Military cyber security to reach $16bn by 2023
Written by Peter Walker
Global defence industries are transforming their operations and capabilities through significant investments in disruptive technologies and platforms that are driving changes in military cyber security requirements.
This is according to Frost & Sullivan analysis, which anticipates global military cyber security to grow to $16 billion by 2023 at a compound annual growth rate of 3.6 per cent from 2018 to 2023.
With the growing concern surrounding cyber warfare, defence contracts announced to counter the threat will be increase significantly across North America, Europe and Asia.
Less developed and small countries may not have the budgets to procure and implement advanced cyber security solutions, and the Chinese military market, although relatively large, is blocked for global companies, the report noted.
“Industry consolidation and tier II contractors winning more lucrative awards will increase competition,” explained research analyst Ryan Pinto. “However, defence companies could grow market share through M&A and utilising current positioning in the defence market.”
To capitalise on future possibilities, Frost & Sullivan suggested vendors should focus on: increasing research and development investment, establish public-private partnerships to improve innovation and national cyber security posture, offer training-as-a-service to improve positioning on contracts, and create 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,” 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.”