Defense cyber security market seen topping $43.4 billion by 2031

A new Allied Market Research report projects the global defense cyber security market will nearly double from $21.3 billion in 2021 to $43.4 billion by 2031. The forecast points to rising cyber threats, modernization of defense systems and faster growth in Asia-Pacific as key drivers. Why it matters: - The defense sector is spending more to protect networks, platforms and sensitive data as cyberattacks grow more advanced. - The market’s projected expansion signals sustained demand for endpoint protection, identity tools and managed detection services across military systems. - The report flags a shift toward autonomous aircraft, 5G, artificial intelligence, cloud computing and data analytics as part of the broader defense technology upgrade. What happened: - Allied Market Research said the global defense cyber security market generated $21.3 billion in 2021 and is projected to reach $43.4 billion by 2031. - The report estimates a 7.7% compound annual growth rate from 2022 to 2031. - Allied Market Research released the report in Wilmington, Delaware, on June 16, 2026. - The report covers market trends, leading segments, investment areas, the value chain, regional dynamics and competition. - The report includes a sample download , a purchase inquiry link and related market reports on military cybersecurity, aerospace cyber security and cyber weapons. The details: - Endpoint security led the market by revenue in 2021 by type. - On-premises deployment held the top share by revenue in 2021. - Identity and access management led by solution in 2021. - The military application segment dominated the market in 2021 by revenue. - North America was the largest revenue contributor in 2021 and is expected to lead through the forecast period, followed by Europe. - North America held nearly one-third of the global market in 2021. - Asia-Pacific is projected to post the fastest CAGR at 9.2% during the forecast period. - Asia-Pacific growth is tied to police modernization, higher homeland security spending and more terrorist activity. Between the lines: - The report points to a defense market where cybersecurity is moving from a support function to a core operational capability. - The pressure is coming from both attack volume and attack sophistication, while a shortage of awareness and skilled workers remains a drag on growth. - Government initiatives and long-term defense contracts are shaping adoption, especially as militaries connect more systems to the internet. - The Northrop Grumman task order with the U.S. General Services Administration’s FEDSIM and the Defense Intelligence Agency shows how cybersecurity work is being folded into broader intelligence and decision-support programs. - BAE Systems’ Viper Memory Loader Verifier II for F-16 aircraft and the Raytheon Intelligence & Space partnership with CrowdStrike show how vendors are packaging cyber protection into aircraft maintenance and managed detection services. What’s next: - Defense buyers are likely to keep prioritizing cyber tools that protect endpoints, identities, aircraft systems and cloud-linked operations. - Additional investment is expected in technologies that support detection, data security and autonomous defense platforms. - Companies including Intel, AT&T, Northrop Grumman, IBM, Lockheed Martin, BAE Systems, Thales, EclecticIQ, SentinelOne, Boeing, DXC Technology, Cisco, Raytheon Technologies, Secureworks and Privacera remain active in the market. The bottom line: - Defense cyber security is becoming a bigger, faster-growing slice of military spending as governments race to secure critical systems against escalating digital threats.