Federal Civilian IT Market, 2022-2024

Deltek forecasts federal civilian sector spending on contractor-supplied Information Technology (IT) products and services will grow from $52.1 billion in FY 2022 to $58.8 billion in FY 2024.

The federal civilian IT landscape is a complex amalgamation of rapid technological change and entrenched legacy infrastructure. In its budgeting and policies, the Biden Administration continues to emphasize IT modernization, cybersecurity and investments in key technologies as critical mission enablers. This agenda presents opportunities in systems modernization, cloud computing, cybersecurity, artificial intelligence, data analytics, and automation.

Deltek forecasts the civilian sector of the federal IT market will continue to show moderate growth over the next few years as agencies continue to emerge from the COVID-19 pandemic, shore up vulnerabilities exposed by major cybersecurity incidents, and invest in IT that adds new operational capabilities.

Key Findings

• Steady IT Budgets. Agency IT budgets show modest growth, driving agencies to seek out commercial solutions and contractor support that will allow them to gain modernized capabilities without major budget commitments.
• Inflation Impacts. Inflation is exacerbating shortages down through contractors' supply chains and driving up their cost of delivery.
• Cloud Growth. Civilian sector spending on cloud computing accelerated from FY 2020 to 2021 despite the COVID-19 crisis. Growth in the availability of FedRAMP-approved solutions, and the publication of Infrastructure, Software, Platform and Email-as-a-Service Use Cases by the CISA are helping drive cloud adoption.
• Gov-wide Cyber Priorities. The May 2021 cybersecurity Executive Order 14028 has a broad reach; agencies continue to develop policies and make investments to meet requirements for zero trust, cyber data collection and sharing, vulnerability and incident response, cloud security and software supply chain security.
• Artificial Intelligence Evolution. Civilian sector spending on AI continues to strengthen as agencies expand adoption for needs ranging from task automation to complex scientific analysis. However, data preparation, culture change, inherent bias and federal oversight continue to challenge agency implementation of AI.
• Morphing Software Development. Agencies are shifting to DevOps, DevSecOps, human-centered design, and using APIs and microservices in software development practices and modernization efforts.
• Emerging Tech Research. Agencies are instituting projects investigating the feasibility of emerging technologies such as blockchain, 5G, Internet of Things and quantum information science.

Critical Insight for Vendors

Deltek's Federal Civilian IT Market, 2022-2024 report takes a strategic 3-year look at the trends, drivers, and inhibitors shaping federal civilian sector information technology procurement. The scope of Deltek's analysis includes traditional IT and embedded IT spending within non-IT programs.

The report provides:

• Insight into the factors, policies, and technologies shaping the market landscape over the next three years.
• Insight into the dynamics shaping IT market segments and agency spending.
• Insight from industry and government thought leaders.
• Market forecasts to support vendors' strategic planning.
• Recommendations to help contractors evaluate the impact of trends on their businesses.

Deltek's Federal Civilian IT Market, 2022-2024 report is delivered in PowerPoint® format, including a PowerPoint® Executive Briefing, and an Excel® data workbook.

Deltek's New Forecast Features

Forecast Report Series

This is the third in Deltek's new three-part Federal IT Market forecast series, designed to provide a comprehensive view of the overall federal IT landscape as well as deeper agency level analysis.

• Federal Information Technology Market Landscape, 2022-2024
• Federal Defense and Intelligence IT Market, 2022-2024
• Federal Civilian IT Market, 2022-2024

New Forecast Segmentation

Deltek has revised its forecast segments to align with the federal Technology Business Management (TBM) framework adopted by federal agencies. This revision allows us to align our forecast and market segmentation with the taxonomy and mechanisms used by agencies to categorize their IT programs and activities. See the report Scope and Methodology for more detail.