Military Cyber Security Market - By Offering (Solution, Service), By Security (Network Security, Cloud Security, Wireless Security, Application Security), By Deployment Model (On-premises, Cloud), By Application & Forecast, 2024 - 2032

Military Cyber Security Market Size

Military Cyber Security Market was valued at USD 15 billion in 2023 and is estimated to register a CAGR of over 6.5% between 2024 and 2032. The rising use of cloud-based storage solutions and the adoption of innovative technologies have led to the growth of the market.

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The growing investments made by different governments in countering the threat of cyberattacks and providing increased security solutions are also expected to support the military cyber security industry. In addition, rapid technology improvements, offering enhanced defense capabilities and configuration services, have evolved through partnerships between various organizations to bolster cyber security, reflecting a growing trend of strategic investments in cyber defense.
 

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The surge in defense spending by different countries has greatly impacted the military cyber security market. Countries are placing a higher priority on defending sensitive data and vital infrastructure against cyberattacks as global threats change. As a result, budgetary allotments for cyber security measures within the defense industry have expanded. To strengthen their cyber defenses, governments are investing in advanced technologies such as Machine Learning (ML) and Artificial Intelligence (AI). Furthermore, alliances between government institutions and commercial cyber security companies are becoming increasingly popular as a means of utilizing specialist knowledge and innovative technologies. For instance, in January 2023, NATO signed an agreement with IBM Belgium and King ICT Croatia to support the organization’s cyber security. These contracts covered the integration of cyber defense capabilities and associated configuration services needed to protect military operations and national security in digital battlefields.

High costs of implementing cutting-edge technologies and solutions are a major obstacle in military cyber security. This financial load can be especially intimidating for countries with small defense budgets. In addition, the industry is severely lacking in cyber security experts with the necessary training to deploy and oversee these complex systems. Due to this skills gap, cyber security measures may be less effective, making military operations more susceptible to cyberattacks. Encouraging military cyber security capabilities worldwide requires addressing the high expenses and the scarcity of qualified personnel.

Military Cyber Security Market Trends

Scalability and modular design are becoming increasingly important in military cyber security innovations, enabling simpler integration of different defense platforms and applications. This methodology facilitates cyber security solutions that are more adaptable and adjustable, meeting a range of operational requirements while optimizing deployment procedures and reducing development lead times. This underscores a growing adoption of stringent, data-centric security measures to enhance defense capabilities. For instance, in January 2022, the U.S. Army announced its plan to establish a zero-trust cyber security framework as the country becomes a data-centric force. Additionally, Raytheon Intelligence and Space demonstrated its Operational Zero Trust platform as part of the U.S. Army's Project Convergence experiment.

The global market is moving toward modular and scalable designs in response to the rising cyber security threats. This shift enables more flexibility in integrating cyber security solutions across various defense systems and applications. Manufacturers can shorten deployment timelines, cut costs, and improve production processes by modularizing components including encryption technologies, threat detection systems, and security protocols. Additionally, as these designs are customizable to unique mission objectives and operating conditions, this strategy guarantees strong defense against constantly changing cyber threats. The shift to scalable and modular designs encourages innovation and efficiency in military cyber security, strengthening the robustness and efficiency of defense operations.

Military Cyber Security Market Analysis

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Based on deployment model, the market is categorized into on-premises and cloud. In 2023, the on-premises segment accounted for a market share of around 70% and is expected to exceed USD 18 billion by 2032. On-premises deployment model is expected to grow in the military cyber security industry due to its advantages in data control, compliance, and security. Military organizations often prioritize maintaining sensitive data within their own controlled environments to mitigate risks associated with external hosting. Additionally, stringent regulations and confidentiality requirements may necessitate on-premises solutions. As threats evolve and security concerns intensify, the need for localized control and immediate response capabilities provided by on-premises deployments is anticipated to drive market growth.

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Based on offering, the market is divided into solution and service. In 2023, the solution segment accounted for a market share of around 75%. Military cyber security solutions including network security, endpoint security, application security, cloud security, data security, encryption, risk management, and incident response offer complete defense against cyber threats. These solutions guarantee the availability, confidentiality, and integrity of sensitive data and military activities. For instance, in November 2023, Cyemptive Technologies, a provider of pre-emptive cyber security solutions, unveiled a new website featuring its military-grade cyber security solutions for businesses and governments. an industry-first technology that focuses on defeating damage, even from unknown zero-day attacks.

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North America dominated the global military cyber security market with a major share of over 33% in 2023. The increasing frequency and sophistication of cyberattacks, along with significant government investments in R&D for innovative cyber security systems, are the main reasons for North America leading the military cyber security industry. As part of its proactive cyber security strategy, the region has allocated significant funds to the development of innovative technologies and defense strategies for military operations and assets. This dedication to R&D encourages innovation in secure communication technologies, encryption, and threat detection, strengthening the region's defenses against changing cyber threats. North America continues to lead the market due to its strategic investments and strong cyber security infrastructure.

Countries, such as the U.S., are expected to experience significant growth in the military cyber security industry due to the presence of major key defense corporations, growing government spending on cyber security & defense, and the evolving threat landscape. In the upcoming years, the adoption of military cyber security solutions will be fueled by the region's emphasis on developing cutting-edge cyber security technologies, as well as by strong government initiatives and financing for defense programs.

In Asia Pacific, the market is experiencing rapid growth, owing to the growing cyber security risks and efforts to digitally transform the defense industry. China, Japan, and South Korea are heavily investing in cyber security capabilities to safeguard their military activities and assets. This pattern highlights the increasing focus on cyber security preparedness and resilience in the face of the region's changing cyber threats.

Military Cyber Security Market Share

Lockheed Martin Corporation, Raytheon Technologies Corporation, and Northrop Grumman Corporation dominate the military cyber security industry holding market share over 25% due to their extensive experience, robust capabilities, and innovative solutions. Lockheed Martin offers comprehensive cyber defense solutions, including threat intelligence, network security, and incident response services. Raytheon Technologies specializes in advanced cybersecurity technologies, such as encryption, secure communications, and threat detection systems, tailored for military applications. Northrop Grumman provides integrated cyber solutions, leveraging its expertise in intelligence, surveillance, and reconnaissance (ISR) technologies to protect military networks and assets from cyber threats.

These companies have established strong relationships with military clients worldwide and possess deep domain knowledge in cybersecurity and defense. Their track record of delivering reliable and effective solutions, coupled with ongoing investments in research and development, enables them to address evolving cyber threats and provide tailored security solutions to meet the unique requirements of military organizations.

Military Cyber Security Market Companies

Major players operating in the military cyber security industry are

• BAE Systems
• Cisco Systems, Inc.
• L3Harris Technologies
• Lockheed Martin Corporation
• McAfee, LLC
• Northrop Grumman Corporation
• Palo Alto Networks, Inc.
• Raytheon Technologies Corporation
• Symantec Corporation
• Thales Group
   

Military Cyber Security Industry News

• In April 2024, Germany established a dedicated cyber branch, the German Cyber and Information Domain Service (CIR), in response to rising cyber threats from Russia, will significantly fuel the market.
   
• In April 2024, NATO announced plan to establish a new cyber center at its military headquarters in Mons, Belgium. This initiative aims to enhance the alliance's capabilities in cyber defense and response, providing a centralized hub for coordination, information sharing, and collaboration among member states to address evolving cyber threats effectively.

The military cyber security market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2032, for the following segments

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Market, By Offering

• Solution
  • Risk and compliance management
  • Encryption
  • Data loss prevention
  • Distributed Denial of Service (DDoS) mitigation
  • Identity & access management
  • Antivirus/Antimalware
  • Others
• Services
  • Professional
  • Managed

Market, By Security

• Network security
• Cloud security
• Wireless security
• Application security
• Others

Market, By Deployment Model

• On-premises
• Cloud

Market, By Application

• Command and control systems
• Communication network
• Intelligence and surveillance
• Weapon systems and platforms

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • UAE
  • South Africa
  • Saudi Arabia
  • Rest of MEA