The report from Frost & Sullivan anticipates global military cybersecurity will grow to $16.01 billion by 2023 at 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.”
The analysis states 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.
With the growing concern surrounding cyber warfare, defensc contracts announced to counter the threat will be increase significantly across North America, Europe and APAC.
Less developed and small 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. However, defence companies could grow market share through M&A and utilising current positioning in the defence market,” stated Pinto.
To capitalise on future possibilities, the report suggests vendors should focus on:
“Despite promising growth drivers, there are currently several substantial drawbacks that don’t allow double-digit market advancement,” noted Pinto. “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 minimise the reliance of their military on foreign entities with high-level access.”
To learn more about cyber security and how your business can stay protected from threats, visit the Cyber Essentials Online website.
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