CONTEXT: Cybersecurity Spending Shifts Toward Identity and Compliance as European Market Returns to Growth

LONDON, 19th  2026 - European cybersecurity distribution revenues returned to growth in April 2026, rising 10% year-over-year after a softer start to the year, according to market insights from global market intelligence firm CONTEXT. The latest findings highlight continued investment in identity, compliance and infrastructure protection technologies as organisations respond to increasingly complex cyber threats and mounting regulatory pressure. 
Insights presented during CONTEXT’s Weekly IT Industry Forum showed that Identity & Access Management (IAM) remains the fastest-growing cybersecurity segment in 2026, with revenues up 18% year-to-date across Panel Europe. Data Security followed with 13% growth, while Infrastructure Protection increased by 9%. In contrast, traditional Network Security declined by 4% year-to-date, with Endpoint Protection slipping by 1%, underlining a broader market shift toward identity-led and compliance-focused security strategies. 
The report also highlighted continued momentum within the managed services provider (MSP) ecosystem, where cybersecurity revenues grew by 17% year-over-year despite softer overall industry conditions. Italy recorded particularly strong MSP cybersecurity growth at 67% year-over-year, while Spain increased by 39% and Germany by 14%. 
“Cybersecurity investment priorities continue to evolve rapidly across Europe,” said Joe Turner, Vice President of Sales & Research at CONTEXT. “Businesses are increasingly prioritising identity, compliance and data-centric protection as attack surfaces expand and regulatory scrutiny intensifies. We are seeing a clear transition away from purely perimeter-focused security strategies toward architectures centred on access control, resilience and governance.”
The latest market update comes amid growing global concern around AI-driven cyber threats and supply chain vulnerabilities. CONTEXT highlighted several major cybersecurity developments shaping the market in recent weeks, including the emergence of advanced autonomous AI vulnerability-hunting tools, a major ransomware attack targeting Foxconn’s manufacturing operations, and one of the largest reported breaches in the education sector after a cyberattack allegedly exposed the data of 275 million users on the Canvas platform. 
“Cybersecurity is no longer only about defending networks,” Joe added. “The market is adapting to a world where AI can both strengthen and accelerate attacks, while supply chain exposure and third-party risk continue to grow in importance. Organisations are responding by investing in technologies that provide stronger visibility, identity assurance and operational resilience.”
About CONTEXT
CONTEXT is a B Corp certified provider of market intelligence and analytics for the global technology industry. The company works with leading manufacturers, distributors and investors to support strategic decision-making through advanced forecasting, analytics and data management. CONTEXT systems track more than £200 billion in annual technology sales transactions, supported by a global team of over 400 professionals operating in more than 35 countries.
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Funda Cizgenakad
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