Defense Cyber Security Market Size, Share, Growth, Trends, Insights, Competitive Landscape and Forecast, 2032

According to Fortune Business Insights™, the global defense cyber security market size stood at USD 16.45 billion in 2023 and is projected to grow from USD 19.14 billion in 2024 to USD 63.38 billion by 2032, at a strong CAGR of 16.1% during the forecast period. North America held the dominant share in 2023, valued at USD 7.47 billion, supported by robust defense budgets and the presence of leading industry players.

What is Defense Cyber Security?

Defense cyber security encompasses technologies and solutions that detect, monitor, and counter cyber threats aimed at military infrastructure, classified data, and mission-critical systems. These solutions protect against advanced threats such as malware, phishing, ransomware, and spyware, ensuring confidentiality, operational continuity, and resilience in both peacetime and conflict environments.

Key Players

Prominent companies shaping this market include:

• Lockheed Martin Corporation (U.S.)

• The Thales Group (France)

• BAE Systems plc (U.K.)

• General Dynamics (U.S.)

• Northrop Grumman Corporation (U.S.)

• Raytheon Technologies (U.S.)

• Booz Allen Hamilton (U.S.)

• Leonardo (Italy)

• Leidos (U.S.)

• L3Harris Technologies (U.S.)

These players emphasize cyber infrastructure modernization, zero-trust frameworks, encryption technologies, AI-driven threat detection, and global expansion via partnerships and acquisitions.

Information Source:

https://www.fortunebusinessinsights.com/defense-cyber-security-market-105139

Market Segmentation

By Platform

• Software & Service – This segment holds the largest share of the market, fueled by the rapid adoption of cloud-based and on-premise defense cyber solutions. Nations are increasingly deploying advanced software platforms to enhance situational awareness and secure mission-critical systems.

• Hardware – Growth in this segment is driven by the modernization of IT infrastructure across militaries, including servers, secure routers, and specialized defense-grade computing systems.

By Solution

• Cyber Threat Protection – The leading segment, encompassing firewalls, sandboxing, TLS/SSL inspection, and browser isolation. Defense organizations prioritize this area to mitigate the growing wave of malware, phishing, and ransomware attacks.

• Threat Evaluation – Supports early detection and analysis of vulnerabilities, ensuring rapid response to potential breaches.

• Content Security – Focused on email and web traffic encryption, this solution ensures confidentiality and prevents data exfiltration in defense communications.

• Others – Includes supporting technologies that enhance layered cyber defense strategies.

By Type

• Application Security – The fastest-growing segment, driven by the need for secure coding practices, encryption methods, and multi-layer authentication in military-grade applications.

• Critical Infrastructure Security & Resilience – Safeguards vital assets such as radars, command centers, and defense logistics networks against advanced cyberattacks.

• Cloud Security – Increasing adoption of cloud-hosted platforms within defense networks makes this a crucial area for growth.

• Others – Covers niche security solutions integrated across diverse defense ecosystems.

By End User

• Land Forces – Largest share of the market, as these forces require robust cyber security for mobile command centers, tactical communications, and vehicle-mounted networks.

• Naval Forces – Investments are directed toward protecting maritime communication links, naval command systems, and underwater defense networks.

• Air Forces – Focused on safeguarding airborne platforms, avionics, and satellite-enabled communication channels against hostile intrusions.

Market Dynamics

Key Drivers

1. Rising Cyber Threats in Defense – Global cyberattacks surged 38% in 2022; government and military sectors experienced 1,600+ weekly attacks.

2. Digital Transformation of Military Operations – Investments in AI, automation, and cloud adoption; the U.S. DoD allocated USD 13.5 billion in FY 2024 for cyber modernization.

3. Strategic Investments in Cyber Capabilities – U.S., China, Australia, and EU countries are expanding cyber defense infrastructure with vendor collaborations.

Restraint

• Talent Shortage & Training Costs – Over 0.7 million cyber defense jobs remain unfilled in the U.S. Training costs for skilled personnel often exceed USD 100,000, straining budgets, especially in developing nations.

Regional Insights

• North America – Largest market (USD 7.47 billion in 2023); dominance driven by high budgets, leading players, and advanced military modernization.

• Asia Pacific – Rapid growth; key contributions from China, Japan, and Australia. Five Eyes cooperation and CERT initiatives strengthen defenses.

• Europe – Accelerated adoption post Russia-Ukraine war; EU Cyber Defense Policy and NATO cyber drills increase preparedness.

• Rest of the World – Moderate growth; UAE, Israel, Saudi Arabia, and Brazil investing in next-gen defense cyber solutions.

Impact of the Russia-Ukraine War

The conflict significantly accelerated global cyber defense investments. Ukraine’s defense spending rose 640% in 2022, while NATO members increased cyber cooperation. State-sponsored attacks such as Sandworm’s “Prestige” ransomware against Polish and Ukrainian networks underscore the urgency of strengthening military-grade cyber defenses.

Recent Industry Developments

• June 2023 – Leonardo unveiled integrated solutions to protect naval infrastructure from combined physical and cyber threats.

• April 2023 – Thales launched SCRED, a collaborative French project to develop a unified cyber threat intelligence platform.