The defense cyber security market caters to the cybersecurity needs of defense agencies and armed forces. It offers defensive as well as offensive cyber operations capabilities. Key products in this market include firewalls, virtual systems, intrusion detection/prevention, anti-malware/spyware, identity and access management, data loss prevention, and unified threat management. These products help secure critical defense infrastructure and networks from evolving cyber threats.
Growing sophistication of cyber-attacks is a key driver of this market. State-sponsored hackers and terrorist groups are increasingly employing complex technologies to launch cyber-attacks against defense agencies. This is prompting governments to strengthen their cyber defenses. Additionally, rising digitization of military assets is increasing the attack surface for hackers. This is fueling demand for advanced cybersecurity solutions within defense organizations. Growing need to secure critical weapons systems, command & control networks, and defense industrial base is providing a strong impetus to the defense cyber security market.
Some other factors fueling growth include increasing defense budgets for cyber capabilities, upgrades of legacy systems, collaborations between government & private vendors, and stringent regulations for critical infrastructure protection. However, issues around data privacy and limitations of existing technologies continue to restrain full utilization of cyber capabilities within defense organizations.
The defense cyber security market is dominated by the network security segment. With increasing cyber threats targeting critical defense infrastructure and platforms, governments across the world are investing heavily in securing their networks. The network security segment offers solutions such as firewalls, virtual private networks, antivirus/anti-malware, intrusion prevention/detection systems etc. to protect networks from malware, DDoS attacks and other sophisticated cyber threats.
Political: Government regulations around IT security and data privacy are getting stronger with laws like GDPR pushing organizations to bolster their cyber defenses. Political instability also fuels more cyber attacks.
Economic: The global defense budget is growing annually, allocating higher funds for cyber security tools to safeguard critical assets. The economic cost of cyber attacks has also been rising.
Social: Rampant use of internet and social media by citizens as well as terrorists/hackers have exacerbated security challenges for defense networks. Insider threats also remain a concern.
Technological: Emergence of new technologies like AI, cloud computing and IoT have widened the attack surfaces while nation state actors are constantly developing sophisticated cyber weapons. This is driving higher spending on innovative security controls.
The Global Defense Cyber Security Market Demand is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing cyber attacks on critical infrastructure and rising vulnerabilities from adoption of new technologies. North America currently dominates with the largest market share due to heavy investments by US department of defense followed by Asia Pacific which is expected to emerge as the fastest growing regional market. Key players operating in the defense cyber security market are General Dynamics-CSRA, Booz Allen Hamilton Holding Corp., Northrop Grumman, Raytheon Technologies Corporation, Leidos Holdings Inc., SAIC, Lockheed Martin Corporation, Viasat Inc., CACI International Inc. and L3 Harris Technologies. General Dynamics-CSRA specializes in providing innovative cyber security solutions tailored for defense networks while Booz Allen Hamilton is a pioneer in machine learning and AI based controls. Northrop Grumman has significant presence across key security domains like ISR, C4ISR and cutting-edge R&D. Raytheon Technologies Corporation offers end-to-end solutions from advisory to managed services.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it