Cyber security

The UK is recognised as a global leader in cyber security innovation and commerce. The sector has seen significant growth in annual revenue and employment, as well as considerable investment in early-stage companies.

The UK provides significant opportunities for all businesses involved in the industry. The market is diverse, with provisions ranging from cyber professional services to endpoint and mobile security. There’s also government support for growth of early-stage companies and funding for collaborative R&D.

Opportunity highlights

Opportunities across sectors

UK cyber security has a diverse range of applications - from financial services, retail and healthcare to connected devices, infrastructure and transport. There are plentiful business opportunities, driven by the rapid growth in the UK and global cyber security markets.

A multitude of companies also provide expertise, in areas ranging from strategic consulting and professional cyber services (BAE Digital Intelligence, PwC, Deloitte) to network security (BT, NCC Group).

Whether your business is an SME or a large corporation, there’s a place to thrive within the UK market, and a diverse range of services to take advantage of.

Top market for exports

The UK has an impressive reputation for providing trusted cyber security solutions to organisations across the world. In 2022, UK cyber security exports were worth £6.2 billion, an increase of 21.8% from 2021 in nominal prices.

The Department for Business and Trade (DBT) supports cyber security companies to export to new and existing markets, providing valuable market insights to achieve success and events and engagements both in the UK and overseas for companies to make new business connections.

Talent and skills

With almost 50,000 employed across the industry, the UK already boasts a well-developed cyber security sector. As the sector continues to grow, so does the demand for talent. To address this demand, the UK provides over 130 masters programmes in cyber security and various internships, creating a pipeline of specialists to meet growing demand.

This ability is strengthened by a contingent of 19 government-recognised and supported Academic Centres of Excellence in Cyber Security Research (ACE-CSRs). These enhance the quality and scale of cyber security research, and strengthen the link between academic institutions, the government, and business.

Support for early-stage companies

Various incubators and accelerators support early-stage companies in their growth and development, reflecting the UK’s desire to promote and develop the domestic cybersecurity industry.

For example, the National Cyber Security Centre (NCSC) For Start-ups programme, working in collaboration with Plexal, offers services for start-ups at all stages of maturity. This covers from companies developing a minimum viable product (MVP), to those with established solutions looking to expand into new markets.

Industry investment

The UK has strong investment from established global cyber companies such as Sophos, BT and Titania. This is combined with support for SMEs and start-ups through the Cyber Growth Partnership.

Further financial support for technology development comes from InnovateUK and UKRI’s Industrial Strategy Challenge Fund, including its Secure by Design Challenge.

Specific support for start-ups comes from a range of accelerator programmes such as CyLon and Betaden, supported by NCSC and GCHQ. These programmes solidify the UK’s position as a global leader in cyber security.

Commercial maturity

As of 2022, the sector was worth £10.1 billion. It’s a robust and developed market, forged by the talent and prospects the UK offers, with proven resilience.

With more than 1200 early-stage cyber security companies and multiple internationally renowned cyber security clusters, such as Manchester, Gloucestershire, Belfast and South Wales, the UK provides world-class business opportunities. This is bolstered by the support and incentives provided by the government to strengthen growth and innovation in the sector.

Key UK assets

Several regions across the UK are internationally recognised as centres of cyber expertise and growth.

Gloucestershire

Home to the Government Communications HQ (GCHQ) and the NCSC, Gloucestershire has a number of key assets, including the C11 Cyber Security and Digital Innovation Centre, which provides incubation offices and support for start-ups.

The Golden Valley development will also provide a unique environment to stimulate cyber security innovation, supporting start-ups, SMEs and larger companies.

Northern Ireland

Belfast is the leading destination city globally, for US Foreign Direct Investment in cyber security development projects. Northern Ireland provides specialist university research centres, such as the Centre for Secure Information Technologies (CSIT) at Queens’ University Belfast, is home to innovative start-ups, and hosts an impressive cluster of international cyber security investors.

The CSIT is globally renowned – a partner of choice for big-name multinationals and a dynamic motor of local growth.

Greater London and South East

London offers a wealth of market opportunities, with 28% of the UK’s cyber security firms. This is bolstered by a multitude of universities in the wider London and South-East area, providing the talent pool to meet the vast demand within this sector.

Scotland

Scotland has a fast-growing digital security sector, with the number of cyber security firms increasing 300% from 2017 to 2019, highlighting the strength of the region.

Wales

Wales provides world-class talent, with centres of academic excellence such as the National Cyber Security Academy and the Centre for Cyber Security Research at Cardiff University. It’s also home to significant investment projects, such as the Airbus Cyber Security Centre of Excellence.

Herefordshire and Worcestershire

Hereford is home to the Cyber Quarter – Midlands Centre for Cyber Security project, a £9 million centre of excellence for cutting-edge research and development in this sector. The centre supports businesses by develops their skillsets, and leads in cyber security testing, research and development.

Manchester

Manchester has nurtured homegrown digital security companies and attracted established cyber divisions of global defence companies, as well as consulting firms. It’s now also home to the newest GCHQ facility, placing the city at the heart of the nation’s cyber security effort.

The region is also home to the newly created National Cyber Force, at Samlesbury, representing a £5 billion investment.

R&D capability

The UK is an excellent location to conduct research and development in cyber security. It has 19 Academic Centres of Excellence in Cyber Security Research (ACE-CSR) recognised by the NCSC and the Engineering and Physical Sciences Research Council (EPSRC), and more than 130 master's programmes.

The Knowledge Transfer Network has a dedicated group focused on security. This helps to connect universities with business and investors, fostering creativity and innovation.

Individuals based in a UK academic institution can apply to the only pre-seed accelerator programme in the cybersecurity ecosystem, CyberASAP. This plays a unique and vital role in supporting cyber security innovation and commercialisation.

Financial support to the sector also enhances the UK’s R&D capabilities. The UK Cyber Cluster Collaboration (UKC3), funded by the Department for Science, Innovation and Technology (DSIT), boosts cyber security growth across the country, stimulating innovation and supporting cyber skills development.

Business and government support

Expanding the talent pool is also a key part of the UK’s goals. The Cyber Skills Immediate Impact Fund seeks to increase the diversity and numbers of those working in the UK’s booming cyber security sector. An example of this work is the UK’s Cyber Neurodiversity Network which supports neurodiverse individuals to work in the sector, in line with the UK’s aim to develop all aspects of the industry.

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