About Defense IT Spending
In defense sector, spending on IT services and products is maximum due to data- intensive nature. In Defense IT market, it is expected to mark significant growth over forecasted period owing to increasing consumers spending on defense cloud computing, cyber security, data collection sensors and technological advancement. There has been significant rise in government spending on defense covers salaries, maintains & purchases arms, equipments and funds military operations with figure stood up to 649 Billion in United States alone in 2018, the future for defense IT spending looks promising. Some of the prominent trends that the market is observing include rising adoption of IT as a service, emergence of cloud computing services and advent of big data and analytics services.
Attributes | Details |
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Study Period | 2018-2028 |
Base Year | 2022 |
High Growth Market | Asia Pacific |
Unit | Value (USD Million) |
CAGR | 3.1% |
In Defense IT Spending market, it has been observed that most of the companies are upgrading or introducing different strategy and technology that provides more defense acquisition system. The major companies are concentrated in providing services to IT, construction and facilities maintenance. Analyst at AMA Research estimates that United States Players will contribute the maximum growth to Global Defense IT Spending market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Leidos (United States), Accenture (Ireland), IBM (United States), General Dynamics (United States), BAE Systems (United Kingdom), DXC (United States), Dell (United States), Northrop Grumman (United States), Unisys (United States) and Atos (France) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are Capgemini (France), Fujitsu (Japan), Oracle (United States) and SAP (Germany).
Segmentation Overview
AMA Research has segmented the market of Global Defense IT Spending market by Type (Services, Hardware and Software), Application (IT Infrastructure, Network & Cyber Security, IT Application, Logistics & Asset Management and Others) and Region.
On the basis of Type, Services are dominating the market in the year 2022 where as Hardware stood as second largest market share.
On the basis of geography, the market of Defense IT Spending has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). North America region held largest market share in the year 2022. Europe, on the other hand, stood as the second largest market due to the presence of key companies in the region and high technological advancement. If we see Market by Organization Size, the sub-segment i.e. Small & Medium Scale Enterprises (SMEs) will boost the Defense IT Spending market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Emergence of IoT Analytics and Rise in demand of Defense IT spending in Asia-pacific regions
Market Growth Drivers:
Rise in ICT Sector Investments Boost the Market. and Improve and Secure Communication Systems is Fuelling Investments in the Defense Sector.
Challenges:
Limitation Due to Lack of Awareness among the Customers are Anticipated to Challenge the Market. and Sophisticated Migration Issue In Defense IT Spending Hampers the Global Market.
Restraints:
Cyber-Attacks and System Failure Hampers the Defense IT Spending Market. and Upfront Cost and Operations Agibility Associated with in Defense IT Spending Market.
Opportunities:
Proliferation of Adoption of IT as a Service Leads to Grow the Market. and Upsurge Demand of Wearable Computing, IoT, 3D Printing and Mobile Solutions.
Market Leaders and their expansionary development strategies
In October 2023, Leidos Holdings, Inc. has started partnership with L3Harris Technologies, Inc. is a significant event in the defense and technology industries. The combined company will be a global leader with a strong presence in a number of key markets. The merger is expected to create value for shareholders of both companies.
In May 2023, US Air Force launched a new cloud computing initiative that will centralize its data and applications on a cloud-based platform. The initiative is expected to improve efficiency and collaboration among Air Force personnel.
Key Target Audience
Defense IT Spending Manufacturers, Defense IT Spending Traders, End-Use Market Participants of Different Segments of Defense IT Spending, Government and Research Organizations, R&D Institutions and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.