Federal Cybersecurity Market, 2022-2024

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.

Key Findings

• 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.

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 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.