A new Deltek report forecasts that the addressable information technology market for Department of Defense contractors will increase to $55.7B in fiscal year 2024 from $53B in FY19, with a compound annual growth rate of 1 percent.
DoD is projected to continue to implement enterprise-IT-as-a-service platforms as part of modernization programs and drive wider use of artificial intelligence, machine learning, cloud computing and advanced analytics tools across the department, Deltek said Monday.
Implementation of the Pentagon's upcoming Cybersecurity Maturity Model Certification could also serve as a primary standard for future defense contracts, according to the report.
“Contractors should be prepared for increased scrutiny of their IT environments, as well as the potential financial impact of complying with new security requirements," said John Slye, advisory research analyst at Deltek.
Another report from the Herndon, Va.-based company predicts that the intelligence community will increase IT investments to $11B in FY24 from $9.9B in FY19, with a CAGR of 2.2 percent.
Analysts noted that IC's budget support initiatives to address various threats and invest in cybersecurity, cloud, big data, AI, robotic process automation and machine learning offerings. Intelligence agencies are also pushing for efforts to eliminate silos and increase interagency collaboration.
Deltek’s GovWin Federal Market Analysis team produced the two reports.