Cyber Warfare Market Expected to Reach $127.1 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Cyber Warfare Market," The cyber warfare market was valued at $37.5 billion in 2022, and is estimated to reach $127.1 billion by 2032, growing at a CAGR of 13.3% from 2023 to 2032. 

The global ecosystem of technology, tactics, and services centered on the offensive and defensive application of cyber capabilities for military, intelligence, and national security goals is included in the cyber warfare market. It consists of a variety of components intended to safeguard, take advantage of, and interfere with digital infrastructure and information systems on a national and global scale. Intelligence collecting, such as signals intelligence (SIGINT), human intelligence (HUMINT), and open-source intelligence (OSINT), is frequently necessary for cyber warfare. The market for cyber warfare is dynamic and ever-changing as a result of new threats, improvements in technology, and shifting geopolitical conditions. It is essential to the current state of national security and defense as governments and other institutions continue to emphasize the value of protecting the digital sphere and deploying it to their benefit.

Furthermore, surge in rise in advance cyberattacks and increased dependence on technology are the major factors that is striking the market growth during the forecast period. However, shortage of shared real-time information on rapidly evolving threats and insufficiently trained workforce to address new threats are primarily restraining the market growth. Moreover, increase in reliance on connected systems and technology is expected to create a lucrative opportunity for the market growth during the forecast period.

On the basis of end user, aerospace and defense segment dominated the cyber warfare market in 2022 and is expected to maintain its dominance in the upcoming years, owing to help identify and mitigate cyber threats, and share this information with government agencies, and collaborate with cybersecurity firms and other industries to strengthen overall cybersecurity propels the market growth significantly. However, the BFSI segment is expected to witness the highest growth during the cyber warfare market forecast period, owing to use of Fintech mobile apps has become a rage. 

Region-wise, the cyber warfare market size was dominated by North America in 2022 and is expected to retain its position during the forecast period, owing to the factors such as the increasing use of smartphones and enhanced internet connectivity aiding the growth of the cyber warfare market. However, Asia Pacific is expected to witness significant growth during the forecast period, owing to enables enterprises and managed security service providers to improve operational efficiencies, cost-effectiveness, and security outcomes is expected to fuel the market growth in this region. 

Technological Trends

Cyberspace has transformed into an essential component of special operations like warfare and technological warfare. It was highlighted how particular wars play a part in the application of identified soft power. The country has an infinite number of possible enemies in cyberwarfare, which means that critical components of cybercivilian infrastructure basically, military preparedness—including the civilian sector's ability to mobilize troops are also plausible targets. Hybrid warfare is a unique kind of cyberwarfare. Cyberwarfare's technological trends continuously evolve as emerging strategies and technology are adopted by both attackers and defenders. Cyberwarfare is making more use of AI and ML. Attackers are using AI to create more complex and specific malware, automate attacks, and improve reconnaissance skills. Massive data sets are analyzed by ML systems to find trends that help attackers launch more potent attacks. AI and ML are used defensively to find abnormalities, enhance incident response skills, and quickly detect and address risks. Additionally, In cyberwarfare, the global expansion of IoT devices provides all new attack opportunities. The hackers are able to aim at weak points in the Internet of Things, like smart home appliances, industrial control systems, and medical equipment, in an effort to obtain unauthorized access, interfere with regular business operations, or steal confidential data. IoT devices are appealing targets because they frequently have inadequate security measures. Furthermore, Advanced Persistent Threats (APTs) are intelligent and secretive cyberattacks that aim to infiltrate systems without authorization and remain hidden for an extended period of time. APTs usually consist of several phases, such as data exfiltration, lateral movement, initial compromise, and reconnaissance. To avoid detection and be persistent, attackers utilize advanced tactics like customized malware, social engineering, and zero-day exploits. APTs are frequently linked to state-sponsored cyberwarfare operations that target important infrastructure, government institutions, and valuable businesses. 

Key Findings of the Study

• By component, the hardware segment accounted for the cyber warfare market share in 2022.
• On the basis of end user, aerospace and defense segment generated the highest revenue in 2022.
• Region-wise, North America dominated the cyber warfare market analysis in 2022.

The key players profiled in the cyber warfare industry analysis are as BAE Systems, Cisco Systems, Inc., DXC Technology Company, RTX, Booz Allen Hamilton Inc., General Dynamics Corporation, Intel Corporation, L3Harris Technologies, Inc., IBM, and Airbus. These players have adopted various strategies to increase their market penetration and strengthen their position in the cyber warfare industry.