Cybersecurity demand boosts distie and MSP revenues across Europe: CONTEXT
IAM, data security and infrastructure protection drove the rebound following a slow start to the year
European cybersecurity distribution revenues returned to growth in April, increasing ten per cent year-on-year following a softer start to 2026, according to market intelligence firm CONTEXT.
The latest figures point to continued customer investment in identity, compliance and infrastructure protection technologies as organisations respond to increasingly complex cyber threats and growing regulatory pressure.
Identity and access management (IAM) remained the fastest-growing cybersecurity segment across Europe in 2026, with earnings up 18 per cent since the start of 2026.
Earlier this year, CONTEXT projected that IAM would become the central policy layer for both human and AI agents across hybrid environments.
Data security followed with 13 per cent growth, while infrastructure protection rose nine per cent.
On the other hand, more traditional cybersecurity segments continued to soften, with network security dipping four per cent and endpoint protection slipping one per cent.
The figures reflect what the firm described as a wider market shift towards identity-led and compliance-focused security strategies.
“Cybersecurity investment priorities continue to evolve rapidly across Europe,” said Joe Turner, VP of sales and research at CONTEXT.
“Businesses are increasingly prioritising identity, compliance and data-centric protection as attack surfaces expand and regulatory scrutiny intensifies.
“We are seeing a clear transition away from purely perimeter-focused security strategies toward architectures centred on access control, resilience and governance.”
MSP cyber demand surges
The report also pointed to continued momentum across the MSP ecosystem.
Cybersecurity turnover through MSPs rose 17 per cent year-on-year despite softer overall market conditions.
Italy recorded the strongest MSP cybersecurity growth at 67 per cent year-on-year, followed by Spain at 39 per cent and Germany at 14 per cent.
CONTEXT said the latest market trends come amid increasing concern around AI-driven cyber threats and supply chain vulnerabilities.
“Cybersecurity is no longer only about defending networks,” Turner explained.
“The market is adapting to a world where AI can both strengthen and accelerate attacks, while supply chain exposure and third-party risk continue to grow in importance.
“Organisations are responding by investing in technologies that provide stronger visibility, identity assurance and operational resilience.”