Military Cybersecurity Market Report 2025

The military cybersecurity market size has grown strongly in recent years. It will grow from $14.05 billion in 2024 to $15.14 billion in 2025 at a compound annual growth rate (CAGR) of 7.7%. The growth in the historic period can be attributed to increasing cyber threats, rise in state-sponsored cyber warfare, critical infrastructure protection, focus on information assurance, regulatory compliance requirements.

The military cybersecurity market size is expected to see strong growth in the next few years. It will grow to $20.91 billion in 2029 at a compound annual growth rate (CAGR) of 8.4%. The growth in the forecast period can be attributed to cybersecurity skill shortages, heightened focus on supply chain security, proliferation of cyber threat vectors, national security imperatives, international collaboration on cybersecurity. Major trends in the forecast period include rapid technological advancements, AI and machine learning integration, integration of IoT and connected technologies, cloud security for military operations, zero trust security framework.

The surge in cyberattacks is anticipated to drive the growth of the military cybersecurity market in the upcoming period. Cyberattacks involve illicit attempts to gain unauthorized access to computer systems or networks, aiming to cause damage, steal data, disable machines, or use compromised systems as launch points for further attacks. Ensuring the integrity of operations, the military relies on secure information resources. Military cybersecurity plays a critical role in preventing attacks on social networks and safeguarding various aspects, including data, networks, net-centric capabilities, and designated systems. For instance, as reported by Parachute Technology in April 2023, global cyberattacks targeting governments spiked by 95% in the latter half of 2022. Moreover, the average cost of data breaches in the government's public sector surged by 7.25%, rising from $1.93 million in 2021 to $2.07 million in 2022. Consequently, the escalating frequency of cyberattacks serves as a catalyst propelling the growth of the military cybersecurity market, emphasizing the necessity for robust protective measures in the face of evolving digital threats.

The increasing defense budgets are anticipated to drive the growth of the military cybersecurity market in the future. Defense budgets represent the financial plans and resources assigned to a country's military forces for various objectives, including maintaining peace, security, and defense. A significant portion of these budgets is dedicated to military cybersecurity, focusing on the development and deployment of tools and techniques to identify vulnerabilities in adversarial networks and systems. For example, the Congressional Budget Office, a federal agency within the U.S. legislative branch, projects that military spending in the country will rise by 10% by 2038. Consequently, the growth of defense budgets is propelling the expansion of the military cybersecurity market.

Major players in the military cybersecurity market are prioritizing the development of innovative products to maintain their market positions. For example, in July 2022, CCX Technologies, a Canada-based manufacturer catering to aerospace OEMs, aircraft maintainers, and military contractors, launched SystemX enterprise cybersecurity software. This groundbreaking solution represents the first of its kind, specifically designed for direct engagement with aviation, aerospace, and defense systems, providing protection against cyber threats targeting onboard networks. SystemX Enterprise offers a comprehensive suite of customizable cybersecurity tools, encompassing defense and security software, accompanied by maintenance support and expert integration services. Its remarkable versatility makes it well-suited for diverse automobile platforms, meeting various requirements within the military cybersecurity landscape. This initiative highlights CCX Technologies' commitment to delivering cutting-edge cybersecurity solutions tailored for the unique needs of the aerospace and defense sectors.

Key companies in the military cybersecurity market and related organizations are concentrating on developing and implementing new initiatives to tackle challenges and protect against military cybersecurity attacks. For instance, in July 2024, NATO, a military alliance consisting of 30 countries across Europe and North America, announced its plan to launch a first-of-its-kind integrated cyber defense center at the coalition's military headquarters in Mons, Belgium. This initiative encompasses various components, including information sharing, collaborative capability development, and defense against cyberattacks, among others.

In January 2023, Iron Bow Technologies LLC, a US company specializing in IT solutions, acquired GuardSight Inc. for an undisclosed sum. This strategic move aims to broaden Iron Bow's cybersecurity solution portfolio by merging its public-sector cybersecurity engineering proficiency with GuardSight's SECOPS (Security Operations) and MDR (Managed Detection and Response) capabilities from the private sector. GuardSight Inc., based in the US, provides cybersecurity services to military, government intelligence, and enterprise security professionals.

Major companies operating in the military cybersecurity market include Airbus SE, Raytheon Technologies Company, Lockheed Martin Corporation, International Business Machines Corporation, Cisco Systems Inc., Northrop Grumman Corporation, BAE Systems plc, Thales Group, Leidos Holdings, Inc., General Dynamics Mission Systems Inc., Booz Allen Hamilton Inc., Science Applications International Corporation, ST Engineering Ltd., Israel Aerospace Industries Ltd., Perspecta Inc., ManTech International Corporation, CACI International Inc., Check Point Software Technologies Ltd., Palantir Technologies Inc., QinetiQ Group plc, FireEye Inc., Salient CRGT.

North America was the largest region in the military cybersecurity market in 2024. It is expected to be the fastest-growing region in the global military cybersecurity market size forecast period. The regions covered in the military cybersecurity market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the military cybersecurity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Military cybersecurity involves a collection of actions, procedures, and tools to protect sensitive information, computer systems, networks, data, and programs from harm, attacks, and unauthorized access. These cybersecurity operations aim to safeguard data, networks, net-centric capabilities, and other designated systems by detecting, identifying, and responding to intrusions on social networks.

Military cybersecurity comprises defensive and offensive cybersecurity. Defensive cybersecurity involves anticipating risks rather than only responding to cyberattacks. The platforms used include hardware, services, and software, providing security such as network security, cyber threat intelligence, IT infrastructure, logistics and operation security, and training services. Solutions encompass threat intelligence and response management, identity and access management, data loss prevention management, security and vulnerability management, unified threat management, enterprise risk and compliance, managed security, among others. Military cybersecurity is applied in ground forces, air forces, and marine forces.

The military cybersecurity market research report is one of a series of new reports that provides military cybersecurity market statistics, including military cybersecurity industry global market size, regional shares, competitors with a military cybersecurity market share, detailed military cybersecurity market segments, market trends and opportunities, and any further data you may need to thrive in the military cybersecurity industry. This military cybersecurity market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The military cybersecurity market includes revenues earned by entities by providing antivirus software, backup solution, and multi-factor authentication. The market value includes the value of related goods sold by the service provider or included within the service offering. The military cybersecurity market also includes sales of storage secure devices, unmanned aerial vehicles, digital signal processor modules, and aviation night-vision goggles which are used in providing military cybersecurity services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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