Federal Information Security Market, 2018-2023

Published: October 31, 2018

Federal Market AnalysisCritical Infrastructure ProtectionCybersecurityForecasts and Spending

Deltek's Federal Information Security Market, 2018-2023 examines the trends and drivers shaping the federal information security marketplace and provides a forecast for the next five years.

An evolving threat landscape, ubiquitous interconnectivity, continued data breaches, and an ever-growing dependence on technology and data make securing federal information systems one of the government’s highest priorities. White House policy directives, legislative requirements, and technology strategies are also driving agency cybersecurity requirements and expenditures. The threats – both external and internal – to data and systems continue to grow in sophistication, scope, and frequency driving the demand for effective approaches to detect, defend, mitigate, and respond. The complex federal IT environment poses challenges to effective threat mitigation due to legacy IT, along-side increasing demand for mobile solutions, cloud-based technologies and the desire to employ emerging technologies such as blockchain and artificial intelligence.

Driven by the federal government’s desire to enhance agency cybersecurity posture at every possible level, Deltek forecasts the demand for vendor-furnished information security products and services by the U.S. federal government will increase from grow from $10.9 billion in FY 2018 to over $14.1 billion in FY 2023 at a compound annual growth rate (CAGR) of 5.3%.

Key Findings

  • Major cyber strategy updates across government are driving efforts to modernize and harden agency security at the network, system, application and data levels.
  • The total federal cybersecurity budget is on the rise. However, there is variability at the agency level, which may be a reflection of activity consolidation or shared services cost savings.
  • Information security contract spending has shown steady growth over the last few years, particularly on services. Defense and civilian buying segments show similar spending amounts and growth rates.
  • Top contracting vehicles for information security related spending include Seaport-e, GSA Schedule 70 and SEWP V.
  • Agencies are striving to increase baseline security capabilities and improve accountability for information security risk management.
  • Agencies are looking for innovations in security processes and approaches as well as tools. Analytics and artificial intelligence show promise of improving performance.
  • OMB and agencies are working to strengthen the federal cybersecurity workforce and improve hiring practices.
  • Agencies are attempting to move to shared services where possible, including for cybersecurity services and solutions.

    • Market Segments

    This report identifies and analyzes the trends and drivers impacting the market’s growth, and categorizes 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, 2018-2023 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, 2018-2023

    TABLE OF CONTENTS

  • Introduction
  • Market Drivers
  • Budget Trends
  • Spending Trends
  • Market Forecast
  • Agency Analysis
  • Conclusions and Recommendations
  • Appendix