Romania Cybersecurity - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Romania Cybersecurity - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Romania Cybersecurity Market size is estimated at USD 175.15 million in 2024, and is expected to reach USD 293.67 million by 2029, growing at a CAGR of 10.89% during the forecast period (2024-2029).

Key Highlights

• Romania, long recognized for its prowess in IT, is now experiencing a sharp uptick in the demand for cybersecurity solutions. This surge is propelled by a number of factors, including rising cyber threats, evolving government regulations, and the swift pace of digitalization among businesses and government bodies. In Romania, cyber threats have surged notably in recent years with increasing ransomware, phishing, and sophisticated advanced persistent threats (APTs), compelling organizations to prioritize cybersecurity. Notable incidents like the WannaCry and NotPetya attacks have only emphasized the urgent need for robust cyber defenses.
• Currently, Romania's critical infrastructure is under siege from cyberspace threats. An Oxford University report places Romania as the sixth most vulnerable country to cybercrime. This heightened risk stems from the growing interconnectivity between cyberinfrastructure and vital sectors like banking, transportation, energy, and national defense. As cyberspace's reach expands globally, the threats to citizens, businesses, and the government are set to escalate.
• Further, the Romanian government has undertaken various initiatives to bolster the nation’s cybersecurity capabilities. The establishment of the National Directorate of Cyber Security (DNSC) reflects a commitment to creating a secure digital environment. Public-private partnerships are encouraged to enhance government and private sector collaboration.
• For instance, in February 2024, the Romanian government strengthened the nation's cyber security and defense legislation under the Ministry of Research, Innovation, and Digitalization (MCID). This initiative was solidified with the government's approval of the Methodological Norms, as outlined in Article 25 of Law no. 58/2023, which focuses on Romania's cyber defense and security.
• While the Romanian cybersecurity sector is promising, it grapples with notable challenges. A pronounced skills gap underscores the shortage of trained cybersecurity professionals, a hurdle that must be overcome to fuel the sector's growth. Moreover, many small and medium-sized enterprises (SMEs) in Romania struggle to afford robust cybersecurity measures, exposing them to potential cyber threats. However, in the long term, the adoption of cybersecurity solutions is expected to grow, driving the overall market.

Romania Cybersecurity Market Trends

Rising Demand for Data Security

• Romania's cybersecurity market is witnessing a significant surge, propelled by a growing need for data security. With the growing digital expansion and evolving cyber threats, the imperative to protect sensitive data has reached new heights. Rising cyber-attack frequencies, stringent regulations, and the pervasive digitalization of both businesses and government entities underpin this heightened demand.
• Further, according to the data center map report 2023, Romania had the highest number of data centers in Central and Eastern Europe after Russia. This indicates that the country is witnessing much data generated in Romania. This increasing data generation also exposes organizations to new cyber risks. Ensuring data security in this digital ecosystem becomes paramount, leading to increased investment in cybersecurity solutions.
• The Romanian government has set up the National Directorate of Cyber Security (DNSC) to strengthen the nation's cybersecurity. This organization showcases a dedicated push for a safer digital landscape. Emphasizing collaboration, the government actively bolsters public-private partnerships, bridging the gap between the state, private enterprises, and academia. Through educational schemes and public campaigns, the government strives to instill a robust cybersecurity ethos, underlining the criticality of data security for entities and citizens.
• Moreover, the future of Romania’s cybersecurity market looks promising. With evolving technology, the demand for advanced data security solutions will grow. Innovations in artificial intelligence (AI) and machine learning are expected to enhance cybersecurity practices, offering improved threat detection and response capabilities. The integration of these technologies into frameworks of cybersecurity will likely become more prevalent, further driving market growth.

Growing Use of Cybersecurity Solutions in the Retail and E-commerce Sector

• The retail and e-commerce sector in Romania is undergoing significant digital transformation, spurred by increased internet penetration and the growth of online shopping. The need for advanced cybersecurity measures has become increasingly critical as this sector becomes more reliant on digital technologies. Cyber threats targeting retail and e-commerce businesses are rising, driving demand for advanced security solutions to protect sensitive customer data and maintain trust.
• In recent years, the country's retail and e-commerce sector has seen a surge in growth. Post-pandemic, consumers increasingly opt for the convenience and security of digital transactions. To keep pace and elevate customer experiences, retailers are channeling significant investments into digital platforms, mobile apps, and omnichannel approaches. However, this shift toward digitalization, while advantageous, brings with it a heightened vulnerability to cyber threats such as data breaches, payment fraud, and phishing.
• Further, stringent regulatory requirements in Romania's retail and e-commerce sectors fuel the demand for cybersecurity. The General Data Protection Regulation (GDPR) mandates that businesses safeguard personal data, with severe penalties for non-compliance, including significant fines and reputational harm. Furthermore, Romania's National Cyber Security Strategy specifically targets bolstering cybersecurity resilience in sectors like retail and e-commerce. Adhering to these regulations is not just a best practice; it's a necessity for businesses looking to protect their operations and stay clear of legal entanglements.
• Also, for retailers and e-commerce businesses, safeguarding consumer trust stands as a top priority in the country. Even a small cybersecurity breach can swiftly undermine customer confidence, causing a severe blow to a brand's standing. Today's consumers are acutely attuned to data privacy concerns, demanding that businesses safeguard their personal information. By prioritizing investments in robust cybersecurity, companies not only avert data breaches but also bolster customer loyalty and trust, thereby gaining a distinct market advantage.

Romania Cybersecurity Industry Overview

The Romania cybersecurity market is moderately consolidated, featuring major players such as HX Technologies, Microsoft Corporation, CoSoSys Ltd, Fortinet Inc., and IBM Corporation. These market participants embraced strategies like partnerships and acquisitions to bolster their solution offerings and attain a sustainable competitive advantage.

• May 2024: Eviden, a subsidiary of the Atos Group, unveiled its new launch, CloudSecOps Center, in Romania. Situated in Timisoara, this facility merges cloud and security expertise, presenting clients with an unparalleled suite of cloud services. As a pivotal addition to Eviden's worldwide Cloud Center network and in sync with its 17 SOC (Security Operation Centers) with 6,500 security experts, the Romanian CloudSecOps Center is primed to provide advanced security operations for cloud services, aligning seamlessly with EU regulations.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support