Disclaimer:
To ensure the focus and accuracy of this report, the analysis is limited to companies that derive a minimum of 80% of their income from cybersecurity. This criterion allows for a precise assessment of the specialized market.
Consequently, large, multi-service consultancy firms have been excluded, as their financial statements do not typically separate income and results from cybersecurity services. This lack of specific data would make direct comparisons difficult. Readers are advised to consider this scope when interpreting the report's findings and statements.
Growth of companies
The number of specialized cybersecurity companies in Norway grew from 19 before 2020 to 43 today, more than doubling in five years. After a peak in 2020, the rate of new entries has stabilized at three to five new companies per year. This trend suggests the market is moving from expansion to maturation. Future high growth in the number of companies is unlikely, given the intense competition and pressure on profits.
Market Income Analysis
The total income for the 43 Norwegian cybersecurity companies tracked in this analysis grew from NOK 1.71 billion in 2020 to NOK 3.26 billion in 2024. This represents a Compound Annual Growth Rate (CAGR) of 17.5%, significantly outpacing the broader IT sector's typical 8-12% CAGR.
However, the annual growth rate varied significantly over this period:
- 2021: +21.3%
- 2022: +19.8%
- 2023: +10.0%
- 2024: +19.3%
The slowdown in 2023 likely reflects broader economic caution when high inflation and interest rates caused many businesses to reduce spending. The strong return to high growth in 2024 indicates that cybersecurity investment rebounded quickly.
A Note on 2023 Data: Regarding the Netsecurity AS and Data Equipment merger (April 28, 2023), there is a potential data discrepancy. An estimated 112 MNOK in pre-merger revenue from Data Equipment is likely not captured in the 2023 totals. Including this figure would result in a more consistent growth rate for that year. However, since this number isn't available in the official Brønnøysund registers (BRREG), it has been left out.
Total Market Result
While market revenue is growing, the story for profitability is completely different. The sector's collective bottom line has seen a sharp downturn.
In 2020, the 43 companies together generated a profit of NOK 49.7 million. By 2024, this had reversed into a collective loss of -NOK 99.8 million. This trend shows that the rapid market expansion has been fueled by heavy spending, sacrificing short-term profits for long-term market share.
It's worth mentioning that some of these companies are software companies, which typically require several years of investment before becoming profitable. Once they succeed, however, they can become highly profitable.
Market Share and trend
By removing the "Cost of Goods Sold" (COGS) from income, we get a different view of the market. This "Adjusted Revenue" view lowers the total market value from NOK 3.26 billion to NOK 2.05 billion. It helps to show how much value companies create themselves, rather than through reselling software and hardware.
This adjustment changes the market share for companies depending on how their business works and how their position has evolved over time.
- NetSecurity's rise has been rapid; its share grew from just 8% in 2020 to 23.0% today, largely through a major acquisition of Data Equipment. When adjusted, however, its market share is cut almost in half to 13.0%, suggesting a large part of this growth is from reselling products (software and hardware).
- In contrast, Mnemonic has been the stable leader, though its share has slightly decreased from about 38% in 2020 to 33.9% today. Its adjusted share stays almost the same at 33.2%, reflecting a consistent business model.
- This view benefits software companies. Promon, for instance, has grown its market share organically from 4.4% in 2020 to 6.8% today. Its adjusted share is even stronger at 10.9%, because it has very low costs of goods. But Promon is not alone; other specialists like Kommando, Ivolv, O3 Cyber and River Security also show consistent growth, proving there is a strong market for niche expertise.
Results and Profit Margin
When we look at companies with four or more employees, the 2024 results show a mix of profitable businesses and others with planned losses for future growth. While the sector as a whole reported a loss, several companies are operating with healthy profits.
- The Largest Profits: Mnemonic had the largest profit with NOK 57.5 million. Software company Promon followed with a NOK 22.9 million profit, and specialist Kommando earned NOK 10.1 million.
- The Largest Losses: On the other side, the biggest losses were reported by companies in a growth phase. Omny had a loss of NOK 74.4 million, and Defendable had a loss of NOK 42.3 million. These figures point to significant investments in development and market expansion.
The top performers by profit margin in 2024 were Binary Security (42.2%) and Secure Practice (40.7%), followed by a tight group including River Security (12.6%), Kommando (12.6%), and Junglemap (12.5%).
Salary & Compensation Statistics (2024)
The Norwegian cybersecurity market shows a wide range of salary strategies. The sector-wide average salary is NOK 986,206 per employee.
The highest compensation packages are found at specialized firms that are leading the market in average salary:
- O3 Cyber: NOK 1,513,555
- Sicra: NOK 1,513,280
- Gritera Security: NOK 1,498,821
- Omny: NOK 1,460,312
These figures stand in contrast to the averages at some of the market's largest companies. A likely explanation is that these top-paying firms primarily hire very senior consultants, which elevates their average salary. Larger companies, on the other hand, typically employ a broader mix of junior, mid-level, and senior staff, resulting in a more blended, and therefore lower, average.
It's important to remember that this analysis is based on reported salary costs. Other forms of compensation, such as stock options, are not included and can be a significant part of a total remuneration package, especially in growth-phase companies.
Value Creation per Employee
To get a clearer picture of efficiency, we can analyze the adjusted income per employee for companies with four or more employees. This metric is calculated by taking a company's income, subtracting the "Cost of Goods Sold" (COGS), and then dividing by the number of employees. It effectively measures how much unique value each employee generates.
The two undisputed leaders are Junglemap AS and Promon AS, both generating over NOK 3.6 million in value per employee. Their dominance on this chart highlights the incredible efficiency of scalable software and specialized service models.
A strong pack of high-performers follows the leaders. This group of specialists, all generating well over NOK 2 million in value per employee, includes companies like O3 Cyber AS (NOK 2.5 million), Indykite Norway AS (NOK 2.4 million), Gritera Security AS (NOK 2.3 million), and Sicra AS (NOK 2.1 million).
This metric is especially useful for comparing the underlying business models of the market's largest players. For example, Mnemonic, with 336 employees, leads the large firms with an impressive adjusted income of NOK 2.0 million per employee. Netsecurity, another major player with 139 employees, is not far behind, reporting a strong NOK 1.9 million per employee. Both companies demonstrate very high efficiency for their size.
Ultimately, adjusted income per employee is a powerful indicator of a company’s operational leverage. The companies leading this list have built highly scalable or specialized business models that allow them to generate significant, sustainable value from each member of their team.
Final Thoughts
This analysis reveals a Norwegian cybersecurity market at a fascinating inflection point, defined by the strategic tension between strong revenue growth and declining profitability as companies invest heavily in their future.
Looking ahead, 2025 will likely be another year of robust market growth fueled by fierce competition. A key trend to watch will be market consolidation. We can expect to see larger players acquiring smaller, specialized companies to gain critical talent and niche expertise.
About
All statistics in this article are sourced from the live dashboard at https://stats.o3c.no. You are encouraged to visit the site and subscribe for the latest updates as new company results are published.
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