MA

SLED IT Market, 2022-2025

Published: April 26, 2022

FeaturedFederal Market AnalysisSLED Market AnalysisForecasts and SpendingInformation Technology

State, local, and education (SLED) demand for vendor-furnished IT systems and services will grow slightly in 2022 ($134.1 billion) before resuming a more robust upward trend to $146.8 billion in 2025. This represents a 3.1% compound annual growth rate (CAGR) for the forecast period.

This year's forecast incorporates the direct impact of American Rescue Plan Act (ARPA) and the Infrastructure Investment and Jobs Act (IIJA) funding on SLED government revenues and the IT market specifically.

Key market trends:

  • Potential for recession
  • Mass Transit will Have to be Reinvented
  • IT-relevant components of ARPA and IIJA
  • The intersection of spending between ARPA and IIJA
  • ARPA services to Disproportionately Impacted Communities
  • Prospects for more Federal aid

This report will help SLED IT contractors?

  • 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, vertical, and function of government.
  • 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:

  • 2020 forecast reconciliation versus complete actual data
  • 2021 forecast reconciliation versus partial actual data
  • 2022-2025 forecast for four major IT segments and 20 sub-segments

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

Methodology

Adapting data produced by U.S. Department of Commerce analysis of U.S. gross domestic product (GDP), Deltek's forecast model generates over 2.7 million data points and is the most comprehensive and sophisticated model available for the SLED market.

Data Set

This report download also includes the companion data set in XLS format.

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

Years 2020 through 2025 (6)

  • 2020 will be reconciled vs. complete actual data.
  • 2021 will be reconciled and re-forecasted using limited actual data.
  • 2022 will be re-forecasted based on the new actual data for 2020 and 2021.

Including these years provides a better basis for confidence in the forecasted years. This is done due to the fact that there is a lag in the publication of certain data sets from the U.S. Bureau of Economic Analysis (BEA).

  • All 50 states + DC (51)
  • Type of Government (6)
  • Census government functional categories (37)
  • Deltek Verticals (12)
  • Deltek Segments (4)
    • Deltek Sub-segments (20)
  • BEA Commodity Descriptions (22) and associated NAICS Codes (22)

Introduction (slides 6-13)

  • Reconciliation of Previous Years’ Forecast Figures
  • Purpose of This Report
  • What is the State, Local, and Education (SLED) market?
  • IT Market Bid Volume Total, by Quarter, and by Type of Government
  • Scope and Methodology
  • A Note on Data Sources
  • Scope: Segment Definitions
  • A Note on the Use of Fiscal Years

Market Forecasts (slides 15-33)

  • Economic Outlook
  • Market Volatility
  • Forecast Reconciliation
  • Historical Growth
  • SLED Contractor-Addressable IT Market, 1997-2019
  • SLED Contractor-Addressable IT Market by Segment, 1997-2019
  • Contractor-Addressable IT Market, 2020-2025
  • SLED IT CAGRs & Market Share by Commodity Type

Market Forecasts by Segments and Sub-Segments

  • SLED IT Market by Segment, 2020-2025
  • SLED Communications & Network Services Market, 2020-2025
  • SLED IT Hardware & Equipment Market, 2020-2025
  • SLED IT Hardware & Equipment Market – Communications, 2020-2025
  • SLED IT Hardware & Equipment Market – Computers & Peripherals, 2020-2025
  • SLED IT Hardware & Equipment Market – Other, 2020-2025
  • SLED IT Services Market, 2020-2025
  • SLED IT Services Market - Outsourcing, 2020-2025
  • SLED Software Products Market, 2020-2025
  • SLED IT Market by Deltek Vertical

Market Trends (slides 35-53)

  • Potential for recession
  • Mass Transit will Have to be Reinvented
  • IT-relevant components of ARPA and IIJA
  • The intersection of spending between ARPA and IIJA
  • ARPA services to Disproportionately Impacted Communities
  • Prospects for more Federal aid

Appendix A: State IT Spending Profiles (slides 56-208)

The following slides are included for each of the 50 states and the District of Columbia:

  1. State IT Spending Profile vs. U.S. Total, 2022
  2. Contractor-Addressable IT Market, 2022 (by Market Verticals)
  3. Contractor-Addressable IT Market, 2022 (by Market Segments)

Appendix B: Terms & Definitions (slides 210-214)

  • Terms and Definitions – Sub-Segments