Construction and real estate in Sweden invest less in cyber security than other industries

Survey data compiled by Nordlo with research partner Radar shows the Swedish construction and real estate sector underinvests in cyber security relative to the national average—only 25% of firms in the sector allocate more than 10% of their IT budgets to security versus over 35% nationally. Nordlo attributes the gap to legacy, often disconnected systems and a historical sense of safety that is eroding as digitalisation increases, creating heightened exposure for properties tied to critical infrastructure and raising the risk of significant operational and data breaches. The report notes a growing willingness within the industry to invest in preventive measures and highlights a commercial opportunity for IT/security providers, with Nordlo itself (SEK 2.4bn revenue, ~1,000 employees) positioned as a leading supplier to meet rising demand.

Analysis

Survey data compiled by Nordlo with research partner Radar shows a material cybersecurity funding gap in Sweden's construction and real estate sectors: only 25% of firms in those industries allocate more than 10% of their IT budget to security versus over 35% for the national average. Nordlo highlights that many firms run legacy, often disconnected technical systems, which historically reduced perceived attack risk but now create a growing vulnerability as digitalisation connects operational technology and property-management systems.

Rickard Linder of Nordlo points to elevated risk for properties tied to critical infrastructure (eg, railways and airports) from criminal groups and foreign actors, implying potential for significant operational disruption and sensitive-data exposure if investment lags. The report also notes a rising willingness within the sector to invest in preventive measures, creating a commercial opportunity for cloud, managed-service and cybersecurity vendors; Nordlo itself (SEK 2.4bn revenue, ~1,000 employees) is positioned as a regional supplier to meet that demand. Market-impact signals are cautious (sentiment mixed, market impact score 0.3), indicating implications are material but gradual rather than immediate.

Key Decisions for Investors

• Consider increasing exposure to Nordic cybersecurity and managed-service providers that serve construction and property clients given expected incremental demand, including monitoring Nordlo for revenue/capex guidance and contract wins
• Require proof of elevated cyber budgets (>10% of IT spend), recent audits, or remediation plans before initiating or adding to direct positions in construction and real estate firms, as legacy systems materially raise operational risk
• Monitor near-term catalysts such as announced security investments, publicized breaches, large vendor contracts, or regulatory changes as triggers to reweight positions, and maintain position-sizing discipline or hedges for firms with critical-infrastructure exposure
• Favor service providers with demonstrated cloud/outsourcing capabilities and scalable managed-security offerings, as they are the most likely beneficiaries of the sector's shift toward preventive security investment