Defense Information Technology (IT) Spending - Global Strategic Business Report

The global market for Defense Information Technology (IT) Spending was estimated at US$96.2 Billion in 2024 and is projected to reach US$113.5 Billion by 2030, growing at a CAGR of 2.8% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Defense Information Technology (IT) Spending market.

Global Defense Information Technology (IT) Spending Market - Key Trends and Drivers Summarized

Defense Information Technology (IT) Spending: Securing the Future of National Defense

Defense Information Technology (IT) spending encompasses the investment in technology and digital infrastructure by defense organizations to enhance national security, streamline operations, and support military capabilities. This includes expenditures on hardware, software, cybersecurity, data management, and communication systems, among others. Defense IT is critical in modern warfare, as it enables the integration of advanced technologies, such as artificial intelligence (AI), cybersecurity solutions, and cloud computing, into defense operations. The reliance on IT systems for everything from battlefield communications to intelligence gathering makes IT spending a vital component of national defense strategies, ensuring that military forces remain agile, informed, and prepared to respond to emerging threats.

How Are Technological Advances Influencing Defense IT Spending?

Technological advancements are playing a significant role in shaping defense IT spending, as defense agencies seek to leverage cutting-edge technologies to maintain a strategic advantage. The adoption of AI and machine learning for predictive analytics, autonomous systems, and decision-making support is driving significant investments in IT infrastructure and software development. The shift towards cloud computing and the need for secure, scalable, and flexible IT environments are also influencing defense IT spending, as agencies move away from traditional data centers to cloud-based solutions. Additionally, the increasing importance of cybersecurity in protecting sensitive defense information and critical infrastructure is leading to greater investments in advanced cybersecurity tools, including encryption, threat detection, and incident response capabilities. The integration of these technologies into defense operations requires substantial IT spending to ensure interoperability, reliability, and security.

What Challenges Are Associated with Defense IT Spending?

Defense IT spending faces several challenges, particularly in terms of balancing the need for modernization with budget constraints and the complexities of integrating new technologies into existing systems. One of the primary challenges is ensuring the security and resilience of IT systems against cyber threats, which are becoming increasingly sophisticated and capable of targeting critical defense infrastructure. The rapid pace of technological change also presents a challenge, as defense agencies must continuously upgrade their IT systems to keep pace with advancements in AI, cybersecurity, and other key areas. Additionally, the need for interoperability between different branches of the military and allied forces requires careful planning and investment to ensure seamless communication and coordination. Budget limitations and the lengthy procurement processes associated with government spending can further complicate efforts to modernize defense IT infrastructure.

What Is Driving Growth in Defense IT Spending?

The growth in the defense IT spending market is driven by several factors. The increasing reliance on digital technologies and data-driven decision-making in military operations is a major driver, as defense agencies seek to enhance their capabilities through IT investments. The growing threat of cyberattacks on critical infrastructure is also fueling demand for advanced cybersecurity solutions, leading to increased IT spending in this area. Additionally, the expansion of AI, cloud computing, and big data analytics in defense applications is driving the need for more sophisticated IT systems and infrastructure. The need to modernize outdated IT systems and ensure interoperability with allied forces is further contributing to the growth in defense IT spending. As defense organizations continue to adapt to the evolving technological landscape, IT spending is expected to remain a priority in national defense budgets.

SCOPE OF STUDY:

The report analyzes the Defense Information Technology (IT) Spending market in terms of units by the following Segments, and Geographic Regions/Countries:

• Segments: Component (Services, Hardware, Software); End-Use (Cybersecurity End-Use, IT Infrastructure End-Use, Logistics & Asset Management End-Use, Other End-Uses)
• Geographic Regions/Countries: World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Services segment, which is expected to reach US$55.4 Billion by 2030 with a CAGR of a 3.3%. The Hardware segment is also set to grow at 2.6% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $26.0 Billion in 2024, and China, forecasted to grow at an impressive 5.6% CAGR to reach $23.0 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Defense Information Technology (IT) Spending Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Defense Information Technology (IT) Spending Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Defense Information Technology (IT) Spending Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as Accenture Plc, AtkinsRealis Group, Inc., BAE Systems Plc, Capgemini SE, Cubic Corp. and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 51 companies featured in this Defense Information Technology (IT) Spending market report include:

• Accenture Plc
• AtkinsRealis Group, Inc.
• BAE Systems Plc
• Capgemini SE
• Cubic Corp.
• Dell Technologies, Inc.
• DXC Technology Company
• General Dynamics Information Technology, Inc. (GDIT)
• International Business Machines Corp.
• Kratos Defense & Security Solutions, Inc.
• Leidos Holding, Inc.
• ManTech International Corp.
• Microsoft Corp.
• Northrop Grumman Corp.
• Oracle Corp.
• Palantir Technologies, Inc.
• Pennant International Group Plc
• Science Applications International Corporation

This edition integrates the latest global trade and economic shifts as of June 2025 into comprehensive market analysis. Key updates include:

• Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
• Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes segmentation by product, technology, type, material, distribution channel, application, and end-use, with historical analysis since 2015.
• Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
• Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
• Competitive Intelligence: Updated global market share estimates for 2025, competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
• Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.
• Complimentary Update: Buyers receive a free July 2025 update with finalized tariff impacts, new trade agreement effects, revised projections, and expanded country-level coverage.