A new report from ScotlandIS has underlined the growing strength of the country’s flourishing cybersecurity sector.

Published ahead of Cyber Scotland Week, which runs from 22nd-28th February, the Scottish Cyber Cluster Report showcases business, educational and third sector activity.

The report finds that Scotland is rapidly becoming a globally-recognised hub for cyber and tech skills, and highlights that the country has a thriving and innovative cybersecurity community.

What was once a niche area within the Scottish technology industry, cybersecurity is now an integral facet of the sector and plays a crucial role in protecting businesses, government and citizens as we move toward a more digitally-enabled society.

According to the report, the growing number of companies operating in Scotland highlights the sector’s upward trajectory. As of this year, there are around 230 companies operating within the cyber sector. Of these, nearly half are Scottish-founded companies or organisations headquartered in Scotland.

Over the past five years, around 10 new Scottish cyber companies have been launched every 12 months and over half of the sector is made up of SMEs or early-stage startups.

Additionally, inward investment also remains strong, with an ever-growing array of global cybersecurity companies choosing to do business in Scotland.

Ciara Mitchell, Head of Cyber at ScotlandIS, said the report showcases the growing appeal of Scotland as a location to both start-up a new cybersecurity business, or relocate from abroad.

“Scotland’s cyber sector continues to go from strength to strength. This report demonstrates that Scotland has real strength in depth, with companies ranging from small start-ups to large corporates,” she said

“As well as attracting inward investment from the likes of Cisco and Corero, there’s a wide range of high-growth home-made businesses that are starting to attract a lot of attention,” Mitchell added.

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University spin-outs remain an important source of growth for the Scottish sector. The sector boasts an impressive array of spin-out companies, some of which have gone on to achieve global recognition.

These include Cyan Forensics of Edinburgh Napier University and fellow Napier spin-out Zonefox, which was acquired in October 2018 by cybersecurity giant Fortinet.

Up-and-coming spin-out firms are also beginning to draw attention, the report notes, with Strathclyde spin-out Lupovis, Glasgow University’s PRC and Napier startup Memcrypt all continuing to impress.

“University start-ups are a great source of new business growth and it’s important that these companies are supported,” Mitchell said.

“The sector is delivering well-paid jobs and providing much-needed employment. However, with Scotland lagging a little behind other parts of the UK in attracting investment in our cyber sector, there’s still work to be done.”