IT Services Market - Industry Analysis, Market Size, Share, Trends,Application Analysis, Growth and Forecast 2019 - 2024

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 Global IT Services Market size is expected to reach $1123.57 billion by 2025, growing at a CAGR of 8.02% during 2020-2025. In 2019, Deployment of IT for network management have become the best practice to bring and automate all business operations into a single and simple solution.  The growing popularity of cloud-based software and rising concern to automate business processes are continuously increasing the demand for IT services worldwide. The cloud-based IT services is experiencing rapid growth among SMEs since 2018 and is expected to capture more than 80% market share by 2025. Similarly, the emerging big data technology and rising number of connected devices across enterprises are increasing the demand for IT service management and information security management platform.

Key Takeaways

North America dominates the IT services market owing to rising preferences of companies to avail cloud based services.
The rising penetration IoT based devices and large volume of data generation in enterprises are creating new opportunity for IT services market.
Cloud-based IT services is expected to accelerate the IT services market at a faster pace due to low-cost deployment.
Lack of standardization would lead end users to spend in IT services with uncertain ROI, which may inhibit the IT services industry growth.

End User Type -Segment Analysis

IT Infrastructure services market is likely to increase at a CAGR of 9.76% during 2020-2025. Most of the companies, these days are facing challenges in maintaining their IT infrastructure functioning and cost. Hence, there are rising number of vendors tapping into this market to provide managed IT services. Similarly, managed Infrastructure are gaining popularity, as it help companies to focus only on their core business activities. The emerging technologies such as big data has also fuelled the growth of IT Infrastructure Services Market. Big Data Market is expected to reach approximately $318 billion by 2025. Similarly, with the growing volume of data, enterprise’s IT infrastructure need to ensure the most stable information security management so as to protect the enterprise data from hackers. This requirement further accelerates the IT services market from IT infrastructure service application.

Deployment Type - Segment Analysis

The cloud-based IT services is gaining popularity owing to low cost of deployment. Similarly, with the cloud-based IT services, scale up and scale down of businesses can be achieved easily. Thus, cloud-based IT services is considered to be the most effective deployment platform by many small and medium-sized enterprises in recent time. Cloud-based IT Services is expected to grow at a CAGR of9.98%during 2020-2025. In 2019, approximately 80% of companies worldwide were using some form of cloud-based services, out of which 15%-20% of companies are likely to choose 100% cloud-based services in the next 5 years. It is also expected that by 2020, 60% enterprise software will be fully cloud-based.

Geography- Segment Analysis

In 2018, North America dominated the IT services market with a market share of more than 35.23%, followed by APAC and Europe. The growing adoption of cloud-based IT services is driving the IT services market in this region. North America accounts for the majority of the cloud traffic globally. According to the Cisco Global Cloud Index, the cloud traffic in the region is poised to grow at a CAGR of 24% during 2016-2021 and will account for nearly 40% of the global traffic by 2020. Similarly, the rising adoption of hosted and managed services is accelerating the demand for cloud-based IT services in the region. In 2019, approximately 65%-70% of businesses are using some form of managed services in North America Region, making the region highly potential for IT services market. 

Drivers –IT Services Market
Rising demand for cloud-based IT services

Since 2016, most of the industries and enterprises are replacing their on premise software with cloud-based software. The cloud-based software provides access to entire enterprise applications at an affordable price without any substantial upfront expenditure in software and hardware.  Similarly, the adoption of cloud computing enable enterprises to scale up and scale down their businesses more conveniently. Hence, cloud-based IT services is becoming a more useful and cost-effective solution for SMEs in recent time. In addition to this, cloud-based computing offer new business capabilities and opportunities for the SMEs. As per major IT service providers, cloud-based IT services can reduce the cost of IT deployment by approximately 45%-50%. Many startups are investing into this technology looking at the future opportunities and hence, end-users are now finding a large number of options to choose their vendors. In 2018, Icertis, a Cloud-based enterprise technology startup has raised $50 million in its fourth round of fundraising.

Emerging big data technology

Since 2017, the volume of data consumption have increased significantly in the wake high-speed internet connection, rising industrial automation, and increasing penetration of mobile devices. This rise in data volume are creating enormous opportunity for IT service management. Similarly, with the increase in data volumes, Colocation data center are experiencing high demand. The companies in this sector are increasingly digitizing their operations and services, resulting in their increased dependence on IT Services.Process and manufacturing industries are taking the path of industrial IoT to improve operational efficiencies, which will result in generation of large amount of data and have a positive impact on IT Services market.The Industrial IoT market is expected to reach $100 billion by 2025 growing at CAGR of 18.56% during 2020-2025. Thus, with the evolving big data concept in enterprises and businesses, the IT services market is likely to find opportunity during the forecast period.

Challenges – IT Services Market
Lack of standardization

The success of IT services in businesses depends on multiple factors and is often varied with the companies. Similarly, each business is unique and hence use specific technologies to meet the particular business solution. Thus, due to lack of standardization, it is difficult for businesses to estimate the viability of IT services based on the success factor of same technology in other company.  A typical IT service deployment may cost between $75 to $300 per users. Thus, lack of ineffective IT services may cost a huge financial burden for the enterprises. 

MarketLandscape

IT services top 10 companies include Accenture, Autotask Corporation, Capgemini, DXC Technology Company, Fujitsu Limited, Hewlett Packard Enterprise Development, International Business Machines (IBM) Corporation, Microsoft Corporation, and Oracle Corporation. The IT services market share held by the top 5 players were estimated at approximately 29.77% in 2018. Acquisition, partnership, and Service differentiation are the key strategies adopted by most of the companies in this market. 

Acquisitions/Technology Launches

In 2018, Salesforce bought MuleSoft for $6.5 Billion. It will help the company to integrate all of its cloud-based apps with MuleSoft's software-as-a-service (SaaS) integration platform.
In 2019, Accenture annouced to acquire Silveo, a consulting Firm for helping its customers to reinvent supply chains and manufacturing processes faster

1.  IT Services Market - Overview
        1.1 Definitions and Scope
2.  IT Services Market - Executive summary
        2.1 Market Revenue, Market Size and Key Trends by Company
        2.2 Key Trends by type of Application
        2.3 Key Trends segmented by Geography
3.  IT Services Market
        3.1 Comparative analysis
            3.1.1 Product Benchmarking - Top 10 companies
            3.1.2 Top 5 Financials Analysis
            3.1.3 Market Value split by Top 10 companies
            3.1.4 Patent Analysis - Top 10 companies
            3.1.5 Pricing Analysis
4.  IT Services Market - Startup companies Scenario Premium
        4.1 Top 10 startup company Analysis by
            4.1.1 Investment
            4.1.2 Revenue
            4.1.3 Market Shares
            4.1.4 Market Size and Application Analysis
            4.1.5 Venture Capital and Funding Scenario
5.  IT Services Market - Industry Market Entry Scenario Premium
        5.1 Regulatory Framework Overview
        5.2 New Business and Ease of Doing business index
        5.3 Case studies of successful ventures
        5.4 Customer Analysis - Top 10 companies
6.  IT Services Market Forces
        6.1 Drivers
        6.2 Constraints
        6.3 Challenges
        6.4 Porters five force model
            6.4.1 Bargaining power of suppliers
            6.4.2 Bargaining powers of customers
            6.4.3 Threat of new entrants
            6.4.4 Rivalry among existing players
            6.4.5 Threat of substitutes
7.  IT Services Market -Strategic analysis
        7.1 Value chain analysis
        7.2 Opportunities analysis
        7.3 Product life cycle
        7.4 Suppliers and distributors Market Share
8.  IT Services Market - By Product Type (Market Size -$Million / $Billion)
        8.1 Market Size and Market Share Analysis
        8.2 Application Revenue and Trend Research
        8.3 Product Segment Analysis
9.  IT Services Market - By Service Type (Market Size -$Million / $Billion)
9.1 Introduction 
9.2 Professional Services 
           9.2.1 System Integration
                 9.2.1.1 Application Integration
                 9.2.1.1.1 Application Development
                 9.2.1.1.2 Application Testing
                 9.2.1.1.3 Application Lifecycle Management
           9.2.1.2 Infrastructure Integration
                  9.2.1.2.1 Data Center
                  9.2.1.2.2 Security
                  9.2.1.2.3 Mobility
                  9.2.1.2.4 Network
                  9.2.1.2.5 Others (Communication and Information Management)
           9.2.2 Training and Education
           9.2.3 Consulting
9.3 Managed Services 
            9.3.1 Managed Security
            9.3.2 Managed Data Center
            9.3.3 Managed Network
            9.3.4 Managed Mobility
            9.3.5 Others (Managed Communication and Information)
9.4 Telecom Services
10. IT Services Market - By Organization Size (Market Size -$Million / $Billion)
10.1 Introduction 
10.2 Small and Medium Businesses 
10.3 Enterprises
11. IT Services Market - By Deployment Type (Market Size -$Million / $Billion)
11.1 Introduction 
11.2 On-Premises 
11.3 Cloud
12. IT Services Market - By Business Function (Market Size -$Million / $Billion)
12.1 Introduction 
12.2 Finance and Accounting 
12.3 Human Resources 
12.4 Sales and Marketing 
12.5 Supply Chain Management 
12.6 Operations and Support 
12.7 Manufacturing
13. IT Services Market - By Vertical (Market Size -$Million / $Billion)
13.1 Introduction 
13.2 Banking, Financial Services, and Insurance 
13.3 Media and Entertainment 
13.4 Government and Defense 
13.5 Communication and Technology 
13.6 Consumer Goods and Retail 
13.7 Healthcare 
13.8 Others
14. IT Services - By Application Type (Market Size -$Million / $Billion)
        14.1 Segment type Size and Market Share Analysis
        14.2 Application Revenue and Trends by type of Application
        14.3 Application Segment Analysis by Type
15. IT Services- By Geography (Market Size -$Million / $Billion)
        15.1 North America IT Services Market - North America Segment Research
        15.2 North America Market Research (Million / $Billion)
            15.2.1 Segment type Size and Market Size Analysis
            15.2.2 Revenue and Trends
            15.2.3 Application Revenue and Trends by type of Application
            15.2.4 Company Revenue and Product Analysis
            15.2.5 North America Product type and Application Market Size
                  15.2.5.1 U.S
                  15.2.5.2 Canada
                  15.2.5.3 Mexico
                  15.2.5.4 Rest of North America
        15.3 North America IT Services- South America Segment Research
        15.4 South America Market Research (Market Size -$Million / $Billion)
            15.4.1 Segment type Size and Market Size Analysis
            15.4.2 Revenue and Trends
            15.4.3 Application Revenue and Trends by type of Application
            15.4.4 Company Revenue and Product Analysis
            15.4.5 South America Product type and Application Market Size
                  15.4.5.1 Brazil
                  15.4.5.2 Venezuela
                  15.4.5.3 Argentina
                  15.4.5.4 Ecuador
                  15.4.5.5 Peru
                  15.4.5.6 Colombia
                  15.4.5.7 Costa Rica
                  15.4.5.8 Rest of South America
        15.5 North America IT Services- Europe Segment Research
        15.6 Europe Market Research (Market Size -$Million / $Billion)
            15.6.1 Segment type Size and Market Size Analysis
            15.6.2 Revenue and Trends
            15.6.3 Application Revenue and Trends by type of Application
            15.6.4 Company Revenue and Product Analysis
            15.6.5 Europe Segment Product type and Application Market Size
                  15.6.5.1 U.K
                  15.6.5.2 Germany
                  15.6.5.3 Italy
                  15.6.5.4 France
                  15.6.5.5 Netherlands
                  15.6.5.6 Belgium
                  15.6.5.7 Denmark
                  15.6.5.8 Spain
                  15.6.5.9 Rest of Europe
        15.7 North America IT Services - APAC Segment Research
        15.8 APAC Market Research (Market Size -$Million / $Billion)
            15.8.1 Segment type Size and Market Size Analysis
            15.8.2 Revenue and Trends
            15.8.3 Application Revenue and Trends by type of Application
            15.8.4 Company Revenue and Product Analysis
            15.8.5 APAC Segment - Product type and Application Market Size
                  15.8.5.1 China
                  15.8.5.2 Australia
                  15.8.5.3 Japan
                  15.8.5.4 South Korea
                  15.8.5.5 India
                  15.8.5.6 Taiwan
                  15.8.5.7 Malaysia
                  15.8.5.8 Hong Kong
                  15.8.5.9 Rest of APAC
        15.9 North America IT Services - Middle East Segment and Africa Segment Research
        15.10 Middle East & Africa Market Research (Market Size -$Million / $Billion)
            15.10.1 Segment type Size and Market Size Analysis
            15.10.2 Revenue and Trend Analysis
            15.10.3 Application Revenue and Trends by type of Application
            15.10.4 Company Revenue and Product Analysis
            15.10.5 Middle East Segment Product type and Application Market Size
                  15.10.5.1 Israel
                  15.10.5.2 Saudi Arabia
                  15.10.5.3 UAE
            15.10.6 Africa Segment Analysis
                  15.10.6.1 South Africa
                  15.10.6.2 Rest of Middle East & Africa
16. IT Services Market - Entropy
        16.1 New product launches
        16.2 M&A s, collaborations, JVs and partnerships
17. IT Services Market - Industry / Segment Competition landscape Premium
        17.1 Market Share Analysis
            17.1.1 Market Share by Country- Top companies
            17.1.2 Market Share by Region- Top 10 companies
            17.1.3 Market Share by type of Application - Top 10 companies
            17.1.4 Market Share by type of Product / Product category- Top 10 companies
            17.1.5 Market Share at a global level - Top 10 companies
            17.1.6 Best Practises for companies
18. IT Services Market - Key Company List by Country Premium
19. IT Services Market Company Analysis
        19.1 Market Share, Company Revenue, Products, M&A, Developments
        19.2 Accenture PLC
        19.3 Capgemini
        19.4 Cognizant Technology Solutions Corporation
        19.5 Ericsson
        19.6 Fujitsu
        19.7 HCL Technologies Limited
        19.8 Hewlett Packard Enterprise
        19.9 Huawei Technologies Co. Ltd.
        19.10 IBM Corporation
        19.11 Infosys
        19.12 Nokia Networks
        19.13 Oracle Corporation
        19.14 Tata Consultancy Services
        19.19 Tech Mahindra
        19.16 Wipro Limited
        19.17 Company 16
        19.18 Company 19 & More
*Financials would be provided on a best efforts basis for private companies
20. IT Services Market - Appendix
        20.1 Abbreviations
        20.2 Sources
21. IT Services Market - Methodology
        21.1 Research Methodology
            21.1.1 Company Expert Interviews
            21.1.2 Industry Databases
            21.1.3 Associations
            21.1.4 Company News
            21.1.5 Company Annual Reports
            21.1.6 Application Trends
            21.1.7 New Products and Product database
            21.1.8 Company Transcripts
            21.1.9 R&D Trends
            21.1.10 Key Opinion Leaders Interviews
            21.1.11 Supply and Demand Trends

LIST OF TABLES

LIST OF FIGURES

1.US North America It Services Market Revenue, 2019-2024 ($M)
2.Canada North America It Services Market Revenue, 2019-2024 ($M)
3.Mexico North America It Services Market Revenue, 2019-2024 ($M)
4.Brazil North America It Services Market Revenue, 2019-2024 ($M)
5.Argentina North America It Services Market Revenue, 2019-2024 ($M)
6.Peru North America It Services Market Revenue, 2019-2024 ($M)
7.Colombia North America It Services Market Revenue, 2019-2024 ($M)
8.Chile North America It Services Market Revenue, 2019-2024 ($M)
9.Rest of South America North America It Services Market Revenue, 2019-2024 ($M)
10.UK North America It Services Market Revenue, 2019-2024 ($M)
11.Germany North America It Services Market Revenue, 2019-2024 ($M)
12.France North America It Services Market Revenue, 2019-2024 ($M)
13.Italy North America It Services Market Revenue, 2019-2024 ($M)
14.Spain North America It Services Market Revenue, 2019-2024 ($M)
15.Rest of Europe North America It Services Market Revenue, 2019-2024 ($M)
16.China North America It Services Market Revenue, 2019-2024 ($M)
17.India North America It Services Market Revenue, 2019-2024 ($M)
18.Japan North America It Services Market Revenue, 2019-2024 ($M)
19.South Korea North America It Services Market Revenue, 2019-2024 ($M)
20.South Africa North America It Services Market Revenue, 2019-2024 ($M)
21.North America North America It Services By Application
22.South America North America It Services By Application
23.Europe North America It Services By Application
24.APAC North America It Services By Application
25.MENA North America It Services By Application
26.Hewlett Packard Enterprise, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.Accenture PLC, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.Cognizant Technology Solutions Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Wipro Limited, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.HCL Technologies Limited, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Infosys, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.IBM Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Oracle Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Tata Consultancy Services, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Tech Mahindra, Sales /Revenue, 2015-2018 ($Mn/$Bn)
36.Fujitsu, Sales /Revenue, 2015-2018 ($Mn/$Bn)
37.Capgemini, Sales /Revenue, 2015-2018 ($Mn/$Bn)
38.Ericsson, Sales /Revenue, 2015-2018 ($Mn/$Bn)
39.Huawei Technologies Co. Ltd., Sales /Revenue, 2015-2018 ($Mn/$Bn)
40.Nokia Networks, Sales /Revenue, 2015-2018 ($Mn/$Bn)