A recent analysis by Frost & Sullivan predicts that global military cybersecurity market will grow to $16.01 billion by 2023 at a compound annual growth rate (CAGR) of 3.6 percent from 2018-2023. The report by the market research firm, titled “Global Military Cybersecurity Market, Forecast to 2023“, finds that defence industries across the world are transforming their operations and capabilities through significant investments in disruptive technologies that are driving changes in military cybersecurity requirements.
“Militaries across the globe are budgeting for and pursuing the development of new, enabling, next-generation technologies for cybersecurity,” said Ryan Pinto, Research Analyst at Frost & Sullivan. “These technologies will open up significant growth opportunities by improving the speed and accuracy of logistics battlefield planning, increasing autonomous functionality of systems, aiding decision-making, lowering overhead costs, and enabling less soldier risk.”
The report says that in the future, military requirements for cybersecurity will demand a solution with a range of possible applications – a one-stop shop for systems and add-on services that will allow quicker and cheaper implementation.
With the growing concern surrounding cyber warfare, defence contracts announced to counter the threat will increase significantly across North America, Europe and APAC. Less developed and small countries may not have the budgets to procure and implement advanced cybersecurity solutions, and the Chinese military market, although relatively large, is blocked for global companies.
“Industry consolidation and Tier II contractors winning more lucrative awards will increase competition. However, defence companies could grow market share through M&A and utilising current positioning in the defence market,” stated Pinto.
“Despite promising growth drivers, there are currently several substantial drawbacks that don’t allow double-digit market advancement,” noted Pinto. “The main factors restraining market advancement include insufficient funding, compatibility issues, and protectionism of nations trying to develop domestic industrial capabilities on the one hand and, on the other, trying to minimize the reliance of their military on foreign entities with high-level access.”
Subscribe to Indus Dictum to receive a briefing about the latest news & feature articles. No spam, we promise.