Federal Cybersecurity Market, 2022-2024
Published: October 28, 2022
Deltek's Federal Cybersecurity Market, 2022-2024 examines the trends and drivers shaping the federal cybersecurity marketplace and provides a forecast for the next three years.
The federal technology environment presents a challenging cybersecurity landscape. Diverse threats, persistent vulnerabilities, coordinated attacks, pervasive and rapidly changing technologies, and dependence on interconnected technologies and critical data make safeguarding federal information and infrastructure one of the highest national security priorities. Security integrity is tested by complex federal IT environments, where legacy IT continues to operate alongside modern systems and emerging technologies. The increased demand for mobile capabilities, cloud-based applications and advanced computational technologies, such as artificial intelligence, presses agencies to meet current security challenges while anticipating future needs. These factors drive ongoing federal cybersecurity modernization efforts that present both challenges and promising opportunities. White House directives, congressional mandates, and evolving technology standards converge to propel agency cybersecurity efforts and related procurements of supporting commercial solutions.
Driven by the plans and efforts to enhance agency cybersecurity postures across the federal government, Deltek forecasts the demand for vendor-supplied cybersecurity products and services by the U.S. federal government will increase from $14.8 billion in FY 2022 to $16.2 billion in FY 2024.
- Flourishing Budgets. Agency cybersecurity budgets continue on a growth path, driven by both individual operational objectives and government-wide cyber policy directives. The DOD topline cyberspace activities budget for FY 2023 shows a modest 5% increase from the FY 2022 level and a 14% jump from FY 2021.
- Encompassing Directives. Elements in the 2021 White House Cybersecurity Executive Order continue to have sweeping impacts, driving advances in endpoint detection and response; vulnerability identification and remediation; and supply chain risk management, including software security. Supply chain provisions impact acquisition rules and contract requirements.
- Zero Trust Objective. Zero trust architectures and supporting efforts permeate nearly every aspect of federal IT and security. High-profile cybersecurity incidents, dispersed mobile workforces and identity and authentication concerns have coalesced to focus and accelerate pursuit of zero trust capabilities. Some agencies are using Technology Modernization Fund (TMF) projects to fund high-priority cybersecurity enhancements.
- Visibility and Collaboration. Cyber incident reporting and information sharing requirements impact both agencies and supporting contractors. Directives from OMB and CISA drive increased incident reporting and data sharing requirements for agencies and contractors.
- Capability Enablers. Many federal agencies are exploring the use of artificial intelligence (AI) and data analytics for continuous monitoring across networks, to automate cybersecurity functions and aid decision-making capacity.
- Evolving Programs for Defined Standards. DOD?s evolving CMMC program continues to focus on NIST standards while final federal regulations are anticipated in 2023. Civilian agencies will hold to NIST standards, even if they do not fully adopt CMMC.
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 cybersecurity 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 cybersecurity 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 Cybersecurity Market, 2022-2024 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 CYBERSECURITY MARKET, 2022-2024
TABLE OF CONTENTS
- Purpose of this Report
- Scope and Methodology
- Key Findings
- FY 2023 IT Budget Request
- FY 2023 Cybersecurity Priorities and Budgets
- Defense Cyber Space Activities Budget
- Cyber Activities in DOD RDT&E and Procurement Budgets
Federal Cybersecurity Market Drivers
- Threat Environment
- Technology Policy
- Acquisition Policy
- Technology Solutions
- Organizational and Workforce Strategies
Spending Trends and Install Base
- Total Cybersecurity Prime Contract Obligations, FY 2019 – FY 2021
- 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 Civilian vs. Defense
- Contract Obligations by Contract Type
- Contract Obligations by Top Contract Vehicles
- Contract Obligations by Business Size
- Federal Cybersecurity Install Base – Software and Hardware
- Market Drivers and Inhibitors
- Total Addressable Market, FY 2022-2024
- Addressable Market by Buyer Segment
- Addressable Market by Market Segment
- Defense Agencies
- Air Force
- Homeland Security
- Veterans Affairs
- Intelligence Community
Conclusions and Recommendations
- Deltek Cybersecurity Segment Definitions
- Contract Obligation Analysis Keywords