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Comprehensive Defense IT Spending Market Insights: Forecasting Size, Growth, and Competitive Trends from 2025 to 2034

02-26-2025 08:37 AM CET | IT, New Media & Software

Press release from: The Business Research Company

Defense IT Spending Market Size

Defense IT Spending Market Size

What market dynamics are playing a key role in accelerating the growth of the defense it spending market?
The escalation of political disagreements is predicted to fuel the expansion of the defense IT spending market. Geopolitical conflicts, which can emerge due to power struggles, trade, military operations, climate crisis, or essential incidents, are political issues triggering tension among multiple nations. As such tensions grow, countries are turning to sophisticated IT systems, thus enhancing the demand for the defense IT spending market. For example, Uppsala University, a public institution in Sweden, noted in June 2022 that organized violence led to the death of 119,000 individuals in 2021, a 46 percent upsurge from the previous year. The Uppsala Conflict Data Program (UCDP) documented 54 distinct conflicts involving a state on one or both sides throughout 2021. Consequently, the increasing geopolitical disputes are stimulating the advancement of the defense IT spending market.

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How will the growth rate of the defense it spending market shape industry trends by 2034?
The market size of defense IT spending has seen a consistent growth over the past few years. It is expected to rise from $92.68 billion in 2024 to $96.57 billion in 2025, with a compound annual growth rate (CAGR) of 4.2%. This growth during the historical period is mainly driven by issues related to cybersecurity, the transition to cloud services, advancements in AI and analytics, and the integration of IoT.

The market size for defense IT spending is predicted to witness robust expansion in the upcoming years. The projection is that it will escalate to $129.87 billion by 2029, with a compound annual growth rate (CAGR) of 7.7%. This prospective growth over the prediction period is due to factors like development of autonomous systems, prioritization of mobile solutions, emphasis on interoperability, modernization endeavors, proliferation of IoT, and progress in AI and analytics. Key trends for this prediction period consist of security of the supply chain, satellite communication and space-related technologies, AI-powered autonomous systems, focusing on mobility solutions, integration and interoperability, and modernization drives.

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What trends are poised to drive the future success of the defense it spending market?
The emergence of product innovation as a prominent trend in the defense IT spending market is noteworthy. In order to solidify their market stance, chief companies in the defense IT spending arena are concentrating on the invention of novel product solutions. A case in point, BAE Systems, a UK enterprise active in the defense IT spending sector, introduced LiteWave, a new lightweight head-up display in May 2022. This product is designed exclusively for both commercial and military aircraft with distinct features like its capability to fit even in tight cockpit spaces. The installation is up to 80% quicker and its straightforward design allows for easier and less expensive maintenance. This product signifies the progression in the infusion of cutting-edge digital technology in the market. It is now ready for commencing flight trials for future customers on commercial and military aircraft.

Which primary segments of the defense it spending market are driving growth and industry transformations?
The defense IT spending market covered in this report is segmented -

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

Subsegments:
1) By Services: Consulting Services, System Integration Services, Managed IT Services, Cybersecurity Services
2) By Hardware: Servers And Storage Solutions, Networking Equipment, Communication Devices, Specialized Defense Equipment
3) By Software: Defense Management Software, Cybersecurity Software, Simulation And Training Software, Data Analytics Software

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Which geographical regions are pioneering growth in the defense it spending market?
North America was the largest region in the defense IT spending market in 2024. The regions covered in the defense it spending market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Who are the influential players reshaping the defense it spending market landscape?
Major companies operating in the defense IT spending market 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, Viasat

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What Is Covered In The Defense IT Spending Global Market Report?

• Market Size Forecast: Examine the defense it spending market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the defense it spending market for a structured understanding.
• Key Players Overview: Analyze major players in the defense it spending market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the defense it spending market.
• Segment Contributions: Evaluate how different segments drive overall growth in the defense it spending market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the defense it spending market.
• Industry Challenges: Identify potential risks and obstacles affecting the defense it spending market.
• Competitive Landscape: Review strategic developments in the defense it spending market, including expansions, agreements, and new product launches.

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With over 15,000+ reports from 27 industries covering 60+ geographies, The Business Research Company has built a reputation for offering comprehensive, data-rich research and insights. Our flagship product, the Global Market Model delivers comprehensive and updated forecasts to support informed decision-making.

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