Defense Cybersecurity Market Size, Trends, Share, Growth, and Opportunity Forecast, 2023 - 2030 Global Industry Analysis By Platform (Software & Service and Hardware), By Solution (Cyber Threat Protection, Threat Evaluation, Content Security, and Others), By Type (Critical Infrastructure Security & Resilience, Application Security, Cloud Security, and Others), By End User (Land Force, Naval Force, and Air Force), and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

The Global Defense Cybersecurity Market was valued at USD 34,910.1 Million in 2022 and is anticipated to reach a value of USD 54,999.3 Million by 2030 expanding at a CAGR of 5.9% between 2023 and 2030.

The protection of assets from cybercrime, terrorism, and other network service interruptions that may have an impact on daily operations is referred to as cybersecurity. It can be achieved by keeping a close eye on IT resources, reporting disruptions or malicious activity, and acting quickly to address issues as they arise. Similar to this, the defense sector is moving toward digitalization as a result of an increase in digital data generation, transmission, and storage. Cybersecurity solutions assist a military organization in keeping an eye out for, identifying, reporting, and thwarting cyber threats, online attempts to compromise or harm information systems and compromise sensitive data through the use of malware and spyware, phishing, and other hacking techniques.

Defense Cybersecurity Market Major Driving Forces

Growing Cybercrimes: Over the past ten years, cyberattacks on individuals, trade, and regulations have increased at an exponential rate. Building and defense-related matters are developing quickly, becoming a preferred target for both individuals and state-sponsored cybercriminals. As a result, the company has begun to recognize the benefits of the security systems that were previously thought to be impregnable.

Technological Expansion: The aerospace industry's increasing adoption of machine-to-machine technologies and officials' increasing emphasis on enhancing cyber security to combat cyberterrorism have contributed to the growth of the cyber security market, which is expected to fuel the expansion of the global defense cyber security market.

Growing Sophistication of Cyber Threats: The development of potent computing tools over the past several years has led to an increase in the complexity and sophistication of cyber-attacks. As a result, increasingly complex cyberattacks have emerged, including ransomware and Advanced Persistent Threats (APT), which have seriously harmed governments and enterprises globally. Defense businesses need to invest in cutting-edge cyber security solutions to counter these threats.

Internet Penetration: One of the key reasons propelling the growth of the cybersecurity industry is the increasing penetration of the internet into both developed and emerging countries' rural and urban areas. The military is the most sensitive industry and is therefore vulnerable to the greatest number of cyberattacks. The surge in widespread Internet usage has also contributed to an increase in cybercrimes, including data theft, blackmail, and other crimes. Cybersecurity is therefore essential, particularly in the defense industry.

Defense Cybersecurity Market Key Opportunities

Cloud-based Cybersecurity: This type of cybersecurity is becoming more and more popular in the military sector due to its built-in flexibility and scalability. Cloud-based cybersecurity solutions can adjust to the changing needs of defense operations and are reasonably priced. These technologies improve threat intelligence and analytics in addition to facilitating effective data storage, allowing for a quicker reaction to cyber threats.

End-Point Security Solution: Within the defensive network, a variety of devices and access points are protected by the endpoint security solution. It includes technologies that are essential for protecting sensitive data from malware and insider threats, including firewalls, intrusion detection systems, and antivirus software.

Incorporation of Artificial Intelligence (AI) and Machine Learning (ML): Artificial intelligence and machine learning are helping the cybersecurity sector develop defenses against cybercrime that responds with extreme agility. It is also expected that the technologies would rely on the attackers to gain a deeper comprehension of the identifying techniques.

Defense Cybersecurity Market Key Trends

·         Cybercriminals, nation-states, and terrorist groups are always coming up with new and inventive ways to take advantage of vulnerabilities in defense systems.

·         The trend of integrating AI and ML into military cybersecurity has gained significant traction.

·         Greater emphasis on cloud security options designed to meet the particular requirements of defense systems.

·         New attack surfaces are introduced by the growth of Internet of Things (IoT) devices within security networks.

·         Defense companies are realizing how critical it is to protect their supply chains from cyberattacks.

·         Defense cybersecurity is being impacted by strict compliance standards and regulatory obligations.

·         To keep abreast of emerging cyberthreats, governments and defense departments are making significant investments in research and development.

Region-wise Market Insights

North America accounted for the largest market share at 42.3% in 2022 whereas, Asia Pacific is expected to register the fastest growth, expanding at a CAGR of 6.6% between 2023 and 2030.

North America holds the biggest market share of 42.3%, accounting USD 14,767 million. For tactical, technical, and financial reasons, North America is anticipated to lead and take the largest market share in the defense cybersecurity industry. Primarily, the United States and Canada, two of the most innovative and technologically sophisticated nations in the world, are located in this region. The US, especially, leads the world in defense technologies and has a strong military establishment. The creation and application of cutting-edge cybersecurity solutions is facilitated by the large R&D expenditures as well as a robust defense industrial base. Strong cybersecurity measures are required to guard against cyber threats due to the widespread use of advanced military capabilities, such as integrated command and control systems, unmanned aerial vehicles, and sophisticated weapon systems. Modern cybersecurity solutions are increasingly needed to protect these vital assets as the U.S. Department of Defense and other defense organizations update their capacities. Asia Pacific is expected to grow at the fastest pace in the global defense cyber security market during the forecast period with CAGR 6.6%. In the Asia-Pacific area, the market for defense cyber security has expanded rapidly. To protect vital infrastructure and sensitive data, nations such as China, India, Japan, and South Korea have made large expenditures in cybersecurity. Governments in the area have been forced to bolster its cyber security capabilities due to the increase in cyber threats and geopolitical unrest, which has fueled market expansion.

Market Competition Landscape

The presence of both domestic and foreign competitors defines the defense cybersecurity market's competitive environment. Due to mergers and acquisitions, wherein larger organizations have bought smaller enterprises in order to enhance their market position and extend their skills, the defense cybersecurity sector has concentrated. Notable businesses with a broad range of goods and services and a global presence have arisen as a result of this trend. Businesses in the defense cybersecurity sector are swiftly implementing cutting-edge technologies to increase project efficiency and safeguard against cyber threats.

Companies with a broad geographic reach can access a wider range of markets and opportunities more effectively. By leveraging their local or global presence, they can expand their project portfolio and gain a larger market share. Local and regional pipeline contractors have an advantage over rivals in their specialized marketplaces because they are acquainted with local regulations, cultural peculiarities, and project-specific requirements. Leading companies in the industry are:

·         Lockheed Martin Corporation

·         Northrop Grumman Corporation

·         Raytheon Technologies Corporation

·         Booz Allen Hamilton

·         BAE Systems plc

·         IBM Corporation

·         Cisco Systems, Inc.

·         Broadcom Inc. (Symantec Corporation)

·         Palo Alto Networks, Inc.

·         FireEye, Inc.

·         CyberArk Software Ltd.

·         CrowdStrike Holdings, Inc.

·         Thales Group

·         Check Point Software Technologies Ltd.

·         Leidos Holdings, Inc.

Two of the biggest names in the cybersecurity space are Northrop Grumman and Lockheed Martin Corporation, two significant defense contractors. While Northrop Grumman concentrates on safeguarding vital infrastructure, Lockheed Martin offers cutting-edge technologies to improve defense systems. For defense and government agencies, Raytheon Technologies Corporation, a division of Raytheon Technologies Corporation, creates cybersecurity solutions, including threat detection and intelligence. CyberArk Software Ltd. is an expert in providing solutions for privileged access management, safeguarding and controlling privileged accounts to stop unwanted access and preserve confidential data.