Defense Cybersecurity Market Report

Attractive Opportunities

Global Demand Analysis & Sales Opportunities in Defense Cybersecurity Market 

• The annual demand for defense cybersecurity was USD 39.1 billion in 2024 and is expected to reach USD 41.7 billion in 2025, up 6.7% than the value in 2024.
• During the next 8 years (forecast period of 2025-2032), the defense cybersecurity market is expected to grow at a CAGR of 6.5%. The annual demand will reach USD 64.8 billion in 2032, which is almost 1.5 times the demand in 2025.
• During 2025-2032, the defense cybersecurity industry is expected to generate a cumulative sales opportunity of USD 421.1 billion.

High-Growth Market Segments: 

• North America is expected to be the dominant and fastest-growing region of this market over the forecasted period.
• By platform type, Software & Services segment is anticipated to have the largest market share during the forecast period.
• By security type, Network Security segment is expected to be the fastest-growing segment of the defense cybersecurity market during the forecast period.
• By end-user type, Army segment is expected to be the fastest-growing segment of this market during the forecast period.

Market Statistics 

Have a look at the sales opportunities presented by the defense cybersecurity market in terms of growth and market forecast.

Market Dynamics

Introduction:

Defense cybersecurity refers to the protection of military networks, communication systems, weapons platforms, and sensitive data from cyber threats. It involves implementing advanced technologies and protocols to detect, prevent, and respond to cyberattacks, ensuring operational integrity, national security, and the resilience of defense infrastructure against evolving digital threats.

Market Drivers:

Growing Instances of Cyber Attacks

• In recent years, cyber threats have become more frequent, advanced, and damaging on a global scale. These attacks originate from diverse sources, ranging from hostile governments and activist groups to criminal networks and internal sources.
• For instance, in 2024, the Swiss Air Force was affected by a cyberattack targeting a U.S.-based security company, Ultra Intelligence & Communications, allegedly by a Russian-origin group. Around 30GB of sensitive data, including defense contracts and communications details, was leaked online. While Swiss military operations remain unaffected, officials stress the potential risks posed by exposed vulnerabilities and confirm an ongoing investigation into the breach.
• Similarly, in 2024, the Ukrainian government's computer emergency response team CERT-UA, detected and neutralized a cyberattack aimed at the Ukrainian Defense Forces. Cybercriminals posed a military colleague and sent an Excel file disguised as a report, claiming it had formatting issues and requested assistance. The file contained embedded malicious code that, once opened, installed the COOKBOX malware. CERT-UA reported that this targeted activity, tracked as UAC-0149, has been ongoing since fall 2023.
• Thus, the surge in threat activity is pushing defense agencies to invest heavily in advanced cybersecurity tools to protect critical infrastructure, secure data, and maintain operational readiness, driving the growth of the defense cybersecurity market.

Market Challenges: 

Integration with Legacy Infrastructure

• Many defense organizations rely heavily on legacy systems that are difficult to secure and integrate with modern cybersecurity platforms.
• Integrating these systems with today’s advanced security technologies is often complex, time-consuming, and costly. This not only delays critical upgrades but also increases the risk of cyber vulnerabilities, leaving sensitive defense operations exposed to increasingly sophisticated threats.

Market Opportunities: 

Growing Digitization of Military Assets and Advanced Tech Integration

• As defense systems increasingly adopt IoT platforms, unmanned technologies, and cloud infrastructure, cybersecurity risks multiply.
• To counter these threats, militaries are investing in advanced solutions like AI-driven threat detection, zero-trust frameworks, and quantum-resistant encryption. This digital transformation creates a strong growth opportunity for the defense cybersecurity market, demanding smarter, faster, and more resilient cyber defense strategies.

Segments' Analysis

By Platform Type

“Software & Services segment is anticipated to have the largest market share during the forecast period.”

• The defense cybersecurity market is segmented by platform type into hardware and software & services.
• Software & Services segment is anticipated to have the largest market share during the forecast period, due to the growing need for advanced threat detection, AI integration, and secure cloud environments.
• As defense agencies modernize operations, demand rises for scalable, adaptable cybersecurity solutions that can address evolving threats and support technologies like machine learning and quantum-resistant encryption.

By Security Type 

“Network Security segment is expected to be the fastest-growing segment of the defense cybersecurity market during the forecast period.”

• The defense cybersecurity market is segmented by type into network security, endpoint security, application security, and cloud security.
• Network Security segment is expected to be the fastest-growing segment of the defense cybersecurity market during the forecast period, due to the increasing adoption of IoT, cloud computing, and 5G technologies, which expand the cyberattack surface.
• Network Security solutions provide real-time traffic monitoring, threat detection, and rapid incident response, which is crucial for safeguarding critical defense communications and ensuring operational continuity in an evolving threat landscape.

Regional Analysis

“North America is expected to be the dominant and fastest-growing region of this market over the forecasted period.”

• In terms of region, the defense cybersecurity market is segmented into the North American region, the European region, the Asia-Pacific region, and the rest of the world.
• North America is expected to be the dominant and fastest-growing region of this market over the forecasted period, due to growing defense budgets, rising cyber threat levels, and the presence of major defense contractors like Lockheed Martin, Northrop Grumman Corporation, Raytheon, etc.
• Additionally, ongoing modernization programs and strategic cybersecurity initiatives, along with increasing military contracts, drive regional growth and ensure advanced protection of critical defense infrastructure.

Competitive Landscape

Most of the major players compete in some of the factors, including price, service offerings, regional presence, etc. The following are the key players in the defense cybersecurity market -  

• Thales   
• Lockheed Martin Corporation   
• Northrop Grumman
• Raytheon Technologies
• L3Harris Technologies Inc.
• Leonardo S.p.A
• General Dynamic Corporation
• CACI International Inc
• Elbit Systems Ltd
• BAE Systems

Note: The above list does not necessarily include all the top players in the market.

Are you a leading player in this market? We would love to include your name. Please write to us at [email protected]

Recent Developments/Mergers & Acquisitions: 

• In June 2025, Italy-based defense giant Leonardo revealed the acquisition of a European cybersecurity company as part of its broader strategy to enhance digital defense capabilities. This move aims to reinforce Leonardo’s position in multi-domain operations by expanding its expertise in cybersecurity, particularly in protecting critical infrastructure and supporting military systems against evolving digital threats. The acquisition highlights Leonardo’s continued investment in next-generation cyber technologies for modern warfare. 

• In September 2024, Airbus Defence and Space has officially completed its acquisition of Infodas, a German firm specializing in cybersecurity and IT services for the public sector, including defense and critical infrastructure. With all regulatory approvals secured, Infodas will now operate as a subsidiary under the Airbus umbrella.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market.

The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation 

This report studies the market, covering a period of 15 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The defense cybersecurity market is segmented into the following categories. 

Defense Cybersecurity Market, by Platform Type

• Hardware
• Software & Services

Defense Cybersecurity Market, by Solution Type

• Critical Infrastructure Protection
• Data Protection and Encryption
• Incident Response and Forensics
• Identity and Access Management
• Secure Communications System

Defense Cybersecurity Market, by Security Type

• Network Security
• Endpoint Security
• Application Security
• Cloud Security

Defense Cybersecurity Market, by End-User Type

• Army
• Navy
• Air Force

Defense Cybersecurity Market, by Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, Italy, The UK, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others)

Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s defense cybersecurity market realities and future market possibilities for the forecast period. 
• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respected clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across industries. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected]