Data is a critical component in driving many agencies’ daily operations and missions. Initiatives in data management, mining, cleansing, analysis, and dissemination reach every corner of the federal government.  Data priorities across agencies continue to center on making it a strategic asset and expanding evidence-based decision-making capabilities. Historical spending analysis reveals agencies’ increased spending in analytics, data management and integration, and AI/ML.

Rooted by principles in the Evidence Act and the Federal Data Strategy, the federal big data investment continues to be influenced by recent policies and legislation. For example, the CHIPS and Science Act, enacted to bolster U.S. semiconductor manufacturing as well as science and technology R&D, provides billions in funding for data-related initiatives at agencies such as DOE and NOAA.  Likewise, the Biden Administration’s priorities in open data, equity and diversity, and climate science are driving agency needs for increased data collection, metrics and visualization.  

Data continues to take precedence in federal R&D priorities. The benefits of high performance computing capabilities and the push to expand U.S. leadership in quantum science is poised to drive additional data-related investments. Data’s intersection with technology areas such as cybersecurity, 5G and AI/ML will directly impact agency short- and long-term goals of strengthened data management and infrastructure.   

Given these and other trends and drivers, federal spending in big data solutions and services is expected to grow across the defense, civilian and intelligence sectors. In a recent report on the big data market, Deltek forecasted demand to grow 22% from FY 2022 to FY 2024:

Other key findings in the report include:

• Federal Data Expansion. Legislation such as the CHIPS and Science Act, Biden Administration priorities, and the expansion of data-centric leadership and offices, will drive the demand for data governance, enhanced data metrics, advanced information sharing and accessibility, and the push for a data-literate workforce.
• Technology Intersections. While big data technologies enable emerging technologies such as AI and quantum computing, IT solutions such as 5G, zero trust, edge computing and data storage alternatives will enable the advancement of big data initiatives.
• Key Big Data Solution Areas. Federal agencies continue to increase contract spending for analysis support, analytics, data management and integration and AI/ML, growing from $2.9B in FY 2019 to $4.7B in FY 2021 for these capabilities.
• Big Data Software and Services. Evidence-based decision-making strategies as well as advanced analytics and AI will drive future investment in big data software and services. However, big data hardware spending will be slowed by low cost in hardware, shifts to the cloud, and agency use of data storage alternatives.

For additional insight please see Deltek’s Federal Big Data Market, 2022-2024 report.