Cyber Warfare Market Set to Surpass Valuation of US$ 136.44 Billion By 2033 | Astute Analytica

Increasingly sophisticated cyber threats, a growing workforce shortage, and expanding vulnerabilities underscore the urgent need for heightened technological investments, more coordinated industry collaborations, and reinforced global security policies to secure organizations against financially devastating cyber-attacks.

Chicago, March 31, 2025 (GLOBE NEWSWIRE) — The global cyber warfare market was valued at US$ 38.32 billion in 2024 and is expected to reach US$ 136.44 billion by 2033, growing at a CAGR of 16.06% during the forecast period 2025–2033.

As of 2025, cyberattacks occur every 39 seconds on average, illustrating a rapidly evolving threat landscape in the cyber warfare market. Global cyberattacks surged by 30% in Q2 2024 compared to Q2 2023, with 30,000 websites compromised daily. Survey data from 2023 reveals ransomware affected 81% of organizations, nearly half of which opted to pay the ransom. DDoS attacks jumped by 13% in early 2024, exceeding 8 million incidents in the year’s first half. During the same period, phishing attempts climbed 58.2%, while ransomware incidents in the U.S. alone rose 22%, pushing related costs up 74% from 2022 to 2023. Supply chain attacks soared by 42% in 2024, and cloud-based attacks grew by 26%. A striking 79% of organizations experienced at least one API-related attack in 2023. Meanwhile, unsecured-network connections spiked by 45%, rogue access points doubled, and one-third of mobile network threats involved man-in-the-middle attacks. Over 40% of phishing emails targeting businesses are now AI-generated, with 61% of organizations reporting a rise in deepfake attacks. Cryptocurrency companies faced a 600% surge in incidents, and the total number of IoT attacks exceeded 10.54 million in December 2022 alone.

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Astute Analytica’s analysis of the cyber warfare market indicates 43% of breaches stem from insider threats, while overall data breaches increased 200% from 2013 to 2022. The FBI’s Internet Crime Complaint Center (IC3) received 880,418 complaints in 2023, up 10% from 2022. The global average cost of a data breach in 2024 was $4.88 million, reflecting the intensifying financial burden of cybercrime. Beyond that, the cybersecurity industry faces a shortage of 4 million professionals in 2024, potentially ballooning to 85 million by 2030. Over five years, ransomware incidents grew by 13%, with the average 2023 event costing $1.85 million and ransom demands hitting $2.73 million. Notably, 97% of organizations suffering encryption eventually recovered their data, though 80% encountered repeated attacks—a stark reminder that paying a ransom rarely guarantees immunity from future intrusions.

Key Findings in Cyber Warfare Market

Financial Strain and Shifting Insurance Markets Driving New Solutions

Phishing is fast emerging as a top threat vector in the cyber warfare market, driving 41% of initial intrusions and costing organizations an average of $4.88 million per event. Meanwhile, an estimated 35% of ransomware attacks stem from email, reflecting the pervasive risk of inbox-driven payloads. Worldwide, there are around 1.2 billion malicious programs and potentially unwanted applications, with over 100 million detected in 2023 alone. Malware surfaces in 40% of data breaches—up 30% from 2022—and ransomware appears in nearly 70% of malware-related incidents. In fact, IoT-targeted malware soared 87% year-over-year, pushing North American malware detections to 2.75 billion in 2022. Attacks in education rose 157%, with 94.6% of all breaches financially motivated. By 2025, cybercrime could cost the world $10.5 trillion annually. Ransomware damages are projected at $265 billion by 2031, while global cyber insurance premiums might leap from $14 billion in 2023 to $29 billion by 2027. The average cost to recover from ransomware in 2024 stands at $2.73 million, and ransom payouts nearly doubled from $812,380 in 2022 to $1,542,333 in 2023. Large organizations in Europe and the U.S. face over $53,000 per attack, and 63% of attackers demand more than $1 million—with 30% surpassing $5 million.

The probability of capturing and prosecuting cybercriminals remains as low as 0.05% in the U.S. cyber warfare market. Total cyberattack costs may hit $9.5 trillion in 2024, and reported FBI IC3 losses rose 22% between 2022 and 2023. Small businesses see 95% of incidents priced between $826 and $653,587, including 700,000 attacks in 2020 that totaled $2.8 billion. Healthcare breach costs peaked at $10.93 million in 2023, then dipped to $9.77 million in 2024. Manufacturing suffered 29% of global ransomware in Q2 2024—a 56% yearly rise—while the finance sector counted 122 attacks in 2023. The cybersecurity workforce hit roughly 5.5 million in 2024, up 12.6% from the prior year, with the Middle East and Africa posting 7.4% growth and Asia-Pacific 3.8%. Women’s share of cybersecurity roles could reach 30% by 2025 and 35% by 2031, yet men still dominate in many degree programs, underscoring the continued challenge of bridging workforce gaps.

Critical Infrastructure Vulnerabilities and Heightened Awareness In Key Industries

Attacks on critical infrastructure are escalating by 30% every two years in the cyber warfare market, averaging 13 hits per second across 163 nations. Experts warn that a breach of a major U.S. power grid could incur losses of $240 billion, illustrating just how severe the impact can be. Healthcare has endured data breaches for 14 consecutive years, suffering a 25% increase in ransomware incidents, while cloud exposures constitute 45% of all breaches. Four-fifths of critical infrastructure sectors still lack zero-trust measures, leaving them vulnerable to more than 2,000 attacks daily, which produce a new victim every 39 seconds. Projections indicate ransomware could soon strike every 11 seconds, with finance emerging as the top phishing target. Cybercriminals often impersonate 20 leading brands—especially Microsoft—and place education under constant ransomware pressure. Email phishing remains a preferred infiltration tactic, supported by RDP and software vulnerabilities that continue to undermine security strategies.

Data breach costs have risen 10% from 2023 levels in the cyber warfare market, and 80% of victims who pay ransom suffer repeated strikes. Meanwhile, AI shapes 40% of phishing emails, and the workforce gap affects Asia-Pacific and Europe most acutely. Manufacturing endured a 56% jump in ransomware attacks year-over-year, with cybercrime costs outpacing global economic growth threefold. Experts predict ransomware damages could expand thirteen-fold over the next decade, with average ransom demands soaring 90%. Roughly a third of attackers now demand over $5 million, contributing to FBI-reported losses rising by more than a fifth. Small businesses grapple with swings of $650,000 per incident, and healthcare breach expenses dropped by $1 million in 2024. Though the cybersecurity workforce expanded by 700,000—particularly in the Middle East and Africa—women’s participation is projected to rise only 5% by 2031, risking a 20-fold shortfall. Nearly half of firms cannot fill senior roles, prompting 45% to leverage AI to address skill gaps. As the workforce deficit climbs nearly a fifth, men still outnumber women three to one in cybersecurity degrees, and two-thirds of companies report ongoing staffing shortages.

Emerging Tech, Quantum Fears, And Multitrillion-Dollar Market Evolutions

As the cyber warfare market intensifies its spotlight on quantum computing as a potential future disruptor, AI swiftly emerges as a transformative force shaping both defensive and offensive cybersecurity strategies. The average cost of a data breach has climbed to around $5 million, escalating by double digits in certain scenarios. Meanwhile, ransomware attacks now occur every 11 seconds, with 2,200 intrusions reported daily. Healthcare has witnessed staggering breach costs of $10.93 million, surpassing other sectors, while phishing impersonation primarily targets two dozen leading brands—Microsoft chief among them. At the same time, education remains a prime target as attackers exploit software vulnerabilities and RDP weaknesses. These escalating threats highlight the need for robust defenses, better training, and continual investment in cutting-edge security solutions that can anticipate and thwart evolving tactics.

In response to these trends, the cybersecurity workforce gap widened by 19.1% in 2023, prompting new training and certification programs in the cyber warfare market aimed at developing fresh talent. Experts predict total cybercrime costs could reach $23 trillion by 2027, driving global insurance premiums to surpass $29 billion within the same timeframe. Meanwhile, ransom demands now average $2.73 million, with nearly 80% of victims vulnerable to repeat attacks after paying. Small businesses are especially susceptible, having endured over 700,000 attacks in 2020 that yielded $2.8 billion in damages. Faced with these daunting statistics, both public and private organizations recognize the urgent need to strengthen their defenses, enhance collaboration, and adopt proactive measures to stay ahead of sophisticated threats. By uniting efforts and investments, they can better safeguard critical data and infrastructure against a ceaseless onslaught of cyberattacks.

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Top 3 Players are Holding Nearly 30% Market Share in Cyber Warfare Market

Lockheed Martin Corporation with over 12.66% market share has solidified its position as a leader in the cyber warfare market, with net sales reaching $71 billion in 2024, a 5% increase from the previous year. The company’s cyber warfare portfolio has been bolstered by significant government contracts, including a $1.93 billion contract modification for the production of Joint Air to Surface Standoff Missile (JASSM) and Long-Range Anti-Ship Missile (LRASM) in 2025. Lockheed Martin’s key offerings include a combined air power solution that integrates 6th generation aircraft with current 5th and 4th generation aircraft, utilizing AI and advanced sensors in space and air, along with cyber-hardened data links. This innovative approach not only enhances air superiority but also strengthens cyber defense capabilities. The company’s customer base is primarily government-focused, with 64% of its U.S. government revenue ($43.25 billion in 2023) coming from the Department of Defense. Lockheed Martin’s growth strategy emphasizes research and development, investing $1.5 billion in 2023 to drive innovation in cyber warfare technologies.

Northrop Grumman has made significant strides in the cyber warfare market, focusing on cutting-edge technologies and strategic partnerships. The company’s collaboration with the Virginia Tech National Security Institute (VTNSI) on the Securing Compartmented Information with Smart Radio Systems (SCISRS) program showcases its commitment to developing advanced radio frequency security solutions. Northrop Grumman’s product innovations include the AI-driven Advanced Battle Manager (ABM) integrated into the Forward Area Air Defense (FAAD) system, which provides real-time decision-making support in complex scenarios like counter-uncrewed aerial systems operations. The company’s partnership with NVIDIA to accelerate AI technologies for defense applications further demonstrates its focus on integrating advanced AI capabilities into its cyber warfare offerings. In terms of government contracts, Northrop Grumman secured a $267.17 million contract modification for the production and delivery of MQ-4C Triton unmanned air systems in 2025, highlighting its strong position in the defense market.

Raytheon Technologies Corporation, now known as RTX, has expanded its cyber warfare capabilities through strategic contracts and technological advancements. In 2024, RTX’s Raytheon business secured a significant follow-on contract from the U.S. Army Futures Command for its Rapid Campaign Analysis and Demonstration Environment (RCADE), showcasing its expertise in advanced defense analysis solutions in the cyber warfare market. The company’s financial performance has been robust, with an 11% organic sales growth and a 13% increase in adjusted earnings per share (EPS) in 2024. RTX’s sales reached $21.6 billion in Q4 2024, marking a 9% increase from the previous year. The company’s product offerings focus on integrated air and missile defense systems, smart weapons, and advanced sensors and radars. RTX was also part of a competitive contract valued at $4.19 billion for the production of lighter-than-air systems, tethered systems, and elevated sensors, demonstrating its diverse capabilities in defense technologies. Raytheon’s growth strategy emphasizes innovation and strategic partnerships, as evidenced by its continuous experimentation environment established through the RCADE contract, which allows for rapid innovation and experimentation in cyber warfare solutions.

Global Cyber Warfare Market Key Players:

• AIRBUS
• BAE Systems
• Booz Allen Hamilton Inc
• DXC Technology Company
• General Dynamics Corporation
• Intel Corporation
• IBM Corporation
• Leonardo S.p.A.
• Lockheed Martin Corporation
• Northrop Grumman
• Raytheon Technologies Corporation
• L3Harris Technologies Inc
• Other Prominent Players

Market Segmentation:

By Components

• Solution
• Services

By Cyber Warfare Type

• Cyber Attacks
• Espionage
• Sabotage
• Others

By Application

• Defense
• Government Agencies
• Aerospace
• Homeland Security
• Enterprise
• Others

By Region

• North America
• Europe
• Asia Pacific
• Middle East & Africa (MEA)
• South America

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Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/