New Deltek Report: Federal Big Data Market, 2023-2027

Federal agencies face pressure to establish evidence-based activities to drive mission program success, identify and understand areas of improvements, and inform decisions and performance, as outlined by past policies such as the Evidence Act. This expansion of data priorities also reaches beyond agency mission and operations to support key areas of the Biden Administration’s management agenda. Accordingly, agency data strategies call for investments in data governance, open data, and metrics and dashboards. The expansion of data-enabling technologies such as the Internet of Things, 5G, AI/ML and edge computing also drives federal investment in big data goods and services.

Given this, it is no surprise that analysis of historical big data spending from FY 2020-2022 revealed increases in obligations for Data Management and Integration (+43%), Visualization (+15%) and Analytics (+11%) over the three-year period.

Deltek forecasts growth in the federal big data market as agencies increase evidence-building activities and expand in big data-enabling emerging technology areas such as AI/ML. Accordingly, Deltek anticipates a 40% growth in the federal big data addressable market, from $8.0B in FY 2023 to $11.2B in FY 2027.

Deltek’s new Federal Big Data Market, 2023-2027 report, provides a deep dive analysis into the trends and drivers influencing the federal big data ecosystem, and what to expect in the market over the next five years.

Key findings from the report include:

• Biden Administration Priorities: The White House is taking an evidence-based approach to key priorities, particularly in evaluating programs and identifying areas of improvements, influencing increased investment in data infrastructure and tools at agencies to meet administration goals. 
• Big Data Priorities: Sound data governance and stewardship are top priorities among federal agencies to understand, operationalize, secure and share multi-sourced factors of data. 
• Challenges to Federal Big Data Success: Top challenges in federal data centricity include the lack of a data-driven culture, data shareability among owners, and the absence interoperable systems. 
• Emerging Technologies: Top challenges in federal data centricity include the lack of a data-driven culture, data shareability among owners, and the absence of interoperable systems.
• Market Sector Spending: Top challenges in federal data centricity include the lack of a data-driven culture, data shareability among owners, and the absence interoperable systems.
• Expected Spending Growth: Evidence-based priorities among federal data strategies bode well for increased big data services and software. Even growth is expected for big data hardware as advanced computing growth is offset by cloud solutions and data storage alternatives. 

Find out more in the full report, Federal Big Data Market, 2023-2027.