MA

Federal Information Security Market, 2017-2022

Published: October 31, 2017

Federal Market AnalysisCybersecurity

Deltek's Federal Information Security Market, 2017-2022 examines the trends and drivers shaping the federal information security marketplace and provides a forecast for the next five years.

Constant and elusive threats, high-profile data breaches, rapidly increasing interconnectivity, and the dependence on technology and data make securing federal information systems one of the highest federal priorities, as demonstrated by policy directives from the White House and other agencies. The threats – both external and internal – to data and systems continue to grow in frequency, sophistication, and scope, driving the demand for effective approaches to detect, defend, mitigate, and respond. The challenge is magnified by the complexity of the federal IT environment where agencies are seeking to deploy the latest mobile, data-driven, and cloud-based technologies alongside legacy systems and environments.

Within this complex and challenging environment, federal leaders are focused on enhancing agency cybersecurity posture at every possible level, attempting to overcome capability gaps, budget constraints, organizational challenges, and regulatory hurdles. To address their information security gaps, agencies continue to look to industry partners for the knowledge, skill sets, services, processes, and tools necessary to mount both defensive and offensive cybersecurity capabilities with increasing effectiveness.

Deltek forecasts the demand for vendor-furnished information security products and services by the U.S. federal government will increase from $10.0 billion in FY 2017 to $12.9 billion in 2022 at a compound annual growth rate (CAGR) of 5.2%.

Key Findings

  • Federal IT modernization efforts are increasingly driven by the desire to improve cybersecurity across federal IT. This will drive funding, technical approaches (e.g. shared services) as well as efficiencies in acquisition strategies (e.g. EIS.)
  • Due to recent commercial and federal breaches, expect Congressional oversight for cybersecurity issues to remain strong. Cybersecurity investments by agencies will likely be applauded and under less budget pressure compared to other planned agency investments, although discretionary budget uncertainty remains.
  • The administration and agencies are working to carry out initiatives to strengthen the federal cybersecurity workforce. However, this talent pool is in high-demand making it difficult for the government to fill all open positions.
  • Proposed organizational changes at DHS and elsewhere could centralize pockets of opportunity for cyber- tools and support services and expand demand. However, increased centralization could also increase competitive pressures.
  • DoD component Cyber Mission Force teams will finish building out their personnel rosters early in the forecast period, further solidifying their operational capacities and aiding in integration of defense cyber capabilities.
  • The Continuing Diagnostics and Mitigation program will continue to evolve, both technically and acquisition-wise. The acquisition shift from BPA to more open vehicles unlocks the door to competition.
  • 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, 2017-2022 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.

    Federal Information Security Market, 2017-2022

    Introduction

  • Purpose of This Report
  • Scope and Methodology
  • Key Findings
  • Market Drivers

  • Threat Environment
  • Leadership/Workforce
  • Technology Policy
  • Acquistion Policy
  • Organizational Strategies
  • Technology Solutions
  • Historical Spending, FY 2014-2016

  • Total Information Security Obligations
  • Spending by Technology Segment: Products/Services
  • Spending by Buyer Segment: Defense/Civilian
  • Spending Break-outs by Top 10 Departments, Contract Type, Vendors
  • Spending Break-outs by Top 10 Vendors by Buyer Segment
  • Spending Break-outs by Business Size, Top Contract Vehicles
  • Market Forecasts

  • 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 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
  • Contract Obligation Analysis: Keywords