Deltek Anticipates Continued Growth in the Federal Big Data Market

The criticality of federal data is higher than ever. In the last few years, agencies have set up data governance frameworks in efforts to make data identifiable, accessible and interoperable. The recent expansion in artificial intelligence (AI) technologies is driving agencies to better tag and inventory data to ensure responsible and trustworthy use of AI. Other emerging technologies such as the Internet of Things and zero trust are also influencing agency data efforts.

Given these drivers, it is understandable that many big data solution areas saw an increase in contract spending within the FY 2021-2023 period. Analytics and data management and integration, for example, each saw a 40% increase in spending from FY 2021-2023. High performance computing, analysis support and data storage/servers also saw increases in the three-year period.

To continue such efforts and more, Deltek forecasts that federal buying of big data goods and services will increase from $9.1B in FY 2024 to $12.3B in FY 2028. AI will likely be the market’s largest driver as agencies catalogue, standardize and verify the accuracy of internal datasets. Future investments will also center on priorities and challenges facing Chief Data Officers, including classifying data, integrating disparate data sets and fostering a date-driven culture.

Deltek’s new Federal Big Data Market, FY 2024-2028 report provides an in-depth analysis behind the big data marketplace to help prepare contractors for what is to come in federal big data.

Key findings of the report include:

• AI Influence. Agencies continue to improve data management practices and data hygiene as part of the drive to leverage AI and automation in operations and missions. 
• Technology Convergence. AI, zero trust, Internet of Things and edge computing initiatives are driving data tagging/labeling, while cloud computing is being used to scale and integrate data. 
• CDO Priorities. Top priorities for Chief Data Officers include implementing data strategies, enabling data-driven decisions, improving data management infrastructure and data organization. 
• Top Data Challenges. Key data challenges at agencies include understanding the data sets that exist within the organization, ensuring data integrity and creating a data-driven culture. 
• Cloud-Based Analytics. Driven by convenience and the availability of cutting-edge capabilities, agencies are turning to cloud-based analytics more than ever. 
• Storage and Servers Investment. Agency investment in storage and servers grew 22% from FY 2021 to 2023, driven by needs arising with AI adoption. 
• Small Business Growth. Small business awards for big data-related products and services grew 34% from FY 2021 to 2023 across both the defense and civilian sectors. 

To view the full report, see Deltek’s Federal Big Data Market, 2024-2028.