US Department of Defense (DoD) Budget Assessment, 2021–2025

US Department of Defense (DoD) Budget Assessment, 2021–2025

The fiscal year 2021 Department of Defense (DoD) budget request outlined in this research is the fourth budget under the Trump administration. The DoD request for 2021 maintains a high level of spending, but may encounter opposition from both sides of the political aisle. This research details the Defense Departments and Agency programs requests that offer the best opportunities for companies trying to enter the US defense market. The research includes market drivers and restraints that shed light on some budget numbers and the importance of participating as a primary or subcontractor on a variety of defense projects and programs. The research assists in understanding the government’s focus and the services it is likely to require in the future.


This research service focuses on the US DoD spending requests for research, development, test & evaluation (RDT&E), procurement, and operations and maintenance (O&M) categories. The analyst has segmented the budget request by military department and 20 technology areas, such as aircraft, ships, ground vehicles and command and control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR).

The research also provides information on contract activity for 2019. The contract activity encompasses Army, Navy/Marine Corps, Air Force, and Joint Services contracts awarded, and lists the analyst’s estimate of the top 10 US DoD contractors based on available government data. The base year for DoD budgets is 2019, and the market forecast is estimated from 2020 to 2025.

Research, new purchases, and services for computers, healthcare, and base operations support are included. Classified budget requests are included, but cannot be broken out into technology areas. Budget requests include base, overseas contingency operations (OCO), and emergency categories.

Products and services that are inherent in new-build tactical ground vehicles, ships, and aircraft platforms are included if distinctly specified by program or modification. Program funding and contract values do not always align year-to-year due to administrative costs, multi-year contracts, and technology use across segments. Program and contract segmentation, large multi-year contract assessment, and funding forecasts for 2020 and beyond are made at the analyst’s discretion.

The purpose of this study is to discuss the 2021 DoD budget request. While the market is mature, there are signs that steady growth and new concepts are ahead, and this study will outline and provide commentary regarding those signs.


To understand the current state of DoD contract activities
To understand military operational trends driving the DoD market
To understand the commercial technology trends impacting DoD users
Outline some future objectives for DoD spending


What are some leading DoD programs?
Which are some of the DoD contractors in the market?
Where are the growth opportunities in the DoD market?
What do the current DoD market and technology landscape look like?
What activities will be emphasized as the DoD market continues to advance?

  • Executive Summary
    • Key Findings
    • Executive Summary—Key Predictions
    • Executive Summary—What DoD Customers Want
    • Executive Summary—Top Transformational Shifts Expected to Shape the Future of US DoD Budgets Between 2021 and 2025
    • Executive Summary—Market Overview
    • Executive Summary—Market Engineering Measurements
    • Executive Summary—Top Trends for the US DoD Market
  • Market Overview
    • Market Scope and Definitions
    • Defense Technology Segmentation
    • Market Segmentation
    • Key Questions this Study will Answer
    • 2021 Budget by Department Segments
  • Drivers and Restraints—DoD Budget Assessment
    • Market Drivers
    • Drivers Explained
    • Market Restraints
    • Restraints Explained
  • Forecasts and Trends—DoD Market
    • Market Engineering Measurements
      • Table DoD Budget Assessment: Market Engineering Measurements, US, 2019
    • Forecast Assumptions
    • DoD Top Line Budget Request for 2021
      • Table DoD Budget Assessment: Top Line Budget Request, US, 2019–2025
    • Forecast Discussion
    • Mega Trends—Long-term Trends Driving DoD Budgets
  • Competitive Overview—DoD Market
    • Market Share
    • Market Share Analysis
      • Table DoD Budget Assessment: Company Market Share Analysis of Top 5 Participants, US, FY2019
    • Competitive Environment
    • Top 10 DoD Contractors
    • Top Competitors
    • Competitive Structure of the US DoD Market
  • Growth Opportunities and Companies to Action
    • Growth Opportunity—US DoD 2020 Budget Assessment
    • Growth Opportunity—Spare Parts
    • Growth Opportunity—Digitization Technologies
    • Growth Opportunity—COVID-19 Response
    • Major Growth Opportunities
    • Strategic Imperatives for US DoD Product Providers
  • Budget Breakdown
    • 2021 Budget by Department
    • 2021 Budget by Appropriation
    • Total RDT&E, Procurement, and O&M Program Funding by Technology Area
      • Table DoD Budget Assessment: Total Program Funding by Technology Area, US, 2021
    • 2021 RDT&E Budget by Department
    • Top 10 RDT&E Programs
      • Table DoD Budget Assessment: Top 10 RDT&E Programs, US, 2021
    • 2021 O&M Budget by Department
    • Top 10 O&M Programs
      • Table DoD Budget Assessment: Top 10 O&M Programs, US, 2021
    • 2021 Procurement Budget by Department
    • Top 10 Procurement Programs
      • Table DoD Budget Assessment: Top 10 Procurement Programs, US, 2021
    • 2021 Air Force/Space Force Budget by Appropriation
    • Top 10 Air Force/Space Force Programs
      • Table DoD Budget Assessment: Top 10 Air Force/Space Force Programs, US, 2021
    • 2021 Army Budget by Appropriation
    • Top 10 Army Programs
      • Table DoD Budget Assessment: Top 10 Army Programs, US, 2021
    • 2020 Joint Program Budget by Appropriation
    • Top 10 Joint Programs
      • Table DoD Budget Assessment: Top 10 Joint Programs, US, 2021
    • 2020 Navy/Marine Corps Budget by Appropriation
    • Top 10 Navy/Marine Corps Programs
      • Table DoD Budget Assessment: Top 10 Navy/Marine Corps Programs, US, 2021
    • Representative Unfunded Priorities List Requests
      • Table DoD Budget Assessment: Representative Unfunded Requests, US, 2021*
  • The Last Word
    • The Last Word—3 Big Predictions
  • Appendix
    • Market Engineering Methodology
    • Aerospace, Defense, and Security (ADS) Research Areas/Capabilities
    • Visit Our Website for More Information

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