The European Commission and the EIB have published a study analysing the cybersecurity sector in Europe.
The EU cybersecurity industry is lagging behind global leaders, including the United States and Israel.
A new European Cybersecurity Investment Platform is being proposed to improve the sector’s access to finance and venture capital.
To mark Luxembourg Cybersecurity Week, the European Commission and the European Investment Bank (EIB) published a joint report, European Cybersecurity Investment Platform, today. The report was developed with the support of the European Investment Advisory Hub.
The report highlights the financing needs of cybersecurity enterprises across Europe and the challenges they face in growing their business, including sourcing skilled and qualified workers. It proposes recommendations to enhance their growth prospects in Europe through additional finance mechanisms.
The study outlines the design of a dedicated investment platform to help the cybersecurity sector to close the finance gap and boost economic development in the European Union.
Upon the launch of the study, EIB Vice-President Kris Peeters said: “Given the critical situation we are facing in Eastern Europe, we need to reinforce our cybersecurity sector to safeguard our digital growth and bring Europe to the forefront of this strategic field. I am confident that this investment platform will mobilise considerable additional investments to retain cybersecurity companies in Europe, bringing about economic development and growth. We stand ready to support this sector with finance and technical assistance.”
The report shows the fragmented and low public spending in cybersecurity in the European Union, with a lack of government-led programmes and strategies. The EU cybersecurity financing landscape lacks sufficient dedicated investors committed to growing the sector, causing companies to look outside Europe for suitable financing partners. In addition, many small EU businesses in the field are being acquired by non-EU companies, reinforcing the trend of these companies growing their business elsewhere, with considerable economic losses.
This assessment suggests that a considerable market gap exists between the EU and the US, which is by far the leading country in this sector, possibly in the region of €1.75 billion/year. This underlines the importance of continued support for the growth dynamics of the European cybersecurity market to further boost the EU’s steady annual growth, which currently stands at almost three times that of Israel and the United States.
The European Investment Bank (EIB) is providing €30 million to support the research, development and innovation activities of MERMEC Group, an Italian multinational headquartered in Monopoli and a world leader in the design and development of integrated diagnostics, signalling, and railway, metro and tram infrastructure maintenance solutions. The agreement was signed by EIB Vice-President Gelsomina Vigliotti and MERMEC Group Chief Financial Officer Michele Costa on the side-lines of an event in Matera organised by the EIB and Confindustria Puglia e Basilicata to promote EU bank financing opportunities for businesses in the Puglia and Basilicata regions.
Europe’s 15 best social innovators will compete at the grand finale of the 12th European Investment Bank Institute Social Innovation Tournament, which will be held in Stockholm on 28 September under the auspices of EIB Vice-President Thomas Östros.