Technavio Reports Adoption of Cloud-based Services is a Key Driver for the US Federal Cyber Security Market Through 2020

LONDON--(BUSINESS WIRE)--Technavio analysts forecast the US federal cyber security market to grow at a CAGR of more than 8% during the forecast period, according to their latest report.

US federal cyber security market to grow at a CAGR of more than 8% during the period 2016-2020.

The research study covers the present scenario and growth prospects of the US federal cyber security market for 2016-2020. To calculate the market size, the report considers revenue generated from the sales of cyber security solutions that include the following:

• Software suites: These are stand-alone software suites. The revenue is calculated on the basis of licensed solutions and pay-per-use solutions. Integrated solutions are not included in the software suites.
• Services: These are third-party integrated services offered by MSSPs, deployed on-premises, on the cloud, or as a hybrid model. Managed security services include software upgrades, maintenance, and network monitoring services. Labor charges related to MSSPs are not included in the scope.

Technavio ICT analysts highlight the following four factors that are contributing to the growth of the US federal cyber security market:

• Adoption of cloud-based services
• Implementation of BYOD policy
• Rising network security threats
• Intense vendor competition

Adoption of cloud-based services

The US federal government is adopting cloud-based services for purposes such as authentication processes, video management systems, and storing biometrics information. These organizations store their confidential data on the cloud. Thus, it is important to secure data from unauthorized access. As cloud-based services prevent the US federal government from owning security infrastructure, its adoption is increasing among them. The US federal government is shifting its operations to the cloud. In addition, flexibility and scalability of cloud-based security solutions accommodate the varying needs of consumers.

Amrita Choudhury, a lead analyst at Technavio for IT security, says, “The US federal government is using the cloud for document management, collaborative services, security storage, geospatial services, updates of software, security testing, and server optimization.”

Implementation of BYOD policy

The BYOD policy allows employees of an organization to use their personal devices for official purposes, which allows them to work without any time or location constraints. This will increase their productivity, manage travel time, and reduce the operational costs of companies such as repair and maintenance cost. The US federal government is increasingly adopting BYOD policies to reduce their operational costs. An increase in the mobile workforce has enabled organizations to have their employees stationed across a given region. By 2020, we expect the mobile workforce to increase further, leading to high penetration of mobile devices. The increased use of mobile devices will enable employees to access confidential data from remote locations.

“As employees use wireless networks for communication and data transmission, the chances of cyber-attacks over mobile devices have increased, which in turn will lead to data manipulation. Thus, the use of cyber security solution for authenticating individuals is gaining prominence during the forecast period,” says Amrita.

Rising network security threats

The growing use of websites and web applications by the US federal government has led to an unprecedented rise in cyber-attacks. Due to the growing complexity of cyber-attacks, the number of advanced persistent threats is increasing. Unlike traditional threats, advanced persistent threats can affect the whole IT infrastructure of US federal government organizations. Advanced persistent threats also tend to target critical installations, such as web servers, government departments, and customer databases. Thus, they are far more harmful than other threats. Moreover, attackers with strong networking knowledge can carry out advanced threats that are detected only after the network has been attacked. Thus, to secure their networks, the US federal government is adopting network security solutions, which is driving the growth of the market.

Intense vendor competition

As the technological landscape of the market is dynamic, it is leading to the entry of new vendors that may provide integrated cyber security solutions to the US federal government. The entry of pure-play vendors is intensifying the overall competitive landscape, forcing existing vendors to develop advanced solutions to remain competitive. Some vendors are also introducing customized solutions that are specific to the requirements of the US federal government. As many vendors provide cyber security solutions to the US federal government, the chances of price wars have also increased, which will help them in increasing their profitability. We expect this to positively affect the market revenue and growth rate.

Browse Related Reports:

• Global Cyber Security Market 2016-2020
• Global Industrial Cyber Security Market 2015-2019
• Cyber Security Market in the APAC Region 2015-2019

Purchase these three reports for the price of one by becoming a Technavio subscriber. Subscribing to Technavio’s reports allows you to download any three reports per month for the price of one. Contact enquiry@technavio.com with your requirements and a link to our subscription platform.

About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

If you are interested in more information, please contact our media team at media@technavio.com.