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Defense Cyber Spending Set to Surge Amid Rising Attacks on Military Systems

Defense Cyber Spending Set to Surge Amid Rising Attacks on Military Systems

Infosecurity-Magazine September 14, 2026

Cybersecurity spending in the defense industry is set to surge amid growing cyber threats to military systems and demand for offensive capabilities.

A new report by MarketsandMarkets published on September 14 has projected the cyber warfare market to double in size in the five years, from $14.99bn in 2026 to $28.75bn by 2031.

The management consulting firm highlighted a range of factors in this enormous growth prediction. It noted that defense organizations are being forced to invest in stronger cybersecurity due to rising attacks on military networks and mission systems.

The growing reliance on connected platforms, cloud systems and digital command and control networks are also creating more cyber risks that need to be addressed.

In addition, there has been a greater emphasis by Western governments on developing offensive cyber capabilities to tackle threat actors based in jurisdictions outside of the reach of law enforcement. For example, in August 2026, US President Donald Trump signed a memorandum authorizing federal law enforcement agencies to collaborate with private firms in conducting offensive cyber strikes on foreign threat actors targeting the US.

“Defense organizations are investing in threat detection, cyber intelligence, network security, and offensive cyber tools, along with cyber training. Rising defense budgets and the development of national cyber warfare programs are expected to support further investment in the market,” MarketsandMarkets wrote.

Europe to Become Largest Cyber Warfare Market

The report has projected Europe to hold the largest of the cyber warfare market during the forecast period, with governments in the region increasing efforts to strengthen military cyber capabilities.

NATO has also made a number of announcements in recent years regarding the development of shared cyber capabilities and joint cyber exercises, encouraging further demand for cyberwarfare solutions in Europe.

MarketsandMarkets said that cloud-based security is the segment that will see the highest growth in the cyber warfare market in the five years up to 2031. This will be driven by the increasing use of cloud platforms for military data and applications, along with cyber operations.

The shift toward hybrid and multi-cloud environments is also increasing the need for security tools that can work across different military networks and military platforms, the firm added.

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