CYBERSECURITY spending in the defence sector is expected to rise sharply as military networks, mission systems and connected platforms face growing cyber threats. A MarketsandMarkets report published on 14 September 2026 projects that the cyber warfare market will almost double, from $14.99bn in 2026 to $28.75bn by 2031.
The firm attributed the forecast growth to greater reliance on cloud services, digital command-and-control networks and other connected military systems, as well as increased investment in threat detection, cyber intelligence, network security, offensive cyber tools and training. It also pointed to Western governments’ growing focus on offensive capabilities against threat actors operating beyond the reach of domestic law enforcement.
The article cites a memorandum signed by US President Donald Trump in August 2026 authorising federal agencies to work with private companies on offensive cyber operations against foreign actors targeting the US.
MarketsandMarkets expects Europe to account for the largest share of the market during the forecast period, supported by national efforts and NATO initiatives to strengthen joint cyber capabilities and exercises. Cloud-based security is forecast to be the fastest-growing segment through 2031, as military organisations adopt cloud and hybrid or multi-cloud environments requiring protection across different networks and platforms.