$14.99bn in 2026, $28.75bn by 2031 — the cyber warfare market is forecast to roughly double in five years, according to a MarketsandMarkets report published on September 14.
MarketsandMarkets projection: $14.99bn to $28.75bn (2026–2031)
MarketsandMarkets projects the global cyber warfare market will grow from $14.99 billion in 2026 to $28.75 billion by 2031. The management consulting firm tied that expansion to several converging pressures: rising attacks on military networks and mission systems, greater reliance on connected platforms and cloud systems, and a renewed emphasis by Western governments on offensive cyber capabilities.
“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.
Rising attacks on military networks and mission systems
The report places increasing attacks on military networks and mission systems at the center of demand. Defense organizations are described as being forced to strengthen cybersecurity programs in response. That demand covers both traditional defensive measures — threat detection, cyber intelligence and network security — and expanded programs for cyber training and offensive cyber tools.
MarketsandMarkets explicitly links the market surge to the changing operational environment: command-and-control systems, mission platforms and other military networks are becoming more digital and interconnected, which the report says increases the surface for hostile cyber activity.
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See what we buildEurope and NATO: the largest market and shared capabilities
MarketsandMarkets projects Europe will hold the largest share of the cyber warfare market during the forecast period. The report attributes that lead to strengthened military cyber capability efforts by European governments.
It also cites NATO announcements over recent years about the development of shared cyber capabilities and joint cyber exercises as factors encouraging demand for cyberwarfare solutions in Europe. Those regional commitments, the report implies, create recurring procurement and integration requirements across allied forces.
Cloud-based security and the shift to hybrid and multi‑cloud environments
According to the report, the fastest-growing segment of the cyber warfare market through 2031 will be cloud-based security. MarketsandMarkets ties that growth to the increasing use of cloud platforms for military data and applications, as well as for cyber operations.
The report highlights a shift toward hybrid and multi-cloud environments in defense IT architectures. That transition, MarketsandMarkets says, increases the need for security tools that can operate across disparate military networks and platforms — a technical and procurement challenge the market will be asked to solve.
Offensive cyber capabilities and the August 2026 memorandum
MarketsandMarkets points to a greater emphasis by Western governments on developing offensive cyber capabilities to address threat actors located beyond the reach of law enforcement. The report gives a concrete 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.
This example is presented in the report as evidence that governments are both widening the operational toolbox and formalizing public–private arrangements to act against external cyber threats.
How defense organizations, Western governments, and private firms will respond
- Defense organizations: Expect increased procurement of threat-detection systems, cyber-intelligence platforms, network security solutions, offensive cyber tools and expanded cyber training programs, reflecting the mix of defensive and offensive priorities the report identifies.
- Western governments: According to the report, rising defense budgets and national cyber warfare programs are likely to underpin further investment; the August 2026 memorandum is an example of governments authorizing collaboration with private firms for offensive operations.
- Private firms: The report implies stronger demand for cloud-capable security solutions and interoperable tools that can be deployed across hybrid and multi-cloud military environments, and for services that support joint exercises and shared NATO capabilities.
The MarketsandMarkets forecast frames a market response to a strategic shift: more connected military systems and a willingness among some governments to pair defensive measures with offensive options. The projection raises concrete questions for buyers and planners — including how cloud security will be standardized across allied forces, how public–private offensive collaborations will be governed, and whether procurement cycles can keep pace with both evolving threats and rapid technological change.
