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Defense IT Spending Market to Grow by USD 23.53 Billion (2024-2028), Driven by Autonomous Systems Development, Market Evolution Powered by AI – Technavio

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NEW YORK, Nov. 25, 2024 /PRNewswire/ — Report on how AI is driving market transformation – The global defense IT spending market  size is estimated to grow by USD 23.53 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  4.49%  during the forecast period. Development of autonomous systems is driving market growth, with a trend towards adoption of artificial intelligence (AI) and machine learning (ML). However, issues related to digital sovereignty  poses a challenge.Key market players include Accenture Plc, Amazon.com Inc., BAE Systems Plc, CRON AI, Cubic Corp., CyAmast Pty Ltd., Dell Technologies Inc., General Dynamics Corp., Hewlett Packard Enterprise Co., Holo Light GmbH, International Business Machines Corp., Kratos Defense and Security Solutions Inc., Leidos Holdings Inc., ManTech International Corp., Microsoft Corp., Northrop Grumman Corp., Oracle Corp., Pennant International Group PLC, Science Applications International Corp. Inc., and Palantir Technologies Inc..

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Forecast period

2024-2028

Base Year

2023

Historic Data

2018 – 2022

Segment Covered

Type (Service, Software, and Hardware), Application (Cyber security, IT infrastructure, Logistic and asset management, and Others), and Geography (North America, APAC, Europe, Middle East and Africa, and South America)

Region Covered

North America, APAC, Europe, Middle East and Africa, and South America

Key companies profiled

Accenture Plc, Amazon.com Inc., BAE Systems Plc, CRON AI, Cubic Corp., CyAmast Pty Ltd., Dell Technologies Inc., General Dynamics Corp., Hewlett Packard Enterprise Co., Holo Light GmbH, International Business Machines Corp., Kratos Defense and Security Solutions Inc., Leidos Holdings Inc., ManTech International Corp., Microsoft Corp., Northrop Grumman Corp., Oracle Corp., Pennant International Group PLC, Science Applications International Corp. Inc., and Palantir Technologies Inc.

Key Market Trends Fueling Growth

Defense IT spending continues to grow as Defense Forces, Homeland Security, and Paramilitary Forces prioritize modernization. Key areas of focus include Cybersecurity to protect National defense data from Cyberattacks, Communication Systems for Secure communications, and Intelligence Technologies for data analysis. IT Infrastructure, Cloud Computing, and Software solutions are essential for Defense operations and Military Capabilities. Geopolitical Tensions fuel the demand for advanced IT Solutions such as 5G, Artificial Intelligence, and Autonomous Systems. Defense IT systems require Cutting edge technologies like Decision science platforms, Sensor systems, Actuators, and Control systems for Battlefield management in a Network centric environment. IT Spending on hardware, services, and IT technologies for Unmanned Systems, Smart weapons, and Virtual/Augmented Reality technology also increase. Government Policies and Defense Modernization initiatives drive investments in Healthcare IT, IoT analytics, and Military infrastructures. Overall, Defense IT spending remains a critical area of investment for enhancing Military capabilities and responding to evolving threats. 

The global defense IT spending market is witnessing a significant increase in the adoption of artificial intelligence (AI) and machine learning (ML) technologies. These innovations are gaining popularity among governments and defense organizations due to their potential to bolster military capabilities, streamline decision-making processes, and fortify national security. Autonomous systems, such as robotic systems, unmanned vehicles, and drones, are among the primary applications of AI and ML in the defense sector. These systems, which operate without human intervention, can carry out essential military tasks, including target detection, surveillance, reconnaissance, and combat operations. The integration of AI and ML in defense IT spending is a strategic investment for enhancing military readiness and effectiveness. 

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Market Challenges

Defense IT spending continues to grow as Defense Forces, Homeland Security, and Paramilitary Forces invest in advanced IT solutions to enhance their capabilities. Challenges include securing cybersecurity for national defense data and secure communications. IT infrastructure, cloud computing, and data analytics are key areas of focus. Defense IT systems require the latest software, hardware, and services to support defense operations and military actions. Geopolitical tensions increase the need for modernization, with IT spending on intelligence technologies, 5G, artificial intelligence, and autonomous systems. Cyberattacks threaten defense IT infrastructure, making cybersecurity a top priority. IT technologies like sensors, VR/AR technology, and IoT analytics support battlefield management and decision-making in a network centric environment. Defense IT spending also covers healthcare, unmanned systems, and military infrastructures. Smart weapons, actuators, control systems, and flight simulators are essential for military readiness. Government policies and defense modernization initiatives drive IT investments in defense IT systems and IT technologies. Overall, defense IT spending is critical for maintaining military capabilities and staying ahead of the curve in the digital transformation.In the defense sector, the increasing use of digital technology, including augmented reality, necessitates prioritizing data privacy and protection from cyber threats. However, the involvement of cross-border data transfers in defense IT spending poses challenges due to the need for digital sovereignty. Dependency on foreign technology providers for IT systems and infrastructure can limit ownership and control over military capabilities, potentially jeopardizing digital sovereignty. Developing domestic defense IT capabilities is essential to maintain digital sovereignty, but it requires a significant investment of time and resources.

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Segment Overview 

This defense it spending market report extensively covers market segmentation by

Type1.1 Service1.2 Software1.3 HardwareApplication 2.1 Cyber security2.2 IT infrastructure2.3 Logistic and asset management2.4 OthersGeography 3.1 North America3.2 APAC3.3 Europe3.4 Middle East and Africa3.5 South America

1.1 Service-  The global defense IT spending market encompasses various service segments catering to defense organizations’ unique IT needs. These segments include Consulting Services, Systems Integration, Application Development and Maintenance, Managed Services, Cybersecurity Services, Training and Support Services, and Data Analytics Services. Military firms rely on Consulting Services for strategic advice on digital transformation, cybersecurity, data analytics, and technology adoption. Systems Integration ensures seamless communication and interoperability by integrating defense IT systems, tools, and software. Application Development and Maintenance create and manage specialized software applications for defense companies. Managed Services outsource IT tasks to vendors for cost savings and productivity gains. Cybersecurity Services protect critical infrastructure and private military data from cyber threats. Training and Support Services optimize IT system usage and performance. Data Analytics Services extract valuable insights from defense data for informed decision-making and operational efficiency improvements. These essential services enable defense organizations to adapt to technology landscapes, enhance capabilities, and drive the growth of the defense IT spending market.

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Research Analysis

The Defense IT Spending market is a critical sector that continues to evolve, driven by the increasing demand for advanced technologies to support Defense Forces, Civilian Forces, Homeland Security, and other government agencies. This market encompasses various domains, including Cybersecurity, Communication Systems, Intelligence Technologies, IT Infrastructure, Cloud Computing, Data Analytics, and more. Cutting-edge technologies such as Cybersecurity solutions, 5G networks, Artificial Intelligence (AI), Autonomous systems, and Internet of Things (IoT) analytics are increasingly being adopted to enhance security, improve communication, and optimize decision-making in a network centric environment. Additionally, Defense IT infrastructure supports the development of Smart weapons, Battlefield management systems, Decision science platforms, and Healthcare solutions. Communication Systems enable secure and reliable communication between forces, while Intelligence Technologies provide real-time data analysis and actionable insights. VR/AR technology, Flight simulators, and Sensors are also integral to the Defense IT Spending market, enabling advanced training and simulation capabilities. Overall, this market is undergoing a digital transformation, with a focus on integrating the latest technologies to enhance operational effectiveness and improve mission success.

Market Research Overview

The Defense IT Spending market is a critical sector that focuses on providing advanced IT solutions to Defense Forces, Homeland Security, and Paramilitary Forces worldwide. This market encompasses various IT sectors, including Cybersecurity, Communication Systems, Intelligence Technologies, IT Infrastructure, Cloud Computing, Data Analytics, and more. Defense IT systems are essential for military capabilities, ensuring secure communications, battlefield management, and decision-making in a network centric environment. The market is driven by Geopolitical Tensions, Defense Modernization, and Government Policies, leading to increased IT Spending on cutting-edge technologies such as 5G, Artificial Intelligence, Autonomous Systems, and Digital Transformation. Cybersecurity is a significant concern, with Defense Forces and National Defense Data at risk from cyberattacks. IT Solutions in this sector include Software, Hardware, and Services to protect against threats and ensure secure data transfer. Communication Systems, including sensors, actuators, and control systems, are crucial for military operations, while Unmanned Systems and VR/AR technology provide advanced training capabilities. Defense IT infrastructure also includes IT technologies for healthcare, military infrastructures, and IoT analytics for military actions. Smart weapons, sensors, and actuators are integral components of defense operations, while IT technologies such as flight simulators and battlefield management systems enable effective military decision-making. Overall, the Defense IT Spending market is a dynamic and evolving sector that continues to adapt to the changing needs of defense organizations worldwide.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

TypeServiceSoftwareHardwareApplicationCyber SecurityIT InfrastructureLogistic And Asset ManagementOthersGeographyNorth AmericaAPACEuropeMiddle East And AfricaSouth America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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American Binary Sets New Standard in Post-Quantum Cryptographic VPNs with Symbolic Proof and Attestation

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WASHINGTON, July 21, 2026 /PRNewswire/ — American Binary, a leader in deep-tech cybersecurity, today announced an independent attestation regarding the validity of all 120 security properties of MaxKyber, their network protocol at the heart of their Ambit Client enterprise VPN, now third-party verified to comply with all Commercial National Security Algorithm Suite 2.0 (CNSA 2.0) requirements. This landmark verification is the result of an exhaustive private peer-review of their symbolic proof (Tamarin + ProVerif) and engineering documentation conducted by industry luminaries Dr. Joe Kiniry, PhD and Dr. Tom Shrimpton, PhD, both with long careers in academia and industry, including time at Galois as Principal Scientists.

“No known VPN — post-quantum or classical, deployed or research — has been subjected to specification and formal verification of comparable depth.” – Dr. Joe Kiniry, PhD and Dr. Tom Shrimpton, PhD

In a landscape defined by emerging quantum threats and unproven solutions, this formal third-party verification differentiates MaxKyber from traditional or hybrid solutions by providing certainty in engineering and compliance with National Security requirements. MaxKyber provides the world with long-term full post-quantum security unlike shorter-term temporary solutions such as hybrids (which mix classical and post-quantum encryption). This breakthrough marks a transition from speculative security to a foundation of verified, provable resilience, establishing a new global benchmark for secure communications.

“While organizations today are increasingly recognizing the significance of PQC, American Binary has been preparing for a post-quantum world for seven years. The result is a resilient foundation for secure operations, today and in the post‑quantum future” – Oracle

Additionally, American Binary signed ACM Turing Award winner Whitfield Diffie, cryptographic pioneer and co-inventor of the Diffie-Hellman key exchange, as a key advisor. Whitfield joins the ranks of existing cryptographic advisors Bruce Schneier and Brian LaMacchia.

“Buy American Binary and you’ll be safe”

– Whitfield Diffie at Quantum.Tech World 2026

Key security pillars of the MaxKyber attestation include:

Protection against “Harvest Now, Decrypt Later” (HNDL): By utilizing purely CNSA 2.0 algorithms, including ML-KEM-1024 without any classical key exchange variants, MaxKyber secures today’s data against decryption by quantum adversaries.Comprehensive Symbolic Verification: The attestation covers 120 security properties across 11 critical categories, including secrecy, authentication, forward secrecy, identity hiding, and resistance to Replay, Denial of Service, Resource Exhaustion, and Key Compromise Impersonation.Architectural Stability: Beyond its post-quantum cryptographic core, MaxKyber’s protocol architecture is rooted in well-established, operationally proven design patterns, retaining their performance and simplicity.

This foundational security architecture provides the necessary reliability to enable significant performance breakthroughs in the field and the following four key impacts.

Impact I: Unambiguous Security and Mitigation of “Harvest Now, Decrypt Later”

MaxKyber achieves the end-state of post-quantum cryptographic purity by utilizing a pure CNSA 2.0 post-quantum key exchange, without using any classical cryptography, hybrid cryptography, or legacy key exchange variants. Instead, American Binary’s more modern key exchange utilizes ML-KEM-1024 operations to replace the Diffie-Hellman Key Exchange. This approach ensures that modern enterprises are not tethered to the vulnerabilities of legacy components or negative market reactions to hybrid solutions being partially broken. If the classical encryption in hybrid solutions is verifiably broken, markets likely will not wait for forensics to determine whether the rest of the solution remains intact; reputation damage and capital flight will occur immediately.

MaxKyber exclusively employs CNSA 2.0 approved algorithms, specifically ML-KEM-1024 (FIPS 203), AES-256-GCM, and SHA-512/256. This construction provides the highest level of security available today without any loss of existing security properties.

Impact II: Optimal Performance from Mobile and Lossy Environments to High-Performance Scenarios

Historically, high-security protocols have suffered from significant system latency, creating a bottleneck for edge computing and mobile workforces. MaxKyber eliminates these traditional performance trade-offs, enabling high-performance security at the network’s most vulnerable points. One partner benchmarked Ambit Client, powered by MaxKyber, to have 70% faster download speeds than a comparable classically encrypted enterprise VPN.

The MaxKyber protocol optimizes efficiency through an “Authenticated Key Exchange” (AKE) which achieves mutual authentication in a single round trip, dramatically reducing the data burden on the network.

Quantifiably, the AKE saves approximately 4,600 bytes per handshake compared to the next best option. This ultra-low overhead ensures that robust post-quantum security functions reliably on mobile devices and in lossy environments where traditional, bulkier PQC handshakes consistently fail. Reliability in the field is a prerequisite for everything from remote work to warfighting environments, and MaxKyber’s AKE directly facilitates such operational readiness.

Additionally, MaxKyber is well suited for high-performance scenarios such as AI workloads, work with 3D models, and more thanks to Vector Packet Processing and Data Plane Development Kit further reducing overheads to the technical minimums and enabling line-rate speeds for server-to-server use cases.

Impact III: Compliance Savings

As the cost of compliance and diligence cycles for critical infrastructure continues to escalate, proofs can be a shortcut for approval. For CISO and Legal departments, formal verification provides a transparent, “glass-box” view of security that goes beyond traditional testing.

For integration partners, this symbolic proof significantly reduces diligence cycles. By providing an exhaustively checked security profile, American Binary allows partners to shorten the lengthy, costly investigative phases usually required for new cryptographic implementations. Verified compliance is transformed from a hurdle into a catalyst for product development.

Impact IV: R&D Acceleration

For engineering teams looking to integrate this technology and/or customize it, American Binary’s documentation serves as a powerful force multiplier. By providing pre-verified, exhaustive, and high-quality documentation, American Binary provides an extraordinary shortcut to rapid integration.

The scale of the documentation and formal models provided to partners is unprecedented in the VPN industry. This rigorous approach allows integration partners to save months, if not years, of R&D effort.

MaxKyber provides more than just a secure tunnel; it delivers a fully documented, mathematically proven blueprint that accelerates the transition to a quantum-safe future. With MaxKyber, American Binary has rewritten the industry standard for post-quantum network security.

About American Binary

American Binary is a leader in deep-tech cybersecurity, specializing in the development of CNSA 2.0 post-quantum cryptographic solutions. Through advanced rigor and high-performance engineering, American Binary provides the provable foundations for secure, resilient communication in the quantum era.

Learn more at www.ambit.inc

CONTACT: sales@ambit.inc 

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MetaOptics to Deploy its Direct Laser Writer at the University of Arizona’s Center of Semiconductor Manufacturing to Advance its U.S. Expansion

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SINGAPORE, July 21, 2026 /PRNewswire/ — MetaOptics Ltd (Catalist: 9MT) (“MetaOptics” or the “Company,” and together with its subsidiaries, the “Group”), announced that it has entered into an agreement to deploy its key metalens Direct Laser Writer (“DLW”) system at the University of Arizona’s Center of Semiconductor Manufacturing (the “University”). The agreement marks a critical step in advancing its U.S. expansion strategy and its collaborative research with world-class semiconductor stakeholders in Arizona. Installation of the DLW is expected to commence in 2027.

The DLW is designed for a 4-inch wafer to enable quick prototyping and fabrication of metalens samples within weeks. It also supports small-volume production for pilot builds and customer demand evaluation, enabling partners to iterate faster and move from concept to product more efficiently. The deployment of the Company’s DLW will allow prospective customers in the U.S. to physically witness the system in action for their metalens prototyping needs. It will also support collaborative research and evaluation by the University’s researchers under the guidance of Dr. Krishna Muralidharan of the University of Arizona’s Department of Materials Science and Engineering. MetaOptics expects the deployment to generate user feedback and user demonstration opportunities, providing further technical validation of its metalens equipment and products, and serve as a launchpad to scale commercial production and collaboration in the U.S. market.

The deployment of its DLW serves as a key milestone for MetaOptics’ U.S. expansion strategy, prospective U.S. customer engagement, and commercialization roadmap. It also positions the Group to support emerging U.S. initiatives in silicon photonics, co-packaged optics, and integrated photonics, where its metalens technology is directly applicable. The DLW will anchor a “mini foundry” at the University for small-volume, quick turnaround prototyping. Beyond research, the installation serves a commercial purpose: a U.S. demonstration site where potential distributors, universities, and research institutions can physically witness the DLW in operation. It will also produce metalens samples for prospective customers’ evaluation. With Arizona’s fast-growing semiconductor ecosystem home to world-class manufacturers and suppliers, the Company aims to leverage its presence at the University and the wider ecosystem to deepen engagement with prospective industry partners and end customers.

MetaOptics Executive Chairman Thng Chong Kim commented: “By placing our Direct Laser Writer within a world-class semiconductor research environment in Arizona, we will be able to strengthen technical validation and gather valuable user feedback. It also supports our ongoing engagements with potential industry partners and end-customers while showcasing our metalens manufacturing equipment to prospective distributors and institutions across the United States. We believe this deployment reinforces our broader U.S. expansion efforts and deepens our engagement in Arizona’s world-class semiconductor ecosystem.”

About MetaOptics Ltd

MetaOptics Ltd (Catalist: 9MT) is a semiconductor optics company pioneering glass-based metalens solutions enhanced by AI-driven image processing. Using advanced optical design and a scalable 12-inch DUV lithography process, it powers next-generation applications in CPO, mobile, AR VR, automotive, and other emerging markets. Find out more at www.metaoptics.sg.

Forward-Looking Statement

This press release contains forward-looking statements which can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “likely to,” “potential,” “continue” or other similar expressions. Any statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s growth strategies, its future business development, results of operations and financial condition, its research and development efforts, its ability to attract and retain customers, and its ability to establish and maintain relationships with suppliers and business partners; and assumptions underlying or related to any of the foregoing. All information provided in this press release is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

Singapore (HQ)
Metaoptics Technologies Pte Ltd. 81 Ayer Rajah Crescent, #01-45 Singapore 139967

United States
Metaoptics Inc. (USA) 1 Ferry Building, Suite 201 San Francisco, CA 9411

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11:11 Systems Announces Strategic Partnership with Cato Networks to Deliver SASE Solution for Distributed Enterprises

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New Managed Secure Access Service Edge (SASE) solution combines SD-WAN, cloud-native networking and security capabilities with 11:11’s connectivity, cyber resilience and cloud expertise

SYDNEY, July 22, 2026 /PRNewswire/ — 11:11 Systems, a leading managed infrastructure solutions provider, today announced the global availability of its 11:11 Managed Secure Access Service Edge (SASE) solution and a new strategic partnership with Cato Networks.

11:11 Managed SASE is a fully managed secure connectivity solution leveraging Cato Networks AI-native network security platform. This solution brings together intelligent SD-WAN, cloud-delivered security and global connectivity into a single offering. It enables organisations to simplify and secure access across branch offices, data centres, users and cloud environments, reducing complexity without sacrificing performance or control.

Built on the Cato Networks cloud-native SASE platform, 11:11 Managed SASE combines zero trust network access (ZTNA), firewall as a service (FWaaS), secure web gateway (SWG), cloud access security broker (CASB), advanced threat protection and centralised visibility into a unified managed experience. 11:11 also delivers 24x7x365 monitoring and support, incident management integration and operational accountability to help customers limit vendor sprawl, increase agility and free internal teams to focus on higher-value priorities.

The offering is backed by 11:11’s broader networking, cloud and cyber resilience capabilities. Through its global backbone, carrier-agnostic connectivity options and integrated portfolio spanning cloud, backup, disaster recovery and security services, 11:11 gives customers a practical path to modernise network and security architecture while strengthening resilience across the business.

“Enterprises are under pressure to support users, applications and locations that are more distributed than ever, while limiting complexity and improving security,” said Justin Giardina, CTO, 11:11 Systems. “Our Managed SASE solution provides customers with a unified approach to modernising networking and security, along with the visibility, support and flexibility they need to thrive in a rapidly changing environment.”

According to Karl Soderlund, global channel chief, Cato Networks, “As enterprises move beyond fragmented legacy networking and security stacks, they need a simpler way to gain visibility, context and control across hybrid work environments and reduce the operational burden on IT. Through our partnership, we can address these challenges head on and deliver end-to-end visibility and protection in a single service built for the reality of modern work.”

The joint offering is well suited for distributed enterprises, multi-site organisations, hybrid workforce initiatives, SD-WAN refreshes, security modernisation efforts and businesses with limited IT resources. 11:11 meets customers where they are by supporting existing environments, simplifying multi-vendor operations and serving as a single provider accountable for network, security, cloud and data integration.

This partnership expands 11:11’s Network as a Service portfolio and follows Forrester’s inclusion of 11:11 Systems in its report, “The Secure Access Service Edge Services Landscape, Q1 2026.”

About 11:11 Systems

11:11 Systems is a managed infrastructure solutions provider that empowers customers to modernise, protect and manage mission-critical applications and data, leveraging 11:11’s resilient cloud platform. Learn more at www.1111Systems.com and follow 11:11 on LinkedIn.

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