Cybersecurity sector revenue reaches £14.7 billion in UK
The UK cybersecurity sector grew in revenue and firm numbers, but workforce growth slowed to its lowest rate since 2018.
The UK cybersecurity sector generated £14.7 billion in annual revenue and £9.1 billion in gross value added, according to the government’s Cyber Security Sectoral Analysis 2026.
The report, commissioned by the Department for Science, Innovation and Technology and produced by Ipsos and Perspective Economics, identifies 2,603 firms active in the UK cybersecurity market. That marks a 20% increase from the previous report, which identified 2,165 firms.
Employment in the sector reached about 69,600 full-time equivalent roles, an increase of around 2,300 jobs, or 3%, over the past year. The report says this is the lowest recorded employment growth rate since the series began in 2018, suggesting a softening in workforce growth.
Revenue rose by around 11% from last year’s estimate of £13.2 billion, while gross value added increased by 17%. The report also estimates GVA per employee at £131,200, up from £116,200, suggesting higher productivity within the cybersecurity ecosystem.
The analysis also points to growth in AI security and software security. It estimates that 111 firms active and registered in the UK now clearly offer cybersecurity for AI systems as an explicit product or service, up 68% from the previous baseline. Of those, 32 are specialist providers focused mainly or exclusively on AI security, while 79 offer AI security as part of a broader portfolio.
Software security is also expanding across the market. The report estimates that 1,141 firms provide software security services, an increase of 181 firms, or 19%, from the previous baseline. Nearly half of all UK cybersecurity providers appear to be involved in software security provision, with application security, cloud and container security, secure development, supply chain security, and DevSecOps highlighted as key areas.
Investment remains more subdued. Dedicated cybersecurity firms raised £184 million across 47 deals in 2025, down 11% from £206 million across 59 deals in 2024. The report says investors highlighted AI security and post-quantum cryptography as key themes, while also noting procurement barriers and limited UK growth-stage capital as ongoing concerns.
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