The Ukrainian cybersecurity market has experienced remarkable growth, quadrupling over the last eight years to reach $138 million in 2024. Projections estimate a further 50% growth over the next five years, with the market expected to hit $209 million by 2029. Network security remains the largest segment, while cloud security, data protection, and endpoint security are the fastest-growing areas, driven by increasing demand for advanced technologies.
A comprehensive study by DataDriven Research & Consulting, supported by the EBA Cybersecurity Subcommittee and the CyberTech Committee of the IT Ukraine Association, highlights transformative trends in the industry. With backing from the Aspen Institute Kyiv’s “Cybersecurity Dialogue” Program and the USAID Cybersecurity Activity, the study reveals how Russia's full-scale cyberwar has significantly reshaped Ukraine's cybersecurity landscape.
This study offers valuable insights for businesses, government institutions, and international organizations aiming to enhance Ukraine’s cybersecurity infrastructure. It combines expert interviews, stakeholder surveys, and data analysis to provide actionable recommendations for the industry.
In 2023, Ukraine faced 2,544 cyber incidents, a 16% increase from 2022, with Russian hacker groups targeting government institutions, defense, telecommunications, financial sectors, and critical infrastructure. These persistent attacks have amplified the demand for innovative, automated solutions requiring minimal human intervention.
Globally, the cybersecurity market is projected to reach $186 billion by 2024, with Ukraine’s share at less than 1%. Despite this modest percentage, Ukraine stands out as a trendsetter in cybersecurity, excelling in research and development of cutting-edge solutions.
While the global market is dominated by security services (53%), Ukraine leads with cybersecurity solutions, comprising 57% of its market. This distinction is driven by the country’s unique circumstances, including ongoing military conflicts and a surge in cyberattacks, which have accelerated the adoption of unconventional and automated systems.
Several factors are fueling Ukraine’s cybersecurity market growth:
1) Rapid digitalization across public and private sectors.
2) Continued Russian attacks on critical infrastructure and services.
3) Rising financial and reputational damages caused by cyberattacks.
4) Increased use of artificial intelligence in cybersecurity.
5) Support from international technical assistance projects.
Emerging technologies like artificial intelligence and blockchain are redefining cybersecurity strategies. Key trends include:
Network security: Remaining the largest segment at 36% by 2029.
Cloud security: Expected to grow most dynamically.
Adoption of “zero trust” principles, reshaping user and business behavior.
However, Ukrainian software developers face challenges in competing with international players regarding the complexity of solutions.
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