Key Market Overview:
The Defense Cyber Security Market is expected to grow at a Compound Annual Growth Rate (CAGR) of 7.09% between 2023 and 2030, resulting in a value of over USD 39.18 Billion by 2030. In 2022, the market was valued at USD 22.65 Billion.
Defense cyber security refers to the practice of protecting computer systems, networks, and sensitive data from unauthorized access, theft, damage, or disruption by external or internal threats. Defense cyber security is a critical component of national security, as cyberattacks cause significant damage to the military, government agencies, and other critical infrastructure.
The increasing frequency and sophistication of cyberattacks, such as ransomware, malware, and advanced persistent threats (APTs) are driving demand for effective defense cyber security solutions. Cyber threats are a growing concern for individuals, organizations, and governments around the world that have the intent to disrupt, damage, or gain unauthorized access to computer systems, networks, or sensitive data. The aforementioned factors collectively contribute to drive the growth of defense cybersecurity market. For instance, in August 2021, the Cybersecurity and Infrastructure Security Agency (CISA) launched the Joint Cyber Defense Collaborative (JCDC). The JCDC is a partnership between the federal government, state and local governments, and private industry to collaborate on cyber defense efforts and coordinate responses to cyber threats. Therefore, the growing number of cyberattacks is driving the growth of the defense cyber security market.
Defense Cyber Security Report Coverage:
|Market Size in 2030 (USD Billion)
|USD 39.18 Billion
|Hardware, Software, and Services
|By Security Type
|Network Security, Cyber Threat Intelligence, IT Infrastructure, Logistics, Operations Security, and Training Services
|On-Premise and Cloud-Based
|Military, Communication Networks, and Others
- Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia]
- Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
- North America [United States, Canada, Mexico]
- Middle East & Africa [GCC, North Africa, South Africa]
- South America [Brazil, Argentina, Columbia, Chile, Peru]
|Leidos Holding Inc., Accenture, IBM Corporation, General Dynamics Corporation, BAE Systems PLC, DXC Technology Company, Northrop Grumman Corporation, Unisys Corporation, Fujitsu Limited, Oracle Corporation, SAP SE, Forescout, Microsoft Corporation, Amazon, Inc., AT&T Intellectual Property
The military & defense industry involves the application of advanced technologies such as GPS systems, satellites, and drones, driving the growth of the defense cyber security market. As a result, such technologies provide real-time intelligence and awareness to decision-makers helping them to identify and respond to threats more quickly and effectively. Therefore, aerospace and defense industry plays a critical role in the global market, providing advanced technologies and systems for border and coastal security. For instance, in July 2022, the Krauss-Maffei Wegmann (KMW) and Elbit Systems signed a cooperation agreement to develop a new rocket artillery system. The collaboration is aimed to ensure that the system meets the requirements of modern battlefield environments, thus promoting the growth of defense cyber security market.
Regulatory challenges associated with defense cyber security are a significant restraint of the defense cyber security market. The formulation of different data protection laws and regulations such as GDPR and HIPAA offers a significant challenge for a third-party provider to ensure that the security practices align with such regulations.
Advanced technologies such as AI and ML technologies are expected to play an increasingly significant role in the defense cyber security market, enabling organizations to detect and respond to cyber threats in real time. AI and ML algorithms are projected to analyze network traffic and identify potential cyber threats, such as malware and ransomware attacks. Moreover, the technologies are expected to monitor user behavior and identify anomalous activity that indicates a cyberattack.
Defense Cyber Security Market Segmentation:
Based on the component, the market is trifurcated into hardware, software, and services. The software segment accounted for the largest revenue share in 2022 due to the complexity of cyber threats. Cyber threats are becoming more complex enabling organizations to adopt advanced security software solutions that provide protection against cyber threats. Moreover, defense organizations need software solutions to detect and respond to cyber threats in real time thereby contributing to the growth of the defense cyber security market.
The services segment is expected to emerge as the fastest-growing segment during the forecast period. Many defense organizations lack the internal expertise and resources needed to develop and implement cybersecurity strategies. As a result, organizations are seeking strategic assistance from cybersecurity service providers for consulting, managed security services, threat intelligence, and other services. For instance, in September 2022, Check Point Software announced the launch of a new suite of security operations solutions and services that takes a prevention-first approach to cyber security thus driving the growth of the defense cyber security market.
By Security Type
Based on the security type, the market is segmented into network security, cyber threat intelligence, IT infrastructure, logistics, operations security, and training services. The network security segment accounted for the maximum revenue share in 2022. The growing need for network security solutions is driven by the increasing number of cyberattacks targeting networks as well as the rising demand for secure remote access solutions. Network security solutions are crucial for protecting the network infrastructure of defense organizations including firewalls, intrusion detection and prevention systems (IDPS), and virtual private networks (VPNs).
The IT infrastructure segment is expected to register the fastest CAGR growth during the forecast period. IT infrastructure security solutions and services are essential for protecting the IT infrastructure of defense organizations such as endpoint security, identity and access management (IAM), and data loss prevention (DLP). The increasing number of cyberattacks targeting endpoint devices is contributing to the growth of the defense cyber security market during the forecast period. For instance, in March 2022, Cloudflare, CrowdStrike, and Ping Identity launched the Critical Infrastructure Defense Project (CIDP) to help protect critical infrastructure against cyberattacks.
Based on deployment, the market is bifurcated into On-premise and cloud-based. The on-premise segment dominates the global market accounting for the largest market share in 2022On-premise solutions are installed on the organizations infrastructure and offer benefits such as control and customization over the solutions, as well as better performance and security. The aforementioned factors are collectively responsible for fueling the growth of the defense cyber security market.
The cloud-based security solutions are expected to witness the fastest CAGR growth during the forecast period due to their flexibility, scalability, and lower upfront costs. Cloud-based cyber security solutions offer several advantages easier and faster deployment, automatic software updates, and the ability to easily scale up or down depending on the organizations needs. For instance, in February 2022, Tata Consultancy Services (TCS) launched its new Cyber Defense Suite to help organizations enhance their cyber security posture. The Cyber Defense Suite is a comprehensive suite of cyber security solutions and services designed to address a wide range of cyber threats and risks.
Based on the application, the market is segregated into military, communication networks, and others. Military cyber security solutions dominate the global market as they are designed to protect military systems, networks, and data from cyber threats and attacks. The military segment includes solutions for securing military hardware, software, and communications systems, as well as solutions for detecting and responding to cyberattacks. Consequently, the increasing adoption of cybersecurity services in military segments is contributing to the growth of the defense cyber security market.
The communication network segment is expected to witness significant growth during the forecast period. The increasing complexity of communication networks is leading to a greater need for robust cybersecurity solutions in order to respond to the risk of security threats. Communication networks include solutions such as secure communications systems, network security appliances, and advanced threat detection and response solutions to protect their critical systems and data from a wide range of cyber threats and attacks. The abovementioned factors are collectively responsible for driving the growth of the global defense cyber security market.
North America accounted for the largest revenue share in the defense cyber security market. The threat of cyberattacks on critical infrastructure and government systems has increased in recent years demanding robust cybersecurity solutions in North America. As a result, the demand for cyber security systems, and advanced communication systems is increasing in the North American region. Furthermore, North America has a large and sophisticated defense industry with several defense companies and research institutions located in the region, contributing to the growth of the regional market.
Asia-Pacific is expected to witness the fastest CAGR growth during the forecast period. The Asia Pacific region has experienced a rise in terrorist activity in recent years leading to increased investments in defense cyber security solutions by governments and private organizations. Moreover, the region has also seen an increase in cyber threats, including attacks on critical infrastructure and government agencies. Therefore, government of countries such as India, China, and Japan are investing heavily to promote the growth of the defense cyber security market. For instance, in January 2023, Japan and the United States signed an agreement for cooperation on cyber defense.
Defense Cyber Security Market Competitive Landscape:
The defense cyber security market is highly competitive. The key market players are adopting strategies for mergers and acquisitions, and product innovations to stay competitive in the market. Following are the major market players that comprise the latest market concentration–
• Leidos Holding Inc.
• IBM Corporation
• General Dynamics Corporation
• BAE Systems PLC
• DXC Technology Company
• Northrop Grumman Corporation
• Unisys Corporation
• Fujitsu Limited
• Oracle Corporation
• SAP SE
• Microsoft Corporation
• Amazon, Inc.
• AT&T Intellectual Property
• In February 2023, Accenture acquired Morphus to expand its cyber defense capabilities in the Latin America.
• In April 2022, Forescout launched Forescout platform for Automated Cybersecurity (FAC). FAC is designed to provide real-time visibility and control across enterprise networks, cloud environments, and IoT devices.