Research report for the Department forScience, Innovation and Technology March 2025 Contents 1Introduction.................................................................................................................................7 2.1Defining the UK Cyber Security Sector....................................................................................122.2Number of Cyber Security Firms Active in the UK..................................................................132.3Products and Services Provided...............................................................................................19 3Location of Cyber Security Firms..........................................................................................23 3.1Introduction..................................................................................................................................233.2Location of Cyber Security Firms in the UK............................................................................233.3International Activity...................................................................................................................25 4Economic Contribution of the UK Cyber Security Sector..................................................26 4.1Estimated Revenue.....................................................................................................................264.2Estimated Employment...............................................................................................................304.3Estimated Gross Value Added (GVA).......................................................................................35Time-Series Analysis............................................................................................................................36 5Investment in the UK Cyber Security Sector........................................................................38 5.1Introduction..................................................................................................................................385.2Investment to Date......................................................................................................................385.3Investment by Location..............................................................................................................405.4Investment by Size......................................................................................................................41 6Supporting growth of the sector............................................................................................46 6.1Introduction..................................................................................................................................466.2Recent Investments and Support Initiatives............................................................................466.3Sector Engagement.....................................................................................................................496.4Cyber Security Exports...............................................................................................................50 7Emerging Market Trends.........................................................................................................557.1Introduction..................................................................................................................................557.2AI Security....................................................................................................................................567.3Software Security........................................................................................................................58Regional Snapshots.....................................................................................................................60 Foreword The UK's cyber security sector stands as a cornerstone of our ambition to drive sustainable economicgrowth through technology leadership. This year's analysis demonstrates exceptional performance, with This growth translates directly into high-value employment opportunities across thecountry.The sectornow employs an estimated67,300 people, creating 6,600 new jobs in the past year alone, andis a key The government's recently published AI Opportunities Action Plan sets out our bold vision for UKleadership in artificial intelligence. Cyber security is fundamental to realising this ambition, ensuring AIsystems are secure and trustworthy by design.Cybersecurityiscritical to our economic resilienceandunderpinsthe deployment of all emerging technology, but alsothe routine transactions, from banking to This all means that cyber security products and services are in demand, not just here, butglobally. TheUKcyber security sectorisastronggrowth market,deliveringimpressive capabilities.The geographicalspread of cyber security firms–with half located outside London and the South East, and growth ine