SLED IT Market, FY 2020-2025

Published: September 19, 2019

FeaturedSLED Market AnalysisALABAMAALASKAARIZONAARKANSASCALIFORNIACOLORADOCommunications EquipmentCommunications ServicesCommunity DevelopmentComputer EquipmentCONNECTICUTDELAWAREDISTRICT OF COLUMBIAEconomic Development/RegulationEducation (Higher)Education (Primary/Secondary)FLORIDAForecasts and SpendingGeneral Government ServicesGEORGIAHAWAIIHealth CareIDAHOILLINOISINDIANAInformation TechnologyIOWAIT ServicesJustice/Public Safety & Homeland SecurityKANSASKENTUCKYLOUISIANAMAINEMARYLANDMASSACHUSETTSMICHIGANMISSISSIPPIMISSOURIMONTANANatural Resources/EnvironmentNEBRASKANEVADANEW HAMPSHIRENEW JERSEYNEW MEXICONEW YORKNORTH CAROLINANORTH DAKOTAOHIOOKLAHOMAOREGONPENNSYLVANIAPublic FinancePublic UtilitiesRHODE ISLANDSocial ServicesSoftwareSOUTH CAROLINASOUTH DAKOTATENNESSEETEXASTransportationUTAHVERMONTVIRGINIAWASHINGTONWEST VIRGINIAWISCONSINWYOMING

State, local, and education (SLED) demand for vendor-furnished IT systems and services will grow from $137.3 billion in FY 2020 to $175.7 billion in FY 2025 at a compound annual growth rate (CAGR) of 5.0%.

See also: SLED IT Market, FY 2020-2025 (data set)*
[*Note: Available to SLED Market Analysis subscribers only.]

Key Findings:

  • The forecast growth rate of 5.0% is above the historic growth rate of 4.1% for the verifiable years of 1997-2017.
  • U.S. Bureau of Economic Analysis (BEA) data for FY 2017—the most recent year available—provided evidence for a market jump of 12.6% over FY 2016. This is the largest year-over-year growth rate since 1997.
  • The SLED IT market has been buoyed by an impressive period revenue expansion and technological innovation since the end of the last recession (2009); however, market growth should be viewed in the context of larger SLED spending trends, which are detailed in the 'Key Findings' section of the report.
  • SLED IT market growth has been driven by five services categories: Data processing, hosting, & related services (including “cloud”), Custom computer programming service (i.e., custom software development), Computer systems design services (including systems integration), Wired telecommunications carriers, and Wireless telecommunications carriers.

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:

  • 2020-2025 forecast for four major IT segments and 20 sub-segments.
  • 2020 spending outlook for ten Deltek verticals, including 37 governmental functional categories.
  • 2020 spending profile for all 50 states (plus DC), including spend by level of government, vertical, and IT segment.

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.

Introduction (slides 5-11)

*What is the State, Local, and Education (SLED) market?
*Purpose of This Report
*Scope and Methodology
*A Note on Data Sources
*Scope: Segment Definitions
*A Note on the Use of Fiscal Years

Market Forecasts (slides 12-38)

*Economic Outlook
*Market Volatility
*Forecast Reconciliation
*Historical Growth
*SLED Contractor-Addressable IT Market, FY 1997-2019
*SLED Contractor-Addressable IT Market by Segment, FY 1997-2019
*Contractor-Addressable IT Market, FY 2020-2025
*Key Forecast Findings
*SLED IT CAGRs and Market Share by Commodity Type, FY 2020-2025

Market Forecasts by Segments and Sub-Segments

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

Vertical Market Forecasts

*Community Development, Economic Development/Regulation, and Natural Resources/Environment IT Market, FY 2020
*Education (Higher) and Education (Primary/Secondary) IT Market, FY 2020
*General Government Services, Public Finance, and Public Utilities IT Market, FY 2020
*Health Care and Social Services IT Market, FY 2020
*Justice & Public Safety IT Market, FY 2020
*Transportation & Public Utilities IT Market, FY 2020

State IT Spending Profiles (slides 39-195)

*States Ranked by Total Contractor-Addressable IT Spend, FY 2020
*States Ranked by Total Contractor-Addressable IT Spend via Special Districts, FY 2020
*States Ranked by Total Contractor-Addressable IT Spend via Townships, FY 2020

The following three slides are included for each of the 50 states and DC:
*State IT Spending Profile vs. U.S. Total, FY 2020
*State Contractor-Addressable IT Market by Market Vertical, FY 2020
*State Contractor-Addressable IT Market by Market Segment, FY 2020

Terms & Definitions (slides 196-201)
*Terms and Definitions – Sub-Segments