This public deliverable is part of the COcyber Work Package (WP) 4 dedicated to ”Know-how, good practice sharing and information transfer activities” led by Université Libre de Buxelles / Solvay Business School. This report was prepared by EIT Digital in the framework of task 4.3 PESTEL analysis and policy recommendations. Abstract This report presents the Political, Economic, Social, Technological, Legal and Environmental (PESTEL) analysis of the whole cybersecurity sector (both on the defence and civilian sides) to identify aspects affecting cyber governance and the development of cybersecurity technology and information transfer in Europe. It will inform all stakeholders about the gaps and opportunities in Europe’s cybersecurity sector and help design coherent policy recommendations. COcyber is a two-year initiative supported by the European Commission and European Cybersecurity Competence Centre to foster the collaboration of civilian and defence cybersecurity sectors. Disclaimer The COcyber project funded under Grant Agreement No. 101158606 is supported by the European Cybersecurity Competence Centre and funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Cybersecurity Competence Centre. Neither the European Union nor the European Cybersecurity Competence Centre can be held responsible for them. The contents of this deliverable are presented for informational purposes only and are subject to the pending approval of the European Commission (EC). The information, data, and conclusions presented herein may undergo revisions or modifications following the review and approval process by the European Commission. Recipients of this document are advised that any actions, decisions, or reliance on the information provided should be exercised with caution until the final approval from the European Commission is obtained. The authors and distributors of this deliverable shall not be held liable for any consequences arising from the use of information that has not yet received official European Commission approval.