European cybersecurity vendors are experiencing rapid growth, outpacing the overall market by more than three times. According to a Context report, sales from EU‑based vendors surged 35% over the two years ending in Q3 2026, while total market sales rose just 10%. In contrast, U.S. vendors recorded only an 8% increase during the same period.
Despite the strong momentum, U.S. providers still dominate the EMEA region, holding roughly 62% of the cybersecurity market. This indicates that European firms have a long way to go before they can surpass their American counterparts.
EU vendors are attracting the most interest in security awareness training, vulnerability management, and SIEM solutions. Meanwhile, U.S. companies continue to lead in identity and access management and cloud security—areas closely tied to the prevalence of U.S. cloud services.
Research VP Joe Turner highlighted the growing influence of digital sovereignty on procurement: “As customers and resellers get clearer about what it means in practice, they’re asking who holds the encryption keys, who can access sensitive logs and where that data is stored.”
However, sovereignty claims are not uniformly regulated. An October 2026 Omdia report revealed that up to 28% of providers fail to disclose proof of sovereignty. “No one is regulating who can call themselves a sovereign AI provider,” warned Telco B2B Research Director Camille Mandler.
The shift is already affecting enterprise plans. Nearly half (45%) of European enterprises intend to add or replace IT suppliers to meet sovereignty requirements within the next 18 months, compared with just 30% of North American companies.
