Defense Cyber Warfare Market Report 2025

The defense cyber warfare market size has grown strongly in recent years. It will grow from $148.94 billion in 2024 to $163.24 billion in 2025 at a compound annual growth rate (CAGR) of 9.6%. The growth during the historic period can be attributed to the rise in cyberattacks on military systems, the expanding digitization of defense operations, escalating geopolitical tensions, increased demand for secure communication channels, and heightened awareness of the cyber threat landscape.

The defense cyber warfare market size is expected to see strong growth in the next few years. It will grow to $232.48 billion in 2029 at a compound annual growth rate (CAGR) of 9.2%. The growth during the forecast period can be attributed to the rising adoption of autonomous defense systems, the integration of cyber capabilities into next-generation warfare strategies, the expansion of hybrid warfare tactics, increased use of cloud computing in defense operations, and a strong focus on zero-trust security architectures. Key trends in the forecast period include advancements in quantum-resistant encryption, the expansion of 5th generation-enabled defense networks, the deployment of blockchain for secure data sharing, progress in autonomous cyber defense systems, and the adoption of quantum computing for encryption and decryption.

Rising cybersecurity concerns are expected to drive growth in the defense cyber warfare market going forward. Cybersecurity concerns involve the risks, vulnerabilities, and threats that can compromise the confidentiality, integrity, and availability of digital systems, networks, and data. The increase in these concerns is driven by the growing sophistication of cyberattacks, which allow threat actors to exploit complex vulnerabilities, evade detection, and cause significant disruption to critical infrastructure and sensitive information. Defense cyber warfare strengthens security by proactively identifying, monitoring, and neutralizing cyber threats before they impact infrastructure. These efforts utilize advanced threat intelligence and rapid response capabilities to address and mitigate cybersecurity risks. For example, in October 2022, the Identity Theft Resource Center, a US-based nonprofit, reported that cyberattack-related data breaches rose to 617 in 2022, accounting for 37% of all data breaches. Thus, the escalation of cybersecurity concerns is propelling growth in the defense cyber warfare market.

Key players in the defense cyber warfare market are advancing technology, such as cybersecurity ontology, to improve threat detection, streamline data integration, and enhance real-time decision-making during cyber operations. Cybersecurity ontology provides a structured way to represent knowledge, helping systems better understand, analyze, and respond to complex cyber threats. For instance, in January 2025, MITRE, a US nonprofit organization, launched D3FEND 1.0, a cybersecurity ontology aimed at standardizing terminology and conceptual frameworks for defensive techniques against cyber threats. Its main objective is to offer a stable, extensible, and integration-friendly structure to support cybersecurity operations, strategic decisions, and collaboration across industry and government sectors. Features include the cyber attack-defense Tool (CAD), which allows users to map defensive actions, share knowledge, and customize strategies for various scenarios, while offering a robust framework for integrating defensive measures into cybersecurity workflows and decision-making processes across diverse environments.

In September 2024, Airbus Defence and Space, a division of Airbus SE based in Germany, acquired Infodas for an undisclosed amount. This acquisition enhances Airbus’s cybersecurity capabilities and strengthens protection of its digital infrastructure amid increasing cyber threats, particularly in defense and critical infrastructure sectors. Infodas is a German provider of cybersecurity and IT solutions, including services for the defense industry.

Major players in the defense cyber warfare market are Raytheon Technologies Corporation, Lockheed Martin Corporation, Airbus SE, General Dynamics Corporation, Northrop Grumman Corporation, BAE Systems plc, Thales Group, L3Harris Technologies Inc., Leonardo S.p.A., Leidos Holdings Inc., DXC Technology Company, Huntington Ingalls Industries Inc., Booz Allen Hamilton Holding Corporation, Science Applications International Corporation, Rheinmetall AG, KBR Inc., CACI International Inc, Elbit Systems Ltd., Israel Aerospace Industries Ltd., Parsons Corporation, QinetiQ Group plc, Palantir Technologies Inc., Ultra Electronics Holdings Limited, Kratos Defense & Security Solutions Inc., and Darktrace Holdings Limited.

North America was the largest region in the defense cyber warfare market in 2024. The regions covered in defense cyber warfare report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the defense cyber warfare market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

Defense cyber warfare involves the use of cyber capabilities by military and defense organizations to safeguard national security infrastructure, systems, and networks from cyber threats and attacks. It encompasses detecting, preventing, and responding to cyber intrusions from hostile actors such as nation-states, terrorist groups, or cybercriminals targeting military operations or critical defense systems.

The primary service types in defense cyber warfare include data hosting, data processing, data integration, and data analytics. Data hosting involves providing secure infrastructure - such as servers or cloud platforms - where organizations store and manage their operational data for supervisory control and data acquisition (SCADA) and industrial control systems (ICS). The range of solutions includes defense solutions, threat assessment, network fortification, and training services, with deployment options such as on-premises and cloud. Applications cover network security, data loss prevention, endpoint security, identity and access management, risk and compliance management, SCADA or ICS security, threat intelligence and response, as well as security monitoring and analytics. These solutions serve various end users, including information technology and telecommunications, banking, financial services and insurance, healthcare, retail, and government sectors.

The defense cyber warfare market research report is one of a series of new reports that provides defense cyber warfare market statistics, including defense cyber warfare industry global market size, regional shares, competitors with a defense cyber warfare market share, detailed defense cyber warfare market segments, market trends and opportunities, and any further data you may need to thrive in the defense cyber warfare industry. The defense cyber warfare market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The defense cyber warfare market consists of revenues earned by entities by providing services such as cyber threat intelligence, network defense, incident response, secure data hosting, vulnerability assessments, and real-time monitoring to protect military systems and national defense infrastructure from cyberattacks. The market value includes the value of related goods sold by the service provider or included within the service offering. The defense cyber warfare market includes sales of products such as advanced firewalls, intrusion detection systems, secure communication tools, cyber defense software, encryption devices, and threat analysis platforms designed to safeguard military networks and critical defense infrastructure. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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