Review of how the first half of the year has gone indicates that overall the market is growing, although the UK could pick up steam compared with mainland Europe
There are few things in the channel that are predictable, but along with death and taxes, the idea there is continued growth in the security market is a fair assumption.
According to figures from Context, which tracks sales through Western distributors, the security market delivered double-digit growth in the first half of this year. Revenue through European IT distribution grew 13% year-over-year, with a number of factors driving that growth, including regulatory pressure, the need for greater levels of data protection and market consolidation.
The UK lagged some of its European competitors when it came to growth, but it was always going to be difficult comparing 2025 against a particularly strong H1 in 2024.
The first half of 2025 saw a number of consolidation moves made by vendors keen to bolster and extend their market reach. Headlines were generated by the move by Palo Alto Networks for CyberArk, but there were several smaller moves made during the period that will have implications for both the channel and customers.
On the compliance front, the EU continues to generate regulations that customers need to adhere to and be aware of, with the introduction of the cyber blueprint to create a shared response from member states to cyber attacks.
“Cyber security is no longer a niche IT investment, it’s a core part of business resilience,” said Joe Turner, global director of research at Context. “From compliance to AI-driven fraud, companies across Europe are waking up to the risks and prioritising spend accordingly. The result is strong, broad-based market growth,” he added.
In addition to the compliance and data protection requirements, there are also signs that AI is a factor that is driving increased security spending, with customers aware they need to defend themselves against increasingly complex threats.
Turner said that AI was a technology that offered the channel and their customers the chance to improve their operations, but at the same time it was being exploited by cyber criminals.
“We’re at a tipping point,” he added. “While AI supercharges productivity, it’s also arming threat actors with tools that are harder to detect, faster to deploy and increasingly convincing. That’s fuelling security investment across all layers, from endpoint to cloud.”
All the ingredients are there – with compliance in the form of the likes of NIS2, high-profile ransomware attacks on victims including Ingram Micro, and zero-day exploits including the ongoing SonicWall VPN vulnerability – to give Context the confidence to forecast a strong second half for the security market through the channel.
Context’s security market analysis comes just a day after the analyst house announced it was partnering with IDC and the Global Technology Distribution Council (GTDC) to generate a data source that can guide decisions across the channel.
IDC will bring data insights and the fruits of its North America weekly distributors sales database, while Context adds its expertise and connections with distributors across Europe and the Middle East, and GTDC will contribute daily invoiced sales data.
“Since 2021, IDC has successfully collaborated with the GTDC to deliver robust data solutions to the North American market. Subsequently, for several years, we have also worked with Context as a source of world-class EMEA sell-through data,” said Meredith Whalen, chief research and data officer, IDC.
“Formalising these relationships and combining Context’s data processing with IDC’s industry-leading data and analysis will synergise distribution data across the US, EMEA and now APAC. It represents a remarkable opportunity for both vendors and distributors to optimise their global business operations.”
Frank Vitagliano, CEO at GTDC, also welcomed the move: “GTDC and its members view this partnership as a game-changer, uniting the two best-in-class data and analysis companies to deliver immense benefits to our members and vendors.”
