving more significant progress.

In conclusion, while regulatory frameworks establish the context, it is the tangible investment through the channel that ultimately determines outcomes. Distributors and vendors who strategically align with national priorities and enterprise demands are best positioned for success within the evolving cybersecurity landscape of 2025.

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