The global defense IT spending market size is expected to experience significant growth by reaching USD 110.89 billion by 2027 while exhibiting a CAGR of 4.38% between 2020 and 2027. This is attributable to the growing demand for secure communication that is likely to surge the defense IT spending capacity of several countries worldwide. Fortune Business Insights in its latest report, titled, “Defense IT Spending Market Size, Share & COVID-19 Impact Analysis, By Type (Services, Hardware, and Software), By Application (IT Infrastructure, Cybersecurity, Defense Cloud Computing, Data Analytics, IT Application, Logistics & Asset Management, and Others), and Regional Forecast, 2020-2027.”, observes that the market stood at USD 81.28 billion in 2019.

 

COVID-19 Impact: Halted Defense Modernization Programs to Restrain Growth

The COVID-19 pandemic has abruptly disrupted several industrial operations and activities. Its effects have been felt across the defense sector as the governments of several countries have halted defense modernization programs to tackle the novel coronavirus. This is likely to affect the growth of the market in the near future.

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List of the Companies Profiled in the Defense IT Spending Market:

  • 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)

 

According to the report by Stockholm International Peace Research Institute (SIPRI), the military expenditure globally stood at USD 1,017 billion in 2019. This is estimated to be an increase of about 3.6 percent compared to 2018. Several governments are increasing their defense IT spending to develop advanced IT infrastructure to tackle several problems such as cyberattacks.

 

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.

 

KEY 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.

 

SEGMENTATION

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.

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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 questions answered in the report:

  • Which Manufacturing Technology is employed for Defense IT Spending? What Developments Are happening therein Technology? Which Trends Are Causing These Developments?
  • Who Are the worldwide Key Players during this Defense IT Spending Market? What’s Their Company Profile, Their Product Information, Contact Information?
  • What Was the Global Market Status of Defense IT Spending Market? What Was Capacity, Production Value, Cost, and PROFIT of Defense IT Spending Market?
  • What Is the Current Market Status of the Defense IT Spending Industry? What’s Market Competition during this Industry, Both Company, and Country Wise? What’s the marketing research of Defense IT Spending Market by Taking Applications and kinds in Consideration?
  • What Are Projections of worldwide Defense IT Spending Industry Considering Capacity, Production, and Production Value? What is going to Be the Estimation of Cost and Profit? What is going to Be Market Share, Supply and Consumption? What About Import and Export?
  • What Is Defense IT Spending Market Chain Analysis by Upstream Raw Materials and Downstream Industry?
  • What Is Economic Impact On Defense IT Spending Industry? What are Global Macroeconomic Environment Analysis Results? What Are Global Macroeconomic Environment Development Trends?
  • What Are the Market Dynamics of Defense IT Spending Market? What Are Challenges and Opportunities?
  • What Should Be Entry Strategies, Countermeasures to Economic Impact, and Marketing Channels for Defense IT Spending Industry?

 

Key Benefits to purchase this Defense IT Spending Market Report:

  • To gain insightful analyses of the Defense IT Spending market and have a comprehensive understanding of the global market and its commercial landscape.
  • Assess the production processes, major issues, and solutions to mitigate the development risk.
    To understand the most affecting driving and restraining forces in the market and its impact in the global market.
  • Learn about the market strategies that are being adopted by leading respective organizations.
    To understand the future outlook and prospects for the Defense IT Spending market.
  • Besides the standard structure reports, we also provide custom research according to specific requirements.

 

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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About Us:

Fortune Business Insights™ offers expert corporate analysis and accurate data, helping organizations of all sizes make timely decisions. We tailor innovative solutions for our clients, assisting them to address challenges distinct to their businesses. Our goal is to empower our clients with holistic market intelligence, giving a granular overview of the market they are operating in.

Our reports contain a unique mix of tangible insights and qualitative analysis to help companies achieve sustainable growth. Our team of experienced analysts and consultants use industry-leading research tools and techniques to compile comprehensive market studies, interspersed with relevant data.

At Fortune Business Insights™, we aim at highlighting the most lucrative growth opportunities for our clients. We, therefore, offer recommendations, making it easier for them to navigate through technological and market-related changes. Our consulting services are designed to help organizations identify hidden opportunities and understand prevailing competitive challenges.

 

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By Emelia Murison

Emelia Murison is a freelance writer and editor with a passion for innovation and technology. She covers breaking industry news, #SpaceForGood, and product reviews for the group. She also provides copywriting services to startups around the world – one of which introduced her to the world of Aerospace.

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