European firms shift to local cybersecurity vendors, report finds

What the report found

Sales figures from Context, reported by TechRadar via The Register, show EU-based cybersecurity vendors grew revenue by 35% in the two years ending Q3 2026. Overall market sales rose by just 10% in the same period, while US vendors managed only 8% growth.

That means European vendors grew at three and a half times the market average. The figures suggest a deliberate shift by buyers rather than general market expansion.

Where European vendors are winning

According to the report, EU-based vendors see the strongest interest in security awareness training, vulnerability management and SIEM, the systems that collect and analyse security logs.

US vendors remain strong in identity and access management and cloud security. The report notes a possible link here: many European companies still run on US cloud providers, which shapes their security choices.

US vendors still dominate the market

Despite the growth gap, US vendors still hold 62% of the EMEA cybersecurity market, according to the Context figures. European firms have a long way to go before they lead the market.

The pattern mirrors a wider sovereign push. European companies have already been moving cloud workloads to local providers, and the report suggests cybersecurity is following the same path.

Sovereignty claims lack proof

An October 2026 Omdia report found that 28% of providers do not disclose evidence for their sovereignty claims. Camille Mandler, Telco B2B Research Director at Omdia, warned that no one regulates who may call themselves a sovereign AI provider.

Research VP Joe Turner said digital sovereignty is becoming a buying decision, and that customers and resellers now ask practical questions: who controls the encryption keys, who can read sensitive logs, and in which country the data is stored.

What it means for buyers

The Omdia figures show 45% of European enterprises plan to add or replace IT suppliers because of sovereignty requirements within 18 months. In North America, that figure is just 30%.

Buyers should treat sovereignty claims carefully and ask vendors for documented proof of where data is held and who can access it. The reports suggest the shift to European vendors will continue, but the market remains dominated by US firms for now.