Federal Cybersecurity Market, 2026-2028

Protecting federal technology systems is a top government priority and a major challenge for agencies of all sizes. Unknown security gaps and ongoing threats, combined with complex IT environments and fast-changing technologies, make it difficult to secure federal data and networks. Agencies must manage cybersecurity across a mix of legacy systems, cloud platforms, and new technologies, all operating on both government-owned and commercial infrastructure.

As agencies expand digital services and adopt cloud applications, mobile tools, and advanced technologies like artificial intelligence and data analytics, they face new and layered security risks. At the same time, these technologies offer significant opportunities. Cybersecurity efforts and related technology purchases are shaped by government-wide policies from the White House and Congress, along with changing technology standards and acquisition rules.

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 $18.8 billion in FY 2026 to $20.7 billion in FY 2028.

Key Findings

• Fluctuating Cyber Budgets. Agency cybersecurity budgets show varied levels of growth and reduction, although the government-wide trend remains toward modest growth. This variability is expected throughout future budget cycles.
• White House Cyber Priorities. The White House is prioritizing cybersecurity through innovation in AI integration, post-quantum cryptography and IoT security.
• Sustained Cybersecurity Efforts. Multi-year cybersecurity efforts of zero trust enablement, incident detection and response, vulnerability management and others will drive the federal landscape throughout the forecast period, and beyond.
• CMMC is Here. DOD’s CMMC program is beginning its phased launch in November 2025. DOD contractors must plan for the lead time and cost of meeting the CMMC levels they need to compete. Similar FAR CUI rules are under consideration for the civilian sector.
• Supply Chain Security. Ongoing supply chain cybersecurity risk concerns continue to drive numerous risk management policies and programs. Contractors and suppliers need to stay informed and diligent to comply with federal secure-by-design and other principles and standards set by DOD, DHS, NIST, etc. Some risk management efforts include supplier reporting requirements.

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, 2026-2028 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.