Federal Information Security Market, 2020-2022

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

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:

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.