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Military IT market witnessed a 659% rise in cyber security incidents over the past five years

Industry Sector



12 November 2012


Alex De Angelis

Type of News


The military IT market has been forecast to increase at a compound annual growth rate (CAGR) of 4.6% over the next decade, increasing from a valuation of US$43.8 billion by the end of 2012, to be worth a market value of US$68.796 billion come 2022.

Key factors set to influence demand within the military IT market include the continuous developments and dynamism in areas such as network centric warfare, embedded computing, information security, cloud computing, and cyber security.

During the last five years, the sophistication of attacks and their consequences have reached a new level and researchers have shown that an unprotected computer with malware content can be hacked and utilised for a Botnet within 15 minutes of connecting it to the Internet. Unlike distributed denial of service (DDOS) attacks, which operate on a small scale, malware such as the Stuxnet Worm and Conficker have the ability to cause considerable damage.

Military IT systems support unmanned aerial vehicles (UAV), sonar and radar, simulation and training, and in-vehicle computing applications. The use of commercial off-the-shelf (COTS) technology has become a standard in this market to reduce cost, improve effectiveness, and provide broad functional capabilities.

North America accounts for the highest spend within the military IT market; most of this expenditure can be attributed to the US, with Canada accounting for a small share. The US has spent a significant amount of its budget on the military enterprise resource planning (ERP) projects in order to upgrade its information systems and in turn, replacing its numerous legacy systems.

These efforts are further strengthened with the success of the US military operations in Afghanistan and Iraq with minimal casualties. The major ERP programs include the General Fund Enterprise Business System (GFEBS), Logistics Modernization Program (LMP), and the Defence Enterprise Accounting and Management System (DEAMS).

There has been a significant rise in the number of cyber crimes globally. According to a recent report by the DHS, the number of federal cyber security incidents reported to the US Computer Emergency Readiness Team witnessed a rise of 659 percent during the period 2006-2011. This was followed by the DHS asking Congress for US$769 million for cyber security purposes in 2012, up from US$459 million in 2011.Military Computing

In the last 20 years, wide acceptance of small-scale computer technology in the military has occurred, and is likely to increase greatly. Confidence has improved in the ability of equipment to withstand combat and extreme environment conditions. Most importantly, modern combat has become a duel of speed. We continually see that faster and more technologically advanced weaponry demonstrates first-strike capability in current combat situations, which is likely only to encourage further implementation of computer technology into systems used in the US Armed Forces in the future.

For more information on the military IT market, see the latest research: Military IT Market

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