Ukraine's Next Export Is Cybersecurity

Ukraine has spent much of the past decade dealing with cyber threats that most businesses elsewhere encounter only occasionally. From attacks on electricity infrastructure to attempts to disrupt government services and commercial operations, the country has become an important case study in what happens when cybersecurity moves beyond protecting information and becomes essential to keeping an economy functioning.

An industry that existed before the conflict

To understand the opportunities now emerging, it is important to recognise that Ukraine already possessed a substantial technology sector before the full-scale invasion began in 2022. Ukrainian software developers, engineers and technology companies had established relationships with customers across Europe and North America, while the country's universities and technical workforce supported a growing community of technology entrepreneurs.

Cybersecurity was already an important part of that landscape. Ukrainian organisations had experienced several major incidents, including attacks against electricity infrastructure in 2015 and 2016, followed by the NotPetya outbreak in 2017. The latter began through a compromised Ukrainian accounting software update mechanism before spreading internationally and causing extensive damage to businesses far beyond Ukraine.

These events demonstrated that cyber incidents could disrupt essential services and commercial activity on a significant scale. They also increased the importance of incident response, threat detection and the protection of critical infrastructure, creating demand for specialist expertise well before 2022.

The conflict intensified those requirements. Businesses faced the challenge of maintaining digital operations while dealing with interruptions to electricity, telecommunications and physical infrastructure. Security teams had to consider not only the possibility of data theft or compromised systems but also whether their organisations could continue operating when the wider environment became unreliable.

This has influenced the way cybersecurity is understood and delivered. For businesses operating in such conditions, resilience is not simply a feature offered by a security product. It is the ability to keep providing services, recover from disruption and maintain customer confidence when several things go wrong at once.

That experience has become an important part of the commercial proposition for Ukrainian cybersecurity specialists, particularly as international businesses become more concerned about threats to essential infrastructure and the continuity of their own operations.

A growing domestic market

The expansion of Ukraine's cybersecurity industry can be seen in research published in January 2025 by DataDriven Research & Consulting, initiated by the cybersecurity committees of the European Business Association and the IT Ukraine Association.^1,2

The study estimated that Ukraine's cybersecurity market had grown fourfold over eight years, reaching approximately $138 million in 2024. It also projected that the market could reach $209 million over the following five years, although that figure remains a forecast rather than a guaranteed outcome.¹

Network security was identified as the largest segment, while cloud security, data protection and endpoint protection were among the fastest-growing areas. The findings suggest that cybersecurity demand has been expanding across several areas of business activity rather than being confined to a single type of product or service.²

This growth reflects more than the conflict alone. Ukraine's wider digital transformation, the increasing dependence of businesses on online services and international cybersecurity assistance have all contributed to demand. Nevertheless, the heightened threat environment has made investment in security more urgent for organisations that might previously have approached it as a longer-term priority.

For domestic cybersecurity providers, greater demand creates opportunities to develop specialist services, establish customer relationships and improve their products through practical deployment. It can also provide a foundation for international expansion, particularly where companies can demonstrate that their technologies have been used successfully in demanding environments.

There are limits to what the market figures establish. A $138 million domestic industry remains modest compared with the largest international cybersecurity markets, and increased spending does not necessarily mean that local companies are capturing all of that business. International vendors remain important, while domestic firms face challenges accessing investment and developing products at scale.

Even so, the figures indicate that Ukraine's cybersecurity market has developed considerably over the past decade and is attracting attention as a distinct part of the country's technology economy.

Ukrainian companies looking beyond their borders

Perhaps the most interesting development is the way some Ukrainian and Ukrainian-founded companies are translating their technical expertise into products and services intended for international customers.

UnderDefense provides one example. Founded in Lviv in 2017, the company began by delivering cybersecurity services, including penetration testing, before expanding into managed security operations and security automation. Its development illustrates how a business established before the full-scale invasion has continued building its commercial offering while operating in an increasingly demanding environment.

The company has developed the UnderDefense MAXI platform, which brings together security monitoring, automation and operational support.⁵ Its approach reflects a broader trend in cybersecurity towards helping organisations manage threats without requiring every customer to build a large internal security team.

For Ukrainian firms seeking international customers, that is an important consideration. Their commercial opportunity does not depend solely on providing expertise associated with the conflict. They must also develop services that solve familiar business problems, including limited security resources, complicated technologies and the difficulty of responding quickly to threats.

Another example is Osavul, a Ukrainian-founded company working in hybrid threat intelligence. Its technology is designed to identify and analyse risks across information, cyber and physical environments, an area attracting growing interest from governments, critical infrastructure operators and businesses concerned about coordinated disruption.

In October 2026, Osavul announced that it had raised €8.5 million in Series A funding, led by cybersecurity investor 33N Ventures, with participation from Balnord, G+D Ventures and existing investor 42CAP. The company, headquartered in Luxembourg, said the investment would help it grow its enterprise customer base and expand its government and defence work.⁶

The funding is a useful illustration of how Ukrainian-founded expertise can attract international capital. It also highlights the importance of looking beyond company headquarters when examining Ukraine's technology industry. Businesses may establish legal entities or commercial operations elsewhere while retaining Ukrainian founders, engineering capabilities or professional networks.

Not every company will secure similar investment, and venture funding is not itself proof that a product will succeed. However, such developments demonstrate that international investors are considering technologies emerging from Ukrainian expertise as commercial opportunities rather than simply as responses to a domestic crisis.

The value of experience

One of the most distinctive characteristics of Ukraine's cybersecurity industry is the practical experience accumulated by its specialists.

Cybersecurity companies around the world conduct simulations, penetration tests and exercises designed to prepare customers for incidents. These activities remain essential, but Ukrainian professionals have also had to respond to sustained attacks affecting real organisations and infrastructure.

That experience can influence the development of products and services in several ways. Security tools may need to function when connectivity is unreliable, incident response procedures may have to accommodate disrupted infrastructure, and organisations may need to maintain essential operations while employees work from different locations.

These are not challenges unique to Ukraine, but their combination and intensity have made them particularly relevant to businesses operating there.

For international customers, the lessons extend into areas such as business continuity, operational technology security, threat intelligence and recovery planning. Organisations responsible for energy, transport, communications and other essential services have reasons to understand how their systems might perform under prolonged disruption.

Ukrainian cybersecurity companies may therefore be able to offer expertise that complements the products and services available from established international providers.

However, practical experience must still be translated into something customers can evaluate and purchase. Businesses need documented capabilities, reliable support arrangements, appropriate certifications and evidence that products perform as advertised. The fact that a technology has been developed in a challenging environment may attract attention, but it cannot replace the requirements of international procurement.

This distinction will be important as Ukrainian companies seek to build long-term customer relationships. Their experience can open doors, but their competitiveness will ultimately depend on the quality, reliability and value of what they deliver.

The importance of international business

Ukraine's broader technology exports provide some indication of the commercial infrastructure available to its cybersecurity industry.

According to the IT Ukraine Association, using data from the National Bank of Ukraine, exports of computer services reached $3.343 billion during the first half of 2026, an increase of 4.1 per cent compared with the equivalent period in 2025.⁴

The United States accounted for approximately $1.234 billion of those exports, making it the largest reported market. The United Kingdom, Germany and other European countries were also important destinations for Ukrainian technology services.

These figures cover computer services generally and should not be interpreted as cybersecurity-specific revenue. Nevertheless, they demonstrate that Ukraine continues to have substantial international technology relationships despite the difficulties associated with the conflict.

For cybersecurity companies, those relationships can be valuable. Established technology networks provide opportunities to meet customers, form partnerships and develop business in markets where Ukrainian engineering expertise is already familiar.

Industry organisations are also seeking to improve the international visibility of the sector. The IT Ukraine Association's CyberTech Industry Navigator, for example, maps the country's cybersecurity companies and their capabilities.⁷

Such initiatives are commercially important because smaller cybersecurity firms can struggle to reach overseas buyers, particularly when competing against established vendors with substantial marketing budgets and international sales teams.

Greater visibility does not remove those disadvantages, but it can help potential customers and investors identify Ukrainian businesses whose products meet their needs.

The challenges that remain

It would be easy to describe Ukraine's cybersecurity sector as an industry transformed by adversity, but that would overlook the substantial obstacles businesses continue to face.

Operating during a conflict creates financial and organisational uncertainty. Companies must consider employee safety, workforce availability, infrastructure reliability and the expectations of international customers who may be concerned about continuity of service.

Research into the cybersecurity market has also identified limited access to investment, regulatory weaknesses and dependence on international assistance as challenges to its long-term development.³

These issues are particularly significant for smaller companies seeking to move from delivering specialist services into developing their own software products. Product development requires investment over extended periods, while international expansion involves sales, compliance, customer support and competition with much larger businesses.

There is also a difference between growing demand for cybersecurity and building a sustainable domestic cybersecurity industry. An organisation may increase its security spending without purchasing from a Ukrainian provider, while a Ukrainian company may develop valuable expertise without having the resources to commercialise it internationally.

The future of the sector will therefore depend on more than the threat environment. Access to capital, international partnerships, product development and the retention of skilled professionals will all influence whether companies can continue growing.

A further consideration is what happens when the immediate circumstances change. Businesses whose offerings depend heavily on responding to a particular threat environment may need to diversify, while companies that have developed products with broader applications could be better placed to maintain international demand.

The challenge is to turn exceptional experience into capabilities that remain relevant to customers over the long term.

A new position in the international market

Ukraine's cybersecurity industry is unlikely to displace established global technology centres in the immediate future. However, the country does not need to become the largest cybersecurity market to establish an important position within it.

Specialist expertise can be commercially valuable, particularly in areas where customers face complex threats and require providers with practical operational experience.

The development of Ukrainian cybersecurity businesses also comes at a time when European governments and companies are paying greater attention to digital resilience, critical infrastructure protection and the security of essential services. These concerns create potential opportunities for collaboration, although Ukrainian providers must still demonstrate that they can meet the same technical and commercial expectations as their competitors.

International investment, stronger business networks and continued product development could help the sector become a more visible part of Ukraine's technology economy.

At the same time, the industry's development should be understood within the wider circumstances facing the country. The conflict has caused enormous disruption and economic damage, and commercial opportunities in cybersecurity do not offset those consequences.

What the industry demonstrates is how businesses can adapt their expertise and commercial strategies in response to changing conditions, even when those conditions are exceptionally difficult.

From necessity to a lasting industry

Ukraine's cybersecurity industry has developed through a combination of longstanding technical expertise, increased domestic demand and exposure to a challenging security environment. The conflict has intensified the importance of protecting digital systems, but it has also encouraged businesses to reconsider how they develop products, deliver services and approach international markets.

The emerging opportunity lies in the ability of Ukrainian companies to convert their experience into capabilities that customers elsewhere are willing to purchase. For some, this means expanding managed security services or developing automation platforms. For others, it involves building technologies for threat intelligence, infrastructure protection or the identification of complex risks.

There is evidence of progress, from the expansion of the domestic market to new international investment and continued technology exports. Yet the sector's long-term prospects remain dependent on factors that extend well beyond cybersecurity, including economic stability, access to capital and the ability to maintain a skilled workforce.

Ukraine's position in the international cybersecurity industry is therefore still developing. Its companies have experience that distinguishes them, but the next stage will be determined by their ability to turn that experience into sustainable businesses.

For the global cybersecurity industry, this makes Ukraine worth watching not only because of the threats it faces, but because of the companies and technologies emerging in response.

The country's cybersecurity story is increasingly becoming a business story, and one whose commercial significance may continue to grow long after the circumstances that accelerated its development have changed.