Defense IT spending: Key market research findings
- The Americas dominate the market geographically
- IT services account for a majority of the market’s revenue
- Key vendors – Accenture, CSC, Dell, HP, and IBM
Technavio’s market research analysts predict the global defense IT spending market to grow at a CAGR of more than 3% between 2016 and 2020. The growth of the market can be accredited to the increasing adoption of cyber security systems across the globe. One of the emerging strategies opted by various governments is to plan a framework jointly and to find solutions for cyber security. Vendors in the market are offering upgraded security solutions for cloud-based security solutions, wireless technology security solutions, and network security solutions. During 2015, the global defense IT spending market was dominated by the Americas with a market share of around 44%. The use of cloud computing, wearable technology, biometrics, IoT, and other innovative IT solutions will boost growth in the defense IT spending market in the Americas during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the defense IT spending segments on the basis of the technology.
“Of late, there has been an increase in the adoption of Big Data and analytics for defense-related operations. Data gathered from various sources such as military records, drones, defense intelligence systems, and other sources are clustered together to find the correlations and patterns that can help to plot defense strategies. A large amount of data gathered from military operations are analyzed and sent to military troops directly using analytics solutions such as Wave Exploitation network provided by analytics firm Modus Operandi,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.
In 2015, the IT services segment was the dominant shareholder in the global defense IT spending market by accounting for around 48% of the overall market revenue. Digital revolution in the defense industry is stimulating the demand for IT services to support the digital programs implemented in military forces. IT support function services such as network support services, database maintenance services, and other IT-related support services are also generating significant revenues in the market.
The key vendors in the market include Accenture, CSC, Dell, HP, and IBM. The competition among the vendors providing IT solutions to defense sector is fierce both in the domestic and international markets. Various new players are also entering the market to provide IT solutions for military organizations and army intelligence. Since the customer requirements are changing in the defense sector, vendors are increasing their product and service portfolio to maximize their market shares. Mergers and acquisitions can also be witnessed, as several larger companies are acquiring smaller companies to gain the technological advantages such as innovation in storage and cyber-security solutions.
A more detailed analysis is available in the Technavio report, Global Defense IT Spending Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
Other related reports:
