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The Ukrainian cybersecurity market 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. The key segment of the Ukrainian cybersecurity market is network security. The fastest-growing areas are cloud security, data protection and endpoint security, reflecting the increasing demand for new technologies and solutions in Ukraine.
This is evidenced by the findings of a study conducted by DataDriven Research & Consulting, initiated by the EBA Cybersecurity Subcommittee and the CyberTech Committee of the IT Ukraine Association. The study was carried out with the support of the Aspen Institute Kyiv, which implements the “Cybersecurity Dialogue” Program,and the USAID Cybersecurity Activity.
The study of the cybersecurity market in Ukraine analyses key trends, segments and innovative solutions within the industry against the backdrop of Russia’s full-scale cyberwarfare. The document provides an analysis of key technologies transforming and reshaping the country’s cybersecurity market. According to this study, Russia’s full-scale war has caused a surge in cyberattacks in Ukraine, increasing demand for automated solutions and innovative technologies. In Ukraine, persistent cyberattacks by Russian hacker groups, such as UAC-0010 predominantly target government institutions, the defence industry, telecommunications, financial institutions and the energy sector. In 2023, 2,544 cyber incidents were recorded, a 16% increase compared to 2022.
The importance of cybersecurity is growing alongside technological progress. The countries facing the highest number of cyberattacks globally include the United States, Ukraine, South Korea and China. The most common types of cyberattacks are DDoS, ransomware and phishing.
The global cybersecurity market is expected to reach USD 186 billion by 2024. Ukraine’s share is currently less than 1 percent. However, Ukraine is a trendsetter in the cybersecurity market, outperforming other countries in cyber expertise due to its work in the R&D segment, particularly in developing innovative solutions. While the global cybersecurity market is dominated by security services, accounting for 53% share in 2024, the Ukrainian market is led by cybersecurity solutions, making up 57%. Ukraine’s leadership is driven by military factors, as the ongoing war has increased the number and complexity of cyberattacks on Ukraine. This has resulted in the rapid adoption of automated systems requiring less human intervention and the pursuit of immediate and unconventional solutions.
The main drivers of the market in Ukraine are digitalization and the growing risk of tangible losses from cyberattacks. Other drivers of market growth include: (1) widespread adoption of digital solutions in business and the public sector, (2) ongoing Russian attacks on critical infrastructure, businesses and government services, (3) increasing financial and reputational damage from cyberattacks, (4) growing use of artificial intelligence and (5) market stimulation through international technical assistance projects and programs.
Innovations, such as the use of artificial intelligence to automate response and blockchain to protect data transfers, are shaping new approaches to security. The study identifies key trends in the cybersecurity market: network security will remain the largest segment, accounting for 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 the complexity of solutions, while the principles of “zero trust” will define new patterns of user and business behaviour.
The overview of the cybersecurity market in Ukraine will serve as a useful tool for businesses, governmental institutions, international organizations and global tech support projects in making decisions aimed at strengthening the cybersecurity market in Ukraine.
The research was conducted using a comprehensive approach, including secondary data analysis, expert interviews and surveys of market stakeholders, confidential analytics and open data.
The overview of the cybersecurity market in Ukraine is available in open access: Ukraine-Cybersec-Market-Review-PDF
