Cross-Domain Solution Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 3.81 Billion |
| Market Size (2030) | USD 6.59 Billion |
| Growth Rate (2025 - 2030) | 11.58% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Cross-Domain Solution Market Analysis by Mordor Intelligence
The cross-domain solution market reached USD 3.81 billion in 2025 and is projected to reach USD 6.59 billion by 2030, recording an 11.58% CAGR. This growth is driven by rising classified data volumes, mandatory zero-trust initiatives, and modernization programs that replace aging air-gapped infrastructure. Demand is strongest among defense agencies, intelligence services, and critical-infrastructure operators that must move data between multiple security domains without risking leakage. Hardware appliances such as data diodes still dominate deployments, yet cloud-hosted gateways and managed services are gaining traction as government cloud enclaves mature. Geopolitical tensions further accelerate spending, especially in the Indo-Pacific region where governments are building cyber defenses from the ground up. Meanwhile, prolonged certification cycles and talent shortages temper near-term adoption, creating a market where established defense primes and niche specialists coexist.
Key Report Takeaways
- By component, hardware held 52.93% of the cross-domain solution market share in 2024, while services are forecast to expand at a 14.50% CAGR through 2030.
- By solution type, transfer solutions led with 48.55% revenue share in 2024, but access solutions are projected to grow at 15.80% CAGR to 2030.
- By deployment, on-premises architectures commanded 64.65% of the cross-domain solution market size in 2024; cloud deployments are accelerating at a 16.20% CAGR.
- By end-user, aerospace and defense accounted for 57.21% of demand in 2024, whereas critical-infrastructure operators are advancing at a 13.90% CAGR.
- By geography, North America captured 41.85% revenue share in 2024, while Asia-Pacific is on course for a 17.40% CAGR through 2030.
Global Cross-Domain Solution Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Escalating volume of multi-domain classified data flows | +2.3% | Global, concentrated in North America and Europe | Medium term (2-4 years) |
| Stringent zero-trust mandates in U.S. DoD and NATO | +1.8% | North America and NATO states | Short term (≤ 2 years) |
| Rapid proliferation of AI/ML decision-support systems | +2.1% | Global, led by North America and Asia-Pacific | Medium term (2-4 years) |
| Growing use of commercial cloud enclaves for secret workloads | +1.4% | North America and Europe, expanding to Asia-Pacific | Long term (≥ 4 years) |
| Space-to-ground telemetry security gaps | +0.9% | Global, early adoption in North America and Europe | Long term (≥ 4 years) |
| Surge in OT–IT convergence across critical infrastructure | +1.2% | Global, faster uptake in Asia-Pacific and Europe | Medium term (2-4 years) |
Source: Mordor Intelligence
Escalating Volume of Multi-Domain Classified Data Flows
Classified sensors, satellites, and ISR platforms now generate terabytes of data daily that must cross between SECRET, TOP SECRET, and coalition networks. Manual sneaker-net transfers are no longer feasible, and the U.S. DoD’s Raise-the-Bar program explicitly demands automated cross-domain pipelines to cope with a 300% jump in classified traffic since 2020.[1]U.S. Department of Defense, “Raise the Bar Cross Domain Strategy,” defense.gov NATO’s joint operations further amplify requirements for seamless yet compartmented data sharing, pushing agencies toward certified cross-domain gateways that assure confidentiality while enabling real-time collaboration.
Stringent Zero-Trust Mandates in U.S. DoD and NATO
The 2025 DoD Zero Trust Strategy stipulates continuous verification for every transaction, forcing cross-domain solutions to embed granular identity checks and behavioral analytics.[2]U.S. Department of Defense, “DoD Zero Trust Strategy,” defense.gov NATO allies mirror the approach, having earmarked USD 150 billion for cybersecurity modernization in 2024. Vendors able to prove alignment with NIST SP 800-207 and to pass Common Criteria evaluations now command premium pricing, while legacy perimeter-based products face rapid displacement.
Rapid Proliferation of AI/ML Decision-Support Systems
Autonomous platforms, predictive maintenance engines, and threat-analysis models must ingest highly classified data yet stay isolated from open networks. Specialized gateways that sanitize AI outputs before release across security tiers are therefore essential. Offerings such as Microsoft Azure Government Secret allow model training on sensitive datasets inside air-gapped clouds, provided cross-domain guards enforce content inspection and policy compliance.[3]Microsoft, “Azure Government Secret Regions Overview,” azure.microsoft.com
Growing Use of Commercial Cloud Enclaves for Secret Workloads
FedRAMP High and DoD Impact Level 6 approvals now cover multiple hyperscale regions, enabling agencies to run SECRET workloads in commercial clouds without sacrificing assurance. Hybrid cross-domain architectures bridge these enclaves with on-premises systems, demanding interoperable policy engines and unified audit trails that match traditional gateway rigor.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Complex multi-authority certification cycles | -1.5% | Global, most severe in North America and Europe | Short term (≤ 2 years) |
| Scarcity of cross-domain-aware DevSecOps talent | -0.8% | Global, acute in North America and Asia-Pacific | Medium term (2-4 years) |
| Lack of interoperability standards for data-diode protocols | -0.6% | Global, regional variations | Long term (≥ 4 years) |
| High TCO for small-footprint deployments | -0.4% | Global, mid-market organizations | Medium term (2-4 years) |
Source: Mordor Intelligence
Complex Multi-Authority Certification Cycles
Products must clear NIAP, NSA, and NCDSMO reviews on top of Common Criteria EAL4+ testing, adding 18–24 months to delivery schedules. Each NATO nation also runs its own scheme, prompting vendors to pursue duplicate evaluations and increasing barriers for new entrants.
Scarcity of Cross-Domain-Aware DevSecOps Talent
The 2024 ISC² workforce study cites a global shortfall of 4 million cybersecurity professionals, with even fewer holding the clearances and protocol expertise needed for cross-domain projects. Agencies therefore pay premium rates for cleared engineers, inflating project budgets and elongating rollouts, especially where internal teams are thin.
Segment Analysis
By Component: Hardware Dominance Faces Services Disruption
Hardware appliances captured 52.93% of the cross-domain solution market in 2024, propelled by high-assurance data diodes that satisfy rigorous military test criteria. At the same time, services are forecast to grow at a 14.50% CAGR as agencies pivot toward managed operations to offset skills shortages. The cross-domain solution market size for managed services is therefore expected to expand faster than capital purchases, reflecting an operating-expense preference among budget-constrained programs. Vendors that bundle 24/7 monitoring, patch management, and continuous accreditation support increasingly appeal to customers seeking predictable costs and compliance guarantees.
The hardware segment is not static; suppliers now embed FPGA-based policy engines and offer virtualized diode functions that integrate with cloud gateways. Nevertheless, procurement teams still favor physically isolated transmit-only channels for the highest classification tiers. Over the forecast period, successful vendors will be those fusing hardware reliability with software-defined orchestration, thereby easing integration into zero-trust stacks while preserving tamper-resistant pathways.
Note: Segment shares of all individual segments available upon report purchase
By Solution Type: Access Solutions Challenge Transfer Dominance
Transfer gateways maintained a 48.55% share of 2024 revenues, yet access-centric products are slated for a 15.80% CAGR, a pace that could redraw the cross-domain solution market landscape by 2030. Identity-driven access controls align neatly with zero-trust doctrine, letting administrators grant time-bounded, context-aware entry to specific datasets instead of bulk-moving files across domains. The cross-domain solution market share for access gateways is boosted by their ability to hook directly into enterprise IAM and SIEM platforms.
Transfer-focused vendors now embed attribute-based access elements, while access specialists add file-transfer and protocol break functions, hinting at a converged platform future. As a result, buyers increasingly shortlist suppliers that deliver unified policy engines, since maintaining separate stacks inflates audit complexity and lifecycle costs.
By Deployment: Cloud Acceleration Challenges On-Premises Stronghold
On-premises installations controlled 64.65% of the cross-domain solution market size in 2024, thanks to long-standing regulations that favor physical custody of classified servers. Yet government-approved cloud enclaves are growing at 16.20% CAGR, validating hyperscale providers’ security posture and offering elastic compute unavailable behind legacy firewalls. Agencies now pair in-house gateways for TOP SECRET data with cloud-resident guards for lower tiers, forming hybrid compliance zones that shift workloads seamlessly without breaching domain rules.
Future procurements will emphasize deployment-agnostic capabilities. Gateways that can migrate from bare-metal to containerized images inside Impact Level 6 regions will insulate agencies from vendor lock-in and streamline disaster-recovery architectures. Suppliers lacking a credible cloud roadmap risk exclusion from multi-year framework contracts that stipulate elasticity and automation.
By End-User: Critical Infrastructure Gains on Defense Leadership
Aerospace and defense customers owned 57.21% of 2024 expenditure, underpinned by the U.S. FY 2025 defense budget and similar allocations across NATO. However, critical-infrastructure operators are tracking a 13.90% CAGR as energy, transport, and telecom grids confront rising nation-state attacks. Utility companies investing in IEC 62443 compliance increasingly specify cross-domain guards at the OT–IT boundary to prevent lateral movement from compromised enterprise networks.
Law-enforcement agencies, border-protection units, and research bodies form an additional opportunity set, demanding secure evidence sharing and controlled dissemination of intellectual property. The broadening customer base signals that the cross-domain solution industry is transitioning from niche military origins to a mainstream security layer within national critical-infrastructure programs.
Geography Analysis
North America generated 41.85% of 2024 revenues, undergirded by the U.S. DoD’s USD 841 billion appropriation and well-established certification pathways. Prime contractors such as Lockheed Martin logged USD 71.07 billion in 2024 sales, guaranteeing a sustained pipeline of cross-domain deployments and upgrades. Federal cloud enclaves, including AWS Secret Region and Azure Government Secret, accelerate adoption by offering turnkey hosting for classified workloads at Impact Level 6.
Asia-Pacific is the fastest-growing theatre at 17.40% CAGR. Japan’s record USD 734 billion 2025 defense budget, Australia’s REDSPICE cyber initiative, and India’s ongoing tri-service modernization create fertile ground for indigenous and Western gateway suppliers. The QUAD partnership sets common interoperability benchmarks, giving compliant vendors a head start in multi-nation command-and-control projects.
Europe maintains steady momentum through NATO’s Digital Transformation vision and the EU Cybersecurity Certification Framework, which simplifies multi-state approvals. Germany, France, and the United Kingdom invest in cross-domain platforms that support coalition data sharing while satisfying domestic data-sovereignty statutes. Elsewhere, Middle East and Africa markets are nascent yet strategic: Saudi Arabia’s National Cybersecurity Authority mandates diode-based segmentation for energy facilities, and South Africa’s defense forces plan to embed cross-domain guards in forthcoming satellite-ground stations.
Competitive Landscape
The market exhibits moderate concentration. Tier-one contractors—BAE Systems, Lockheed Martin, and General Dynamics—leverage longstanding security clearances, facilities, and contracting channels to retain incumbency on major programs. Yet specialist vendors such as Everfox, Owl Cyber Defense, and Waterfall Security Solutions win where ultra-high assurance or niche protocol support is decisive, often subcontracting under prime integrators for scalable reach.
Large IT vendors are also entering. Microsoft and IBM position cloud-native cross-domain guards that integrate with their identity and SIEM portfolios, responding to agencies’ demand for consolidated dashboards. Patent filings on quantum-safe key exchange and homomorphic encryption from Ultra Intelligence and 4Secure hint at future product differentiators, especially once post-quantum requirements reach operational frameworks.
Competition increasingly centers on life-cycle cost, certification pedigree, and zero-trust alignment rather than raw throughput alone. Suppliers offering modular platforms—hardware appliance, virtual machine, and container image under one license—are gaining favor as agencies strive for platform continuity across data-center refresh cycles and cloud migrations.
Cross-Domain Solution Industry Leaders
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BAE Systems plc
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Lockheed Martin Corporation
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General Dynamics Corporation
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Forcepoint LLC
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IBM Corporation
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- February 2025: Waterfall Security Solutions received Common Criteria EAL4+ certification for its Unidirectional Security Gateway.
- January 2025: Thales Group partnered with Google Cloud to develop quantum-resistant security solutions for government and enterprise customers.
- December 2024: Everfox announced a strategic partnership with Palantir Technologies to integrate cross-domain data-analytics capabilities.
- January 2024: Saab AB teamed with Maxar Technologies to build secure satellite-communication solutions for defense customers.
Global Cross-Domain Solution Market Report Scope
A Cross-domain Solution (CDS) is a mechanism to access or transfer information between two or more networks of different security classifications. It is an integrated information assurance system composed of specialized software or hardware that provides a controlled interface to manually or automatically enable and/or restrict the access or transfer of information between two or more security domains.
The cross-domain solution market is segmented by component (hardware, software, services), by type (access solution, transfer solution, other types), by deployment (cloud, on-premises), by end-users (aerospace and defense, law enforcement and security agencies, other end-users), by geography (North America, Europe, Asia-Pacific, Latin america, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Component | Hardware | |||
| Software | ||||
| Services | ||||
| By Solution Type | Access Solutions | |||
| Transfer Solutions | ||||
| Other Types | ||||
| By Deployment | Cloud | |||
| On-Premises | ||||
| By End-user | Aerospace and Defense | |||
| Law-Enforcement and Security Agencies | ||||
| Critical Infrastructure Operators | ||||
| Others | ||||
| By Geography | North America | United States | ||
| Canada | ||||
| Mexico | ||||
| South America | Brazil | |||
| Argentina | ||||
| Rest of South America | ||||
| Europe | United Kingdom | |||
| Germany | ||||
| France | ||||
| Italy | ||||
| Spain | ||||
| Russia | ||||
| Rest of Europe | ||||
| Asia-Pacific | China | |||
| Japan | ||||
| India | ||||
| South Korea | ||||
| Australia and New Zealand | ||||
| Rest of Asia-Pacific | ||||
| Middle East and Africa | Middle East | Saudi Arabia | ||
| UAE | ||||
| Turkey | ||||
| Rest of Middle East | ||||
| Africa | South Africa | |||
| Nigeria | ||||
| Kenya | ||||
| Rest of Africa | ||||
| Hardware |
| Software |
| Services |
| Access Solutions |
| Transfer Solutions |
| Other Types |
| Cloud |
| On-Premises |
| Aerospace and Defense |
| Law-Enforcement and Security Agencies |
| Critical Infrastructure Operators |
| Others |
| North America | United States | ||
| Canada | |||
| Mexico | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Europe | United Kingdom | ||
| Germany | |||
| France | |||
| Italy | |||
| Spain | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| Australia and New Zealand | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| UAE | |||
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Kenya | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is driving the rapid growth of the cross-domain solution market to 2030?
Rising classified data volumes, mandatory zero-trust directives, and the migration of secret workloads to government-approved clouds are the primary catalysts.
Which segment of the cross-domain solution market is expanding the fastest?
Cloud deployments are growing at a 16.20% CAGR as agencies adopt hybrid architectures that blend on-premises and hyperscale resources.
Why are access-oriented gateways gaining share over traditional transfer-only devices?
Access gateways fit zero-trust requirements by enforcing identity-aware, context-based permissions instead of bulk file movement.
How do certification delays affect market adoption?
Multi-authority evaluations can add up to two years to project timelines, favoring vendors with existing EAL4+ or NCDSMO approvals.
Page last updated on: July 4, 2025
