MA

Federal Information Security Market, 2016-2021

Published: October 31, 2016

Federal Market AnalysisCybersecurity

Deltek's Federal Information Security Market, 2016-2021 examines the trends and drivers shaping the federal information security marketplace and provides a forecast for the next five years.

Recurrent breaches, diverse and persistent threats, and the increasing interconnectivity and centrality of technology and data make securing federal information systems a critical priority. Internal and external threats to systems and data continue to grow in scope and sophistication, driving the need for equally effective solutions to detect, protect and mitigate security risks. The challenge is magnified by the complexity of the federal IT environment where agencies are seeking to deploy newer, mobile and cloud-based technologies alongside legacy systems and environments.

Within this context, federal leaders are focused on enhancing the cybersecurity posture of agencies at every level, attempting to overcome capability gaps and budget, personnel, and regulatory constraints. To address their information security gaps, agencies continue to look to industry partners for the skill sets, services, processes, and tools necessary to mount both defensive and offensive cybersecurity strategies.

Deltek forecasts the demand for vendor-furnished information security products and services by the U.S. federal government will increase from $9.3 billion in FY 2016 to $12.0 billion in 2021 at a compound annual growth rate (CAGR) of 5.3%.

Key Findings

  • The complexity of agency IT environments, the vulnerabilities and challenges of hardening legacy systems, and the breadth of cyber-threats continues to challenge progress in increasing federal cybersecurity. Agencies will continue to look to industry for assistance with a broad scope of solutions and services.
  • Although federal spending on IT in general continues to remain effectively flat over the forecast period, cybersecurity spending growth remains relatively strong as a key federal priority.
  • Beyond security-specific activities, implementations of cloud, big data, and mobility solutions, as well as infrastructure modernization efforts, will provide growth opportunities as these efforts contain security-related aspects to be successful.
  • Defense organizations are struggling with strategies to integrate cyber operations with warfighting operations.
  • The need for skilled operators will sustain demand for contracted services, especially in the civilian sector. DoD deterrent or offensive cyber capabilities and “inherently governmental” areas limit addressability.
  • Government-wide policies addressing IT acquisitions and management continue to insert greater cybersecurity requirements into nearly every aspect of the federal IT acquisitions and management lifecycle. Security exerts some of the highest impacts within acquisition policy, RFPs, contract types, and budget decisions.
  • The maturity of an agency’s security strategy, processes, and operational posture drives their services and product demand mix, but evolving government-wide policy and core shared capabilities mean that most agencies require both operational support and at least some targeted solutions.

    Market Segments

    This report identifies and analyzes the trends and drivers impacting the market’s growth and identifies and sizes the following five major segments within the federal information security marketplace:

  • Security Operations Services
  • Governance, Strategy and Compliance
  • Security Tools and Appliances
  • Identity and Access Management (IAM) Technology and Support
  • Training, Education and Awareness

    Critical Insight for Vendors

    This report provides a view of diverse factors driving the federal cybersecurity market with market sizing for the Defense, Civilian, and Intelligence segments and spending by federal departments, their major information security activities, and how dollars flow across segments. The report provides recommendations to guide solutions providers in maximizing their market positioning to best take advantage of federal business opportunities.

    Deltek’s Federal Information Security Market, 2016-2021 is delivered in PowerPoint® presentation format, including an Executive Briefing presentation summarizing the key findings and an Excel® workbook with data for the various forecasts and other key findings.

  • Introduction

  • Purpose
  • Scope and Methodology
  • Key Findings

    Market Drivers

  • Threat Environment
  • Leadership/Workforce
  • Technology Policy
  • Acquistion Policy
  • Organizational Strategies
  • Technology Solutions

    Historical Spending, FY 2013-2015

  • Methodology
  • Total Information Security Obligations
  • Spending by Technology Segment: Products/Services
  • Spending by Buyer Segment: Defense/Civilian
  • Spending Break-outs by Contract Type, Vendors

    Market Forecasts

  • Methodology
  • Market Drivers and Inhibitors
  • Total Federal Addressable Information Security Market
  • Addressable Market by Buyer Segment
  • Addressable Market by IT Security Segment

    Agency Analysis: FY13-15 Obligations, Strategic Priorities, Issues, and Programs, Forecasts

    Top 10 Departments

  • Defense Agencies
  • Air Force
  • Homeland Security
  • Army
  • Navy
  • Justice
  • Energy
  • Health and Human Services
  • Treasury
  • State

    Additional Departments and Agencies

  • Interior
  • Transportation
  • Commerce
  • NASA
  • Veterans Affairs
  • Agriculture
  • GSA
  • SSA
  • Labor
  • Education
  • EPA
  • HUD
  • Intelligence Community

    Conclusions and Recommendations

  • Conclusions on the Federal Information Security Market
  • Recommendations to Vendors

    Appendix

  • Deltek Information Security Segment Definitions