Over the past few years a number of cyber attacks perpetrated by criminals, hackers and foreign nations against the U.S. Government’s networks rose sharply.

“Among the greatest concerns that impacts both military and civilian realms is cybersecurity,” James G. Stavridis, Navy Adm., NATO’s supreme allied commander for Europe and commander of U.S. European Command, told the Senate Armed Services Committee. “Today, we have a billion devices that are accessing the Internet,” he said. “Our economies are entangled in this Internet sea, and it’s an outlaw sea. Nothing exists in the norms of behavior. There is a military aspect to it, but it’s all of society. At some point, there needs to be a very global conversation on this challenge.”

“Federal agencies have spent more on cyber security than the entire GDP of North Korea, who some have speculated is to be involved with some of this cyber attacks,” said Senator Thomas. L. Carper. “The issue of Cyber Warfare is not science fiction anymore. It’s reality.”

The short- to long-term federal cyber security investments will be driven:

• by ever-increasing number and severity of cyber attacks,
• by dramatic expansion in computer interconnectivity and the exponential increase in the data flows and computing power of the government networks;
• by perception of the U.S. adversaries that the United States is dependent on information technology and that this dependency constitutes an exploitable weakness;
• by developments in the existing cyber security approaches and technologies and emergence of new technologies and approaches.

With a cumulative market valued at $55 billion (2010 – 2015), the U.S. Federal Cybersecurity market will grow steadily – at about 6.2% CAGR over the next six years.

This new quantitative report “U.S. Federal Cybersecurity Market Forecast 2010-2015″ provides:

• Six-year detailed forecast for the period 2010-2015;
• Agency-by-agency detailed forecasts for both defense and civilian sectors;
• Cybersecurity market segments by investment type (National Security Systems, Mission Area Support, Infrastructure/Office Automation/Telecommunications, Enterprise Architecture and Planning);
• Federal cyber security market by software, hardware, software services, personnel training;
• Federal cyber security market by technologies and R&D.

The report answers the following questions:

• Why pay any attention at all to the U.S. Government Cyber Security market?
• What segments of the U.S. Government Cyber Security market are poised for fast growth?
• What are the largest segments of the U.S. Government Cyber Security?
• What are key trends in Cyber Security technology deployment?
• What are market opportunities in providing Cyber Security solutions for the Government sector?
• What is the market hierarchy in the complicated web of the Federal Cyber Security market?
• What are the priorities of the government investment in cyber security R&D?
• Where is the money in the U.S. Federal Cyber Security market?
• How can the small cyber security technology vendors benefit from developments in U.S. Federal Cyber Security market?

The report covers the cyber security products, technologies and services for U.S. Government market, including security of government IT networks, cyber security and cyber warfare tools and systems, surveillance and monitoring capabilities of national security agencies.

Table of Contents

1. Market Report Scope & Methodology

1.1. Scope
1.2. Research Methodology 8

2. Executive Summary

2.1. Making Case for Booming U.S. Government Cyber Security Market
2.1.1. US-China Cyber Confrontation
2.1.2. Security Incidents Are on the Rise
2.1.3. Government Data Overflow
2.1.4. Government-Industry Cooperation: Paradigm Shift
2.1.5. Comprehensive National Cybersecurity Initiative (CNCI) and Market Opportunities

2.2. Cyber Threats

2.3. Cyber Security Technologies
2.3.1. Access Control Technologies
2.3.2. System Integrity Technologies
2.3.3. Cryptography Technologies
2.3.4. Audit and Monitoring Technologies
2.3.5. Configuration Management and Assurance Technologies
2.3.6. Offensive Cyber Warfare Technology
2.3.7. IP Traffic Surveillance & Monitoring Technologies

2.4. U.S. Federal Cyber Security Market: R&D Challenges and Opportunities
2.4.1. Cyber Security: Hard R&D Challenges and Big Market Opportunities
2.4.2. Scalable Trustworthy Systems: R&D Challenges and Market Opportunities
2.4.3. Enterprise-Level Metrics (ELMs): R&D Challenges & Market Opportunities
2.4.4. System Evaluation Life Cycle: R&D Challenges & Market Opportunities
2.4.5. Combatting Insider Threats: R&D Challenges & Market Opportunities
2.4.6. Combatting Malware and Botnets: R&D Challenges & Market Opportunities
2.4.7. Global-Scale Identity Management: R&D Challenges & Market Opportunities
2.4.8. Survivability of Time-Critical Systems: R&D Challenges & Market Opportunities
2.4.9. Situational Understanding and Attack Attribution: R&D Challenges & Market Opportunities
2.4.10. Provenance: R&D Challenges & Market Opportunities
2.4.11. Privacy-Aware Security: R&D Challenges & Market Opportunities
2.4.12. Usable Security: R&D Challenges & Market Opportunities

2.5. What is the competitive landscape of the U.S. Federal Cyber Security market?
2.5.1. U.S. Federal Government Cyber Security Agencies and Organizations
2.5.2. Federal Cyber Security Contractors

2.6. Key Report Findings

2.7. U.S. Federal Cybersecurity Market Forecast 2010-2015
2.7.1. Department of Defense Cybersecurity Spending Forecast 2010-2015
2.7.2. Civilian Agencies’ Cybersecurity Spending Forecast 2010-2015
2.7.3. U.S. Federal Cybersecurity Spending by Defense and Civilian Agencies
2.7.4. U.S. Federal Cybersecurity Spending by Investment Type
2.7.5. U.S. Federal Cybersecurity Spending by Software, Hardware and Services
2.7.6. U.S. Federal Cybersecurity Market by Technologies and R&D

List of Figures
Fig. 1- Number of incidents perpetrated against federal networks in 2006 – 2009
Fig. 2- U.S. Government-related IP Traffic, 2010-2015
Fig. 3- Timeline of Actions to Develop Cyber Security Strategy and Interagency Mechanisms
Fig. 4- Examples of Systems With Different Time-Criticality Requirements and Different User Populations
Fig. 5- Usable Security Domain
Fig. 6- Competitive Landscape of the U.S. Federal Cyber Security Market
Fig. 7- U.S. Federal Cyber Security Market Hierarchy
Fig. 8- U.S. Federal Cybersecurity Market Forecast 2010-2015, $Mln
Fig. 9- Cybersecurity Spending as Percent of Total U.S. Federal IT Spending
Fig. 10- Department of Defense Cybersecurity Spending Forecast 2010-2015 by Agency, $Mln
Fig. 11- Cumulative DoD Cybersecurity Spending 2010-2015 by Agency, %
Fig. 12- Top Ten Civilian Agencies by Cybersecurity Spending 2010-2015, $Mln
Fig. 13- Cumulative U.S. Federal Cybersecurity Spending by Defense and Civilian Agencies 2010-2015, %
Fig. 14- U.S. Federal Cumulative Cybersecurity Spending 2010-2015 by Investment Type, %
Fig. 15- U.S. Federal Cumulative Cybersecurity Spending 2010-2015 by Investment Type, $Mln
Fig. 16- U.S. Federal Cybersecurity Spending 2010-2015 by Software, Hardware and Services, $Mln
Fig. 17- Cumulative U.S. Federal Cybersecurity Spending 2010-2015 by Software, Hardware and Services, %
Fig. 18- U.S. Federal Cyber Security Market 2010-2015 by Technologies and R&D, $Mln
Fig. 19- Cumulative U.S. Federal Cyber Security Market 2010-2015 by Technologies and R&D, %

List of Tables
Table 1 – U.S. Government-related IP Traffic
Table 2 – CNCI Projects, Market Opportunities and Lead Agencies
Table 3 – Sources of Cyber Threats
Table 4 – Types and Techniques of Cyber Attacks
Table 5 – Access Control Technologies
Table 6 – System Integrity Technologies
Table 7 – Cryptography Technologies
Table 8 – Audit and Monitoring Technologies
Table 9 – Configuration Management and Assurance Technologies
Table 10 – Five Canonical Paths for Getting Research Funded by the Federal Government
Table 11 – Technology Readiness Levels
Table 12 – U.S. Federal Cyber Security Market: R&D Challenges & Market Opportunities
Table 13 – Scalable Trustworthy Systems: R&D Challenges and Market Opportunities
Table 14 – Enterprise-Level Metrics (ELMs): R&D Challenges & Market Opportunities
Table 15 – System Evaluation Life Cycle: R&D Challenges & Market Opportunities
Table 16 – Combatting Insider Threats: R&D Challenges & Market Opportunities
Table 17 – Combatting Malware and Botnets: R&D Challenges & Market Opportunities
Table 18 – Global-Scale Identity Management: R&D Challenges & Market Opportunities
Table 19 – Survivability of Time-Critical Systems: R&D Challenges & Market Opportunities
Table 20 – Situational Understanding and Attack Attribution: R&D Challenges & Market Opportunities
Table 21 – Provenance: R&D Challenges & Market Opportunities
Table 22 – Privacy-Aware Security: R&D Challenges & Market Opportunities
Table 23 – Usable Security: R&D Challenges & Market Opportunities
Table 24 – U.S. Federal Cybersecurity Market Forecast 2010-2015, $Mln
Table 25 – Cybersecurity Spending as Percent of Total U.S. Federal IT Spending
Table 26 – Department of Defense Cybersecurity Spending Forecast 2010-2015 by Agency, $Mln
Table 27 – Civilian Agencies’ Cybersecurity Spending Forecast 2010-2015 by Agency, $Mln
Table 28 – U.S. Federal Cybersecurity Spending by Defense and Civilian Agencies, $Mln
Table 29 – U.S. Federal Cybersecurity Spending 2010-2015 by Software, Hardware and Services, $Mln
Table 30 – U.S. Federal Cyber Security Market 2010-2015 by Technologies and R&D, $Mln