Deltek SLED IT Market Forecast, 2023-26

This year's forecast introduces an updated methodology that maintains the core segments of the legacy IT series but integrates actual contracting data from Deltek’s comprehensive database of contracting activity. This approach allows for additional micro analysis for clients within the traditional segments and the forecast report now features a breakout for the important area of cloud services.     

Key market trends that will affect SLED IT spending:

• Potential for recession continues
• SLED market is returning to normal in volumes of competitive opportunities
• Stimulus programs of ARPA and IIJA provide funding stability and will help minimize any negative impacts on government budgets should a recession happen
• IT-relevant components of ARPA and IIJA include broadband and cybersecurity
• Governor’s agenda items from their annual addresses promise a number of IT investments

This report will help SLED IT contractors to:

• 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 and vertical.
• 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:

• Update of previous 2018-21 year estimates using the new methodology
• Estimating 2022 year data using actual source data
• Forecasting 2023-26 years
• 2021-2026 forecast series for four major IT segments and 22 categories

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

Methodology

A discussion of the updated methodology is available in the report. The analysis and forecasting is based primarily on the following two primary sources:

• Deltek’s GovWin IQ database of contracting data from 2018-22   
• The Bureau of Economic Analysis’ annual estimates of major categories of SLED procurement spend

Data Set

This report download also includes the companion data set in XLS format (download zipped file to unlock both files).

The data set includes estimated spending amounts (US$ millions) and a pivot table that allows the user to view estimates with one or more of the following classifications:

Years 2018 through 2026 (9)

• All 50 states + DC (51)
• Type of Government, using Deltek’s expanded list (8)
• Deltek Verticals (12)
• Deltek Major IT Segments (4)
• BEA Commodity Categories of IT (22) and associated NAICS Codes (22)