Defense Cybersecurity Market

Defense Cybersecurity Market Overview

The global Defense Cybersecurity Market size was valued at USD 21.62 billion in 2023 and is predicted to reach USD 45.94 billion by 2030 with a CAGR of 11.3% from 2024-2030. Defense cybersecurity, also known as military cybersecurity refers to the market for products and services that protect the digital information and systems of defense organizations from cyber threats. 

It encompasses a wide range of technologies, strategies, and tools aimed at safeguarding the integrity of organizations' security architecture. It includes the use of firewalls, encryption, antivirus software, intrusion detection systems, access controls, and regular security assessments, among others, to defend against cyber threats and vulnerabilities in the defense sector. The aim of military cybersecurity is to create a secure computing environment that minimizes the risk of cyberattacks and data breaches, thereby safeguarding military personals, organizations, and governments against potential harm or financial losses.

Market Dynamics and Trends

The increasing incidence of cyber threats propels the defense cybersecurity market growth due to the escalating need for advanced protection measures. As organizations and individuals face frequent cyberattacks it necessitates the demand for robust cybersecurity solutions to safeguard sensitive data, maintain operational integrity, and ensure compliance with regulatory standards. 

As per the Centre for Strategic & International Studies (CSIS), there are multiple cyberattacks reported around the world, including U.S. officials against Houthi rebels in February 2024, Russian against Germans in March 2024, and Chinese against the Dutch officials in February 2024 among other incidents. These incident highlights the critical role of the defense cybersecurity market in fortifying organizations against cyber threats and safeguarding sensitive operations.

Furthermore, the rising geopolitical tensions including state-sponsored cyber activities, international cyber conflicts, and heightened tensions between nations on the global stage further propels the growth of the market. According to International Crisis Group there are various major conflicts recorded around the world such as Israel-Palestine war started in 7th October, 2023 and the Russia-Ukraine war in the year 2022. The changing geopolitical landscape is driving governments to prioritize and enhance their cyber defense system to safeguard critical assets and maintain national security. 

Moreover, the escalating defense expenditure worldwide drives the defense cybersecurity market demand. As countries allocate larger portions of their budgets to defense, they prioritize the protection of critical assets by investing in defense network protection capabilities. 

According to a report published by Stockholm International Peace Research Institute (SIPRI), the global military expenditure in the year 2022 accounted for USD 2.24 trillion that is a growth 3.7% from the previous year. This investment not only strengthens national security but also propels the development of cutting-edge technologies designed to counteract the frequent cyber-attacks.

However, the high cost of advanced security solutions associated with adoption and deployment of cutting-edge technologies hinders the growth of the market. On the contrary, the integration of artificial intelligence (AI) in military cybersecurity is expected to create future growth opportunities of the market as AI enhances threat detection, response times, and predictive capabilities that mitigates the emerging cyber threats. 

The use of AI-driven advancements enables military organizations to better safeguard critical infrastructure, adapt to evolving threat landscapes, and maintain robust security measures, thereby driving continued innovation and expansion within the cybersecurity sector.

Market Segmentations and Scope of the Study

The military cybersecurity market report is segmented on the basis of platform, security, deployment, end user, and region. On the basis of platform, the market is divided into software & services, and hardware. On the basis of security, the market is classified into endpoint-security, critical infrastructure security & resilience, application security, cloud security, and others. On the basis of deployment, the market is categorized on-premises and cloud. Regional breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America dominates the defense cybersecurity market share at present and is expected to continue its dominance during the forecast period. This is due to the growing government initiatives to launch cybersecurity measures and the concentration of technology firms in the region, which continuously innovate and collaborate to bolster the nation's cyber defenses. 

For example, in September 2023, the U.S. Department of Defense launched its Defense Cyber Strategy outlining four key lines of efforts to enhance cyber awareness and address escalating cyber threats. The strategy highlights the defense cybersecurity industry's crucial role in safeguarding national security and adapting to evolving cyber challenges.

Moreover, the extensive military’s budget allocation further fuels the growth of the market as significant financial resources are allocated to enhance and secure military operations. This investment supports the development and implementation of advanced cybersecurity solutions, ensuring protection against cyber threats and safeguarding critical defense systems. 

As per the latest report published by the World Bank Group, Canada’s military expenditure accounted for USD 26.90 billion in 2022 as compared to USD 17.78 billion in 2016 that is a growth of 51.3% in the span of 6 years. As defense agencies seek to stay ahead of evolving cyber threats, these budgetary commitments drive innovation, improve threat detection and response capabilities, and ensure robust security measures that ultimately contribute to the overall defense cybersecurity market expansion.

On the other hand, Asia-Pacific is considered fastest growing region in the defense cybersecurity market trends. This is due to the increasing inter-governmental co-ordinations and rising military programs in the industry as these collaborative efforts enhance information sharing and collective defense strategies. 

For instance, in September 2023, the Association of Southeast Asian Nations (ASEAN) opened Cybersecurity and Information Centre of Excellence (ACICE) dedicated to respond unique threats posited by cybersecurity, disinformation and misinformation to defense establishments. This initiative gives an effort to enhance regional collaboration on cybersecurity and projects the growing role of military cybersecurity in the region.

Furthermore, the increasing cyber-attacks further propels the growth of the market in the region as it drives the need for advanced cybersecurity solutions to protect sensitive data and critical infrastructure. The latest CSIS report stated that, in May 2024, Pakistani cyber spies deployed malware against India’s government, aerospace, and defense sectors to infect their targeted devices and access sensitive information. This growing demand for protection fuels the expansion of the market, as companies and government entities seek to enhance their defenses against evolving cyber threats.

Competitive Landscape

The defense cybersecurity industry comprising of various market players such Booz Allen Hamilton Inc., Lockheed Martin Corporation., Northrop Grumman Corporation, Rebellion Defense, Inc., Thales Group, Leidos Holdings, Inc., L3Harris Technologies, Inc., BAE Systems plc, CACI International Inc., ManTech International Corporation, and others. These market players are adopting various product launches and partnership to maintain their dominance in the market.

For instance, in April 2023, Rebellion Defense, Inc., introduced Rebellion NOVA to enhance cybersecurity measures for the U.S. Department of Energy’s National Nuclear Security Administration (NNSA).Moreover, in April 2023, Thales partnered with 11 French companies to develop a unified platform over the next three years that provides comprehensive cyber threat intelligence services to both private companies and government entities.

Key Benefits

• The report provides quantitative analysis and estimations of the defense cybersecurity market from 2024 to 2030, which assists in identifying the prevailing industry opportunities.

• The study comprises a deep-dive analysis of the current and future defense cybersecurity market trends to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Defense Cybersecurity Market Key Segments

By Platform

• Software & Services

• Hardware

By Security

• Endpoint-Security

• Critical Infrastructure Security & Resilience

• Application Security

• Cloud Security

• Others

By Deployment

• On-Premises

• Cloud

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 21.62 Billion
Revenue Forecast in 2030	USD 45.94 Billion
Growth Rate	CAGR of 11.3% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	The increasing incidence of cyber threats propels the growth of the market The rising geopolitical tensions fuels the market growth The escalating defense expenditure worldwide drives the growth of the market
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• Booz Allen Hamilton Inc.

• Lockheed Martin Corporation.

• Northrop Grumman Corporation

• Rebellion Defense, Inc. 

• Thales Group

• Leidos Holdings, Inc.

• L3Harris Technologies, Inc.

• BAE Systems plc

• CACI International Inc.

• ManTech International Corporation