UK cyber security sector sets new records for revenue and job creation

Employment, job creation and revenues were up - and the East Midlands and North East are becoming a hotbed for security development

The UK's cyber security sector continued to grow last year, with revenue up 14 per cent and new job creation rising by more than 6,000, according to the Government's Cyber Security Sectoral Analysis 2022 report, released last week.

Since 2018, the annual Cyber Security Sectoral Analysis report has tracked the growth of the UK cyber security sector, highlighting the impressive performance of British companies.

The latest research provides the most recent data on the number of firms operating in the UK cyber security sector, the products and services they offer, the number of people employed, and the sector's overall contribution to the British economy.

2021 was a record year for external investment in the sector, with companies cross the UK raising over £1 billion across 84 deals.

Among those firms are Bristol-based Immersive Labs and London-based Tessian, both which raised more than £50 million.

The cyber security sector contributed about £5.3 billion to the UK economy last year, up from £4 billion in 2020 - the highest growth since analysis began in 2018. Revenue surpassed £10 billion for the first time.

Employment in the industry rose 13 per cent and the sector created over 6,000 new jobs, raising the overall number of people working in the UK cyber security sector to 52,700.

The number of active cyber security firms in the country increased to 1,838, more than half of which are based outside of London and the South East.

The East Midlands and North East regions are now showing the highest growth in cyber security.

"Over the last decade, we have established the UK as a cyber power, through building cutting-edge cyber security capabilities, and significant growth in our cyber security sector," said Julia Lopez MP, minister of state for media, data, and digital infrastructure.

"We know that work must continue to ensure the UK remains resilient and prosperous, and that this is shared across all parts of the country as part of the Levelling Up agenda. We have therefore continued to support investment, skills, and collaboration across the cyber security ecosystem."

Digital secretary Nadine Dorries said the Government has been "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."

The growth in the UK cyber security sector follows the launch of the Government's National Cyber Security Strategy (NCSS), which aims to boost cyber skills and drive further growth in the sector.

The NCSS document, published in December, describes the Government's vision to protect the nation from hostile states and organised crime while promoting the country as a leader in the field.

The Strategy is based on the premise that UK cyber power will be of increasing importance in the digital age, and that sustaining our cyber power requires a comprehensive and integrated strategy touching all parts of society: the classroom and boardroom will be as important as the actions of tech experts and politicians.

The government says it will drive the programme with £2.6 billion of funding over the next three years to carry out both offensive and defensive cyber warfare.

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