Defense Cyber Warfare Market to Expand Amid Rising Cyber Threats

Defense Cyber Warfare Market to Expand Amid Rising Cyber Threats

2025-09-02 global

New York, Tuesday, 2 September 2025.
From 2025 to 2029, the defense cyber warfare market is set to grow significantly driven by increased investments in cybersecurity to combat rising global cyber threats.

Key Drivers of Market Growth

The defense cyber warfare market is projected to expand from $148.94 billion in 2024 to $163.24 billion in 2025, reflecting a compound annual growth rate (CAGR) of 9.6% during this period [1]. This growth is fueled by heightened cyberattacks on military systems, increased digitization in defense operations, and escalating geopolitical tensions. Furthermore, there is a growing demand for secure communication channels and an improved understanding of the cyber threat environment [1].

Major trends anticipated from 2025 to 2029 include advancements in quantum-resistant encryption and the deployment of 5th-generation defense networks. The implementation of blockchain technology for secure data exchange and the development of autonomous cyber defense systems are also pivotal [1]. Additionally, the utilization of quantum computing for coding and decoding operations signifies a shift towards more advanced technological applications in defense strategies [1].

Impact of Global Partnerships and Technological Integration

International collaborations and the integration of cutting-edge technologies such as AI and machine learning play a crucial role in shaping the defense cyber warfare landscape. Companies like Lockheed Martin and Northrop Grumman are embedding AI into their operations, enabling real-time threat detection [7]. The U.S. Space Force emphasizes the importance of global partnerships to counter space and cybersecurity threats [7].

Future Market Outlook and Key Players

The market is slated to reach $232.48 billion by 2029, with a CAGR of 9.2% from 2025 to 2029 [1]. Companies like Raytheon Technologies Corporation, Lockheed Martin Corporation, Airbus SE, General Dynamics Corporation, and Northrop Grumman Corporation are leading players [1]. Furthermore, significant mergers and acquisitions, such as Alphabet’s acquisition of Wiz and Palo Alto Networks’ purchase of CyberArk, highlight strategic expansions in the cybersecurity domain [8].

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market growth cyber warfare