Record levels of investment for UK's £10.1bn cyber sector

New government data shows more than 1,800 cyber security firms generated a total of £10.1 billion in revenue in the most recent financial year, a 14 per cent increase from the previous financial year.

The DCMS Annual Cyber Sector Report, which tracks the growth and performance of the UK’s cyber security industry, reveals the sector contributed around £5.3 billion to the UK economy in 2021, rising by a third on the previous year from £4 billion - the largest increase since the report began in 2018.

There were 1,838 active cyber security firms in the UK in 2021. More than half are based outside of London and the South East, with cyber security showing growth in the North East and East Midlands.

The data also indicates that UK-registered cyber security firms attracted record levels of external investment, with more than £1 billion secured across 84 deals by companies including Bristol-based Immersive Labs, which raised £53.5 million, and London-headquartered Tessian which secured more than £52 million in funding.

Digital Secretary Nadine Dorries said: “Cyber security firms are major contributors to the UK’s incredible tech success story. Hundreds of British firms from Edinburgh to Bristol are developing and selling cutting-edge cyber tools around the world that make it safer for people to live and work online. We are investing in skills training and business initiatives to help the UK go from strength to strength as a global cyber power and open up the sector to people from all walks of life.”

The National Cyber Strategy is supporting UK firms to grow and scale up through a number of schemes including the National Cyber Security Centre Startups and CyberFirst bursary schemes, the London Office for Rapid Cyber security Advancement, and the Cyber Runway programme which helps entrepreneurs and businesses access a range of services to turn their ideas into commercial successes.