‘Tech success story’: UK cyber security sector hits record £10bn in revenue
Britain’s tech sector continues to break records as new government data shows more than 1,800 cyber security firms generated a total of £10.1bn in revenue in the most recent financial year, a 14 per cent increase from the previous financial year.
The Department for Digital, Culture, Music and Sport Annual Cyber Sector Report, which tracks the growth and performance of the UK’s cyber security industry, revealed that the sector contributed around £5.3bn to the UK economy in 2021, rising by a third on the previous year from £4bn – the largest increase since the report began in 2018.
Employment across the industry rose by 13 per cent, with more than 6,000 new jobs created, opening up new opportunities for people up and down the UK to join the sector and share its wealth. This brings the total number of people working in cyber in the UK to 52,700.
There were 1,838 active cyber security firms in the UK in 2021. More than half are based outside of London and the South East, with cyber security showing growth in the North East and East Midlands. The report highlights this move could be a result of remote working increasing regional opportunities.
UK-registered cyber security firms attracted record levels of external investment, with more than £1bn secured across 84 deals by companies including Bristol-based Immersive Labs, which raised £53.5m, and London-headquartered Tessian which secured more than £52m in funding.
Digital Secretary Nadine Dorries said: “Cyber security firms are major contributors to the UK’s incredible tech success story.
“We are investing in skills training and business initiatives to help the UK go from strength to strength as a global cyber power and open up the sector to people from all walks of life.”
“Hundreds of British firms from Edinburgh to Bristol are developing and selling cutting-edge cyber tools around the world that make it safer for people to live and work online.”
Nadine Dorries
Over the last decade, the UK has established itself as a leader in areas including network security, threat monitoring and professional services which has contributed to the sector’s double digit growth last year.
Almost 300 UK-headquartered cyber security firms have offices in international markets, with 56 per cent offering their products and services in the United States and 46 per cent exporting to the European Union.
The UK attracted a number of foreign companies, with US-headquartered companies representing one in ten UK-based cyber companies, highlighting the importance of US-UK collaboration in this area to support the UK’s economic growth.