Next-Gen Technology Adoption Pushes Global Military Cybersecurity Market Toward $16 Billion by 2023: Frost & Sullivan
Global defense industries are transforming their operations and capabilities through significant investments in disruptive technologies and platforms, according to a new report from Frost & Sullivan. Driven by changes in military cybersecurity requirements, the analyst firm anticipates global military cybersecurity to grow to $16.01 billion by 2023 -- reflecting a compound annual growth rate (CAGR) of 3.6% from 2018-2023.
“Militaries across the globe are budgeting for and pursuing the development of new enabling, next-generation technologies for cybersecurity,” said Ryan Pinto, Research Analyst, 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.”
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.
Amid rising concern surrounding cyber warfare, defense contracts aimed at countering this growing threat will increase significantly across the North American, European and Asia-Pacific (APAC) markets. Despite these factors, smaller and less developed 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,” Pinto said . “However, defense companies could grow market share through M&A and utilizing current positioning in the defense market,”.
To capitalize on future possibilities, vendors should focus on:
Increasing R&D investment in companies with strong funding for research programs.
Establishing public-private partnerships to improve innovation and national cybersecurity posture.
Offering training-as-a-service to improve positioning on contracts.
Developing a broad range of cyber solutions that will improve capabilities to defend and attack the full spectrum range.
Creating broad military cyber solutions that allow quicker and cheaper integration with legacy components.
“Despite promising growth drivers, there are currently several substantial drawbacks that don’t allow double-digit market advancement,” Pinto said. “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.”
Frost & Sullivan’s research, Global Military Cybersecurity Market, Forecast to 2023, explores the factors, trends and technologies that have shaped the military cybersecurity landscape, the challenges that lie ahead, and the opportunities that can be tapped.
(For more information visit https://ww2.frost.com).
