Federal Cybersecurity Market, 2024-2028

Securing the federal technology landscape continues to be among the highest of government priorities and presents some of the most formidable challenges for agencies large and small. Unknown vulnerabilities and persistent threats within a context of complex information environments and rapidly emerging technologies combine to make safeguarding federal information and networks a labyrinth of potential progress and pitfalls. Agency cybersecurity effectiveness is tested by complex, hybrid IT environments consisting of legacy systems, modern cloud deployments and emerging technologies operating across a mix of government-owned and commercially-provided infrastructure. Growing demand for greater digital government services, cloud-based applications, mobile capabilities and advanced computational technologies – such as artificial intelligence and data analytics – presents agencies with multi-layered security challenges as well as potential game-changing opportunities. Government-wide directives from the White House and Congress, combined with evolving technology standards and acquisition rules, continue to drive agency cybersecurity efforts and related procurements of supporting commercial solutions.

Driven by the multiple plans and initiatives focused on enhancing 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 $17.4 billion in FY 2024 to $21.5 billion in FY 2028.

Key Findings

• Growing Cyber Budgets. Agencies continued to grow their cybersecurity budgets to support progress of both agency-specific operational objectives and government-wide cyber policy mandates. However, workforce deficiencies can both hamper progress and sustain demand for contracted support.
• Cyber Executive Order Influence Continues. Elements in the 2021 White House Cybersecurity Executive Order continue to have sweeping impacts. Zero trust architectures and supporting efforts permeate nearly every aspect of federal IT and security. Supply chain risk management, including software, impacts acquisition rules and contract requirements. Agencies continue to invest in identity management, event management and security orchestration capabilities to fill cyber capability gaps.
• CMMC is On Its Way. DOD’s CMMC program is on the cusp of a phased launch beginning in early-mid-2025, as the program rule has been finalized and the acquisition rule is nearing completion. DOD contractors now have a clearer sense of what to expect and how to prepare for CMMC compliance.
• Security-by-Design. Agencies are heavily encouraging software developers to adjust product design and development processes to align with “security-by-design” principles to address agency concerns about cybersecurity risk.
• AI for Cyber. Many federal agencies continue to explore the use of AI and data analytics to augment and automate cybersecurity capabilities, including continuous monitoring across 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 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, 2024-2028 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.