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Defense IT Spending Global Market Report 2024

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    Report

  • 200 Pages
  • February 2024
  • Region: Global
  • The Business Research Company
  • ID: 5790862
The global defense IT spending market 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 global defense IT spending market 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 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.

This report 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 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.


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Table of Contents

1. Executive Summary2. Defense IT Spending Market Characteristics3. Defense IT Spending Market Trends and Strategies
4. Defense IT Spending Market - Macro Economic Scenario
4.1. Impact of High Inflation on the Market
4.2. Ukraine-Russia War Impact on the Market
4.3. COVID-19 Impact on the Market
5. Global Defense IT Spending Market Size and Growth
5.1. Global Defense IT Spending Market Drivers and Restraints
5.1.1. Drivers of the Market
5.1.2. Restraints of the Market
5.2. Global Defense IT Spending Historic Market Size and Growth, 2018-2023, Value ($ Billion)
5.3. Global Defense IT Spending Forecast Market Size and Growth, 2023-2028, 2033F, Value ($ Billion)
6. Defense IT Spending Market Segmentation
6.1. Global Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
  • Services
  • Hardware
  • Software
6.2. Global Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
  • Defense Forces
  • Civilian Forces
6.3. Global Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
  • IT Infrastructure
  • Cybersecurity
  • Defense Cloud Computing
  • Data Analytics
  • IT Application
  • Logistics and Assets Management
  • Other Applications
7. Defense IT Spending Market Regional and Country Analysis
7.1. Global Defense IT Spending Market, Split by Region, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
7.2. Global Defense IT Spending Market, Split by Country, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
8. Asia-Pacific Defense IT Spending Market
8.1. Asia-Pacific Defense IT Spending Market Overview
Region Information, Impact of COVID-19, Market Information, Background Information, Government Initiatives, Regulations, Regulatory Bodies, Major Associations, Taxes Levied, Corporate Tax Structure, Investments, Major Companies
8.2. Asia-Pacific Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
8.3. Asia-Pacific Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
8.4. Asia-Pacific Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
9. China Defense IT Spending Market
9.1. China Defense IT Spending Market Overview
9.2. China Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F,$ Billion
9.3. China Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F,$ Billion
9.4. China Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F,$ Billion
10. India Defense IT Spending Market
10.1. India Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
10.2. India Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
10.3. India Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
11. Japan Defense IT Spending Market
11.1. Japan Defense IT Spending Market Overview
11.2. Japan Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
11.3. Japan Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
11.4. Japan Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
12. Australia Defense IT Spending Market
12.1. Australia Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
12.2. Australia Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
12.3. Australia Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
13. Indonesia Defense IT Spending Market
13.1. Indonesia Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
13.2. Indonesia Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
13.3. Indonesia Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
14. South Korea Defense IT Spending Market
14.1. South Korea Defense IT Spending Market Overview
14.2. South Korea Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
14.3. South Korea Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
14.4. South Korea Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
15. Western Europe Defense IT Spending Market
15.1. Western Europe Defense IT Spending Market Overview
15.2. Western Europe Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
15.3. Western Europe Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
15.4. Western Europe Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
16. UK Defense IT Spending Market
16.1. UK Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
16.2. UK Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
16.3. UK Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
17. Germany Defense IT Spending Market
17.1. Germany Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
17.2. Germany Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
17.3. Germany Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
18. France Defense IT Spending Market
18.1. France Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
18.2. France Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
18.3. France Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
19. Italy Defense IT Spending Market
19.1. Italy Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
19.2. Italy Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
19.3. Italy Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
20. Spain Defense IT Spending Market
20.1. Spain Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
20.2. Spain Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
20.3. Spain Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
21. Eastern Europe Defense IT Spending Market
21.1. Eastern Europe Defense IT Spending Market Overview
21.2. Eastern Europe Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
21.3. Eastern Europe Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
21.4. Eastern Europe Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
22. Russia Defense IT Spending Market
22.1. Russia Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
22.2. Russia Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
22.3. Russia Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
23. North America Defense IT Spending Market
23.1. North America Defense IT Spending Market Overview
23.2. North America Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
23.3. North America Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
23.4. North America Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
24. USA Defense IT Spending Market
24.1. USA Defense IT Spending Market Overview
24.2. USA Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
24.3. USA Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
24.4. USA Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
25. Canada Defense IT Spending Market
25.1. Canada Defense IT Spending Market Overview
25.2. Canada Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
25.3. Canada Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
25.4. Canada Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
26. South America Defense IT Spending Market
26.1. South America Defense IT Spending Market Overview
26.2. South America Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
26.3. South America Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
26.4. South America Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
27. Brazil Defense IT Spending Market
27.1. Brazil Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
27.2. Brazil Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
27.3. Brazil Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
28. Middle East Defense IT Spending Market
28.1. Middle East Defense IT Spending Market Overview
28.2. Middle East Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
28.3. Middle East Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
28.4. Middle East Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
29. Africa Defense IT Spending Market
29.1. Africa Defense IT Spending Market Overview
29.2. Africa Defense IT Spending Market, Segmentation by Type, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
29.3. Africa Defense IT Spending Market, Segmentation by Force, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
29.4. Africa Defense IT Spending Market, Segmentation by Application, Historic and Forecast, 2018-2023, 2023-2028F, 2033F, $ Billion
30. Defense IT Spending Market Competitive Landscape and Company Profiles
30.1. Defense IT Spending Market Competitive Landscape
30.2. Defense IT Spending Market Company Profiles
30.2.1. Leidos Holdings Inc.
30.2.1.1. Overview
30.2.1.2. Products and Services
30.2.1.3. Strategy
30.2.1.4. Financial Performance
30.2.2. Accenture plc
30.2.2.1. Overview
30.2.2.2. Products and Services
30.2.2.3. Strategy
30.2.2.4. Financial Performance
30.2.3. International Business Machines Corporation
30.2.3.1. Overview
30.2.3.2. Products and Services
30.2.3.3. Strategy
30.2.3.4. Financial Performance
30.2.4. General Dynamics Corporation
30.2.4.1. Overview
30.2.4.2. Products and Services
30.2.4.3. Strategy
30.2.4.4. Financial Performance
30.2.5. BAE Systems PLC
30.2.5.1. Overview
30.2.5.2. Products and Services
30.2.5.3. Strategy
30.2.5.4. Financial Performance
31. Global Defense IT Spending Market Competitive Benchmarking32. Global Defense IT Spending Market Competitive Dashboard33. Key Mergers and Acquisitions in the Defense IT Spending Market
34. Defense IT Spending Market Future Outlook and Potential Analysis
34.1 Defense IT Spending Market in 2028 - Countries Offering Most New Opportunities
34.2 Defense IT Spending Market in 2028 - Segments Offering Most New Opportunities
34.3 Defense IT Spending Market in 2028 - Growth Strategies
34.3.1 Market Trend-based Strategies
34.3.2 Competitor Strategies
35. Appendix
35.1. Abbreviations
35.2. Currencies
35.3. Historic and Forecast Inflation Rates
35.4. Research Inquiries
35.5. The Analyst
35.6. Copyright and Disclaimer

Executive Summary

This report 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.

Reasons to Purchase

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Description

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? This report 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.

Report Scope

Markets Covered:

1) By Type: Services; Hardware; Software
2) By Force: Defense Forces; Civilian Forces
3) By Application: IT Infrastructure; Cybersecurity; Defense Cloud Computing; Data Analytics; IT Application; Logistics and Assets Management; Other Applications

Key Companies Mentioned: Leidos Holdings Inc.; Accenture PLC; International Business Machines Corporation; General Dynamics Corporation; BAE Systems PLC

Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain

Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa

Time Series: Five years historic and ten years forecast

Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita

Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments

Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes

Delivery Format: PDF, Word and Excel Data Dashboard

Companies Mentioned

  • 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
  • Viasat

Methodology

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