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Digital Revolution in the Defense Industry to Create Opportunities for IT Services until 2020, Says TechnavioAccording to the latest market study released by Technavio, the global defense IT spending market is expected to reach USD 108.4 billion by 2020, growing at a CAGR of more than 3% during the forecast period. This research report titled 'Global Defense IT Spending Market 2016-2020' provides an in-depth analysis of the market in terms of revenue and emerging market trends. To calculate the market size, the report considers the revenue generated from IT investment or sale of IT products and services in the defense sectors across geographies - the Americas, EMEA, and APAC. The report also presents the vendor landscape and a corresponding detailed analysis of the top five vendors operating in the market. The need for IT and technology solutions has always existed in the defense sector across the world and the sector is known for utilizing the best and most advanced technologies leading to increased need for technological support services. Investments in IT solutions are used for increasing the efficiency and effectiveness of defense areas like business processes, mission systems, logistics, operations support, IT modernization, and intelligence information analysis. Request sample report: http://goo.gl/hYfySK Technavio's ICT analysts categorize the global defense IT spending market into three major segments by technology. They are:
IT services The IT services segment accounted for a market share of almost 48% in the global defense IT spending market in 2015. The defense services are working under tremendous cost pressure under a dynamic market environment. Due to tighter IT budget in some of the country for defense IT procurement, the demand for low cost IT solutions is increasing at an exponential rate. The key strategy adopted by MoD of several governments is to decrease the total cost of ownership of IT solutions significantly. Therefore, the emerging technology such as cloud computing is taking its place in the defense IT market. Many defense firms are also adopting SaaS (News - Alert) based solutions. However, there is a direct impact of SaaS adoption on the procurement of on-premises software solutions as the demand for on-premises software solutions will decrease. According to Amit Shrma, a lead IT spending by region and industry analyst from Technavio, "Digital revolution in the defense industry is also creating demand for IT services to support the digital programs implemented in military forces. IT support function services such as network support services, data base maintenance services, and other IT related support services are also generating significant revenue in the market. Consulting services are also selected by defense agencies to formulate their IT strategy that can improve the speed and efficiencies of IT process." Hardware The hardware segment was the second largest segment in the market in 2015 with a market share of over 37%. The hardware segment of the market is gaining momentum in the market due to increasing defense budget in some developing countries such as India and Africa. Many vendors are targeting the emerging market for defense procurement where the defense budget is increasing. A number of defense contracts are being awarded to vendors for data centers, servers, and storage solutions. The defense sector is also focusing on the reduction of power consumption in the data centers. Therefore, the procurement of flexible, scalable, and high capacity data centers is increasing. "The Australian government has implemented upgraded hardware in their data centers that are equipped with advanced disaster recovery systems. The demand for improved ICT infrastructure is a major factor behind the growth of the market. Investment in communication systems is also increasing due to the rapid adoption of emerging technologies such as software-defined radio systems," says Amit. Software The software segment was one of the fastest growing segments in the market in 2015 with a market share of approximately 15%. Software procurement in the defense sector is increasing gradually due to high adoption of software solutions to manage military operations, especially in the supply chain management system. The military consists of large and complex supply chain and logistics systems. The defense sector is implementing supply chain management software solution to reduce the supply chain cost and increase efficiency. BAE Systems (News - Alert), General Dynamics, and Lockheed Martin have been awarded the contracts of supply chains of two of Britain's largest defense programs. Fourteen contracts for three British programs across supply chains, which include equipment from Austria, Germany, and the US, and the UK, were also given to few vendors. These contracts showed the increasing globalization of defense supply chains and emphasized the demand from the British to look overseas for equipment. The top vendors highlighted by Technavio's research analysts in this report are: Browse Related Reports:
Do you need a report on a market in a specific geographical cluster or country but can't find what you're looking for? Don't worry, Technavio also takes client requests. Please contact [email protected] with your requirements and our analysts will be happy to create a customized report just for you. About Technavio Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies. Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users. If you are interested in more information, please contact our media team at [email protected].
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