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Key Takeaway (WIK): German companies are set to double their IT security budgets – from 9% to 18% of total IT spending – by the end of 2025. At the same time, cyberattacks inflict €202 billion in annual damage – a race between investment and threat.
As incidents mount, companies across Germany are significantly ramping up investment in IT security. The share of IT budgets allocated to security is projected to double – from 9% in 2022 to 18% by end-2025 – according to figures from Bitkom and analyst firm PAC.
A Bitkom study presented ahead of it-sa 2025 in Nuremberg estimates that cyberattacks cost the German economy €202.4 billion annually. Six in ten companies (59%) already feel their very existence is under threat.
Based on data from European consultancy and analyst firm PAC, the digital association Bitkom forecasts that Germany’s IT security expenditure will grow by 10.1% to €11.1 billion in 2025. In 2024, spending reached €10.1 billion for the first time – crossing into double-digit billions. Analysts also project a strong further increase to €12.2 billion in 2026.
“Successful cyberattacks can paralyze companies – and also public authorities or critical infrastructure such as rail networks and airports. We must continue scaling up our investments in IT security,” emphasizes Bitkom President Dr. Ralf Wintergerst.
Faced with an intensifying threat landscape, German companies have sharply increased the share of their budgets dedicated to IT security. In 2022, it stood at just 9%; by end-2025, it is expected to reach 18%.
Global Spending Growth Outpaces Germany’s
IT security software and cloud platforms recorded the strongest growth – up 12.1% to €4.8 billion. IT security services ranked second, with spending projected to rise 9.7% to €5.6 billion. Growth in IT security hardware was markedly lower, rising only 1.4% to €800 million.
Although the overall IT security market is expanding, Germany’s growth rate lags behind those of other countries. Global IT security spending is forecast to climb 11.2% to €212.2 billion in 2025; in Europe, it is expected to rise 10.9% – both figures exceeding Germany’s projected growth. Still, Germany accounts for a substantial 5.3% of the global IT security market – even though the rest of Europe collectively contributes just 20.5% of worldwide spending.
“The surging demand for security solutions that are both high-performing and trustworthy presents enormous opportunities for German vendors,” says Wintergerst. He adds: “The it-sa trade fair makes clear: cybersecurity must not be viewed solely as a cost factor – it safeguards our future and enables value creation, trust, and innovation in Germany.”
For the PAC study, a total of 1,002 German companies – with at least 10 employees and annual revenue of €1 million – were surveyed between calendar weeks 16 and 24.
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Frequently Asked Questions
How much should companies spend on IT security?
Industry experts recommend allocating at least 10-15% of the IT budget to security. The current trend toward 18% shows many companies are investing significantly more – often after painful experiences.
Where is action most urgently needed?
According to Bitkom, the three most critical areas are: endpoint security, cloud protection, and employee awareness training – especially the latter, which is frequently underestimated.
Does a high budget automatically protect against attacks?
No. What matters is how the budget is deployed. Holistic security strategies – including regular audits, incident response plans, and zero-trust architectures – are far more effective than isolated investments in individual tools.
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