The global defense IT spending market size was USD 81.28 billion in 2019. The market is projected to grow from USD 82.12 billion in 2020 to USD 145..97 billion in 2032 at a CAGR of 5.00% during the 2024-2032 period.
Defense IT spending is a critical aspect of national security strategy. It involves the allocation of resources towards the development, maintenance, and operation of information technology systems used by the military. The goal of defense IT spending is to enhance military capabilities and ensure that the nation’s armed forces have access to cutting-edge technologies that can provide a strategic advantage over potential adversaries. It is imperative that defense IT spending be carefully managed and monitored to prevent waste, fraud, and abuse. Additionally, it is crucial to ensure that sensitive information is protected from cyber threats and that the systems are resilient and reliable in the face of potential attacks. Ultimately, defense IT spending plays a vital role in maintaining the nation’s security and readiness in an increasingly complex and dynamic global environment.
Informational Source:
https://www.fortunebusinessinsights.com/defense-it-spending-market-105030
List of Key Players Profiled in the Defense IT Spending Market Report:
- Leidos Holding Inc. (The US)
- Accenture (Ireland)
- IBM Corporation (The US)
- General Dynamics Corporation (The US)
- BAE Systems PLC (The UK)
- DXC Technology Company (The US)
- Dell Inc. (The US)
- Northrop Grumman Corporation (The US)
- Unisys Corporation
- Atos SE (France)
- Capgemini SE (France)
- Fujitsu Limited (Japan)
- Oracle Corporation (The US)
- SAP SE (Germany)
- Microsoft Corporation (The US)
- Amazon, Inc. (The US)
- AT&T Intellectual Property (Canada)
- CACI International Inc. (The US)
- Atkins (The UK)
Segments
Hardware Segment Held 43.47% Market Share in 2019
The hardware segment, based on type, held a market share of about 43.47% in 2019 and is likely to gain momentum in the forthcoming years. This is ascribable to factors such as high defense IT spending by the defense department of several countries to develop cloud-based infrastructures.
What does the Report Provide?
The market report provides a detailed analysis of several factors such as the key drivers and restraints that will impact growth. Additionally, the report provides insights into the regional analysis that covers different regions, contributing to the growth of the market. It includes the competitive landscape that involves the leading companies and the adoption of strategies to introduce new products, announce partnerships, and collaborate that will further contribute to the market growth. Moreover, the research analyst has adopted several research methodologies such as PORTER’s Five Point Analysis to obtain information about the current trends and industry developments that will drive the market growth between 2020 and 2027.
DRIVING FACTORS
Growing Demand for Secure Communication Systems to Propel Growth
The growing to avert cyberattacks to protect the sensitive defense data is propelling the government agencies to increase their budget on defense IT. For instance, the United States Department of Defense announced its defense budget for Fiscal Year 2020 that is a staggering USD 721.5 billion. A significant increase to develop secure communications and boost its IT infrastructure. Moreover, increasing political tensions and the growing demand for strengthening military capabilities is leading the countries to adopt advanced IT systems. These factors are likely to contribute to the global defense IT spending market growth in the forthcoming years.
REGIONAL INSIGHTS
North America to Remain at Forefront; High Investment in Defense Sector to Aid Growth
Among all the regions, North America is expected to remain dominant and hold the highest position in the defense IT spending market share during the forecast period. This is attributable to the increasing spending on defense IT to modernize infrastructure by the governments in the region. North America stood at USD 30.16 billion in 2019.
The market in Asia-pacific is anticipated to showcase considerable growth backed by the increasing incidence of cyberattacks that is likely to boost the defense IT spending capacity of countries such as China, Japan, and India in the region between 2020 and 2027.
COMPETITIVE LANDSCAPE
The global market is consolidated by the presence of major companies that are striving to maintain their positions by focusing on securing government contracts under the defense IT spending category. Moreover, the adoption of organic and inorganic strategies by other key players to maintain their presence is expected to bode well for the growth of the market in the forthcoming years
Key Industry Development
- June 2020 – Fujitsu Australia Limited, a subsidiary of Fujitsu Limited, secured a USD 21.0 million worth contract from the Department of Defense. Under the contract, the company will help with project delivery services by integrating defense capability in the Department’s IT infrastructure.
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