LUXEMBOURGCYBERSECURITY
ECOSYSTEM
KEY INSIGHTSNOVEMBER 2020

TABLE OF CONTENTSEXECUTIVE SUMMARY4

INTRODUCTION

5

CYBERSECURITY IS A KEY PILLAR OF THE LUXEMBOURG STRATEGY FOR A SUSTAINABLE
AND COMPETITIVE ECONOMY5

MAPPING THE CYBERSECURITY ECOSYSTEM IN LUXEMBOURG

5

ADDRESSING THE NATIONAL AND EUROPEAN “TECHNOLOGICAL SOVEREIGNTY”

5

FOSTERING THE NATIONAL ECOSYSTEM AND PROMOTING IT INTERNATIONALLY

5

THE CYBERSECURITY ECOSYSTEM DASHBOARD

8

KEY INSIGHT 1:
LUXEMBOURG, A FRONT-RUNNER COUNTRY IN CYBERSECURITY

12

KEY INSIGHT 2:
A GOVERNANCE SYSTEM ADDRESSING CYBERSECURITY AS A NATIONAL SECURITY
AND ECONOMIC ISSUE 

14

KEY INSIGHT 3:
A STEADILY GROWING ECOSYSTEM

16

KEY INSIGHT 4:
A HIGH SHARE OF SMALL COMPANIES, A CHARACTERISTIC OF THE EUROPEANCYBERSECURITY ECOSYSTEM

18

KEY INSIGHT 5:

MARKET INTELLIGENCE REPORT
Authors
Sara Bouchon, Head of Market Intelligence, Luxinnovation
Pascal Steichen, CEO, SECURITYMADEIN.LU
With the contribution of Francois Thill, Director of e-Commerce and Information
Security, Ministry of the Economy

AN ALMOST EXHAUSTIVE SUPPLY OF CYBERSECURITY SOLUTIONS COVERING THE RISKMANAGEMENT SUPPLY CHAIN 

20

SOURCES

22

EXECUTIVE SUMMARY
Technological sovereignty in terms of
products, services and processes has become
an essential geopolitical issue, addressing
the importance of developing European andregional technological solutions to reduce ourdependence on non-European tech providers.
In this context, the cybersecurity mapping
aims at better understanding what services
and solutions are available in Luxembourg. Key
insights on the Luxembourg cybersecurity
ecosystem are listed below.

#1
Luxembourg is among the front-runner countries in Europe and in the world for its cybersecurity
commitment. According to the Global Security Index, it ranks 11th globally and 7th in Europe.

#2
The national cybersecurity ecosystem relies on an active collaboration between public and private
stakeholders. The key role of the Ministry of the Economy makes Luxembourg a unique case in Europe,
where cybersecurity is seen not only as a defence issue but also as an economic issue.

#3With 310 companies, the Luxembourg cybersecurity ecosystem is steadily growing: it has been growing for
20 years and has accelerated over the last 5 years (50% of companies are less than 5 years old). It is also
attractive for start-ups (65% of the new players since 2019 are start-ups).

LUXEMBOURG CYBERSECURITY ECOSYSTEMKEY INSIGHTS#4

4

While traditional IT companies provide almost half of the cybersecurity supply in Luxembourg, companies
having cybersecurity as core business represent around ¼ of the ecosystem. The ecosystem is characterisedby the important role played by companies originating from the BFSI sector (banking, financial services andinsurance) that provide cybersecurity services to local customers. The role played by small companies (79%of core business companies), and the limited number of cybersecurity key market players is typical for the EU
cybersecurity supply, where market opportunities for emerging EU solutions remain open.

#5
As one the European cyber valleys, Luxembourg is expected to play a key role in structuring the supply ofEuropean cybersecurity solutions in a still fragmented market dominated by non EU players. Solutions offeredby the national ecosystem cover almost in an exhaustive manner the risk management supply chain with aslight specialisation in risk identification and systems protection.

CYBERSECURITY IS A KEY PILLAR OF
THE LUXEMBOURG STRATEGY FORA SUSTAINABLE AND COMPETITIVEECONOMY
Digitalisation is at the heart of the Luxembourg
strategy for a sustainable and competitive
economy. A strong national cybersecurity
ecosystem is a key pillar of building a trusted
and secure environment. The emergence of
the Luxembourg cybersecurity ecosystemstarted about 20 years ago: the Grand Duchyof Luxembourg, under the lead of the Ministryof the Economy and following the OECD
guidelines “Towards a culture of security,” hasconsiderably invested in cybersecurity andthus created a competitive, dynamic, andgrowing ecosystem.
Together with SECURITYMADEIN.LU,
Luxinnovation’s Market Intelligencedepartment has produced a mapping of the
Luxembourg cybersecurity ecosystem. This
report aims at analysing the main outputs ofthe mapping exercise.
MAPPING THE CYBERSECURITY ECOSYSTEMIN LUXEMBOURG
The final objective of the cybersecurity
mapping is to provide an exhaustive view ofthe main public-private stakeholders of theecosystem, with a strong focus on the solutions
and services provided by national companies.
Luxinnovation’s Market Intelligence department
has developed a mapping methodology (Table1), combining an as-exhaustive-as-possible
set of information on the ecosystem with theexpertise of SECURITYMADEIN.LU to classify
the cybersecurity supply. The use of the ECSO
Cybersecurity Market Radar allows comparing
the national ecosystem with other European
ecosystems.

As a result, the mapping helps investors,
service providers, IT integrators, financial
investors and the general public to quickly
obtain a picture of the available players andtheir products and services in the field ofcybersecurity.
ADDRESSING THE NATIONAL AND
EUROPEAN “TECHNOLOGICAL
SOVEREIGNTY”
The mapping is a key element to promote thenational cybersecurity solutions provided by
Luxembourg companies, but it is also used at
the European level (the mapping feeds the
EU cyber valleys project, which promotes thedifferent cybersecurity ecosystems in Europe).
Technological sovereignty has become astrong geopolitical issue, addressing theimportance of developing European andregional technological solutions to reduce ourdependence on non-European tech providers.
In this context, the cybersecurity mapping
aims at better understanding what services
and solutions are available in Luxembourg.
FOSTERING THE NATIONAL ECOSYSTEM
AND PROMOTING IT INTERNATIONALLY
Under the high patronage of the Ministryof the Economy, the national ecosystem
initiative, brand and platform CYBERSECURITYLUXEMBOURG was launched in 2019 to fosterand enhance public-private cooperation incybersecurity aligned with and integrated into
the national cybersecurity strategy.
CYBERSECURITY LUXEMBOURG is led
and driven by key national cybersecurity
stakeholders: the High Commission for
National Protection and SECURITYMADEIN.LU.

LUXEMBOURG CYBERSECURITY ECOSYSTEMKEY INSIGHTS

Digitalisation is at the heart of the
Luxembourg strategy for a sustainable andcompetitive economy. A strong national
cybersecurity ecosystem is a key pillar forbuilding a trusted and secure environment.
Cybersecurity has indeed become a key factor
of attractiveness of an economy. Together
with SECURITYMADEIN.LU, Luxinnovation’sMarket Intelligence department is mapping the
cybersecurity ecosystem in Luxembourg.

INTRODUCTION

5This national brand was created to foster, promoteand give common visibility to the cybersecurity
ecosystem. It will enable the endorsement by
all stakeholders of the market to promote theLuxembourg expertise in cybersecurity at national
as well as international level.

A dedicated online platform depicting all the
relevant players will be developed in the near
future. This web portal will become the central
and neutral place for the ecosystem where
relevant news, services and information aboutcybersecurity in Luxembourg can be found.

SCOPE ANDMETHODOLOGY OF
THE CYBERSECURITY
MAPPING
Cybersecurity is no longer defined as “justfirewalls and off-the-shelf virus software”, butrather as “the collection of tools, technologies,
processes and practices that can be used toprotect networks, computers and data fromunauthorised access or attack”.

Build a database of the LU
cybersecurity ecosystem members(LXI-Market Intelligence)

LUXEMBOURG CYBERSECURITY ECOSYSTEMKEY INSIGHTS

1.

6

While the High Commission for National
Protection focused on mapping the public
stakeholders involved in the cybersecurity
ecosystem, SECURITYMADEIN.LU and
Luxinnovation focused on the private
stakeholders. To map the current cybersecurity
offering in Luxembourg, Luxinnovation’sMarket Intelligence department proposed athree-step methodology.

Expert’s review and classificationof companies using the ECSO
cybersecurity market radar(SECURITYMADEIN.LU)

Analysis of the ecosystem(LXI-Market Intelligence &SECURITYMADEIN.LU)

The database of companies providing cybersecurity services or solutions aims at being as
exhaustive as possible, combining different sources. Specific attention was dedicated to
identifying companies not having cybersecurity as core business but still delivering relevantcybersecurity solutions or services..

2. Tools and solutions provided by Luxembourg companies were classified using the ECSO
Cybersecurity Market Radar, following the five main steps of the risk management cycle:
Identify, Protect, Detect, Respond and Recover.
3. The results of the mapping are presented in the Luxembourgish Cybersecurity Ecosystem
Dashboard, expected to be regularly updated to monitor the evolution of the ecosystem.
Table 1- Methodology to map the cybersecurity ecosystem in Luxembourg

LUXEMBOURG CYBERSECURITY ECOSYSTEMKEY INSIGHTS

It is actively supported by the national innovation
agency, Luxinnovation, which also promotes
Luxembourg’s expertise internationally.

7

LUXEMBOURG CYBERSECURITY ECOSYSTEMKEY INSIGHTSTHE CYBERSECURITY ECOSYSTEM DASHBOARD

8
9

KEY
INSIGHTS

01

02

03

04

05

LUXEMBOURG, A
FRONT-RUNNER
COUNTRY IN
CYBERSECURITY

A GOVERNANCE
SYSTEM ADDRESSINGCYBERSECURITY AS A
NATIONAL SECURITY
AND ECONOMIC ISSUEA STEADILY GROWINGECOSYSTEM

A HIGH SHARE OF
SMALL COMPANIES,A CHARACTERISTIC
OF THE EUROPEANCYBERSECURITY
ECOSYSTEM

AN ALMOST
EXHAUSTIVE SUPPLYOF CYBERSECURITY
SOLUTIONS COVERINGTHE RISK MANAGEMENT
SUPPLY CHAIN

11

KEY INSIGHT 01

LUXEMBOURG, A FRONTRUNNER COUNTRY IN
CYBERSECURITY

Publication of first national
cybersecurity strategy

Country publishing a national cybersecurity strategy

2005

Germany

2006

Sweden,2008

Estonia, Finland, Slovakia

2011

France, Luxembourg issues “Stratégie nationale en matière de cyber sécurité” updated twotimes since then (in 2015 and 2018).

2013

Poland, Italy, Hungary
EU: Cybersecurity Strategy of the European Union: an Open, Safe and Secure Cyberspace

Luxembourg appears among the top 15 countries in the world highly committed to cybersecurity, according to the Global
Cybersecurity Index (GCI)1.

2018

EU General data Protection Regulation (GDPR)

Table 2 - Luxembourg is among the first EU countries to issue a national cybersecurity strategy (after Giantas, Liaropoulos, 2019).

Europe region• GCI also highlights best practices from Luxembourg in the technical and capacity-building fields.

Member State

Score

United Kingdom
FranceRegional
Rank

Global
Rank

0.931

1

1

0.918

2

3

Lithuania

0.908

3

4

Estonia

0.905

4

5

• National cybersecurity strategies emerged in Europe mainly after the 2007 Estonian cyber-attacks, which brutally raised
European awareness on cybercrime. In Luxembourg, the 2011 National Security Strategy was updated two times in 2015
and 2018 and a new update is currently prepared.

Spain

0.896

5

7

Norway

0.892

6

9

Luxembourg

0.886

7

11

• In line with the “Digital Lëtzebuerg” initiative, the third national cybersecurity strategy (2018-2020) aims at 1) strengthening
public confidence in the digital environment 2) enhancing the security of information systems, improving the ability toidentify cyber-attacks, protecting critical digital infrastructure and 3) raising stakeholders’ awareness on security andresilience.

Netherlands

0.885

8

12

Georgia

0.857

9

18

Finland

0.856

10

19

Turkey

0.853

11

20

Denmark

0.852

12

21

Germany

0.849

13

22

Croatia

0.840

14

24

Italy

0.837

15

25

Austria*

0.826

16

28

Poland

0.815

17

29

Belgium

0.814

18

30

Hungary

0.812

19

31

Sweden*

0.810

20

32

The Republic of North

0.800

21

34

Switzerland

0.788

22

37

Ireland

0.784

23

38

• Luxembourg ranks 2 worldwide and 1 among EU Member States in Cisco’s 2019 Digital Readiness Index.
st

The front-runner position of Luxembourg is not new. After a first cyber security master plan at the level of the Ministry of
the Economy in 2003 and the initiation of projects in key cybersecurity areas: awareness raising and electronic signature,
Luxembourg was one of the first EU countries to issue a National Cybersecurity Strategy in 2011 (table 2).

• Whereas the legitimacy of the European Union to address security and defence issues is sometimes questioned,
Luxembourg demonstrates its commitment to building the EU’s abilities to forge common cyber security policies.
Luxembourg is for instance the only country in Europe with organisations participating to three of the four Horizon
2020 pilots projects aiming at establishing a network of European cybersecurity competence (Concordia, Sparta andCyberSec4Europe).
As a result, Luxembourg currently appears as one of the safest countries in Europe.
• Luxembourg ranks 8th among the most cyber secure countries in Europe in 2019 (Figure 1) (Statista, Specops Software,2020).
LUXEMBOURG CYBERSECURITY ECOSYSTEMKEY INSIGHTS

Directive on security network and Information systems (NIS Directive).

• Luxembourg ranks 11th globally in the GCI, which benchmarks, monitors and compares the level of cybersecurity
commitment of 194 countries (Global Cybersecurity Index, 2018).
nd

12

2016

Macedonia

1 The Global Cybersecurity Index (GCI) is a composite index combining 25 indicators into one benchmark to monitor and compare the level of the cybersecurity commitment of countries with regard
to the five pillars of the Global Cybersecurity Agenda (GCA), i.e. legal, technical, organizational, capacity building, cooperation.

CYBERCRIME: EUROPE’S MOST
& LEAST SECURE COUNTRIESPercentage of machines that experienced cyberattacks(Jan-Oct 2019)*

11%+
8-11%
5-8%
3-5%
1-3%

1.81
3.02
1.38

1.99 1.08

2.02

1.60
3.82

17.64

5.41

3.83

1.85

3.61

4.49
4.49
6.40
10.83
3.99

2.74 3.28
3.47 4.83 6.24
1.69
3.20
4.19
17.55
4.55

4.47

7.06

10.35

4.28

* Cloud provider-related incoming attacks and cryptocurrency mining, malware and ransomware encounters.

Table 3 - Final ranking GCI 2018 for the Europe region

Figure 1 - Cybercrime-Europe’s most & Least secure countries(Global Cybersecurity Index, 2018)(Statista, Specops Software, 2020)

LUXEMBOURG CYBERSECURITY ECOSYSTEMKEY INSIGHTS

Luxembourg is among the front-runner countries in Europe and in the world for its cybersecurity
commitment. According to the Global Security Index ranks 11th globally and 7th in Europe.

13

KEY INSIGHT 02

A GOVERNANCE
SYSTEM ADDRESSINGCYBERSECURITY AS A
NATIONAL SECURITY
AND ECONOMIC ISSUE

Departementof Media,
Telecommunications
and Digital
PolicySERVING
THE PUBLIC
SECTOR

Centre destechnologies del'information del'État

The national cybersecurity ecosystem relies on an active collaboration between public and private
stakeholders. The key role of the Ministry of the Economy makes Luxembourg a unique case inEurope, where cybersecurity is seen not only as a defence issue but also as an economic issue.

Directorateof Defence

The Inter-ministerial coordination committee for cyber prevention and cybersecurity (2017), chaired by the High Commission
for National Protection (HPCN), has the mission to ensure a national coordination on cybersecurity matters (Figure 2).

High
Commission
for National
Protection

INTERMINISTERIAL
COORDINATIONCOMMITTEEFOR CYBERPREVENTIONANDCYBERSECURITY

Institut
Luxembourgeoisde Régulation

Ministryof Foreignand European
Affairs

Ministryof theEconomyStateIntelligence
ServiceSERVING
THE PRIVATESECTOR

Le Centre des Technologies de I’Information de l’Etat (CTIE), the National Information System Security Agency (ANSSI) and
GOVCERT.lu address cybersecurity issues for the public sector and operators of critical infrastructures.
Figure 2-Main stakeholders in the Luxembourg cybersecurity ecosystem• CTIE is the central player in the setting up and development of eGovernment, guaranteeing a high level of security.
• ANSSI is the national agency with responsibility for the security of both classified and non-classified information systems
used by the State.
• The main missions of the CERT Gouvernemental are to constitute a single point of contact dedicated to handling largescale security incidents affecting State administrations and departments (Infocrise.lu)
SECURITYMADEIN.LU (including C3, CIRCL and CASES), the cybersecurity agency for the Luxembourg economy, focuses on
supporting the private sector. This focus laid on cybersecurity as an economic issue makes Luxembourg stand out in Europe.
• CASES.LU - Cyberworld Awareness and Security Enhancement Services devotes itself to develop tools and services for the
management and prevention of risks for public and private entities in Luxembourg.

• C3.LU - the Cybersecurity Competence Centre, in close cooperation with private sector partners aim at empoweringbusinesses to better protect themselves through its threats and Vulnerabilities Observatory, its testing facility, as well as its
training and simulation platform.

LUXEMBOURG CYBERSECURITY ECOSYSTEMKEY INSIGHTS

Other key players of the ecosystem include academic and research institutions working in cybersecurity as well as current
public-private partnerships (PPP).

14• The Luxembourg Institute for Science and Technology, the Interdisciplinary Centre for Security, Reliability andTrust, University of Luxembourg and the Luxembourg Centre for Systems Biomedicine have developed expertise incybersecurity;• A good example of a PPP is INFRACHAIN, a non-profit organisation created by the emerging blockchain-related industry
and supported by the Luxembourg government. It aims at bridging the gap between blockchain technologies and theregulatory and legal requirements.

CIP

Critical Infrastructure Protection(loi du 23 juillet 2016 portant création d'unHaut-Commissariat à la Protection nationale)

GDPR General Data Protection Regulation(loi du 1er août 2018 portant mise en place du régime
général sur la protection des données)

NIS

Network and Information Security(loi du 28 mai 2019 portant transposition
de la directive NIS)PSDC Prestataires de Services deDématérialisation ou de Conservation(loi du 25 juillet 2015 relative à l’archivage électronique)

PSF

Professionnels du Secteur Financier de Support(loi modifiée du 5 avril 1993 relative au secteur financier)Figure 3-National legal framework for cybersecurity and main authorities and regulators

LUXEMBOURG CYBERSECURITY ECOSYSTEMKEY INSIGHTS• CIRCL.LU - Computer Incident Response Centre Luxembourg is an initiative designed to provide a systematic and fast
response to IT security threats and incidents. CIRCL is the CERT specifically dedicated to the private sector, municipalities
and non-governmental entities in Luxembourg.

15

COMPANIES WITH CYBERSECURITY
AS A CORE BUSINESS80

KEY INSIGHT 03

A STEADILY GROWINGECOSYSTEM

26%

310

24%

75

START-UPS

With 310 companies, the Luxembourg cybersecurity ecosystem is a steadily growing ecosystem:
it has been growing for 20 years and has accelerated over the last 5 years (50% of companies
are less than 5 years old). It is also attractive for start-ups (65% of the new players since 2019 arestart-ups).

Figure 4-Companies supplying cybersecurity in Luxembourg

CREATION DATE OF CURRENT COMPANIESCREATIONDATE OF CURRENTHAVINGCYBERSECURITY
AS A COMPANIESCORE BUSINESSHAVING CYBERSECURITY AS A CORE BUSINESSIn 2020, 310 companies are active in cybersecurity in Luxembourg, compared to 304 companies in 2019, confirming thecontinuous growth of the number of cybersecurity companies in the national ecosystem (Figure 4 and 5).

60%• As shown in Figure 5, the emergence of the Luxembourg cybersecurity ecosystem started around 20 years ago2.

50%

50%

• Almost half of current companies that have cybersecurity as core business were created over the past 5 years.

40%

The growth of the national ecosystem results from the importance taken worldwide by cybersecurity as well as the increasing
number of cybercrimes (Figure 6).

30%• Between 2004 and 2017, the cybersecurity market grew by roughly 35 times (Cybersecurity Ventures, 2019),• Between 2014 and 2015, the number of cybersecurity companies worldwide increased by 23% (PwC, LSEC, 2018)20%• In Luxembourg, the growth of the ecosystem also results from the 2011 national strategy, as well as the first European
Cybersecurity Strategy published in 2013. .

10%0%

The growth of the ecosystem has been strongly supported by start-ups .
3• They represent 24% share of the number of companies (75 companies altogether) and 36% of them have cybersecurity asa core business.

16%

11%

20%

3%
before 1998

1998 - 2004

2005 - 20092010 - 20142015 - 2019

Figure 5-Creation date of current companies having cybersecurity as a core business• More than half of these start-ups (55%) are or have been hosted in a Luxembourg incubator.
• The role of start-ups is essential for the growth of the core business ecosystem as they specialise in the technologies
expected to be key in cybersecurity in the next 5 years. Identity & Access management technologies, Governance &compliance and Encryption represent 54 % of the solutions provided by Luxembourg start-ups (Figure 7).

50

42,8

LUXEMBOURG CYBERSECURITY ECOSYSTEMKEY INSIGHTS

40

16

30

22,7

20
10
0

2 For companies having cybersecurity as core business, still being in activity in 2020
3 A start-up is defined here as a company: 1) being less than 5 years old; 2) employing < 100 employees worldwide; 3) having an innovative product, service or business model.

3,4
2009

24,9

28,9

9,4

2010

2011

2012

2013

2014

Figure 6-Number of annual cyber attacks worldwide in millions(Statista, 2017)

TOP33SOLUTIONSSOLUTIONSTOPOFFERED BY START-UPSPROVIDED
1

Identity & accessmanagement

2

Governance,risk & compliance3

Encryption

2015

Figure 7-Top 3 solutions provided by national start-ups

LUXEMBOURG CYBERSECURITY ECOSYSTEMKEY INSIGHTS

59,1

60

17

KEY INSIGHT 04

A HIGH SHARE OF
SMALL COMPANIES,A CHARACTERISTIC
OF THE EUROPEANCYBERSECURITY
ECOSYSTEM
Traditional IT companies provide almost half of the cybersecurity supply in Luxembourg, while
companies having cybersecurity as core business represent around ¼ of the ecosystem, slightly
below the EU average (34%). The ecosystem is characterised by the important role played bycompanies originating from the banking, financial services and insurance (BFSI) sector that provide
cybersecurity to local customers. The role played by small companies (79% of core businesscompanies), and the limited number of cybersecurity key market players is typical of the EU
cybersecurity supply, where market opportunities for emerging EU solutions remain open.

4%

1%

4%

12%

1-10
11-20
21-50
51-100101-250

79%

Figure 8-Size of companies having cybersecurity as core business (Luxembourg)v

23,28021,240EU cybersecurity products and services are mostly supplied by companies that originate from cybersecurity, ICT, security,
defence, insurance and academic sectors (PwC, LSEC, 2018).
• While the share of core business cybersecurity companies is around 34% in Europe, Luxembourg shows a slightly lower
share, with around ¼ of the ecosystem having cybersecurity as core business.

10,970• Non-core business companies providing cybersecurity products originate mainly from the traditional IT sector (47%),
where historically cybersecurity activities have primarily emerged.

In total, the core business ecosystem represents almost 1000 employees4, with an average of 12 employees per core businesscompany.
• Small enterprises are at the heart of the cybersecurity ecosystem, as 79% of the core business companies have less than
10 employees. The importance of small size businesses reflects the important share of cybersecurity services within the
Luxembourg cybersecurity supply, best delivered by local companies, and where the proximity to the customer is key.

LUXEMBOURG CYBERSECURITY ECOSYSTEMKEY INSIGHTS• This is in line with the EU average, where approximately 74% of the cybersecurity companies are micro and small sizedenterprises.

18• Only 14% of EU based cybersecurity companies are part of the global top 500 market leading cybersecurity highest
growth companies (PwC, LSEC, 2018). Atos one of the major players in cybersecurity in Europe is present and very activein the Luxembourg ecosystem.
Further, the main pure player in Luxembourg: Excellium Services is part of the SONAE IM group, one of the major pure
players in cybersecurity in Europe (Sonae IM, 2019).
As the cybersecurity market is expected to grow, main assumptions might be that new businesses will enter the market, whilecurrent small enterprises become medium-sized enterprises, with a strong focus on the proximity with local customers.

4 957 employees is the exact number estimated by LXI, based on most recently available figures from Editusdata and the Luxembourg Business Register

4,762
Large

Medium

Small

Micro

Figure 9-EU Company size ranges: large (8%), medium (18%), small (39%), micro (39%) (PwC, LSEC, 2018)

Global companie
Headquarters (Top 500)

Americas

EuropeIsraëlAsia

OceanaAfrica

374

69

34

20

2

1

4.0%

0.4%

0.2%

v

Proportion

74,80%

13,8%

6,8%

Figure 10-Global locations (corporate headquarters) of top 500 cybersecurity providers (PwC, LSEC, 2018)

LUXEMBOURG CYBERSECURITY ECOSYSTEMKEY INSIGHTS• Compared to the rest of Europe, the Luxembourg ecosystem is characterised by the importance of the cybersecurity
services provided by companies from the BSFI (16%), thus reflecting an important characteristic of the national economy.

19

DIVERSIFIED SOLUTIONSKEY INSIGHT 05

DIVERSIFIED SOLUTIONS
Identify

AN ALMOST
EXHAUSTIVE SUPPLYOF CYBERSECURITY
SOLUTIONS COVERINGTHE RISK MANAGEMENT
SUPPLY CHAIN
Identified a one the European cyber valleys, Luxembourg is expected to play a key role instructuring the cybersecurity supply of European solutions in a still fragmented market dominatedby non-EU players. Solutions offered by the national ecosystem cover almost in an exhaustive
manner the risk management supply chain, with a slight specialisation in risk identification andsystems protection.
Solutions provided by companies in the national ecosystem cover almost in an exhaustive manner the cyber risk management
value chain with a focus on risk identification and systems protection.
• 58 out of the 60 ECSO categories are offered by providers in Luxembourg (Figure 11)• When comparing the national ecosystem to other cyber valleys in Europe, Luxembourg is very similar to the Bretagne
region, one of the lead regions in cybersecurity in Europe (Figure 12).
Top 7 solutions represent 61% of the national market (Figure 13).

Protect

29%

DetectRespond

8%

9%

50%

Recover4%

Figure 11- The Luxembourg cybersecurity supply provides solutions all along the risk
management value chain with a specialisation in identification and protection

Identify

Protect

DetectRespond

Recover

100%
80%
60%
40%
20%
0
Bretagne• The importance of governance, risk & compliance and identity & governance solutions can be explained by the highnumber of companies targeting the finance and banking sectors.

Castile andLeón

North RhineWestphalia

Estonia

Luxembourg• The implementation of the GDPR directive boosted data security services within the ecosystem.
• On average, Luxembourg companies (core and non-core business) provide 5 cybersecurity solutions.

Figure 12-Luxembourg cybersecurity supply compared to European cyber valleys (European Cyber valleys, 2020)20• The EU remains a global net importer of cyber security products and solutions and largely depends on non-European
providers. This raises the issue or Europe’s “technological sovereignty” and opens the way for the development of EUbased cybersecurity solution on the market.
• According to ECSO, “the EU should play as a geographic constellation of ‘cyber valleys’. In this scenario, each regional
ecosystem contributes to a common programme and facilitates a quick access of local cyber security SMEs to theEuropean market. This would impulse a still-missing critical mass of growth companies to stay at the leading edge andbuild high-growth European companies globally competitive. Finally, this would be the best to attract much more private
investors” (ECSO, 2019).

TOP 7 SOLUTIONSCOVER 61% OF THE NATIONAL MARKET*

1
2
3

Governance,risk & compliance
Identity & accessmanagement
Data security

4

Asset
management

5

Penetration
testing

6
7

Backup& storage
Awareness& training

Figure 13-Top 7 solutions offered in Luxembourg cover 61% of the cybersecurity market

LUXEMBOURG CYBERSECURITY ECOSYSTEMKEY INSIGHTSLUXEMBOURG CYBERSECURITY ECOSYSTEMKEY INSIGHTS• According to ECSO, Europe is both a beehive of cyber security activities and a greenfield of opportunities for traditionaland emerging providers. With a domestic market valued at EUR 25 billion and a very diverse industry landscape, theEuropean offering is not yet consolidated. This is mainly due to a strong fragmentation across the different market
segments, a difficult access to the market for young companies specialised in cyber security and a lack of a critical amountof private investments (ECSO, 2019).

* Based on the ECSO Cybersecurity Market Radar

Identified as one the European cyber valley, Luxembourg has a key role to play to facilitate the development of the EU
cybersecurity value chain.

21

SOURCES[1] C ybersecurity - Smart Specialisation
Platform.
Retrieved from https://s3platform.jrc.
ec.europa.eu/cybersecurity[2] E CSO - European Cyber Security
Organisation.
Retrieved from https://ecs-org.eu/[3] Global Cybersecurity Index.
Retrieved from https://www.itu.int/en/
ITU-D/Cybersecurity/Pages/globalcybersecurity-index.aspx[4] Digital readiness Index 2019.
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