IT Service Market Size, and Share Analysis|2031

Coverage: IT Service Market covers analysis By Service Type (Professional (System Integration & Consulting) and Managed Services); Enterprise Size (Large Enterprise and Small and Medium Enterprise), End-user (Telecommunication, BFSI, Healthcare, Retail, Manufacturing, and Government, others), and Geography (North America, Europe, Asia Pacific, and South and Central America)

Publication Month : Mar 2024

  • Report Code : TIPRE00011539
  • Category : Technology, Media and Telecommunications
  • Status : Upcoming
  • No. of Pages : 150
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[Research Report] The IT service market is expected to grow from US$ 1.16 trillion in 2022 to US$ 2.37 trillion by 2030; it is estimated to grow at a CAGR of 9.3% from 2022 to 2030.

Analyst Perspective:

The IT service market is quickly expanding due to the extensive adoption of cloud computing and digital technologies, rising demand for cybersecurity solutions, and a focus on innovation and automation. Growing worries about data security and privacy protection drive demand for IT services from businesses across all industries. Trends such as expanded use of AI and machine learning (ML), high order for data analytics & big data solutions, emphasis on IoT & connected devices, and the growing requirement to comply with data privacy rules are also driving IT service market expansion.

IT service providers stand to benefit from this flourishing sector as businesses and industries increasingly rely on Technology. The COVID-19 pandemic had a positive effect on the IT service market. A quick move to remote work produced a demand for IT solutions that supported this new work model, resulting in increasing orders from IT businesses for tools and infrastructure. Cloud computing grew significantly as organizations moved their operations to the cloud, necessitating IT services to manage and secure these environments. Furthermore, as businesses sought to protect their data and systems from potential threats, the spike in cyberattacks during the pandemic raised demand for cybersecurity services. Overall, the pandemic has expedited the adoption of IT services and technology solutions, fueling the IT service market growth.

Furthermore, rising IT spending, widespread usage of software-as-a-service (SaaS), and increased availability of cloud-based solutions are increasing the market demand. These services have improved the efficiency of corporate processes while letting companies focus on their core capabilities without dealing with deployed IT infrastructure. Businesses use IT services for various objectives, ranging from routine tasks like employee record administration to complicated corporate procedures like supply chain and operations management. These factors are expected to boost the IT service market for IT services.

The IT service market is a broad and complex industry encompassing many services that help businesses manage and optimize their technology infrastructure and operations. It includes everything from essential IT support and troubleshooting to complex cloud computing solutions and cybersecurity services. The IT service market is one of the fastest-growing sectors in the global economy, driven by the increasing adoption of digital technologies by businesses of all sizes. Furthermore, cloud computing allows companies to access IT resources on demand without investing and maintaining their hardware and software. This has made it easier and more affordable for businesses of all sizes to use IT services. The rise of big data and analytics: Big data and analytics are converting the way businesses operate. IT services providers can help businesses collect, store, and analyze data to obtain insights that can improve their decision-making and operations.

Market Overview:

The demand for IT infrastructure from SMEs has increased dramatically in recent years, increasing the IT services sector. SMEs extensively invest in IT support services across industries, including e-commerce, notably start-ups like Indian food ordering and delivery platform Swiggy, whose entire operation depends on IT infrastructure. Digital tools are rapidly being provided to employees by businesses of all sizes and industries. Digitalization reduces transaction costs by improving communication between employees, suppliers, and networks. This digital revolution supports SMEs' entrance into foreign markets by reducing border and transportation procedures, opening up significant prospects for service trade.

Furthermore, as government services, training, financing, and recruitment channels shift online, digital tools make accessing a wide range of information more accessible. Again, adopting digitization creates an innovation culture by making innovation resources more accessible. Data and advanced analytics can help businesses acquire new insights into their operations, enhancing performance and efficiency. Digitalization has evolved into a strategic enabler for SMEs, allowing them to prosper in today's competitive business environment. Due to human and technological resource constraints, small firms have different demands and goals than larger enterprises. These businesses can benefit from bespoke solutions such as security strategy and planning, system and network deployments, and managed security services to optimize operations and drive growth. Implementing these solutions allows firms to streamline procedures, improve goods and services, and expand. IT businesses play a critical role in monitoring systems and providing proactive advice to address problems before they become serious. This proactive approach reduces operational downtime, improving the organization's image as a well-managed firm.

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IT Service Market: Strategic Insights

it-services-market
Market Size Value inUS$ 1.16 trillion in 2022
Market Size Value byUS$ 2.37 trillion by 2030
Growth rateCAGR of 9.3% from 2022 to 2030
Forecast Period2022-2030
Base Year2022
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Market Driver:

Increasing Smart Cities

Governments globally are investing in the creation of smart cities. With research money and environmental aims for member countries, the European Union supports intelligent city activities. Smart cities are also becoming more popular in the emerging IT service market.

Countries. Around 300 innovative city pilot projects are being planned in China and India alone. These objectives necessitate the implementation of cutting-edge IT infrastructure. This will be a significant future growth driver for the IT services industry. Tencent pledged a US$70 billion investment in cloud computing, artificial intelligence, and cybersecurity between 2022 and 2030. Chinese firms have shown a significant desire to establish themselves in India through investments. Nonetheless, their condition has deteriorated as New Delhi's stance on admitting Chinese Technology and buying into its domestic IT service market has shifted. This will be a significant future growth driver for the IT services sector.

Moreover, the rise of automation to eliminate tedious tasks and drastic changes in client demand, such as personalized pricing and enhanced customer experience, are forcing businesses worldwide to embrace IT services. Furthermore, COVID-19 put the professional services industry to the test by forcing them to use remote working on a large scale and adapt their business plans in response to the rapidly changing IT industry. Furthermore, COVID-19 prompted a slew of technological advancements across industries, with corporations surviving the pandemic with the help of Technology by focusing on resource management and talent acquisition. Businesses are rethinking their business strategies in the current environment to guarantee they have the appropriate skill sets, finances, and resources to gain a competitive advantage in the long run.

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Segmental Analysis:

The IT service market is segmented into service type, enterprise size, and end-user industry. Based on service type, the market is divided into professional (system integration & consulting) and managed services.

IT services leverage technical and business proficiency to help organizations manage, create, and optimize information and business processes. The reach of the market is considered by service type, enterprise size, end-user industry, and geographical analysis.

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Regional Analysis:

North America will dominate the IT service market in the coming years due to technological developments, digital transformation initiatives, and increased reliance on Technology across several industries. Growing intelligent technology deployment and increased security expenditure are important drivers driving the region's IT service demand. Furthermore, as part of the ongoing response, agencies across the country published new materials and techniques to defend American communities and companies from cyberattacks. For example, in July 2021, the United States Department of Homeland Security (DHS), the United States Department of Justice (DOJ), and federal partners unveiled StopRansomware.gov, a new website to tackle ransomware threats.

Key Player Analysis:

Avaya, Amazon Web Services, Inc., Cisco Systems, Inc., DXC Technology Company Fortinet, Inc., Microsoft, Juniper Networks, Inc., IBM Corp., Huawei Technologies Co., Ltd., Hewlett Packard Enterprise Development LP are among the key IT service market players profiled in the report. Several other essential IT service market players were also analyzed for a holistic view of the market and its ecosystem. The market report provides detailed market insights to help major players strategize their growth.

Recent Developments:

 

Companies in the IT service market highly adopt inorganic and organic strategies such as mergers and acquisitions. A few recent key mobile application market developments are listed below: 

  • In February 2023, Tata Consultancy Services (TCS) announced expanding its partnership with Phoenix Group, the UK's most significant long-term savings and retirement provider, to digitally transform the latter's ReAssure business using the TCS BaNCS-based platform. Phoenix Group bought ReAssure, a UK-based life insurance provider, in 2020 and has partnered with TCS to develop synergies and improve the customer experience for ReAssure's clients. The increased cooperation will change ReAssure's operations, with the heritage business consolidated on the same future-proof TCS BaNCSTM-based digital platform that Phoenix Group uses to operate its other business books.
  • In June 2022, Kyndryl, one of the largest IT infrastructure service providers, and Cisco announced a technology partnership to help enterprise customers accelerate their transformation into data-driven businesses powered by Cisco solutions and Kyndryl-managed services. Kyndryl and Cisco will collaborate to assist organizations in modernizing their operations by embracing cloud computing services that simplify complex hybrid IT management by providing greater visibility, manageability, and flexibility.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Service Type, Enterprise Size, End-user, and Geography

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

This text is related
to country scope.

The List of Companies

1. Accenture plc
2. Capgemini SE
3. Cognizant
4. DXC Technology
5. Fujitsu Ltd.
6. Hewlett Packard Enterprise Development LP
7. IBM Corporation
8. Microsoft Corporation
9. Oracle Corporation
10. Tata Consultancy Services Limited

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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