The Ukrainian cybersecurity market is showing strong growth and is not going to stop
8 January 12:42
The Ukrainian market for cybersecurity solutions and tools has quadrupled over the past eight years, reaching $138 million in 2024. According to forecasts, the market will grow by another 50% over the next five years to reach $209 million. This is evidenced by the results of a study by DataDriven Research & Consulting, "Komersant Ukrainian" reports.
The key segment of the Ukrainian cybersecurity market is network security, with cloud security, data protection, and endpoint protection showing the fastest growth, reflecting the growing demand for new technologies and solutions in Ukraine.
Key drivers of the cybersecurity market in Ukraine
The driving forces behind the growth of this segment of the Ukrainian market are
– widespread adoption of digital solutions in business and the public sector,
– constant Russian attacks aimed at critical infrastructure, business and public services,
– growing financial and reputational damage from cyberattacks,
– increased use of artificial intelligence,
– stimulation of the market by international technical assistance projects and programs.
Innovations, such as the use of artificial intelligence to automate response and blockchain to protect data transmission, are shaping new approaches to security.
Key trends in the cybersecurity market
According to a study by DataDriven Research & Consulting, network security will remain the largest segment with a share of 36% by 2029, while cloud security will show the most dynamic growth. At the same time, Ukrainian software developers will continue to lag behind international players in terms of complexity of solutions, and the principles of “zero trust” will determine new patterns of user and business behavior.
Cybersecurity in Ukraine in the context of Russia’s cyber war
Russia’s full-scale war has caused a surge in cyberattacks on Ukraine, increasing the demand for automated solutions and innovative technologies. In Ukraine, ongoing cyberattacks by Russian hacker groups such as UAC-0010 are most often carried out against government agencies, defense industry, telecommunications, financial institutions, and energy. In 2023, 2544 cyber incidents were recorded, which is 16% more than in 2022.
Ukraine is a trendsetter in the cybersecurity market. While the global cybersecurity market is currently dominated by the security services segment with a 53% share in 2024, the Ukrainian market is dominated by cyber solutions with a 57% share. Ukraine’s leadership is driven by military factors – the war has increased the number and complexity of cyberattacks on Ukraine, which has led to the rapid introduction of automated systems that require less human intervention and the search for immediate and unexpected solutions.
The study was conducted at the initiative of the EBA Cybersecurity Subcommittee and the IT Ukraine Association CyberTech Committee with the assistance of the Aspen Institute Kyiv, which implements the Cybersecurity Dialogue Program, and with the support of the USAID Project “Cybersecurity of Ukraine’s Critical Infrastructure”.
The research was conducted using a comprehensive approach that includes analysis of secondary data, expert interviews and surveys of market stakeholders, confidential analytics, and open data.
