Danish IT security sector grows 3.4% per year from 2008 to 2016, faces skills shortage

New analysis shows a picture of an industry in strong growth, but also points to a number of barriers that must be broken down in the coming years

PHOTO CREDIT: PIXABAY
Denmark’s IT security sector is growing but faces challenges in recruiting staff with the relevant skills,according to the Danish Business Authority.

The IT security industry in Denmark counts 263 companies, which include: sells hardware and software-based IT security solutions and advice. The companies’ total turnover in 2016 was DKK 6.4 billion. and has since 2008 had an annual growth of 3.4 per cent. Towards 2022, the global market for IT security services is expected to grow by 11%. per. years, so there is a great market potential. 

Growth in the industry has been largely supported by growth in the SME segment. In 2008, the SMEs accounted for 42 per cent. of the industry’s total turnover, while in 2016 it had risen to 59 per cent. 

In total, just over 2,900 full-time employees provide IT security services. They have a high degree of education and well over a quarter have a long higher education – especially STEM (Science, Technology, Engineering & Math) and social studies programs.

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A great demand creates good conditions for innovation and growth, for example in new security solutions that use artificial intelligence to detect breaches of IT security. This can be seen by the fact that over the last few years several smaller companies have emerged with innovative security products and great growth potential.

Barriers to growth

However, there are also barriers to continued growth in the industry. The industry is highly exposed to competition, and there is a risk that Danish companies will be overtaken by foreign companies with larger development budgets. In addition, the companies find it very difficult to recruit employees with the right competencies and often have to seek candidates abroad.

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