MA

Federal Information Security Market, 2020-2022

Published: October 30, 2020

Federal Market AnalysisCybersecurity

Deltek's Federal Information Security Market, 2020-2022 examines the trends and drivers shaping the federal information security marketplace and provides a forecast for the next three years.

Abstract

The federal information security landscape continues to present unprecedented challenges. While in the midst of broad technological transformation and modernization efforts, agencies are facing the disruptive impacts of the COVID-19 pandemic. As a consequence, agencies are working to balance and adapt to pressing needs while keeping longer-term cybersecurity initiatives on track.

Ever-evolving threats, persistent attacks, rapid technological change, growing interconnectivity and an increasing dependence on technology and data make securing federal information and infrastructure a national security imperative. The rapid shift to remote work and opportunistic attacks during the pandemic add to the challenge. White House policy directives, legislative mandates, and evolving technology offerings are converging to drive agency cybersecurity strategies and procurements. Complex federal IT environments, where legacy IT operates alongside modern and emerging technologies, make effective threat mitigation difficult to achieve. The increased use of mobile solutions and cloud-based technologies, coupled with the desire to employ emerging technologies such as machine learning and artificial intelligence, demands that agencies proactively address current security needs while preparing for future requirements.

Driven by the federal government’s plans and efforts to enhance agency cybersecurity postures across the government, Deltek forecasts the demand for vendor-furnished information security products and services by the U.S. federal government will increase from $13.2 billion in FY 2020 to $14.4 billion in FY 2022 at a Compound Annual Growth Rate (CAGR) of 4.7%.

Changes to Deltek’s Forecast Due to COVID-19

Due to the unique circumstances of the COVID-19 pandemic, including the uncertainty of its impact on future federal budgets and operations, FMA has narrowed its forecast focus to “near term,” covering only FY 2020–2022.

Key Findings

  • Rapid Responses. COVID-19 forced agencies to quickly shift to telework, driving rapid modernization efforts to support remote access, including network capacity expansions, Virtual Private Network (VPN) deployments and end-user protections. Some agencies also accelerated their use of cloud computing, contributing to security concerns. Some stimulus funds are available through FY 2021 for IT modernization.
  • Skills Demand. Federal organizations continue to streamline and improve cybersecurity workforce hiring and training efforts, including reskilling, cross-agency assignments and other efforts. Competition for talent continues to hamper filling open positions, sustaining dependence on contractor support.
  • Evolving Requirements. DOD’s developing Cybersecurity Maturity Model Certification (CMMC) program will continue to evolve over the next 6-12 months and beyond, with ongoing opportunities for industry to provide input and help shape program design. The new interim DFAR rule adding CMMC requirements will begin to appear RFPs in FY 2021.
  • Supply Chain Scrutiny. Supply Chain Risk Management is a high priority for all agencies. Risk mitigation and reporting burdens will continue to flow down to contractors.
  • Technology Enablers. Several agencies are investigating the use of AI to enhance cybersecurity operations. DOD is assessing AI for automating information security and VA is looking for a Managed Service Provider (MSP) to implement emerging technology, such as AI, to protect VA networks.
  • 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 solution providers in maximizing their market positioning to best take advantage of federal business opportunities.

    Deltek’s Federal Information Security Market, 2020-2022 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, 2020-2022

    TABLE OF CONTENTS

    Introduction

  • Purpose of this Report
  • Scope and Methodology
  • Key Findings
  • Budget Trends

  • Bipartisan Budget Act of 2019
  • FY 2021 IT Budget Request
  • FY 2021 Discretionary Appropriations
  • FY 2021 Cybersecurity Priorities and Budgets
  • Defense Cyber Space Activities Budget
  • NITRD's Cybersecurity Efforts and Budget
  • Cyber Activities in DOD RDT&E and Procurement Budgets
  • Market Drivers

  • Threat Environment
  • Technology Policy
  • Acquisition Policy
  • Organizational Strategies
  • Technology Solutions
  • Workforce
  • Spending Trends

  • Total Information Security Prime Contract Obligations, FY 2017 – FY 2019
  • Contract Obligations for Product vs. Service
  • Contract Obligations by Buyer Segment
  • Contract Obligations by Top Departments
  • Contract Obligations by Top Vendors
  • Contract Obligations by Top Vendors for Defense vs. Civilian
  • Contract Obligations by Contract Type
  • Contract Obligations by Top Contract Vehicles
  • Contract Obligations by Business Size
  • Federal Information Security Install Base – Software and Hardware
  • Market Forecast

  • Market Drivers and Inhibitors
  • Total Addressable Market, FY 2020-2022
  • Addressable Market by Buyer Segment
  • Addressable Market by Market Segment
  • Agency Analysis

  • Defense Agencies
  • Air Force
  • Army
  • Navy
  • Homeland Security
  • Justice
  • Energy
  • HHS
  • Treasury
  • Commerce
  • Veterans Affairs
  • NASA
  • Transportation
  • Interior
  • State
  • Agriculture
  • GSA
  • SSA
  • Education
  • Labor
  • EPA
  • HUD
  • Intelligence Community
  • Conclusions and Recommendations

  • Conclusions
  • Recommendations
  • Appendix

  • Deltek Information Security Segment Definitions
  • Keywords Used for Contract Obligation Analysis