The UK was down seven per cent in Q1, partly due to “a tougher year-on-year comparison for the UK market”

Cybersecurity sales surged 18.1 per cent year-on-year in Q1 through European distribution, boosted by strong performances in Germany and Italy, but dropped seven per cent in the UK.

Market intelligence firm CONTEXT reported that earnings skyrocketed 22.7 per cent year-on-year in Germany in the beginning of the year, after completing Q4 FY24 with an 8.9 per cent growth year-on-year.

The country has been a key contributor to the network security segment, which climbed 30 per cent year-on-year in Q1, following an 18 per cent year-on-year increase in Q4.

Infrastructure protection went up 16 per cent in Q1 after a 24 per cent year-on-year rise in Q4.

The country’s GDPR implementation and adoption of the EU’s NIS2 directive are also driving public and private sector investment.

In contrast, endpoint protection went down seven per cent in Q1 and 12 per cent year-on-year in Q4, as the expected growth from hardware refresh cycles didn’t materialise and might be further impacted by tariff changes.

In Italy, despite plummeting 23.2 per cent year-on-year in the last quarter of 2024 due to localised market disruption, cybersecurity sales have returned to trending positive, with a 37.3 per cent year-on-year increase in Q1.

France came third, as the country shared a 21.6 per cent year-on-year uptick in sales in Q1 FY25.

In contrast, the UK’s cybersecurity distribution market slowed in early 2025, down seven per cent year-on-year, due to what CONTEXT referred to as “a tougher year-on-year comparison.”

“Cybersecurity continues to dominate channel priorities in Europe, fuelled by both regulation and rising threats,” said Joe Turner, global director of research and business development at CONTEXT.

“The story of Q1 is clear: proactive investment is paying off in key regions like Germany and Italy.

“These markets are doubling down on security infrastructure in response to tighter regulations and growing awareness.

“While compliance developments such as the EU Cyber Resilience Act and others continue to shape market dynamics, CONTEXT’s data shows it is the countries investing early and deeply in security infrastructure that are pulling ahead.

“Regulation sets the tone, but it’s investment through the channel that drives outcomes.

“Distributors and vendors aligned with national priorities and enterprise demand are best positioned for success in 2025.”