Report 23 Jun 2026

Public Sector - InBrief Analysis - US

The US public sector IT market is undergoing strategic consolidation and rapid cloud-driven transformation. This report analyzes spending shifts, vendor dynamics, and growth forecasts shaping US public sector IT through 2029.

Overview

This InBrief examines the US public sector IT landscape, highlighting budget drivers, major accounts (DoD, HHS, VA), and procurement reforms (GSA OneGov). It assesses market segmentation, software & cloud platforms vs. IT services growth, and sector-specific priorities such as cloud adoption, AI, and cybersecurity.

Key takeaways

  • Vendor dynamics: Major M&A activity and discounting by cloud providers; large integrators and specialist firms compete for federal, state, and local contracts.
  • Priorities: Hybrid cloud, application modernization, AI adoption, and cybersecurity dominate procurement.
     

Recommended advisory: PAC Leadership Session – Smart Defense Vendor Landscape