According to Fortune Business Insights, the global defense cyber security market size was valued at USD 16.45 billion in 2023 and is expected to grow from USD 19.14 billion in 2024 to USD 63.38 billion by 2032, registering a CAGR of 16.1% during the forecast period.
What is Defense Cyber Security?
Defense cyber security involves solutions that detect, monitor, and respond to cyber threats targeting military systems and sensitive infrastructure. These systems safeguard classified data from threats like malware, phishing, and spyware attacks.
Key Players:
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Lockheed Martin Corporation (U.S.)
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The Thales Group (France)
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BAE Systems plc (U.K.)
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General Dynamics (U.S.)
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Northrop Grumman Corporation (U.S.)
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Raytheon Technologies (U.S.)
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Booz Allen Hamilton (U.S.)
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Leonardo (Italy)
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Leidos (U.S.)
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L3Harris Technologies (U.S.)
These companies are focused on product innovation, cyber infrastructure modernization, encryption technologies, zero-trust frameworks, and global expansion through strategic partnerships.
Source:
https://www.fortunebusinessinsights.com/defense-cyber-security-market-105139
Market Segmentation:
By solution, the cyber threat protection segment emerged as the leading contributor to market share. The growing need for advanced cybersecurity systems that can defend against highly specialized attacks such as malware infiltration, phishing attempts, and service disruptions has significantly boosted the demand for technologies like firewalls, sandboxing, Transport Layer Security (TLS)/Secure Sockets Layer (SSL) inspection, and browser isolation tools. Governments and military agencies are prioritizing threat prevention strategies to maintain operational continuity and safeguard sensitive defense infrastructure.
Based on type, application security is expected to witness the highest growth rate during the forecast period. With the increasing deployment of mission-critical defense software and connected platforms, application security has become essential to preventing unauthorized access, code manipulation, and data breaches. Military-grade applications now require layered authentication protocols, encryption, secure logging, and rigorous security testing to ensure system integrity and operational reliability in both peacetime and conflict zones.
By end user, the land forces segment accounted for the largest market share in 2023, as governments worldwide allocated substantial portions of their cyber defense budgets toward ground-based operations. This includes the protection of mobile command centers, tactical communication systems, and land vehicle networks. The rise in modern land warfare technologies and increased dependency on digital battlefield solutions have made cybersecurity a top priority for national defense authorities.
Key Market Drivers:
1. Rising Cyber Threats in Defense
Cyber-attacks targeting defense sectors have surged in recent years. As per Forbes, the volume of global cyber-attacks increased by 38% in 2022. Government and military sectors faced over 1,600 weekly attacks on average.
2. Increased Digital Transformation in Military Operations
Digital modernization, including AI, cloud adoption, and automation, is expanding across military forces globally. In FY 2024, the U.S. Department of Defense allocated USD 13.5 billion to strengthen cyber capabilities under the Digital Modernization Strategy.
3. Strategic Investments in Cyber Capabilities
Nations like the U.S., China, Australia, and EU members are investing heavily in cyber defense infrastructure. Collaboration between defense organizations and cybersecurity vendors is further supporting market growth.
Restraint:
Talent Shortage and Training Costs
There’s a growing skills gap in cyber security talent. Constant evolution in cyberattack methods requires continuous training, which increases costs and limits immediate scalability.
Regional Insights:
North America:
Held the largest share in 2023 (USD 7.47 billion) and will continue to dominate, supported by the presence of major players like Lockheed Martin, Northrop Grumman, Raytheon, and General Dynamics.
Asia Pacific:
Ranks second, led by increasing cyber defense spending in China, Japan, and Australia. Collaborative initiatives like Five Eyes and CERT cooperation enhance regional security infrastructure.
Europe:
Market growth is fueled by increasing threats post Russia-Ukraine war. EU’s Cyber Defense Policy and cyber drills (e.g., Italy’s MoD penetration testing) highlight the continent’s proactive approach.
Rest of the World:
Moderate growth anticipated with initiatives in UAE, Israel, Brazil, and Saudi Arabia. For example, in 2023, UAE-based DTS acquired Beyon Cyber to strengthen cyber capabilities.
Key Industry Development:
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June 2023 – Leonardo showcased advanced technology platforms for protecting critical naval infrastructure from physical and cyber threats. The company highlighted networked solutions that integrate data from both fixed and mobile sensors to support next-gen control rooms.
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April 2023 – Thales launched SCRED, a three-year collaborative project involving 11 French companies and organizations, focused on developing a unified platform for cyber threat intelligence targeting both government and corporate sectors.
