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Luxembourg’s Cybersecurity Sector Poised for Growth as New Businesses Emerge

LUXEMBOURG - With an estimated 4,957 employees in the cybersecurity sector, Luxembourg is set to play a key role in shaping the European market. According to recent data from Editusdata and the Luxembourg Business Register, the country’s small companies are expected to become medium-sized enterprises, with a strong focus on serving local customers.

A Thriving Cybersecurity Ecosystem

The Luxembourg cybersecurity ecosystem has been identified as one of Europe’s “cyber valleys,” offering an almost exhaustive supply of solutions covering the risk management value chain. The sector has a slight specialization in risk identification and systems protection, making it an attractive destination for companies targeting the finance and banking sectors.

  • 58 out of 60 ECSO categories are offered by providers in Luxembourg.
  • The top seven solutions in the country cover 61% of the market.
  • Governance, risk & compliance and identity & access management are key areas of focus.

Boosted Demand for Cybersecurity Solutions

The implementation of the GDPR directive has also boosted data security services within the ecosystem, further solidifying Luxembourg’s position as a leading player in the cybersecurity sector.

Future Outlook

Industry experts predict that new businesses will enter the market, driven by the growing demand for cybersecurity solutions. The EU is expected to play a key role in facilitating the development of the cybersecurity value chain, with the goal of creating a “geographic constellation” of “cyber valleys.”

“This would enable local cyber security SMEs to quickly access the European market and create a critical mass of growth companies,” said ECSO officials.

Key Insights

  • Luxembourg’s cybersecurity sector has an estimated 4,957 employees.
  • The country’s small companies are expected to become medium-sized enterprises, with a strong focus on serving local customers.
  • Luxembourg’s cybersecurity ecosystem offers an almost exhaustive supply of solutions covering the risk management value chain.
  • Governance, risk & compliance and identity & access management are key areas of focus in the sector.
  • The implementation of the GDPR directive has boosted data security services within the ecosystem.

What’s Next

As the demand for cybersecurity solutions continues to grow, Luxembourg is likely to become an even more important player in the global cybersecurity landscape. New businesses will enter the market, and existing small companies will grow into medium-sized enterprises, further solidifying the country’s position as a leader in the sector.