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Defense Cybersecurity Market

ID: MRFR/AD/7308-HCR
173 Pages
Sejal Akre
October 2025

Defense Cybersecurity Market Size, Share, Industry Trend & Analysis Report: By Type (Fully Electric and Hybrid), System (Energy Storage Systems, Power Generation, Power Conversion and Power Distribution Systems), Ship Type (Commercial and Defense), Operation (Manned, Remotely Operated and Autonomous) and Region (North America, Europe, Asia-Pacific, Middle East & Africa and Latin America) - Forecast till 2035

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Summary Table of Contents Segmentation Download PDF

Defense Cybersecurity Market Summary

As per MRFR analysis, the Defense Cybersecurity Market Size was estimated at 19.7 USD Billion in 2024. The Defense Cybersecurity industry is projected to grow from 21.3 USD Billion in 2025 to 46.0 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 8.0 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Defense Cybersecurity Market is experiencing robust growth driven by increasing investments and technological advancements.

  • North America remains the largest market for defense cybersecurity, reflecting substantial government spending on cyber defense initiatives.
  • The Asia-Pacific region is emerging as the fastest-growing market, fueled by rising cyber threats and a focus on enhancing national security.
  • Network security continues to dominate the market, while endpoint security is rapidly gaining traction as organizations prioritize comprehensive protection.
  • Key market drivers include rising cyber threats and regulatory compliance requirements, which are compelling both government and critical infrastructure sectors to invest in advanced cybersecurity solutions.

Market Size & Forecast

2024 Market Size 19.7 (USD Billion)
2035 Market Size 46.0 (USD Billion)
CAGR (2025 - 2035) 8.0%

Major Players

Northrop Grumman (US), Raytheon Technologies (US), Lockheed Martin (US), General Dynamics (US), BAE Systems (GB), Thales Group (FR), Leonardo (IT), L3Harris Technologies (US), Cisco Systems (US)

Defense Cybersecurity Market Trends

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Defense Cybersecurity Market Drivers

Increasing Cyber Threat Landscape

The Global defense cybersecurity Market Industry is experiencing heightened demand due to an increasingly complex cyber threat landscape. Nation-states and non-state actors are continuously evolving their tactics, techniques, and procedures, leading to a surge in cyberattacks targeting defense infrastructure. For instance, the U.S. Department of Defense has reported a significant rise in cyber incidents, prompting a reassessment of cybersecurity strategies. This environment necessitates robust cybersecurity solutions, contributing to the market's projected growth from 28.5 USD Billion in 2024 to an estimated 85.6 USD Billion by 2035, reflecting a compound annual growth rate of 10.51% from 2025 to 2035.

Market Segment Insights

By Application: Network Security (Largest) vs. Endpoint Security (Fastest-Growing)

The defense cybersecurity Market showcases a diversified application segment where Network Security leads in market share, reflecting its critical importance in safeguarding defense infrastructure from cyber threats. The application values, including Endpoint Security, Application Security, Cloud Security, and Data Security, contribute to a robust landscape, but the leaders in market share highlight the focus on protecting networks as a primary defense measure. Endpoint Security emerges as the fastest-growing area, driven by the increasing adoption of remote work practices and the proliferation of mobile devices within defense organizations.

Network Security (Dominant) vs. Endpoint Security (Emerging)

Network Security remains a dominant force in the Defense Cybersecurity Market, renowned for its comprehensive measures to safeguard communication channels, data transmission, and infrastructure from external cyber threats. By employing firewalls, intrusion detection systems, and threat intelligence, it ensures the integrity and confidentiality of crucial defense operations. In contrast, Endpoint Security is rapidly emerging, driven by the surge in mobile access and remote working environments. This segment focuses on protecting end-user devices from threats, recognizing the critical vulnerabilities that arise from a distributed workforce. As threats evolve, both segments will continue to play integral roles in enhancing cybersecurity resilience.

By End Use: Government (Largest) vs. Critical Infrastructure (Fastest-Growing)

The Defense Cybersecurity Market is characterized by distinct segment values, including Government, Military, Defense Contractors, Intelligence Agencies, and Critical Infrastructure. The Government segment holds the largest market share, largely due to extensive funding and regulatory support for cybersecurity initiatives aimed at national security. Meanwhile, the Military segment closely follows, supported by increasing military budgets directed toward information technology and cybersecurity measures. Defense Contractors and Intelligence Agencies also contribute significantly to the market, driven by specialized cybersecurity requirements and collaborations with government entities.

Government: Dominant vs. Critical Infrastructure: Emerging

The Government segment stands out as the dominant force in the Defense Cybersecurity Market due to its substantial investments in protective measures against cyber threats. This sector encompasses various governmental bodies that require robust cybersecurity solutions to safeguard sensitive data and ensure national security. On the other hand, Critical Infrastructure is emerging rapidly as a focal point, as it involves vital sectors like energy, transportation, and communications. With growing awareness of the vulnerabilities within these systems, there is an accelerating demand for advanced cybersecurity solutions to protect against cyberattacks, making it a key area for future innovation and investment.

By Deployment Type: Cloud-Based (Largest) vs. On-Premises (Fastest-Growing)

The Defense Cybersecurity Market exhibits a pronounced division among deployment types, with Cloud-Based solutions currently holding the largest market share. This dominance stems from increased demand for scalable and flexible cybersecurity solutions that enable real-time monitoring and rapid threat response. Meanwhile, On-Premises systems have also maintained a substantial user base due to the stringent security requirements of various defense organizations, which often prefer in-house management and control of their sensitive data and systems.

On-Premises (Dominant) vs. Hybrid (Emerging)

On-Premises deployment solutions in the Defense Cybersecurity Market are regarded as the dominant choice among organizations that prioritize stringent data security and compliance. These systems enable full control over cybersecurity infrastructure, making them preferable for government agencies dealing with classified information. However, Hybrid deployment is emerging as a viable alternative, allowing organizations to balance the benefits of both on-premises and cloud solutions. This flexibility is essential as it supports operational efficiency while addressing the growing security challenges. As organizations adapt to evolving cyber threats, the hybrid model's ability to integrate various deployment strategies positions it well for future growth.

By Service Type: Consulting Services (Largest) vs. Managed Services (Fastest-Growing)

The Defense Cybersecurity Market reveals a diverse landscape where Consulting Services hold the largest market share, driven by their critical role in formulating strategic defenses against cyber threats. Managed Services, on the other hand, although smaller in share, are witnessing rapid growth, capturing attention for their ability to provide scalable and efficient cybersecurity solutions. Support Services and Training Services follow, contributing effectively to the overall stability and functionality of cybersecurity measures but lag behind in terms of market leadership.

Consulting Services: As the Dominant Force vs. Managed Services: The Emerging Power

Consulting Services in the Defense Cybersecurity Market serve as a dominant force, reflecting expertise in risk assessment, regulatory compliance, and strategic planning. Their prominence stems from the necessity for organizations to navigate complex security landscapes while ensuring mission continuity. Conversely, Managed Services are emerging as a powerful player due to the increasing reliance on outsourced cybersecurity solutions; they offer flexibility and enhanced response times to threats. Both segments complement each other, where Consulting Services set strategic foundations and Managed Services operationalize those strategies through real-time monitoring and defense.

By Solution Type: Threat Intelligence (Largest) vs. Incident Response (Fastest-Growing)

The Defense Cybersecurity Market is characterized by a competitive landscape in which Threat Intelligence holds the largest market share, primarily due to its essential role in proactive threat detection and prevention. This segment enables defense agencies to identify potential vulnerabilities in advance, making it a critical component of national security. Meanwhile, Incident Response is emerging as the fastest-growing segment, fueled by the increasing incidence of cyber attacks and the need for rapid mitigation efforts. As organizations invest in incident response tools and services, this segment is expected to see significant expansion over the forecast period. Market growth trends are driven by rising cyber threats targeting defense systems, leading to an escalated demand for enhanced security solutions. Threat Intelligence benefits from advanced analytics and AI-driven insights, while Incident Response sees growth as it adapts to evolving cyber threats through robust disaster recovery and response strategies. Moreover, increasing regulatory requirements for cybersecurity compliance are pushing defense organizations to adopt comprehensive solutions, thereby boosting the demand across various solution types.

Threat Intelligence (Dominant) vs. Incident Response (Emerging)

Threat Intelligence serves as a dominant solution in the Defense Cybersecurity Market, characterized by its proactive approach to identifying and mitigating potential cyber threats. It leverages advanced analytics, machine learning, and real-time data feeds to enhance situational awareness and inform strategic decision-making. Defense organizations prioritize Threat Intelligence as it plays a crucial role in safeguarding sensitive information and infrastructure. Conversely, Incident Response is an emerging solution gaining traction due to the rise in cyberattack frequency. Organizations are increasingly recognizing the need for fast, efficient responses to incidents, thus bolstering investment in this area. Incident Response focuses on the ability to quickly address security breaches, minimize damage, and restore normal operations. Together, these solutions represent critical components of a comprehensive cybersecurity strategy.

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Regional Insights

North America : Global Cybersecurity Leader

North America continues to lead the Defense Cybersecurity Market, holding a significant market share of 10.0 in 2024. The region's growth is driven by increasing defense budgets, heightened cyber threats, and stringent regulatory frameworks. Government initiatives aimed at enhancing national security and protecting critical infrastructure further fuel demand for advanced cybersecurity solutions. The focus on innovation and technology adoption is also a key catalyst for market expansion. The competitive landscape in North America is robust, featuring major players such as Northrop Grumman, Raytheon Technologies, and Lockheed Martin. These companies are at the forefront of developing cutting-edge cybersecurity technologies tailored for defense applications. The presence of a strong defense industrial base and collaboration between government and private sectors enhances the region's capability to address emerging cyber threats effectively. This synergy positions North America as a pivotal player in the global cybersecurity arena.

Europe : Emerging Cybersecurity Hub

Europe is rapidly evolving as a significant player in the Defense Cybersecurity Market, with a market size of 5.5. The region's growth is propelled by increasing geopolitical tensions and the need for enhanced cybersecurity measures across member states. Regulatory frameworks, such as the EU Cybersecurity Act, are pivotal in driving investments in cybersecurity infrastructure and capabilities, ensuring a unified approach to defense against cyber threats. Leading countries like the UK, France, and Germany are investing heavily in cybersecurity initiatives, fostering a competitive landscape that includes key players such as BAE Systems and Thales Group. The collaboration between governments and private sectors is crucial for developing innovative solutions tailored to defense needs. As Europe strengthens its cybersecurity posture, it is poised to become a formidable force in the global market, addressing both current and future challenges.

Asia-Pacific : Growing Cybersecurity Demand

Asia-Pacific is witnessing a surge in demand for Defense Cybersecurity solutions, with a market size of 3.5. The region's growth is driven by increasing cyber threats, rapid digital transformation, and government initiatives aimed at enhancing national security. Countries are prioritizing investments in cybersecurity to protect critical infrastructure and sensitive data, reflecting a growing awareness of the importance of robust defense mechanisms against cyber attacks. Key players in the region include L3Harris Technologies and Cisco Systems, which are actively expanding their presence to meet the rising demand. Countries like Japan, Australia, and India are leading the charge in adopting advanced cybersecurity technologies. The competitive landscape is characterized by collaborations and partnerships aimed at developing innovative solutions tailored to the unique challenges faced by the region, positioning Asia-Pacific as a vital player in The Defense Cybersecurity.

Middle East and Africa : Emerging Cybersecurity Frontier

The Middle East and Africa region is emerging as a critical frontier in the Defense Cybersecurity Market, with a market size of 0.7. The growth is driven by increasing awareness of cyber threats and the need for enhanced cybersecurity measures across various sectors. Governments are prioritizing cybersecurity as part of their national security strategies, leading to increased investments in defense cybersecurity solutions and infrastructure. Countries like the UAE and South Africa are at the forefront of this transformation, with a growing number of local and international players entering the market. The competitive landscape is evolving, with a focus on building partnerships to enhance cybersecurity capabilities. As the region continues to develop its cybersecurity framework, it is poised to play a significant role in the global defense cybersecurity landscape.

Defense Cybersecurity Market Regional Image

Key Players and Competitive Insights

The Defense Cybersecurity Market is characterized by a dynamic competitive landscape, driven by the increasing sophistication of cyber threats and the growing need for robust defense mechanisms. Major players such as Northrop Grumman (US), Raytheon Technologies (US), and Lockheed Martin (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. Northrop Grumman (US) emphasizes innovation through advanced technologies, particularly in artificial intelligence and machine learning, to bolster its cybersecurity offerings. Meanwhile, Raytheon Technologies (US) focuses on strategic partnerships and collaborations to expand its capabilities and reach. Lockheed Martin (US) is heavily investing in digital transformation initiatives, aiming to integrate cutting-edge technologies into its cybersecurity solutions, thereby enhancing operational efficiency and effectiveness.The market structure appears moderately fragmented, with a mix of established players and emerging firms vying for market share. Key business tactics such as localizing manufacturing and optimizing supply chains are prevalent among these companies, allowing them to respond swiftly to regional demands and enhance service delivery. The collective influence of these major players shapes the competitive environment, fostering a climate of innovation and strategic collaboration.

In November Northrop Grumman (US) announced a partnership with a leading cloud service provider to enhance its cybersecurity solutions for defense clients. This strategic move is likely to bolster Northrop Grumman's capabilities in cloud security, addressing the increasing demand for secure cloud environments in defense operations. Such partnerships may also facilitate the integration of advanced technologies, positioning the company favorably in a rapidly evolving market.

In October Raytheon Technologies (US) unveiled a new cybersecurity platform designed to protect critical infrastructure from emerging cyber threats. This initiative underscores the company's commitment to innovation and its proactive approach to addressing the evolving landscape of cyber threats. By focusing on critical infrastructure, Raytheon Technologies is likely to capture a significant share of the market, as governments and organizations prioritize the protection of essential services.

In September Lockheed Martin (US) launched a comprehensive cybersecurity training program aimed at enhancing the skills of defense personnel. This initiative reflects the company's recognition of the importance of human capital in cybersecurity. By investing in training, Lockheed Martin not only strengthens its workforce but also contributes to the overall resilience of defense cybersecurity, potentially setting a benchmark for industry standards.

As of December current trends in the Defense Cybersecurity Market indicate a strong emphasis on digitalization, sustainability, and the integration of artificial intelligence. Strategic alliances are increasingly shaping the competitive landscape, enabling companies to leverage complementary strengths and enhance their offerings. Looking ahead, competitive differentiation is expected to evolve, with a shift from price-based competition to a focus on innovation, technology, and supply chain reliability. This transition may redefine how companies position themselves in the market, emphasizing the need for agility and responsiveness to emerging threats.

Key Companies in the Defense Cybersecurity Market include

Industry Developments

  • Q2 2024: BAE Systems wins $318 million U.S. Army contract for cyber defense services BAE Systems secured a $318 million contract from the U.S. Army to provide advanced cyber defense and security operations support, enhancing the Army’s ability to detect and respond to cyber threats.
  • Q2 2024: Raytheon launches new AI-powered cyber defense platform for military clients Raytheon introduced a next-generation cybersecurity platform leveraging artificial intelligence to automate threat detection and response for defense sector clients, aiming to improve resilience against sophisticated cyberattacks.
  • Q2 2024: Lockheed Martin and Microsoft announce strategic partnership to secure defense cloud infrastructure Lockheed Martin and Microsoft entered a multi-year partnership to co-develop secure cloud solutions tailored for defense agencies, focusing on classified data protection and cyber threat mitigation.
  • Q1 2024: Thales acquires U.S. cybersecurity firm Imperva for $3.6 billion Thales completed the acquisition of Imperva, a U.S.-based cybersecurity company, to expand its defense cybersecurity portfolio and strengthen its presence in the North American defense market.
  • Q3 2024: Northrop Grumman awarded $200 million contract to upgrade NATO cyber defense systems Northrop Grumman received a $200 million contract to modernize and secure NATO’s cyber defense infrastructure, including the deployment of advanced threat intelligence and incident response capabilities.
  • Q2 2024: U.S. DoD launches Cybersecurity Maturity Model Certification (CMMC) 2.0 for defense contractors The Department of Defense officially rolled out CMMC 2.0, a new regulatory framework requiring all defense contractors to meet updated cybersecurity standards to qualify for federal contracts.
  • Q1 2025: Palantir Technologies secures $178 million U.S. Air Force contract for cyber operations platform Palantir Technologies was awarded a $178 million contract by the U.S. Air Force to deliver a cyber operations platform designed to enhance situational awareness and threat response for military networks.
  • Q2 2025: BAE Systems opens new cyber defense research facility in Austin, Texas BAE Systems inaugurated a new research and development center in Austin focused on advanced cyber defense technologies for military and intelligence applications.
  • Q1 2025: Leidos acquires Israeli cyber defense startup Cybereason for $850 million Leidos completed the acquisition of Cybereason, an Israeli cybersecurity startup specializing in military-grade threat detection, to bolster its defense cyber offerings.
  • Q3 2024: General Dynamics wins $400 million U.S. Navy contract for cyber mission systems General Dynamics was awarded a $400 million contract to develop and deploy cyber mission systems for the U.S. Navy, supporting secure communications and network defense.
  • Q2 2024: Airbus Defence and Space launches new cyber range platform for military training Airbus Defence and Space unveiled a cyber range platform designed to simulate real-world cyberattacks for military training and readiness exercises.
  • Q1 2025: U.S. Army appoints new Chief Information Security Officer to lead cyber defense strategy The U.S. Army named a new Chief Information Security Officer, tasking them with overseeing the Army’s cyber defense initiatives and implementing advanced security protocols across military networks.

Recent Developments

    • October 2020 - SAIC won the US Air Force Modeling and Simulation Support Services (AFMS3) 2.0 agreement to execute, incorporate, and foster displaying and recreation (M&S), preparing, and investigation norms for the Air Force, Department of the guard, and different associations. Delivered by General Service Administration (GSA) FEDSIM on the GSA OASIS contract vehicle, the all-out possible worth of the single-grant contract has a roof of USD 737 million.
    • September 2020 - Northrop Grumman Corporation was granted an errand request contract by the US General Services Administration's (GSA) Federal Systems Integration and Management Center (FEDSIM) and the Defense Intelligence Agency to assist the association with conveying noteworthy knowledge with speed and improve choice prevalence.

Future Outlook

Defense Cybersecurity Market Future Outlook

The defense Cybersecurity Market is projected to grow at an 8.0% CAGR from 2025 to 2035, driven by increasing cyber threats, regulatory compliance, and technological advancements.

New opportunities lie in:

  • Development of AI-driven threat detection systems
  • Expansion of cloud-based cybersecurity solutions
  • Integration of blockchain technology for secure communications

By 2035, the market is expected to be robust, reflecting substantial growth and innovation.

Market Segmentation

Defense Cybersecurity Market End Use Outlook

  • Government
  • Military
  • Defense Contractors
  • Intelligence Agencies
  • Critical Infrastructure

Defense Cybersecurity Market Application Outlook

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

Defense Cybersecurity Market Service Type Outlook

  • Consulting Services
  • Managed Services
  • Training Services
  • Support Services

Defense Cybersecurity Market Solution Type Outlook

  • Threat Intelligence
  • Incident Response
  • Vulnerability Management
  • Identity and Access Management

Defense Cybersecurity Market Deployment Type Outlook

  • On-Premises
  • Cloud-Based
  • Hybrid

Report Scope

MARKET SIZE 202419.7(USD Billion)
MARKET SIZE 202521.3(USD Billion)
MARKET SIZE 203546.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)8.0% (2025 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledNorthrop Grumman (US), Raytheon Technologies (US), Lockheed Martin (US), General Dynamics (US), BAE Systems (GB), Thales Group (FR), Leonardo (IT), L3Harris Technologies (US), Cisco Systems (US)
Segments CoveredApplication, End Use, Deployment Type, Service Type, Solution Type
Key Market OpportunitiesIntegration of artificial intelligence and machine learning enhances threat detection in the Defense Cybersecurity Market.
Key Market DynamicsRising regulatory requirements drive innovation and competition in the Defense Cybersecurity Market, enhancing system resilience and protection.
Countries CoveredNorth America, Europe, APAC, South America, MEA

Market Highlights

Author
Sejal Akre
Senior Research Analyst

She has over 5 years of rich experience, in market research and consulting providing valuable market insights to client. Hands on expertise in management consulting, and extensive knowledge in domain including ICT, Automotive & Transportation and Aerospace & Defense. She is skilled in Go-to market strategy, industry analysis, market sizing, in depth company profiling, competitive intelligence & benchmarking and value chain amongst others.

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FAQs

At what rate can the market make progress during the evaluation period?

Defense Cybersecurity Market can make progress at a rate of 10.51% 2024-2030

What are the main growth enhancers in the global market?

The main growth enhancers in the global market include the surge in defense expenditures, the rising cases of cyber-attacks in the military sector and the mounting deployment rate of remotely operated systems like UGVs and UAVs.

What can be a key growth restraint in the market?

A key growth restraint in the market can be the lack of technical skills and expertise with regard to defense cybersecurity.

Which deployment-based segment is dominating the market?

The on-premise segment is dominating the market.

Why is North American in the lead in the global market?

North American is in the lead in the global market as a result of the strong presence of well-known firms such as Cisco Systems Inc., Booz Allen Hamilton Inc., Raytheon Company, SecureWorks Corporation and Intel Corporation, and the high spending rate of these players on the development of cutting edge cybersecurity solutions.

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