In the fiscal year 2023, the number of cybersecurity incident reports by federal agencies in the United States was over 32 thousand, around five percent increase from the previous year. This number includes reportings by both CFO and non-CFO Act agencies.

For the fiscal year 2025, the government of the United States proposed nearly 13 billion U.S. dollar budget for cybersecurity, representing an increase from the previous fiscal year. These federal resources for cybersecurity are set to support a broad-based cybersecurity strategy for securing the government and enhancing the security of critical infrastructure and essential technologies.

In the fiscal year 2023, the U.S. government encountered ***** e-mail or phishing attacks. The majority of these attacks targeted CFO act agencies. Attacks that occurred due to a violation of an organization's acceptable usage by an authorized user, excluding mentioned categories, amounted to over ****** cases.

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US Government Cyber Security Market Size 2025-2029

The us government cyber security market size is valued to increase USD 4.18 billion, at a CAGR of 6.1% from 2024 to 2029. Firewall as disruptive threat deception strategy will drive the us government cyber security market.

Major Market Trends & Insights

By End-user - US intelligence community segment was valued at USD 4.48 billion in 2022
By Deployment - On-premises segment accounted for the largest market revenue share in 2022
CAGR from 2024 to 2029 : 6.1%

Market Summary

The Government Cyber Security Market in the US is a dynamic and ever-evolving landscape, with core technologies and applications, such as firewalls, intrusion detection systems, and encryption, playing a crucial role. Firewall as a disruptive threat deception strategy is gaining traction, with an estimated 60% of organizations implementing it to enhance their security posture. The implementation of Bring Your Own Device (BYOD) policies in government organizations poses significant challenges, as these policies increase the attack surface and require additional security measures. The high cost of deploying cyber security solutions remains a major barrier to entry for some organizations. Regulations, such as the Federal Information Security Management Act (FISMA) and the General Data Protection Regulation (GDPR), are driving market growth by mandating robust cyber security measures. According to a recent report, the US government cyber security market is projected to reach a double-digit compound annual growth rate (CAGR) over the next five years. However, I cannot provide the exact figure due to the exclusion of growth rate percentages in this response.

What will be the Size of the US Government Cyber Security Market during the forecast period?

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How is the Government Cyber Security in US Market Segmented ?

The government cyber security in us industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. End-userUS intelligence communityDepartment of homeland securityDepartment of defenseDeploymentOn-premisesCloud-basedProductServicesSolutionsSecurity TypeNetwork SecurityEndpoint SecurityApplication SecurityCloud SecurityThreat TypeCyber-AttacksData BreachesEspionageDDoS AttacksGeographyNorth AmericaUS

By End-user Insights

The us intelligence community segment is estimated to witness significant growth during the forecast period.

The Government Cyber Security Market in the US is a continually evolving landscape, with ongoing activities and emerging patterns shaping the industry. Key areas of focus include software vulnerability patching, blockchain cybersecurity, data encryption methods, and access control systems, all essential components of regulatory compliance frameworks. Digital forensics incident response, security audits, and compliance are crucial in mitigating risks from phishing attacks, penetration testing services, and social engineering attacks. Network security protocols, cybersecurity awareness training, vulnerability management systems, and data breach prevention are also vital. Physical security controls, cryptographic algorithms, ransomware mitigation, and incident response planning are integral to a robust cybersecurity infrastructure. Threat intelligence platforms, malware analysis techniques, multi-factor authentication, intrusion detection systems, and zero trust architecture are essential elements in the fight against cyber threats. The market also encompasses digital security insurance, cloud security posture, risk assessment methodologies, and various cybersecurity services. According to recent estimates, the US government cybersecurity market is projected to reach USD24.6 billion by 2023, underscoring its significance in safeguarding national security and foreign relations.

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The US intelligence community segment was valued at USD 4.48 billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The global government cybersecurity market in the US is experiencing robust growth due to escalating advanced persistent threats (APTs) and the increasing complexity of cybersecurity risk assessment frameworks. Data encryption key lifecycle management and incident response team communication protocols are becoming essential priorities to mitigate potential breaches. Multi-factor authentication implementation strategies and network security monitoring be

Between January and November 2023, California was the U.S. state with the highest number of reported data breach incidents targeting the government. In the measured period, the government agencies saw 16 cases of data breaches. Texas ranked second, with eight incidents. Overall, 137 cases of government data breaches were recorded in the United States.

According to reports conducted between December 2022 and February 2023 and June to August 2023, the number of cyber incidents targeting government organizations worldwide increased by 60 thousand, reaching 100 thousand in the latest measured period. Between March and May 2023, the number of recorded incidents was 55 thousand.

Government Cybersecurity Market Outlook

According to our latest research, the global government cybersecurity market size reached USD 22.8 billion in 2024, driven by escalating cyber threats targeting government infrastructure and the rapid digitalization of public sector services. The market is poised to grow at a CAGR of 10.2% during the forecast period, with the total value projected to reach USD 54.1 billion by 2033. The primary growth factor is the increasing sophistication and frequency of cyberattacks against government networks, compelling agencies worldwide to invest in robust cybersecurity measures to protect sensitive data and maintain public trust.

One of the most significant growth drivers for the government cybersecurity market is the proliferation of advanced persistent threats (APTs) and nation-state cyberattacks. Governments globally are facing a surge in highly coordinated attacks targeting critical infrastructure, defense systems, and confidential citizen data. These threats are not only becoming more frequent but also increasingly sophisticated, leveraging zero-day vulnerabilities, social engineering, and artificial intelligence to bypass traditional security measures. As a result, government agencies are prioritizing the adoption of comprehensive cybersecurity solutions, including network security, endpoint protection, and threat intelligence, to fortify their digital perimeters. This heightened threat landscape is compelling governments to allocate larger portions of their IT budgets toward cybersecurity, fueling market expansion.

Another pivotal factor driving market growth is the ongoing digital transformation across the public sector. Governments are rapidly embracing e-governance initiatives, cloud-based platforms, and digital public services to enhance operational efficiency and citizen engagement. While these advancements offer significant benefits, they also introduce new vulnerabilities and expand the attack surface for potential cyber threats. The integration of Internet of Things (IoT) devices, smart city infrastructure, and cloud-based applications necessitates advanced security frameworks capable of safeguarding interconnected systems and sensitive information. The demand for scalable, adaptive, and integrated cybersecurity solutions is thus rising, as governments aim to strike a balance between innovation and risk mitigation in an increasingly digital environment.

The rise of Cyber Warfare has become a significant concern for governments worldwide as they navigate the complexities of securing their digital borders. Unlike traditional warfare, cyber warfare involves the use of digital attacks by one nation to disrupt the vital computer systems of another, with the intent to create damage or disruption. This form of warfare can target a country's critical infrastructure, such as power grids, financial systems, and communication networks, posing a direct threat to national security. As cyber warfare tactics become more sophisticated, governments are compelled to develop advanced defensive strategies and invest in cutting-edge technologies to protect their national interests. The integration of cyber warfare considerations into national defense strategies underscores the evolving nature of global conflicts in the digital age.

Regulatory pressures and compliance mandates are further accelerating the adoption of cybersecurity solutions in the government sector. Governments worldwide are enacting stringent data protection laws, cybersecurity frameworks, and privacy regulations to safeguard national interests and ensure the resilience of public services. Compliance with standards such as the General Data Protection Regulation (GDPR), National Institute of Standards and Technology (NIST) guidelines, and country-specific cybersecurity directives is now mandatory for government agencies. This regulatory landscape is driving investments in advanced security technologies, including encryption, identity and access management, and security information and event management (SIEM) systems. The need to demonstrate regulatory compliance and avoid severe penalties is a strong motivator for continuous cybersecurity enhancement in the government sector.

From a regional perspective, North America continues to dominate the government cybersecurity market, accounting for the largest revenue share in 2024. The region's l

Government Cybersecurity Market Outlook

As per our latest research, the global government cybersecurity market size reached USD 19.6 billion in 2024, driven by escalating cyber threats, digital transformation of public sector services, and stringent regulatory mandates. The market is projected to expand at a CAGR of 12.2% from 2025 to 2033, reaching approximately USD 54.3 billion by 2033. This robust growth is primarily attributed to increased adoption of advanced security solutions and a heightened focus on safeguarding critical government infrastructure worldwide.

The primary growth factor for the government cybersecurity market is the exponential rise in sophisticated cyberattacks targeting public sector entities. Governments worldwide are increasingly under threat from nation-state actors, hacktivist groups, and organized cybercriminals, all seeking to exploit vulnerabilities in government networks, data repositories, and communication channels. With the proliferation of digital services, the attack surface has expanded significantly, compelling governments to invest heavily in multi-layered cybersecurity frameworks. The integration of emerging technologies such as artificial intelligence and machine learning into security protocols is also enhancing threat detection and response capabilities, further fueling market expansion.

Another significant driver is the rapid digitalization of government operations and services. As governments strive to modernize their IT infrastructure and deliver citizen-centric digital services, the need for robust cybersecurity solutions has become paramount. The deployment of smart city initiatives, e-governance platforms, and interconnected public utility systems has increased the complexity and vulnerability of government networks. Consequently, public sector organizations are prioritizing cybersecurity investments to ensure data integrity, protect citizens’ privacy, and maintain public trust. The rise in remote work and cloud adoption post-pandemic has also accelerated the demand for secure access solutions and advanced threat protection.

Regulatory compliance and data protection mandates are further bolstering the growth of the government cybersecurity market. Governments are enacting stringent cybersecurity frameworks, such as the European Union’s NIS Directive, the U.S. Federal Information Security Modernization Act (FISMA), and various national data protection laws. These regulations require public sector agencies to implement comprehensive security measures, conduct regular risk assessments, and report incidents promptly. The need to comply with these evolving regulatory landscapes is driving continuous investment in cybersecurity solutions and services across the government sector.

Regionally, North America continues to dominate the government cybersecurity market, accounting for the largest share in 2024, followed by Europe and Asia Pacific. The United States, in particular, leads in cybersecurity spending, propelled by significant federal investments and a highly developed threat intelligence ecosystem. Europe is witnessing rapid growth due to increasing cyber incidents and regulatory harmonization across member states. Meanwhile, Asia Pacific is emerging as a lucrative market, driven by digital transformation initiatives and heightened awareness of cyber risks among developing economies. Latin America and the Middle East & Africa are also witnessing steady adoption, albeit at a slower pace, as governments in these regions ramp up their cybersecurity infrastructure.

Component Analysis

The government cybersecurity market by component is bifurcated into solutions and services, each playing a pivotal role in strengthening public sector cyber defenses. Solutions encompass a broad spectrum of software and hardware offerings, including firewalls, intrusion detection systems, endpoint protection, and data encryption tools. These solutions are the first line of defense against external and internal threats, enabling governments to identify, prevent, and mitigate cyber incidents effectively. As the threat landscape evolves, there is increasing demand for advanced security solutions that leverage artificial intelligence, behavioral analytics, and automation to proactively detect and respond to sophisticated attacks.

On the services front, governments are increasingly relying on man

The Cyber Security Breaches Survey, 2020 was run to understand organisations' approaches and attitudes to cyber security, and to understand their experience of cyber security breaches. Its aim was to support the Government by providing evidence that can inform policies which help to make Britain a safer place to do business online.

The data have been collected annually since 2016 to understand the views of UK organisations on cyber security. Data is collected on topics including online use; attitudes of organisations to cyber security and awareness of Government initiatives; approaches to cyber security (including investment and processes); incidences and impact of a cyber security breach or attack; and how breaches are dealt with by the organisation. This information helps to inform Government policy towards organisations, including how best to target key messages to businesses and charities so that they are cyber secure (and so that the UK is the safest place in the world to do business online). The study is funded by the Cabinet Office as part of the National Cyber Security Programme.

The underlying data are useful for researchers to better understand the response across a range of organisations (rather than averages) and for wider comparability over time. The survey originally only covered businesses but was expanded to include charities from the 2018 survey onwards. From 2020, the survey includes a sample of education institutions (primary and secondary schools, further and higher education). Please note that the UK Data Service only holds data from 2018 onwards.

Further information and additional publications can be found on the GOV.UK https://www.gov.uk/government/statistics/cyber-security-breaches-survey-2020">Cyber Security Breaches Survey, 2020 webpage.

... The Director of the Office of Science and Technology Policy then provided a formal charge, asking PITAC members to concentrate their efforts on the focus, balance, and affectiveness of current Federal cyber security research and development R and D activities see Appendix A. To conduct this examination, PITAC established the Subcommittee on Cyber Security, whose work culminated in this report, Cyber Security: A Crisis of Prioritization...

Government Cyber Security Market Outlook

The global government cyber security market size was valued at USD 19.8 billion in 2023 and is anticipated to reach USD 48.1 billion by 2032, growing at a compound annual growth rate (CAGR) of 10.3% from 2024 to 2032. This robust growth is driven by the increasing sophistication of cyber threats and the rising need for securing sensitive government data.

One of the primary growth factors in the government cyber security market is the ever-evolving nature of cyber threats. As cyber criminals become more sophisticated, governments around the world are compelled to adopt advanced security measures to protect sensitive data and critical infrastructure. The rise in state-sponsored cyber attacks has also led to heightened vigilance and investment in cyber security solutions. For instance, the notorious attacks targeting government databases and critical infrastructure underscore the need for robust cyber security frameworks.

Moreover, the growing digitization of governmental operations is another significant growth driver. Governments are increasingly embracing digital transformation to enhance service delivery, efficiency, and transparency. However, this digital shift also opens up new vulnerabilities that cybercriminals can exploit. Consequently, there is an increasing need for comprehensive cyber security solutions to safeguard digital assets and ensure the continuity of governmental operations. This trend is particularly evident in the adoption of cloud services and the integration of IoT in public sectors, which further necessitates strong security measures.

Additionally, stringent regulatory requirements and compliance standards are propelling the demand for advanced cyber security solutions in the government sector. Governments worldwide are enacting laws and regulations to protect data privacy and ensure the security of critical information. These regulations mandate the implementation of robust security measures and protocols, thereby driving the market for various cyber security solutions and services. Compliance with regulations such as GDPR, CCPA, and the Cybersecurity Information Sharing Act is not just a necessity but also a catalyst for market growth.

In the context of increasing cyber threats, Cybersecurity Solutions and Services have become indispensable for government agencies worldwide. These solutions encompass a wide range of technologies and practices designed to protect government data and infrastructure from unauthorized access and cyber attacks. As governments continue to digitize their operations, the demand for comprehensive cybersecurity solutions and services is expected to grow significantly. These services not only help in safeguarding sensitive information but also ensure compliance with various regulatory standards. By implementing robust cybersecurity measures, governments can enhance their resilience against cyber threats and maintain public trust in their digital services.

From a regional perspective, North America holds a significant share of the government cyber security market, owing to the region's advanced technological infrastructure and high incidence of cyber threats. The presence of key market players and substantial government investments in cyber security initiatives further bolster this region's market dominance. Europe follows as another major market, driven by stringent data protection regulations and substantial investments in cyber security by government bodies. Meanwhile, the Asia-Pacific region is poised for rapid growth due to widespread digital transformation and increasing cyber threats in emerging economies like India and China.

Solution Analysis

The solution segment in the government cyber security market encompasses various sub-segments including Identity and Access Management, Risk and Compliance Management, Encryption, Data Loss Prevention, Unified Threat Management, Firewall, Antivirus/Antimalware, Intrusion Detection System/Intrusion Prevention System, Security and Vulnerability Management, Disaster Recovery, Distributed Denial of Service Mitigation, Web Filtering, and others. Each of these solutions plays a critical role in fortifying government networks and databases against cyber threats.

Identity and Access Management (IAM) solutions are crucial for controlling and monitoring user access within government systems. IAM solutions ensure that only authorized personnel can ac

The Cyber Security Breaches Survey, (CSBS) is run to understand organisations' approaches and attitudes to cyber security, and to understand their experience of cyber security breaches.. The aim of the survey is to support the Government by providing evidence that can inform policies which help to make Britain a safer place to do business online.

These surveys have been conducted annually since 2016 to understand the views of UK organisations on cyber security. Data are collected on topics including online use; attitudes of organisations to cyber security and awareness of Government initiatives; approaches to cyber security (including investment and processes); incidences and impact of a cyber security breach or attack; and how breaches are dealt with by the organisation. This information helps to inform Government policy towards organisations, including how best to target key messages to businesses and charities so that they are cyber secure (and so that the UK is the safest place in the world to do business online). The study is funded by the DCMS as part of the government's £2.6 billion National Cyber Strategy 2022 to protect and promote the UK in cyber space.

The underlying data are useful for researchers to better understand the response across a range of organisations and for wider comparability over time. The survey originally only covered businesses but was expanded to include charities from the 2018 survey onwards. From 2020, the survey includes a sample of education institutions (primary and secondary schools, further and higher education). Please note that the UK Data Service only holds datasets on each specific year from 2018 onwards.

Cyber Security Breaches Survey: Combined Dataset, 2016-2022 includes data from 2016 to 2022. This is cross-sectional data only and not all variables are included in all years. For longitudinal data, please access the Cyber Security Longitudinal Survey: Wave 1, 2021 (available from the UK Data Archive under SN 8969) and onwards.

Further information and additional publications can be found on the GOV.UK Cyber Security Breaches Survey webpage.

The Government Cybersecurity Market, valued at $11.63 billion in 2025, is experiencing robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) of 5.68% from 2025 to 2033. This expansion is driven by the increasing sophistication and frequency of cyberattacks targeting government entities, coupled with the rising adoption of cloud-based solutions and the growing need for robust data protection regulations. Governments worldwide are investing heavily in advanced cybersecurity infrastructure, including threat intelligence platforms, intrusion detection systems, and security information and event management (SIEM) solutions, to safeguard critical national infrastructure and citizen data. The shift towards cloud-based deployments is a significant trend, offering scalability and cost-effectiveness, while on-premises solutions remain crucial for handling highly sensitive data requiring strict on-site control. However, the market faces restraints such as budgetary constraints within government agencies, the skills gap in cybersecurity professionals, and the constant evolution of cyber threats requiring continuous adaptation and investment. The market segmentation reveals a strong preference for cloud-based solutions, particularly as they offer enhanced scalability and flexibility to adapt to evolving threats. North America currently dominates the market, driven by significant investments in cybersecurity infrastructure and a high concentration of major cybersecurity vendors. However, Asia-Pacific is projected to witness substantial growth in the coming years fueled by rapid digitalization and increasing government initiatives to strengthen cybersecurity. The competitive landscape is highly fragmented, with established players like BAE Systems, Cisco, and IBM competing against specialized cybersecurity firms and smaller, innovative companies. These companies are employing various competitive strategies including mergers and acquisitions, strategic partnerships, and technological advancements to gain a larger market share. Sustained investment in research and development is essential to stay ahead of evolving threats and maintain a competitive edge in this dynamic market.

In December 2011 the NSTC released Trustworthy Cyberspace: Strategic Plan for the Federal Cybersecurity Research and Development Program, outlining a vision for the research needed to develop game-changing technologies to neutralize attacks on the cyber systems of today, and to establish scientific foundations to meet the challenges of securing the cyber systems of tomorrow. The Strategic Plan surfaced intersections of common interest and mutual benefit in cybersecurity research; outlined specific research and development areas that span multiple disciplines; and emphasized collaboration among researchers and technical experts in government, industry, academia, and international contexts...

On June 4-6, 2019, the NSTC NITRD Program, in collaboration with the NSTC's MLAI Subcommittee, held a workshop to assess the research challenges and opportunities at the intersection of cybersecurity and artificial intelligence. The workshop brought together senior members of the government, academic, and industrial communities to discuss the current state of the art and future research needs, and to identify key research gaps. This report is a summary of those discussions, framed around research questions and possible topics for future research directions. More information is available at https://www.nitrd.gov/nitrdgroups/index.php?title=AI-CYBER-2019.

The Cyber Security Breaches Survey, 2021 (CSBS) was run to understand organisations' approaches and attitudes to cyber security, and to understand their experience of cyber security breaches, especially in light of the COVID-19 pandemic. The aim of the survey was to support the Government by providing evidence that can inform policies which help to make Britain a safer place to do business online. Details of changes for the 2021 survey can be found in the Technical Annex documentation.

These surveys have been conducted annually since 2016 to understand the views of UK organisations on cyber security. Data are collected on topics including online use; attitudes of organisations to cyber security and awareness of Government initiatives; approaches to cyber security (including investment and processes); incidences and impact of a cyber security breach or attack; and how breaches are dealt with by the organisation. This information helps to inform Government policy towards organisations, including how best to target key messages to businesses and charities so that they are cyber secure (and so that the UK is the safest place in the world to do business online). The study is funded by the DCMS as part of the National Cyber Security Programme.

The underlying data are useful for researchers to better understand the response across a range of organisations and for wider comparability over time. The survey originally only covered businesses but was expanded to include charities from the 2018 survey onwards. From 2020, the survey includes a sample of education institutions (primary and secondary schools, further and higher education). Please note that the UK Data Service only holds data from 2018 onwards.

Further information and additional publications can be found on the "http://GOV.UK" target="_blank"> GOV.UK Cyber Security Breaches Survey, 2021 webpage.

In fiscal year 2023, the total number of cyberattacks targeting government agencies in the United States was 32,211, up from 30,659 in the previous fiscal year. Furthermore, a significant part of the cyber incidents was against CFO Act agencies.

Powerful personal computers, high-bandwidth and wireless networking technologies, and the widespread use of the Internet have transformed stand-alone computing systems and predominantly closed networks into the virtually seamless fabric of today`s information technology IT infrastructure. This infrastructure provides for the processing, transmission, and storage of vast amounts of vital information used in virtually every facet of society, and it enables Federal agencies to routinely interact with each other as well as with industry, private citizens, state and local governments, and the governments of other nations...