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Defense IT Spending Market to Hit $110.89 Billion by 2027; Increasing Adoption of Digitization Services to Stimulate Growth

March 16, 2021 | Aerospace & Defense

The global defense IT spending market size is expected to showcase exponential growth by reaching USD 110.89 billion by 2027. The growth is attributable to the increasing adoption of digitization in the defense sector that is likely to surge the defense IT spending capacity of countries worldwide. This information is published by 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.” The report further mentions that the market stood at USD 81.28 billion in 2019 and is projected to exhibit a CAGR of 4.38% between 2020 and 2027.

Fujitsu Introduces Advanced Digital Trust Management Technology to Ensure Authenticity in Business Data

In October 2020, Fujitsu Laboratories Ltd., a wholly owned subsidiary of Fujitsu Limited, announced the development of first-ever industrial technology that enables assign and manage authentic digital signatures for businesses without the need for specialized business systems. Additionally, the technology helps manage, integrate, and verify data creation processes efficiently through the help of cloud services. The technology is favorable for several government and private agencies that handle sensitive data and require optimum level of security.  

To get a detailed report summary and research scope of this market, click here:


Increasing Adoption of Digitization Services to Promote Growth

The evolving nature of warfare demands higher adaptability to situations and advanced weapons. It is critical to take necessary strategic decisions during battlefield operations to avoid loss of personnel and infrastructure. Therefore, several governments are focusing on adopting digitization that includes incorporation of advanced technologies such as artificial intelligence (AI), machine learning, and others to develop advanced drones and weapon equipment. Moreover, the rising IT spending in defense by the government agencies primarily focuses on improving IT infrastructure to mitigate external threats. This is likely to boost the global defense IT spending market growth in the forthcoming years.

Product Innovation by Companies to Strengthen Their Market Positions

The global defense IT spending market is fragmented by the presence of major companies that are striving to maintain a stronghold by developing innovative IT products to cater to the growing demand from defense organizations. Moreover, the high defense IT spending capacity of several countries presents a lucrative opportunity for several companies to maintain their presence by adopting strategies such as partnerships and collaborations. 

Industry Development:

  • October 2020 -  Northrop Grumman Corporation announced the signing of a contract worth USD 690 million with the U.S. General Services Administration’s (GSA) Federal Systems Integration and Management Centre (FEDSIM) and Defense Intelligence Agency (DIA). As per the contract, the company is expected to deliver enhanced decision superiority and actionable intelligence with the help of its Transforming All-Source Analysis with Location-Based Object Services (TALOS) program.

List of the Companies Profiled in the Global 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)

Further Report Findings:

  • North America stood at USD 30.16 billion in 2019. The region is expected to hold the highest position in the global defense IT spending market share during the forecast period. This is attributable to the increasing defense IT spending capacity of the government in countries such as the U.S. that will bode well for the market growth in the region between 2020 and 2027.  

  • Based on type, the hardware segment held a market share of about 43.47% in 2019 and is likely to showcase considerable growth due to high demand for cloud computing infrastructure globally.

  • The global market in Europe is anticipated to experience significant growth backed by the presence of key players such as Atos SE, SAP, and BAE Systems PLC.

Table of Segmentation:



Study Period


Base Year


Forecast Period


Historical Period



  Value (USD Billion)


   Type; Application and Geography

By Type

  • Services

  • Hardware

  • Software

By Application

  • IT Infrastructure

  • Cybersecurity

  • Defense Cloud Computing

  • Data Analytics

  • IT Application

  • Logistics & Asset Management

  • Others



By Geography

  • North America (By Type, Application, and Country)

    • The U.S. (By Type)

    • Canada (By Type)

  • Europe (By Type, Application, and Country)

    • The U.K. (By Type)

    • Germany (By Type)

    • France (By Type)

    • Italy (By Type)

    • Russia (By Type)

    • Nordic (By Type)

    • Rest of Europe (By Type)

  • Asia-Pacific (By Type, Application, and Country)

    • China (By Type)

    • India (By Type)

    • Japan (By Type)

    • Australia (By Type)

    • South Korea (By Type)

    • Rest of Asia-Pacific (By Type)

  • Latin America (By Type, Application, and Country)

    • Mexico (By Type)

    • Brazil (By Type)

    • Rest of Latin America (By Type)

  • The Middle East & Africa (By Type, Application, and Country)

    • Turkey (By Type)

    • Saudi Arabia (By Type)

    • The UAE (By Type)

    • Rest of the Middle East and Africa (By Type)


Global Defense IT Spending Market
  • PDF
  • 2019
  • 2016-2018
  • 213


  • 4850

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