PUBLISHER: The Business Research Company | PRODUCT CODE: 1425383
PUBLISHER: The Business Research Company | PRODUCT CODE: 1425383
Defense IT Spending Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on defense it spending market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for defense it spending? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The defense it spending market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Defense IT spending refers to the financial investment in a collection of computers, software, and networks dedicated to defense systems. It represents the funds allocated by a government to equip its military with various technologies and infrastructure.
The primary categories of defense IT spending include services, hardware, and software. Hardware encompasses the physical components of computers and related devices. The forces involved in defense IT spending include defense forces and civilian forces. Applications of defense IT spending cover a wide range, including IT infrastructure, cybersecurity, defense cloud computing, data analytics, IT applications, logistics and assets management, and other related areas.
The defense IT spending market research report is one of a series of new reports from The Business Research Company that provides defense IT spending market statistics, including defense IT spending industry global market size, regional shares, competitors with a defense IT spending market share, detailed defense IT spending market segments, market trends and opportunities, and any further data you may need to thrive in the defense IT spending industry. This defense IT spending market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The defense IT spending market size has grown strongly in recent years. It will grow from $90.05 billion in 2023 to $94.89 billion in 2024 at a compound annual growth rate (CAGR) of 5.4%. The growth observed in the historical period can be attributed to concerns related to cybersecurity, the transition towards cloud services, advancements in artificial intelligence and analytics, and the integration of the Internet of Things (IoT).
The defense IT spending market size is expected to see strong growth in the next few years. It will grow to $119.53 billion in 2028 at a compound annual growth rate (CAGR) of 5.9%. The anticipated growth in the forecast period can be attributed to the development of autonomous systems, an increased emphasis on mobile solutions, a focus on interoperability, ongoing modernization efforts, the expansion of the Internet of Things (IoT), and advancements in artificial intelligence and analytics. Major trends in the forecast period encompass supply chain security, the utilization of satellite communication and space-based technologies, the integration of AI-enabled autonomous systems, a focus on mobility solutions, emphasis on interoperability and integration, and continued modernization initiatives.
The anticipated growth in the defense IT spending market is attributed to increasing geopolitical tensions. Geopolitical concerns between nations are prompting the adoption of advanced IT systems to address various challenges. For instance, in June 2022, Uppsala University reported a 46% increase in organized violence-related deaths compared to the previous year. This rise in geopolitical tensions is leading to a heightened demand for defense IT spending as countries invest in advanced technologies to bolster their national security.
The defense IT spending market is expected to witness significant growth due to the surge in global military expenditure. Governments allocate substantial financial resources to fund military forces, defense infrastructure, and related activities. In April 2023, the Stockholm International Peace Research Institute reported a record-high world military expenditure of $2,240 billion in 2022. With the United States, China, and Russia accounting for 56% of the total spending, the increased investment in military capabilities is propelling the growth of the defense IT spending market.
A key trend in the defense IT spending market is the focus on product innovation by major industry players. Companies are actively developing new product solutions to enhance their market position. For instance, BAE Systems launched the LiteWave lightweight head-up display for both commercial and military aircraft in May 2022. This innovative product offers unique features, including easy installation in limited cockpit space, faster maintenance, and state-of-the-art digital technology. The emphasis on product innovation underscores the commitment of industry leaders to stay at the forefront of technological advancements.
In February 2021, Veritas Capital, a private-equity firm based in New York, successfully completed the acquisition of Northrop Grumman for a cash amount totaling $3.4 billion. This strategic acquisition brings together two entities to form a prominent government mission capability integrator and IT provider. The newly integrated organization is dedicated to delivering advanced technology-enabled services and unparalleled support across a diverse spectrum of critical government missions. Northrop Grumman, the acquired company, is based in the United States and operates in the defense IT spending sector. This acquisition reflects Veritas Capital's commitment to strengthening its position in the government services and technology market, leveraging the combined expertise and capabilities of the newly formed entity to address the evolving needs of government missions.
In August 2021, Huntington Ingalls Industries, a prominent US-based shipbuilding company, successfully completed the acquisition of Alion Science and Technology. The financial details of the transaction were not disclosed. This strategic move is poised to augment Huntington Ingalls Industries' national security solutions portfolio, presenting substantial opportunities for revenue generation and long-term value creation. Alion Science and Technology, the acquired company, is based in the United States and specializes in providing technology-based solutions for the global defense marketplace. The acquisition is aligned with Huntington Ingalls Industries' strategy to strengthen its position in the defense sector and enhance its capabilities in delivering cutting-edge solutions for national security.
In February 2021, Veritas Capital, a private-equity firm headquartered in New York, successfully acquired Northrop Grumman for a cash amount totaling $3.4 billion. This acquisition marks the creation of a leading government mission capability integrator and IT provider, with a strategic focus on delivering high-end technology-enabled services and unparalleled support for a diverse range of critical government missions. Northrop Grumman, the acquired company, is a US-based entity operating in defense IT spending. The transaction reflects Veritas Capital's commitment to consolidating its presence in the government services and technology market, leveraging the combined expertise of the newly formed entity to address the evolving needs of government missions.
Major companies operating in the defense it spending market report are Leidos Holdings Inc., Accenture PLC, International Business Machines Corporation, General Dynamics Corporation, BAE Systems PLC, DXC Technology Company, Dell Inc., Northrop Grumman Corporation, Unisys Corporation, Atos SE, Capgemini SE, Fujitsu Limited, Oracle Corporation, SAP SE, Microsoft Corporation, Amazon Inc., AT&T Intellectual Property, CACI International Inc., Atkins, Raytheon Technologies Corp., Lockheed Martin Corporation, Aerojet Rocketdyne Holdings Inc., L3Harris Technologies Inc., Science Applications International Corporation, Kratos Defense & Security Solutions Inc., Mercury Systems Inc., Cubic Corporation, Parsons Corporation, Hewlett Packard Enterprise Development LP, and Viasat.
North America was the largest region in the defense IT spending market in 2023. The regions covered in the defense it spending market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the defense it spending market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The defense IT spending market consists of sales of defense material handling, enabling cost-savings and a competitive edge to the army, naval, and space domain. The market value includes the value of related goods sold by the service provider or included within the service offering. The defense IT spending market also includes sales of spending on defense equipment such as weapons, aircraft, and gear or personal equipment. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.