Cyber Warfare Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Cyber Warfare Market is segmented by End-user Industry (Defense, Aerospace, BFSI, Corporate, Government, Other end-user Industries), and Geography.

Market Snapshot

 Cyber warfare market Overview
Study Period: 2019- 2026
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 16.84 %
 Cyber warfare market Key Players

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Market Overview

The cyber warfare market was valued at USD 39.80 billion in 2020. It is expected to reach a value of USD 103.77 billion by 2026, registering a CAGR of 16.84% over the forecast period. Cyberwarfare involves both offensive and defensive operations, such as cyberattacks, espionage, and sabotage. The number of cyberattacks worldwide is increasing significantly. Cyberwarfare uses all vectors accessible to cybercriminals. These include viruses, email attachments, pop-up windows, instant messages, and other forms of deception on the internet.

  • Cyberwarfare is a significant threat to the nation, outstripping terrorism. The mitigation of losses arising due to increasing cyber-attacks on countries, leading to economic disruption, has become a considerable concern for the market.
  • The rising dependency of organizations on information technology and the valuable and sensitive nature of digitally stored data has raised the stake for cyber attackers whose primary motive is to disrupt economic growth and gain technological advantages by stealing the intellectual properties of national defense forces.
  • DoS attacks, which continue to increase worldwide, are predicted to be leveraged for conducting cyber warfare. Attackers are also using these distributed denials of service (DDoS) attack methods to impact the government entities, primarily with massive, sustained bandwidth attacks, and at the same time, infecting them with malware and spyware to steal or destroy data.
  • Moreover, according to Microsoft’s Digital Defense Report (2021), around 80% of the nation-state-targeted attacks were on governments, NGOs, and think tanks. Think tanks generally serve as policy incubators and implementers, with strong ties to government officials and programs. Attackers can exploit the connections between the NGO community and government organizations to gain insights into national policy plans and intentions.
  • Furthermore, due to COVID-19, Nation-state cyber activity has witnessed a surge in intensity and an escalation in severity because traditional tactics to gather intelligence and knowledge are no longer feasible due to social distancing. Additionally, cyberattacks targeting organizations have increased considerably amid the coronavirus-led lockdown, resulting in a growing demand for skilled cybersecurity professionals.

Scope of the Report

Cyberwarfare comprises the actions taken by a nation-state or international organizations against another nation's computers or information networks, primarily through computer viruses or denial-of-service (DDoS) attacks. The end-users considered under the scope of this study include governments, BFSI, aerospace, defense, and power and utilities, among others. The study also offers an assessment of the impact of the COVID-19 pandemic on the industry.

End-user Industry
Defense
Aerospace
BFSI
Corporate
Power and Utilities
Government
Other End-user Industries
Geography
North America
Europe
Asia Pacific
Latin America
Middle East and Africa

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Key Market Trends

Increasing Concern Regarding National Security

  • Cybersecurity is a crucial national security issue. It impacts both the public and private sectors and spans a wide range of issues related to national security, whether through terrorism, crime, or state and industrial espionage. The growing technological development in IT and the capabilities of cyber weapons leading to disruption to national security are continuously reshaping the threat landscape.
  • International organizations and governments have become focused on cybersecurity due to increased security challenges posed by or within cyberspace. This has raised several concerns to national security, driving the need for robust security solutions. Therefore, the government, military, and other agencies are engaged in protecting its digital infrastructure and devices connected to the internet to deter cyberattacks.
  • The market is witnessing significant defense initiatives for strengthening national security. For instance, NATO is engaged in a cyberwar with Russia and aimed to amend Article 5 to include cyber warfare or risk losing and reducing the impact. Further, according to NATO, in 2020, the United States spent USD 784.95 million on defense, and a significant expenditure accounted for European countries.
  • Further, deprecated encryption protocols are being replaced in the national security supply chain. For instance, in January 2021, the US National Security Agency (NSA) published guidelines on updating obsolete encryption protocols for government agencies and suppliers involved in defense and national security. The recommendations (PDF) advise system administrators on detecting and replacing unauthorized or deprecated TLS protocols with ones that meet current standards.
 Cyber warfare market Key Trends

North America Expected to Hold a Significant Market Share

  • North America is expected to have a significant market share for the cyber warfare market. Expanding the cyber defense budget, government initiatives securing computerized framework, and spotlight lighting on reinforcing cybersecurity approaches are the key driving elements affecting the territorial demand in the region. Besides the foundation of cybersecurity units and deploying powerful cybersecurity systems inside government organizations, military, and guard parts further drive business sector development.
  • In the 2020 Cost of a Data Breach Report published by IBM, United States is estimated as the most expensive country with the cost of a data breach reaching USD 8.64 million. As a measure to tighten the regulations on cybersecurity breaches in companies and government agencies, as reported by Reuters in March 2021, the US government has planned to pass an executive order that requires software vendors to notify the federal government in the event of a security breach.
  • The US federal government has taken several initiatives against cyberattacks and is continually demonstrating its cyber warfare capabilities to help reduce sophisticated attacks. It is also engaging in proactive training and development to military personnel in the US Army Cyber Center of Excellence (CCoE), which is the US Army's force modernization proponent for cyberspace operations, signal/communication networks, and information services. Furthermore, an increased defense budget to safeguard cyberspace and protect federal systems and critical infrastructure from cyberattacks is anticipated to propel market growth.
  • Additionally, in April 2021, as part of the United State’s effort to safeguard US critical infrastructure from sophisticated and persistent cyber threats, the US Department of Energy (DOE) launched an initiative to improve the cybersecurity of electric utilities’ industrial control systems (ICS) and secure the supply chain of the energy sector. This 100-day plan is a coordinated effort between the electricity industry, the Department of Energy, and the Cybersecurity and Infrastructure Security Agency (CISA).
 Cyber warfare market Growth by Region

Competitive Landscape

The cyber warfare market is moderately concentrated and a competitive market with several players vying for market share. The major players are offering superior technology such as Machine learning, AI and fostering growth through their existing distribution channels. These technology leaders are investing in innovation, mergers, and acquisitions, and long-term partnership activities to maintain a competitive edge in the market.

  • Jan 2020 - Airbus CyberSecurity and Amossys signed a partnership agreement at the International Cybersecurity Forum (FIC) in Lille. The partnership between the major industrial cybersecurity services supplier and the Rennes-based SME at the cutting edge of cybersecurity innovation has three focus areas that aids and help the company grow in the studied market.
  • July 2021 - Leonardo and A2A teamed up to test innovative solutions for the cyber security of electricity generation and distribution plants. This partnership envisages the use of innovative technologies developed by Leonardo's cyber security research center on A2A plants and networks. The agreement will boost the security of digital transformation processes and create new products specifically developed for the cyber protection of energy infrastructures.

Recent Developments

  • April 2021-Talon Cyber Security, a pioneer in cyber security solutions for the distributed workforce, announced that it had received USD 26 million in seed funding from Lightspeed Venture Partners, Team8, serial entrepreneur Zohar Zisapel, and leading cyber angel investors. The company is creating a cyber security technology to protect against the unique threats emerging in today's distributed work era.
  • July 2021 - SynSaber, a new industrial cybersecurity firm, launched USD 2.5 million in seed funding from SYN Ventures, Rally Ventures, and Cyber Mentor Fund. SynSaber is developing an industrial asset and network monitoring solution to provide constant insight into the status, vulnerabilities, and threats.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Threat of New Entrants

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Bargaining Power of Suppliers

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Assessment of the Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

  6. 6. Market Drivers

    1. 6.1 Increasing Concerns Regarding National Security

    2. 6.2 Increase In Defense Spending

  7. 7. Market Challenges

    1. 7.1 Lack of Cyber Warfare Professionals

  8. 8. MARKET SEGMENTATION

    1. 8.1 End-user Industry

      1. 8.1.1 Defense

      2. 8.1.2 Aerospace

      3. 8.1.3 BFSI

      4. 8.1.4 Corporate

      5. 8.1.5 Power and Utilities

      6. 8.1.6 Government

      7. 8.1.7 Other End-user Industries

    2. 8.2 Geography

      1. 8.2.1 North America

      2. 8.2.2 Europe

      3. 8.2.3 Asia Pacific

      4. 8.2.4 Latin America

      5. 8.2.5 Middle East and Africa

  9. 9. COMPETITIVE LANDSCAPE

    1. 9.1 Company Profiles

      1. 9.1.1 BAE Systems PLC

      2. 9.1.2 The Boeing Company

      3. 9.1.3 General Dynamic Corporation

      4. 9.1.4 Lockheed Martin Corporation

      5. 9.1.5 Fire Eye Inc.

      6. 9.1.6 Raytheon Company

      7. 9.1.7 Leonardo SpA

      8. 9.1.8 Booz Allen Hamilton Inc.

      9. 9.1.9 DXC Technology Pvt. Ltd.

      10. 9.1.10 Airbus SE

    2. *List Not Exhaustive
  10. 10. INVESTMENT ANALYSIS

  11. 11. FUTURE OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Cyber Warfare Market market is studied from 2019 - 2026.

The Cyber Warfare Market is growing at a CAGR of 16.84% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

BAE Systems PLC, General Dynamic Corporation, Lockheed Martin Corporation, Fire Eye Inc., The Boeing Company are the major companies operating in Cyber Warfare Market.

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