Global Defense Cybersecurity Market Prospers at a CAGR of 10.7%

Introduction

Cyber threats are internet-based attempts to destroy or disrupt information systems and hack sensitive data in different ways, including spyware, malware, and phishing. Communications and IT advancements have altered the landscape of practically every nation's defense networks. However, fast-expanding technology is accompanied by swiftly evolving risks. Cybersecurity solutions assist defense agencies in monitoring, detecting, reporting, and mitigating cyber threats to preserve data confidentiality.

The defense sector has undergone a significant transformation in the past ten years. The growing advances in information technology, the enhancement of existing weapons with intelligence and surveillance, and the increased volume of classified data collected from various systems have necessitated the use of dependable and improved cybersecurity solutions in the defense industry.

Moreover, growing expenditure on service programs for research and developing cybersecurity solutions for battlefield communication systems is anticipated to drive the defense cybersecurity market's growth throughout the forecast period.

Market Dynamics

Government Initiatives to Secure Critical Data Spur the Defense Cybersecurity Market

Governments are adopting measures or devising strategies to safeguard their assets against cyberattacks. In conjunction with peers and governments, the defense industrial base evaluated the scale of the danger landscape and created tactics, procedures, and instruments to avoid breaches. Countries such as India have begun to invest considerably in developing cybersecurity systems to secure vital data. In addition, the escalating tensions between the United States and Iran have prompted the administration to implement new technological intelligence. For example, the United States military has launched a cyberattack against Iranian armament systems and damaged computer systems used by Iran's Islamic Revolutionary Guard Corps to control rocket and missile launches.

Iran has rapidly developed its cyber capabilities and increased its cybersecurity in response to the incidence of such attacks. The Iranian Revolutionary Guard Corps (IRGC), the Basij, and Iran's "Passive Defense Organization" (NPDO) all play critical roles in cyber operations. As a result, cybersecurity solutions could increase to safeguard vital data. Increasing initiatives by the government and relevant regulatory organizations to secure essential defense infrastructure are anticipated to drive market expansion over the forecast period.

The Transition of Conventional Military Aircraft into Autonomous Aircraft Creates Fruitful Opportunities

As a result of alterations in military conflict tactics, the focus of aircraft manufacturers has switched from developing conventional aircraft to promoting autonomous aircraft. Unmanned combat aerial vehicles (UCAVs) with autonomous, sophisticated fighter aircraft such as the Kratos XQ-58 Valkyrie and UTAP-22 Mako jet significantly enhance situational awareness and missile-carrying capacity, thereby facilitating the execution of vital battlefield missions during military operations. These autonomous aircraft rely on AI technology for air-to-air communication to handle complex combat conditions.

Adopting artificial intelligence (AI) and the Internet of things (IoT) in aircraft facilitates mission execution by assisting pilots with mission-critical military decision-making, real-time navigation and surveillance, and selecting the optimal flight path. Utilizing cutting-edge technology decreases the probability that a mission will fail. In addition, aircraft of the future generation are equipped with electronics, software, and electronics based on cutting-edge technology. The rising use of IoT and AI by military aircraft could develop dependable and enhanced cybersecurity solutions for the defense sector.

Regional Insights

North America accounts for the largest market share and is estimated to grow at a CAGR of 10.3% over the forecast period. As a significant industrialized economy, the United States is highly reliant on the Internet and, consequently, very vulnerable to cyberattacks. It also has strong defensive capabilities due to its advanced technology and massive military budget. Through malicious hacking, foreign and local adversaries continue to pose a persistent threat to the United States. The nation has built strong cyber defensive capabilities in response to these expanding dangers. In addition, the Defense Industrial Base Sector Coordinating Council of the United States recently announced the establishment of a Supply Chain Cybersecurity Industry Task Force tasked with identifying, prioritizing, supervising, and driving the adoption of executable solutions to protect controlled unclassified information throughout the entire supply chain. This is anticipated to increase the usage of cybersecurity solutions.

Asia-Pacific is estimated to generate USD 9 billion by 2030, growing at a CAGR of 11.5%. Cybersecurity and warfare have undergone radical transformations in the digital era, and Asian nations are at the forefront of the technological breakthroughs driving these changes. SIPRI estimates that China's military expenditures amounted to $261 billion. China's Military Strategy outlines the key objectives of cyber capabilities as cyberspace situation awareness, cyber defense, support for the nation's cyber activities, and engagement in international cyber cooperation. During the forecast period, the adoption of cybersecurity solutions and tools is anticipated to be driven by the government's growth initiatives and the related regulatory bodies' efforts to bolster security.

Key Highlights

• The global defense cybersecurity market was valued at USD 18 billion in 2021. It is estimated to reach USD 40.5 billion by 2030, growing at a CAGR of 10.7% during the forecast period (2022–2030).

• Solution-wise, the global defense cybersecurity market is segmented into Threat Assessment, Network Fortification, and Training Services. Network Fortification accounts for the largest market share and is estimated to grow at a CAGR of 10.1% over the forecast period. 

Competitive Players

Competitive Landscape

Key players in the global defense cybersecurity market are General Dynamics-CSRA, Raytheon Technologies Corporation, SAIC, Lockheed Martin Corporation, L3 Harris Technologies, Northrop Grumman, Booz Allen Hamilton Holding Corp., CACI International Inc., Viasat Inc., and Leidos Holdings Inc.

Recent Developments

Market News

• In August 2022, Raytheon Intelligence & Space, a Raytheon Technologies business, delivered the Initial Operating Capability for the Global Aircrew Strategic Network Terminal system, or Global ASNT, to the US Air Force.
• In August 2022, Small satellite manufacturer and mission services provider Blue Canyon Technologies LLC ("BCT" or "Blue Canyon"), a wholly-owned subsidiary of Raytheon Technologies, celebrated the grand opening of its new CubeSat Factory in Boulder, Colorado, with members of the Boulder Chamber of Commerce at a ribbon-cutting ceremony.
• In June 2022, Raytheon Technologies (NYSE: RTX) announced that it would establish its global headquarters in Arlington, Virginia. The location increases agility in supporting US government and commercial aerospace customers and reinforces partnerships that will progress innovative technologies to advance the industry. Washington, DC, serves as a convenient travel hub for the company's global customers and employees.

Segmentation

Global Defense Cybersecurity Market: Segmentation

By Solution

• Defense Solutions
• Threat Assessment
• Network Fortification
• Training Services

By Regions

• North America
• Europe
• Asia-Pacific
• Rest of the World