According to the DCMS annual cyber sector report, the UK’s growing cyber industry attracted record investment in 2020, despite the global pandemic. With Covid-19 forcing more business and social activity online, the new figures reveal an increase in the number of cyber security companies and people working for them.

The report, which tracks the UK’s cyber security industry across a range of indicators between April 2019 and December 2020, reveals a 21% increase in firms operating in the field, bringing the total number to 1,483. There was a 9% rise in employment in the industry with more than 3,800 new full-time jobs created, bringing the total number of people working in the sector to 46,683.

The sector is now worth an estimated £8.9 billion, with a record £800 million of investment raised by firms.

The main findings from the report are:

• despite the current economic climate, 2020 was a new record year for cyber security investment with UK cyber security businesses raising over £821 million across 73 deals, more than twice that raised in 2019;
• the sector’s total annual revenue has continued to rise (by 7%), reaching £8.9 billion within the most recent financial year;
• the sector contributed more than £4 billion to the economy, up 6% in the last year, with mainly mature firms driving growth; and
• the majority (65%) of the 46,683 cyber workforce are employed by large firms (250+ employees).

This year’s survey also suggests that more than half of firms (54%) are now based outside of London and the South East, with cyber security clusters flourishing across the country in areas such as Scotland, Northern Ireland and North West England.

The most commonly provided cyber security products and services include cyber professional services, threat intelligence, monitoring, detection and analysis. The research highlights particular growth in firms offering solutions for industrial control systems and IoT security, demonstrating the sector’s ability to adapt and meet emerging challenges, such as the need to secure smart cities.

The data reveals that while nine in ten companies (89%) felt Covid-19 had impacted their business, many of these firms have quickly adjusted and innovated within the current economic climate.

While the number of cyber security firms continued to grow despite the pandemic, the Government recognises the importance of making sure small and medium-sized scale-ups can continue to access support to grow in the years ahead. To read the Government’s press release in full and for a link to the report, click here.