Global Aerospace Cyber Security Market 2024-2031

Global Aerospace Cyber Security Market Size, Share & Trends Analysis Report by Type (Network Security, Wireless security, Cloud security, and Content security), by Deployment (On-Premise and Cloud), by Application (Aircraft, Drones, and Satellite), and by Component (Services and Solutions) Forecast Period (2024-2031)

The global aerospace cyber security market is anticipated to grow at a considerable CAGR of 9.7% during the forecast period (2024-2031). Aerospace Cyber Security refers to the protection of aerospace systems, networks, and data from unauthorized access, manipulation, or disruption, ensuring secure and reliable operations in aviation and space exploration.

Market Dynamics

Escalating Cyberattacks: A Pressing Threat to Aerospace, Government, and Defense Sectors

The aerospace industry, alongside government agencies and defense organizations, has witnessed a disturbing trend in recent years with a significant rise in cyberattacks. For instance, in November 2023, Boeing, a major aerospace company, faced a cyber incident after being listed on the LockBit ransomware gang's leak site. Attackers targeted elements of its parts and distribution business. The Russia-linked gang threatened to publish sensitive data if ransom demands were not met by November 2. Boeing awaits contact from LockBit regarding the ransom and details on stolen data remain unspecified. This surge in malicious activity underscores the urgent imperative for these sectors to fortify their cybersecurity defenses. The interconnected nature of modern technology engenders a vast attack surface, rendering aerospace systems, government networks, and defense infrastructure particularly susceptible. Cybercriminals are increasingly exploiting these vulnerabilities to pilfer sensitive data, disrupt operations, or even inflict physical harm. The ramifications of a successful cyberattack in these sectors can be catastrophic, ranging from financial losses to national security breaches. Recognizing this escalating threat, these critical industries must prioritize cybersecurity investments and deploy robust defensive measures to shield themselves from increasingly sophisticated cyber threats.

Navigating Cybersecurity Challenges in Modern Aerospace Innovations

Integrating Unmanned Aerial Vehicles (UAVs) and next-generation aircraft systems presents novel cybersecurity complexities in the aerospace industry. In February 2024, reports revealed that two El Al flights from Thailand to Israel faced attempted communications hijacking while traversing the Middle East. Suspected to be orchestrated by unidentified hostile elements, the incidents took place over regions with Houthi activity or potentially involving a group from Somaliland. Due to pilots' vigilance and strict adherence to protocols, any diversion was prevented, underscoring the critical significance of aviation cybersecurity measures, recently bolstered by EASA's revised regulations. Despite operational advantages, UAVs often lack robust security measures and possess limited onboard processing capabilities, heightening susceptibility to hacking. Furthermore, advanced features like autonomous flight and complex sensor systems in next-gen aircraft create new avenues for cyberattacks, potentially compromising flight control or data integrity. To ensure safe operations, the aerospace sector must prioritize tailored cybersecurity solutions to address these unique vulnerabilities.

Market Segmentation

Our in-depth analysis of the global aerospace cyber security market includes the following segments by type, by deployment, by application, and by components:

• Based on type, the market is sub-segmented into network security, wireless security, cloud security and content security.
• Based on deployment, the market is bifurcated into on-premise and cloud.
• Based on application, the market is split into aircraft, drones, and satellites.
• Based on components, the market is augmented into services and solutions.

Cloud Command: The Rise of Cloud Security in Aerospace Cyber Defense

The cloud security segment of the aerospace cybersecurity market is set for notable expansion. The need for robust security measures grows as the aerospace industry increasingly adopts cloud-based solutions. For instance, in May 2023, The U.S. Department of the Air Force plans to migrate hundreds of applications to the cloud this year, utilizing its Cloud One program. Over 100 apps have already transitioned, with 200 more in progress. This shift aims to enhance digital durability and portability, crucial for the dispersed Air and Space forces with bases globally. Cloud adoption emphasizes data accessibility and actionability while reducing vulnerabilities and outdated hardware. Cloud platforms offer scalability and flexibility, aiding in adapting security to evolving threats. Cost-effectiveness, innovation by cloud providers, and regulatory compliance further drive this growth. With a larger attack surface, aerospace firms prioritize safeguarding sensitive data and critical systems, making cloud security solutions indispensable. This confluence of factors propels significant growth, ensuring aerospace companies can navigate cybersecurity challenges effectively.

Unmanned and Unbreachable: The Surge of Drone Security in Aerospace Cyber Defense

The drone segment within the aerospace cyber security market is poised for explosive growth, driven by several converging factors. Firstly, the rapid expansion of the drone market expands the attack surface for cyber threats, necessitating robust cybersecurity measures. For instance, in February 2024, Ukraine's GUR announced a successful cyber operation on February 8, 2024, causing widespread failures in Russian drone control software. The operation targeted software used to reflash DJI brand drones, denying access and forcing manual control. This follows a previous operation on January 30, disrupting information exchange between Russian Ministry of Defense units. Secondly, evolving drone regulations emphasize security for successful integration into airspace. Finally, diverse drone applications, from infrastructure inspection to military operations, highlight the need for stringent cybersecurity to protect sensitive data. These dynamics fuel significant growth in the drone segment, aligning with the increasing importance of cybersecurity in the expanding drone industry.

Regional Outlook

The global aerospace cyber security market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Double Threat: Why North America Leads in Aerospace Cyber Defense

North America's dominance in the Aerospace Cyber Defense market stems from a two-pronged challenge. Firstly, the region boasts a long-standing and well-developed aerospace industry. This translates to a vast network of critical infrastructure, encompassing everything from communication satellites and air traffic control systems to commercial airliners and military jets. Safeguarding this extensive infrastructure necessitates robust cyber defense measures. Secondly, North America is unfortunately a frequent target for sophisticated cyber-attacks. These attacks can target any point within the aerospace ecosystem, potentially disrupting air traffic control, manipulating sensitive data, or even compromising military operations. For instance, in June 2023, Cybersecurity experts warned of potential Chinese cyber-attacks on the US critical infrastructure amid tensions over Taiwan. If China invades Taiwan, experts anticipate attacks on civilian systems like power grids and transportation networks, akin to Russian attacks on Ukrainian infrastructure. Microsoft cites the Chinese hacker group Volt Typhoon targeting critical US infrastructure, prompting advisories from CISA and international partners. Collaboration between government and private sectors is crucial for protecting critical infrastructure sectors. Therefore, to counter these advanced threats and ensure the continued safety and security of its aerospace infrastructure, North American companies are driven to invest heavily in innovative cyber defense solutions.

Asia-Pacific to Exhibit the Highest CAGR

The Asia Pacific region is witnessing a surge in military spending by many nations. This translates into significant investments in advanced aerospace technologies like drones, fighter jets, and communication satellites. For instance, in November 2023, India is set to procure 31 MQ-9B Predator Drones for both the Indian Navy and Air Force, confirmed by Chief of Naval Staff Admiral R Hari Kumar. The acquisition aims to enhance India's surveillance capabilities, with the Predator MQ-9B known for its efficiency in surveillance operations. The government has approved the purchase, signaling a significant advancement in India's defense capabilities. However, alongside these advancements comes a growing need for robust cybersecurity solutions. As these sophisticated aerospace platforms become more integrated into defense networks, they create a larger attack surface for potential cyber threats. To safeguard sensitive military data, ensure mission integrity, and prevent potential disruptions, robust cyber defense solutions become paramount. The increasing military spending in Asia-Pacific acts as a double-edged sword, driving innovation in aerospace technologies while simultaneously demanding robust cybersecurity measures to protect these advancements.

The major companies serving the global aerospace cyber security market include Airbus Defense and Space Cyber, Cisco Systems Inc., Collins Aerospace (RTX Corporation), Lockheed Martin Corporation, and The Raytheon Company, among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in July 2023, Honeywell announced the acquisition of SCADAfence, a prominent provider of cybersecurity solutions for monitoring large-scale networks. This acquisition aims to enhance Honeywell's OT cybersecurity portfolio by integrating SCADAfence's asset discovery, threat detection, and security governance capabilities into the Honeywell Forge Cybersecurity+ suite. The move strengthens Honeywell's ability to provide end-to-end enterprise OT cybersecurity solutions, fostering secure and efficient operations for its customers.