AUS
NZ
UK
CA
USA
IND
Highlights
- The rise in the digital economy worldwide after the Covid-19 pandemic has shifted investors’ focus on cybersecurity firms.
- Over 1800 companies operate in the cybersecurity industry and employ over 52,000 people.
- Darktrace, Kape Technologies are two FTSE-listed companies working in the field of cybersecurity.
The cybersecurity industry is one of the fastest-growing sectors in the UK, contributing nearly £5.3 billion to the UK economy in 2021. According to the annual report released by the Department for Digital, Culture, Media, and Sport (DCMS), the cybersecurity sector generated revenue of over £10 billion in 2021 and created 6,000 new job opportunities.
As per the latest data, over 1800 companies operate in the cybersecurity industry and employ over 52,000 people. The industry growth comes amid a record level of investment from the private and public sectors. Moreover, the UK government aims to improve the industry further through an investment that would boost skills and growth.
The rise in the digital economy worldwide after the Covid-19 pandemic has shifted investors’ focus towards cybersecurity firms. The industry is poised to show significant growth in upcoming years.
© 2022 Kalkine Media®
Let us look at the cybersecurity-related stocks and ETF that are part of the UK stock market:
Darktrace Plc (LON: DARK)
FTSE250 listed firm offers cybersecurity solutions based on artificial intelligence to more than 6,500 clients.
Its services are mainly used by businesses to neutralise cyber threats. In February 2022, the company announced that it had signed a deal with a multinational electronics corporation that has operations in over 70 countries to protect its systems from advanced threats and cyber-attacks. The company had not disclosed the details of the deal.
Darktrace Plc’s last close was at GBX 343.60 on 16 February 2022, with a market cap of £2,394 million.
Kape Technologies Plc (LON: KAPE)
The cybersecurity firm operates through two key divisions: digital security and digital privacy, which provides different products in the cybersecurity space. It employs over 350 people in nine different offices that are located worldwide.
For the year ended 31 December 2021, the company expects its total revenue to be up by 89% at USD 230.5 million, driven by solid organic growth. In 2021, the company completed two strategic acquisitions of Webselenese and ExpressVPN, which would help the firm expand its business and earn higher revenue.
Kape Technologies Plc’s last close was at GBX 319.50 on 16 February 2022, with a market cap of £1,121 million.
Global X Cybersecurity ETF (LON:BUGG)
The exchange-traded funds (ETF) aim to invest in companies that operate in the cybersecurity space.
As per the fund document, the cybersecurity market size could grow to USD 370 billion in 2028, and many companies could benefit from this growing industry. The ETF fund has invested in several stocks from the sector. Its top three holdings include Check Point Software Tech (CHKP), Palo Alto Networks Inc (PANW), Fortinet Inc (FTNT).
Global X Cybersecurity ETF’s last traded price was GBP 9.41 as of 16 February 2022.
