According to cybersecurity research firm DataM Intelligence, the global defense cybersecurity market is expected to grow to $66.89 billion by 2032.
In 2024, the market was $37.23 billion, the data firm said. The 7.6 percent annual growth rate between 2025 and 2032 is fueled by an increase in cyber threats and attacks aimed at defense networks, communications systems and military infrastructure around the world, the report said.
According to DataM, defense agencies and governments are prioritizing cybersecurity as a necessity to ensure operational readiness. The agencies are also prioritizing securing confidential data and maintaining uninterrupted military communications. Officials said cyber espionage, ransomware and state-sponsored attacks are all on the rise, giving rise to the demand for AI-powered threat detection, zero-trust architectures and blockchain-based security solutions.
Research indicates that North America leads the defense cybersecurity market, while the On-Premises deployment segment dominates because of stringent data control and security requirements within defense agencies. In second place in the market is Europe f with significant investments in multi-nation cyber defense programs. Researchers found that the Asia-Pacific region is rapidly increasing its spending due to heightened regional tensions and growing technological capability.
The report also said strategic collaborations, R&D initiatives and acquisitions are driving innovation in the market. However, challenges remain, the report found, with implementation and maintenance costs posing a challenge for the market, especially for smaller defense organizations and developing countries.