Defense cyber security involves securing defense and military systems, information, networks and other assets from cyber attacks and compromises. Growth of digitalization across defense forces has increased vulnerabilities owing to rising sophistication of cyber threats from terrorist groups and nation states. Defense cyber security solutions comprise network security solutions, endpoint security solutions, application security solutions, wireless security solutions, cloud security solutions and ID management solutions to protect military operations, IT infrastructure, sensitive information and critical weapon systems from cyber intrusions.

The global Defense Cyber Security Market is estimated to be valued at Us$ 21.62 Bn in 2024 and is expected to exhibit a CAGR Of 5.0% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Increasing Sophistication of Cyber Threats: Advanced persistent threat actors backed by certain nation states are consistently upgrading their cyber capabilities using artificial intelligence, cloud computing exploits and zero-day vulnerabilities to launch sophisticated targeted attacks on defense networks. The rising complexity of cyber attacks has compelled defense agencies globally to strengthen their cyber defenses in order to safeguard critical assets and operations.

This requires ongoing procurement and upgrades of next generation cyber security technologies across network monitoring, data encryption, identity management and endpoint detection & response domains. Growing defense cyber budgets reflect the urgency of the problem at hand. Continued technological innovation in tackling persistent threats is expected to drive sustained demand over the forecast period.

Segment Analysis

The global defense cyber security market is dominated by the network security sub segment which accounts for over 35% share. Network security solutions help organizations secure their networks from malware, ransomware and other cyber threats. With growing sophistication of attacks, defense organizations are increasingly adopting network security solutions such as firewalls, intrusion prevention and detection systems to secure classified data transmitted over networks.

PEST Analysis

Political: Defense budgets of many countries are increasing with growing threats which is driving investments in cyber security. Countries are formulating regulations around data privacy and critical infrastructure protection.

Economic: Global defense spending registered a growth of 2.6% in 2021. In the post pandemic era, economic recovery is driving the need for advanced cyber capabilities. The market is expected to grow at a higher pace in developing economies.

Social: Rampant data breaches have increased awareness about cyber threats. People are more cautious while transacting online. Lifestyle changes like work from home are also expanding the attack surface for cybercriminals.

Technological: Emerging technologies like AI, blockchain, IoT are opening new vulnerabilities that are being actively targeted. Adversaries are using sophisticated tools which necessitates continual upgradation of defenses with cutting-edge solutions.

Key Takeaways

The Global Defense Cyber Security Market Demand is expected to witness high growth. The global defense cyber security market is estimated to be valued at US$ 21.62 Bn in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023 to 2030.

North America region currently dominates the market owing to heavy investments by countries like US and Canada to modernize their cyber defenses. The US has earmarked over $18 billion towards department of defense cyber initiatives over the coming years which is stimulating demand for advanced solutions. Asia Pacific region is poised to witness fastest growth in the defense cyber security market driven by increasing spends of major economies like India and China to fortify their cyber borders. India’s defense cyber agency recently invited applications to set up 9 new cyber hubs across cities indicating growing prioritization.

Key players

Key players operating in the defense cyber security market are BAE Systems, Lockheed Martin, Northrop Grumman, General Dynamics, Raytheon, Thales, Booz Allen Hamilton, CACI International Inc., Salient CRGT and KeyW Corporation. BAE Systems is a leader in providing end-to-end defensive cyber capabilities to militaries worldwide. Lockheed Martin focuses on sectors like command and control systems which are critical assets.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it