Defense IT Spending Market Report 2026

Defense IT Spending Market Overview

• Defense IT Spending market size has reached to $96.12 billion in 2025 • Expected to grow to $137.48 billion in 2030 at a compound annual growth rate (CAGR) of 7.4% • Growth Driver: Surging Global Military Expenditure Fuels Expansion Of The Defense It Spending Market • Market Trend: Innovation In Tactical-Edge IT Systems For Mission-Critical Defense Operations • North America was the largest region in 2025.

What Is Covered Under Defense IT Spending Market?

Defense IT spending is the expenditure of any collection of computers, software, and networks of defense systems. It is the money spent by a government to provide its military with various technologies and infrastructure. The main types of defense IT spending are services, hardware and software. Hardware refers to the physical parts of a computer and related devices. The forces are defense forces and civilian forces. It has various applications involved such as IT infrastructure, cybersecurity, defense cloud computing, data analytics, IT application, logistics and assets management and others.

What Is The Defense IT Spending Market Growth Forecast?

The defense it spending market size is expected to see strong growth in the next few years. It will grow to $137.48 billion in 2030 at a compound annual growth rate (CAGR) of 7.4%. The growth in the forecast period can be attributed to increasing demand for ai-enabled defense analytics, rising investments in cyber defense capabilities, expansion of cloud-based defense platforms, growing integration of autonomous systems, increasing focus on data-driven military operations. Major trends in the forecast period include increasing investments in cybersecurity infrastructure, rising adoption of defense cloud computing platforms, growing use of data analytics for mission planning, expansion of integrated defense it systems, enhanced focus on secure network modernization.

Global Defense IT Spending Market Segmentation

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

What Is The Driver Of The Defense IT Spending Market?

Rising military expenditure is expected to propel the growth of the defense IT spending market going forward. Military expenditure is the financial resources allocated by a government or a nation to fund its military forces, defense infrastructure, and related activities. Military expenditure plays a crucial role in defense IT spending by funding the development, deployment, and maintenance of advanced technologies, cybersecurity measures, and information systems essential for national security and military operations. For instance, in April 2024, according to the Stockholm International Peace Research Institute, a Sweden-based specialized institute, global military spending rose to $2,443 billion in 2023, marking a 6.8% increase in real terms compared to 2022. Therefore, rising military expenditure is driving the growth of the defense IT spending industry.

Key Players In The Global Defense IT Spending Market

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

Global Defense IT Spending Market Trends and Insights

Major companies operating in the defense IT spending market are focusing on developing tactical‑edge ruggedised IT systems coupled with software‑defined deployment platforms to meet the rising demand for mission‑critical communications. These systems combine durable, field‑hardened hardware with software frameworks that allow rapid setup, remote management and mission‑specific configuration. For instance, in August 2023, MilDef Group AB, a Sweden‑based provider of tactical IT hardware, software and services, launched a new generation of panel PC technology, a mini‑series of computers and switches, and its OneCIS battle‑station software solution designed for rapid deployment at the tactical edge. The product suite features detachable screen modules that dock with compute units, Android‑based devices for dismounted soldier systems, and network switches designed for extreme field conditions. It enables rapid deployment of IT services at the front line, supports seamless integration across land, cyber, electromagnetic, sea and air domains, and accelerates the digitalisation of vital information streams in challenging environments.

What Are Latest Mergers And Acquisitions In The Defense IT Spending Market?

In June 2024, Cognizant, a US- based information technology company, acquired Belcan LLC for a deal of $1.3 billion. The acquisition will greatly enhance Cognizant's engineering, research, and development (ER&D) capabilities, strengthening its leadership in the Internet of Things (IoT) and Digital Engineering sectors. Belcan LLC is a US-based provider of information technology (IT) services to customers in the aerospace, defense, automotive, industrial and government sectors.

Regional Insights

North America was the largest region in the defense IT spending market in 2025. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Defense IT Spending Market?

The defense IT spending market consists of sales of defense material handling, enabling cost-savings and a competitive edge to the army, naval, and space domain. The market value includes the value of related goods sold by the service provider or included within the service offering. The defense IT spending market also includes sales of spending on defense equipment such as weapons, aircraft, and gear or personal equipment. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Defense IT Spending Market Report 2026?

The defense it spending market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the defense it spending industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.