This Sector Will Double by 2027 to at Least $20 Billion

By: June 20, 2024

The big players in the Government Cybersecurity sector are generally large tech firms that can provide the scale and work to the criteria that governments expect. The big players that can get a foothold are rewarded with strong, stable revenue streams on significant long-term contracts.  That’s easy money in the highly competitive tech sector. They also have to work hard to get that business and keep up their end.

For example, within one department in the US government ( Department of Energy), there are many agencies and groups and task forces, etc. They all have separate systems and the intersections for those who need to see across divisions that make the whole system more secure, but that’s a massive amount of complexity.

Small companies can’t operate on that scale or generally don’t have the kind of staff that can support such complexity.

 Source: Statista

As you can see from the chart above, there are also different needs and levels of security that vary among the different departments.

If you wonder where your tax dollars go, it goes back to the companies that support the cybersecurity of the government systems from everyone from bored teenagers to state-sponsored terrorist organizations. That also means the companies that deliver these services get big contracts and long-term commitments.

So, it’s a good market for reliable revenue, even if the growth isn’t at the kind of pace we expect in the enterprise sector.

As you can see below, there’s plenty of competition across both enterprise and government business.

Source: Yourbutlerspantry

Fortunately, we’ve narrowed the list down with the help of ExecutiveGov.com.

Here are the top 10, ranked in order.

CrowdStrike (NASDAQ: CRWD), Fortinet (NASDAQ: FTNT), Palo Alto Network (NASDAQ: PANW), Cloudflare (NYSE: NET), Cisco (NASDAQ: CISCO), Booze Allen Hamilton, Microsoft (NASDAQ: MSFT), General Dynamics (NYSE: GD), Leidos (NYSE: LDOS), Amazon (NASDAQ: AMZN).

Some of these names are well entrenched MegaTrend favorites. Others are specific cybersecurity firms that just focus on delivering state of the art security to governments and enterprise customers.

Some, like Booze Allen Hamilton, GD, and LDOS, are primarily government focused companies that have diversified business unity that support government in a variety of ways.

The big names here that are tech giants have different levels of support already built in. For example, MSFT has a contract with many government departments for its Windows operating system, so cybersecurity is part and parcel to that aspect.

AMZN has a big contract with the Pentagon through its AWS subsidiary, so it also manages a certain level of cybersecurity for its customers.

For the big companies, government contracts are just one arrow in their quiver, and the best of those can deliver security at all levels.

Whether you’re interested in a pure play or diversified play, these picks are a good place to start.


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