European tech buyers add digital sovereignty to cyber shopping list

European tech buyers are increasingly favoring cybersecurity vendors from their own continent to reduce reliance on American technology, a trend driven by concerns over digital sovereignty. According to sales data from Context, distributor sales of cybersecurity products from EU-headquartered vendors in EMEA rose by 35 percent over two years, outpacing overall cybersecurity sales growth of 10 percent.

US-run companies experienced only an 8 percent increase in sales during the same period. EU vendors now account for 15 percent of tracked cybersecurity sales, up nearly three percentage points. US-headquartered vendors still dominate, controlling 62 percent of sales. The shift is partly due to growing distrust of the Trump administration's close ties with autocratic leaders and punitive trade policies.

Organizations are reviewing their dependence on third-party technology in response to EU compliance regimes such as the NIS2 Directive and DORA. NIS2, implemented in October 2024, requires enhanced security across the bloc, while DORA aims to bolster cyber security in the financial sector. Digital sovereignty is now a key buying consideration, with customers and resellers questioning aspects like encryption keys, data storage locations, and who has access to sensitive logs.

EU vendors lead in security awareness training, vulnerability management, and SIEM and log management. US vendors hold a significant share in identity and access management, as well as cloud security. The Reg seeks UK-specific figures but notes that despite Prime Minister Burnham's commitment to buying British, only £1 of every £6 spent on technology by the British public sector goes to UK businesses.

Sovereign AI is another area of concern, with Omdia reporting that only about a third of AI providers disclose proof of sovereign practices.