Nordic cybersecurity positioned for long-term growth

As the Nordic region pushes ahead with digital transformation and braces for escalating cyber threats, its cybersecurity firms are experiencing strong revenue growth of over 15% per year, while profitability remains a key industry challenge. Growth slowed in 2024,, mainly believed to be driven by a weaker macroeconomic climate with high interest rates making capital less available. However, the long-term growth outlook remains strong as the complex interplay of AI-fueled threats, geopolitical tensions and new regulations is reshaping market dynamic and the opportunities for these companies. 

PwC Strategy& has closely monitored the market over time, identifying over 140 Nordic cybersecurity companies with revenues exceeding EUR 5 million. ~60 of these are specialized players that generate EUR ~2 billion in revenue and employ around 6,500 employees across the Nordics.

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Market growth slowed in 2024 after a period of sharp growth, but is expected to rebound, driven by megatrends 

The ~60 specialized firms have demonstrated very strong revenue growth over recent years, averaging 20% annually between 2020 and 2023. In 2024, growth dropped to 9% year-over-year - still above the IT-industry average -reflecting normalization of supply chain disruptions following COVID that boosted deliveries in 2022-2023, coupled with weaker macroeconomics impacting sales of new products, and increased competitive pressure on commoditized offerings. Going forward, cybersecurity growth is expected to rebound, driven by several megatrends: rapid digitalization across critical sectors that blend IT and operational technology (OT), the EU’s NIS2 directive enforcing stricter cybersecurity requirements, and a surge in hybrid warfare threats—particularly from Russia—that are prompting increased government and enterprise preparedness. According to PwC’s global Trust Insight survey, 60% of organizations expect to increase investments in cyber in response to the ongoing volatility.  At the same time, advances in Agentic AI, IoT, and cloud technologies are expanding attack surfaces and intensifying the cyber arms race between attackers and defenders. 

Read additional insights in PwC’s 2026 Global Digital Trust Insights Survey on how 4,000 business and technology executives view the market going forward, and key challenges and priorities

Profitability remains a challenge, with the industry hovering around EBIT break-even

Collective profitability across the wider industry has been relatively weak with EBIT-levels averaging 1-2% over the past 5 years. The software segment is the largest negative contributor to profitability, with major players investing heavily in product development, as well as ramping up sales, marketing, and other functions to position themselves for future growth. At the same time, managed services providers are struggling to scale efficiently due to a rapidly evolving market.

New customers require additional analysts despite advancements in AI, and developers need to continuously enhance detection logic to counter increasingly sophisticated adversaries. Yet not all players were equally affected. A selection of a few companies stand out by demonstrating strong profitability, driven by scalable managed services through partnerships or utilizing third-party technologies, automation, and refined go-to-market and pricing strategies.

The cybersecurity market presents opportunities and challenges for both corporates and Private Equities to navigate going forward. 

Strategy& and PwC can help vendors, investors and management teams navigate the rapidly evolving cybersecurity market.