European firms are ditching US cybersecurity firms as report claims 'digital sovereignty is becoming a buying decision' - TechRadar

European companies are increasingly prioritizing local cybersecurity options, with sales from EU-based vendors rising by 35% in the two years ending Q3 2026.

This growth far outpaced the overall market, which saw a 10% increase, and dwarfed the 8% growth recorded by US vendors during the same period.

The trend is part of a broader push for digital sovereignty, where companies seek to ensure data is stored and managed within their own borders.

Market share and focus areas

Despite this surge, US vendors still hold a commanding 62% share of the EMEA cybersecurity market.

European firms are gaining traction in areas like security awareness training, vulnerability management, and SIEM, while US companies remain dominant in identity and access management and cloud security.

This disparity may reflect the continued reliance on US cloud providers by many European enterprises.

Sovereignty concerns and next steps

As customers demand clarity on who holds encryption keys and who can access logs, Joe Turner noted that "digital sovereignty is becoming a buying decision".

However, a lack of regulation means that 28% of providers do not disclose proof of sovereignty, leaving buyers to verify claims on their own.

Nearly half of European enterprises plan to add or replace IT suppliers due to sovereignty requirements in the next 18 months, compared to just 30% in North America.