SLED IT Market, FY 2021-2024

Published: June 17, 2021

FeaturedForecasts and SpendingInformation Technology

State, local, and education (SLED) demand for vendor-furnished IT systems and services will stabilize after the economic repercussions of the 2020 pandemic-induced lockdown to grow from $129.3 billion in FY 2021 to $137.6 billion in FY 2024. This represents a 2.1% compound annual growth rate (CAGR) for the forecast period.

See also: SLED IT Market, FY 2021-2024 (data set)

This year's forecast looks back at last year's forecast predictions for major market transitions and evaluates the degree to which they have come to fruition and will be impacting the forecast period. Also analyzed is the direct impact of American Rescue Plan Act (ARPA) funding. Highlights of the intersection between the governors' and the federal agenda are also reviewed.

Key market transitions:

Increased Telework will Generate Significant Operational Savings
Mass Transit will Have to be Reinvented
The Virtual Campus will Be a Permanent Part of Higher Education
The Enterprise CIO Will Become a Service Broker
Pandemic Response will Become a Federalized Concern
Preventing Abuse and Riot Control Will Dominate Law Enforcement Efforts

This report will help SLED IT contractors?

Assess the SLED information technology (IT) market size, forecasts, and segmentation for purposes of business development (BD) strategic planning.
Assess the proportion of IT spending by state, level of government, vertical, and function of government.
Assess the proportion of IT spending among the major market segments (i.e., Communications & Network Services, IT Hardware & Equipment, IT Services, and Software Products).

This forecast report includes the following:

2019 forecast reconciliation versus complete actual data
2020 forecast reconciliation versus partial actual data
2021-2024 forecast for four major IT segments and 20 sub-segments

NOTE: This report is presented as a chart book of data providing the highest-level overview of the SLED market.

Methodology

Adapting data produced by U.S. Department of Commerce analysis of U.S. gross domestic product (GDP), Deltek's forecast model generates over 2.7 million data points and is the most comprehensive and sophisticated model available for the SLED market.

Introduction (slides 6-12)

  • Reconciliation of Previous Years’ Forecast Figures
  • Purpose of This Report
  • What is the State, Local, and Education (SLED) market?
  • Scope and Methodology
  • A Note on Data Sources
  • Scope: Segment Definitions
  • A Note on the Use of Fiscal Years

Market Forecasts (slides 14-43)

  • Economic Outlook
  • Market Volatility
  • Forecast Reconciliation
  • Historical Growth
  • SLED Contractor-Addressable IT Market, FY 1997-2019
  • SLED Contractor-Addressable IT Market by Segment, FY 1997-2019
  • Contractor-Addressable IT Market, FY 2019-2024
  • Assumptions from Last Year's Forecast
  • Direct Impact of ARPA on the SLED IT Market
  • Major SLED Market Transitions, 2021-24
  • Major Federal Actions To Be Determined
  • Intersection of the Governors' & Federal Agendas

Market Forecasts by Segments and Sub-Segments

  • SLED IT Market by Segment, FY 2019-2024
  • SLED Communications & Network Services Market, FY 2019-2024
  • SLED IT Hardware & Equipment Market, FY 2019-2024
  • SLED IT Hardware & Equipment Market – Communications, FY 2019-2024
  • SLED IT Hardware & Equipment Market – Computers & Peripherals, FY 2019-2024
  • SLED IT Hardware & Equipment Market – Other, FY 2019-2024
  • SLED IT Services Market, FY 2019-2024
  • SLED IT Services Market - Outsourcing, FY 2019-2024
  • SLED Software Products Market, FY 2019-2024
  • Analyst's Takes

Appendix A: State IT Spending Profiles (slides 45-198)

The following slides are included for each of the 50 states and the District of Columbia:

  • State IT Spending Profile vs. U.S. Total, FY 2022
  • Contractor-Addressable IT Market, FY 2022 (by Market Verticals)
  • Contractor-Addressable IT Market, FY 2022 (by Market Segments)

Appendix B: Terms & Definitions (slides 200-204)

  • Terms and Definitions – Sub-Segments