2024 Deltek SLED IT Market Forecast 2022-27

This year's forecast incorporates larger-than-normal revisions to earlier years due to the Bureau of Economic Analysis showing somewhat stronger recent demand across the US economy including in SLED government. When these macro totals are incorporated into our detailed IT spending database leveraging our own contracting data on over 370 IT categories, the result is a 2-4% higher overall volume of demand each year from 2020-22 and 5.7% higher for the actual year of 2023 versus last year’s forecasted amount. After rebounding from a flat trend in 2020-22 of +/- 1% growth with the pandemic and hitting a strong 4.5% rate of growth for 2023 in IT, annual demand within the forecast series is expected to slow to 2.2% for 2024 but average around 4% through 2027—a rate that is typical since 1997.

Key market trends that will affect SLED IT spending:

* Potential for recession continues in a context of economic resilience but continued risk factors and uncertainties
* SLED market is returning to normal in volumes of competitive opportunities
* Stimulus programs of IIJA and the Inflation Reduction Act provide funding stability and will help minimize any negative impacts on government budgets should a recession happen
* IT-relevant components of federal stimulus include broadband and cybersecurity
* There has been higher-than-normal recent growth in cloud investment, cybersecurity, ERP and AI/business intelligence as governments focus on being more efficient, effective and safe

This report will help SLED IT contractors to:

* 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 and vertical.
* 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:

* Incorporating revisions in macro data from Bureau of Economic Analysis (BEA)
* Updating the data set for 2023 as an actual year
* Estimating/forecasting 2024-27 years to support a forecast series of 2022-27 for trending and analysis in the report 
* Breaking out Network Equipment separately within IT hardware
* Including in the forecast series four major IT segments and 23 specific IT categories

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

Methodology

A discussion of the methodology is available in the report. The analysis and forecasting is based primarily on the following two primary sources:

* Deltek’s GovWin IQ database of contracting data from 2018-23   
* The Bureau of Economic Analysis’ annual estimates of major categories of SLED procurement spend

Data Set

This report download also includes the companion data set in XLS format (download zipped file to unlock both files).

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

Years 2019 through 2027 (9)

All 50 states + DC (51)
Type of Government, using Deltek’s expanded list (8)
Deltek Verticals (12)
Deltek Major IT Segments (4)
BEA Commodity Categories of IT (23)