Sweden - Cyber Security Opportunities
Sweden is one of the most well-connected countries in the world with over 93 percent of the population having access to internet. The growth of online activity is accompanied by increased reported cyber crime. An estimated one in five Swedes was exposed to some form of cyber crime, resulting in notable financial losses.
To adapt to this development, and to comply with the EU Directive on security of network and information systems the Swedish government launched a national strategy for cyber security in 2017 with several strategic areas, among them the enhancement of incident prevention capacity and systemic security. Government agencies are required by law to report IT security incidents. In accordance with the NIS-directive, a law has been proposed that would also apply this requirement on operators of essential services in seven systematically important sectors: (1) energy, (2) transport, (3) finance and (4) financial infrastructure, (5) healthcare, (6) drinking water supply, and (7) digital infrastructure.
Demand for cyber security solutions is rapidly growing in response to increased security awareness. In a recent FICO/Ovum survey of security executives at Swedish firms, 52 percent stated that they planned to increase investment in cyber security in the coming year to match an expected increase in data breaches. Likewise, Business Monitor forecasts overall software sales to increase annually by 5 percent in the coming five years, and the cyber security market itself to grow by approximately 8 percent per year.
Given the wide scope of IT security, opportunities exist to supply organizations of all sizes. The public sector and critical infrastructure account for roughly 30 percent of cyber security solutions demand. With the overall increase in IT security awareness, the new strategic and regulatory framework, and the government’s pledge to continue the improvement of Swedish cyber security capabilities, public sector investment in this area is expected to continue to increase.
Other sectors with high IT security demand are the financial (fintech) and advanced manufacturing sectors. The fintech sector is one of few sectors where protective cyber measures are already required by law. Financial firms account for one fifth of all private sector IT spending, and according to the FICO/Ovum survey, 80 percent of surveyed financial firms expected cyber security investment to be higher next year. This was a higher percentage than in any other industry surveyed.
The legacy manufacturing companies are in the process of digitalizing parts of their production with increased system integration and connected devices, and data and information moving to cloud-based applications. Industrial cyber security has a wider scope than traditional IT security, as it involves the company’s products and production processes. Almost 20% of all IT security incidents attacks occur in the manufacturing industry.
There is a growing demand for the following products and solutions:
- Software as a Service - Wireless and applications security solutions
- Anti-virus software - Managed Information Security Services
- Biometric technology - Security Information and Event Management
- Intrusion Prevention System - Unified Threat Management
U.S. suppliers should consider doing business with well-established partners when seeking to enter the Swedish market for cyber security solutions. In selling to major enterprises and/or government institutions, it can be beneficial to establish a business presence in the market, especially when competing for projects relating to national security.
For more information contact your local U.S. Commercial Service or office.stockholm@trade.gov.