The Defense IT Spending Market Overview 2025 report reveals that the market size has grown significantly over the past few years, with projections indicating further expansion.
The market size of defense IT spending has consistently expanded in the past few years. The growth from $92.68 billion in 2024 to $96.57 billion in 2025 shows a compound annual growth rate (CAGR) of 4.2%.
The projected market size for the Defense IT Spending market in 2029 is expected to reach $129.87 billion, growing at a compound annual growth rate (CAGR) of 7.7%.
Download Your Free Sample of the 2025 Defense IT Spending Market Report and Uncover Key Trends Now!The key drivers in the defense it spending market are:
• Development of autonomous systems
• Emphasis on mobile solutions
• Focus on interoperability and modernization efforts
• Expansion of Internet of Things (IoT) and advancements in Artificial Intelligence and analytics.
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
The key trends in the defense it spending market are:
• The defense IT spending market is moving towards developing autonomous systems and implementing AI technology.
• There is an increased emphasis on mobile solutions within the defense sector.
• The trend of focusing on interoperability and integration continues to shape the market.
• The expansion of IoT and modernization initiatives are key emerging trends in this market.
Major companies 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
North America was the largest region in the defense IT spending market in 2024