The cyber weapons market has seen considerable growth due to a variety of factors.
• The size of the cyber weapons market has experienced speedy expansion in the last few years. The market is forecasted to escalate from $11.59 billion in 2024 to $12.89 billion in 2025, presenting a compound annual growth rate (CAGR) of 11.2%.
Factors such as rising data traffic and bandwidth needs, the acceptance of cloud computing, the necessity for business continuity and disaster recovery, enterprise globalization, and data center consolidation have fueled growth during the historical period.
The cyber weapons market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, considerable growth is projected for the cyber weapons market size. The market is forecasted to rise to $18.49 billion by 2029, with a compound annual growth rate (CAGR) of 9.4%.
The ascendancy in this forecast period can be ascribed to several factors such as the rise of big data and analytics, government regulations and compliances, hybrid and multi-cloud deployments, heightened emphasis on security, as well as sustainability initiatives. Key trends identified in this forecast period include a swift adoption of coherent optical technology, an increase in demand for cloud connectivity, an emphasis on software-defined networking (sdn) integration, the expansion of hybrid and multi-cloud connectivity solutions, and the burgeoning significance of edge data centers.
International conflicts are seeing a significant rise which is predicted to fuel the growth of the cyber weapon market. An international conflict usually involves a prolonged standoff or clash between two or more independent countries, often leading to violence. Strategically, nations deploy cyber weapons in such conflicts as they offer new tools and strategies for achieving their objectives while maintaining relative secrecy, rendering a certain level of anonymity for the country launching the attack. For example, as reported by Council on Foreign Relations Highlights, a non-profit and independent organization based in the US, there are more than 40 ongoing international conflicts worldwide in September 2023 which includes civil wars, insurgencies and international conflicts. In addition, ACLED (Armed Conflict Location & Event Data Project), a non-profit organization based in the US, recorded over 139,000 politically driven violence incidents around the world in 2023, marking an increase of 27% from the previous year. Consequently, this escalation in international conflicts is stimulating the growth of the cyber weapons market. The foreseeable growth of the cyber weapon market is also driven by increasing defense budgets. The defense budget – an allocation of financial resources by a government for national defense and military expenditures – is a critical factor in the creation and management of cyber weapons, fortifying a country's capacity to deal with cyber threats. For instance, in March 2023, the Department of Defense in the United States, a government agency, secured a provision of $776.6 billion, while $851.8 billion was sanctioned for 2023. Hence, expanding defense budgets contribute to the growth of the cyber weapon market.
The cyber weapons market covered in this report is segmented –
1) By Type: Defensive, Offensive
2) By Application: National Defensive System, Industrial Control System, Communication Network, Automated Transportation System, Smart Power Grid, Other Applications
3) By End-User: Government, Banking, Financial Services And Insurance, Defense, Corporate, Other End-Users
Subsegments:
1) By Defensive: Intrusion Detection Systems (IDS), Firewalls, Encryption Tools, Security Information And Event Management (SIEM)
2) By Offensive: Malware, Ransomware, Denial Of Service (DoS) Attacks, Hacking Tools
Notable firms in the cyber weapons market are leveraging cutting-edge technologies powered by artificial intelligence and machine learning to distinguish themselves amidst competition. AI and ML algorithms are advantageous for improving threat detection and response, automating various stages of an attack, and evaluating large volumes of personal data, which in turn, facilitates the execution of sophisticated and credible phishing attacks. For example, CPX Holding, a cybersecurity enterprise based in the UAE, introduced its revolutionary AI-based cybersecurity solution, the CPX Intelligent Threat Detection Platform, in November 2023. This novel approach uses specialized cyber threat detection methods to shield clients from progressing threats. The service is meticulously designed to tackle the rising modern threats demanding innovative strategy and solutions. It uses a wide array of data, utilizes advanced machine learning models and a smart engine to identify discrepancies.
Major companies operating in the cyber weapons market report are:
• Raytheon Technologies Corporation
• The Boeing Company
• Lockheed Martin Corporation
• Cisco Systems Inc.
• General Dynamics Corporation
• Northrop Grumman Corporation
• Broadcom Inc.
• BAE Systems PLC
• DXC Technology Company
• Booz Allen Hamilton Inc.
• Fortinet
• McAfee L.L.C
• Airbus S.A.S
• AO Kaspersky Lab
• Gamma Group
• Avast Software Company
• FireEye Inc.
• Leonardo S.p.A.
• Endgame Inc.
• NSO Group
• Birmingham Cyber Arms Ltd.
• Bull Guard Ltd.
• Symantec Corporation
• Akamai Technologies
• RSA Security Inc.
North America was the largest region in the cyber weapons market in 2024. The regions covered in the cyber weapons market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.