Federal Information Security Market, 2019-2024

Published: October 30, 2019

Federal Market AnalysisCritical Infrastructure ProtectionCybersecurityForecasts and Spending

Deltek's Federal Information Security Market, 2019-2024 examines the trends and drivers shaping the federal information security marketplace and provides a forecast for the next five years.

Constantly-evolving threats, unending attacks, rapid technological change, pervasive interconnectivity, and an increasing dependence on technology and data make securing federal information and infrastructure a national imperative. White House policy directives, legislative requirements, and evolving technology solutions are converging to drive agency cybersecurity strategies and procurements. The threats – both external and internal – to applications, systems and data continue to grow in frequency, scope and sophistication further driving the demand for effective cybersecurity approaches and processes.

Complex federal IT environments, where legacy IT operates alongside modern and emerging technologies, pose challenges to effective threat mitigation. Growing demand for mobile solutions, cloud-based technologies and the desire to employ emerging technologies such as machine learning and artificial intelligence further challenge agencies to not only identify existing security vulnerabilities, but to also prepare a security framework that can support future requirements.

Driven by the federal government’s plans and efforts to enhance agency cybersecurity posture at every possible level, Deltek forecasts the demand for vendor-furnished information security products and services by the U.S. federal government will increase from $11.9 billion in FY 2019 to $15.4 billion in FY 2024 at a Compound Annual Growth Rate (CAGR) of 5.3%.

Key Findings

  • Evolving Strategies. Major cyber strategy updates across government continue to mature and drive efforts to modernize and harden agency security at the network, system, application and data levels.
  • Growing Budget. The overall federal cybersecurity budget continues to grow, but spending and growth rates at the agency level depends on the maturity of their security footprint as well as progress in consolidation or cost savings activities.
  • Defense Reorganizations. Cyber-centric organizations in the Department of Defense are combining functions and commands because of the growing interconnections among cybersecurity, information warfare and ISR the functions.
  • Policy and Oversight. OMB, DOD and DHS are increasing their policy oversight of IT and cybersecurity contracts to increase the security of contracted solutions and improve accountability for information security risk management.
  • Technology Enablers. Agencies are exploring zero trust networking, AI/ML, blockchain, and other emerging technologies, as well as optimizing and consolidating Security Operations Centers to enhance their cybersecurity posture and gain efficiencies.
  • 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:

  • 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 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, 2019-2024 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 Information Security Market, 2019-2024


  • Introduction
  • Budget Environment
  • Market Drivers
  • Budget Trends
  • Spending Trends
  • Market Forecast
  • Agency Analysis
  • Conclusions and Recommendations
  • Appendix