IT Services Market - Forecast(2024 - 2030)

Report Code: ITR 58662 Report Format: PDF + Excel

IT Services Industry Overview

Global IT Services Market size is expected to reach $1,852.65 billion by 2031, growing at a CAGR of 9.5% during 2024-2031. In 2023, Deployment of IT for network management have become the best practices 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 2022 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.

Market Snapshot 

IT Services Market

Report Coverage

The IT services market report: “IT Services Industry Outlook– Forecast (2024-2031)”, by IndustryARC, covers an in-depth analysis of the following segments of the IT Services Market.

By Service Type: Professional Services (System Integration (Application Integration, Application Development, Application Testing, Application Lifecycle Management). Infrastructure Integration (Data Center, Security, Mobility, Network and Others), Training and Education, Consulting), Managed Services (Managed Security, Managed Data Center, Managed Network, Managed Mobility, Others), Telecom Services
By Business Function: Finance and Accounting, Human Resources, Sales and Marketing, Supply Chain Management, Operations and Support, Manufacturing
By Organization Size: SME, Large Enterprises
By Deployment Type: Cloud, On Premises
By End User Industry: Banking, Financial Services, and Insurance, Media and Entertainment, Government and Defense, Communication and Technology, Consumer Goods and Retail, Healthcare, Others

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.

IT Services Market Segment Analysis - By End User Type
IT Infrastructure services market is likely to increase at a CAGR of 9.76% during 2024-2031. 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 accelerate the IT services market from IT infrastructure service application.

IT Services Market Segment Analysis - By Deployment Type
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 of 9.98% during 2024-2031. In 2022, approximately 87% of companies worldwide were using some form of cloud based services, out of which 20% companies are likely to choose 100% cloud based services in next 5 years. It is also expected that by 2025, 72% enterprise software will be fully cloud based.

IT Services Market Segment Analysis - By Geography
In 2023, 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 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 14% during 2024-2031 and will account for nearly 54% of the global traffic by 2025. Similarly, the rising adoption of hosted and managed services is accelerating the demand for cloud based IT services in the region. In 2023, approximately 75% of businesses are using some form of managed services in North America Region, making the region highly potential for IT services market.

IT Services Market Drivers

• Rising demand for cloud based IT services
Since 2020, 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. 

• Emerging big data technology
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 2023-2025. Thus, with the evolving big data concept in enterprises and businesses, the IT services market is likely to find opportunity during the forecast period.

IT Services Market Challenges

• 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.

Market Landscape

The IT services market share held by top 5 players were estimated approximately   29.7% in 2023. Acquisition, partnership, and Service differentiation are the key strategies adopted by most of the companies in this market.  IT services top 10 companies include:
  1. Accenture PLC
  2. Capgemini
  3. Cognizant Technology Solutions Corporation
  4. Oracle Corporation
  5. Fujitsu
  6. HCL Technologies Limited
  7. Hewlett Packard Enterprise
  8. Tata Consultancy Services
  9. IBM Corporation
  10. Infosys. 

Acquisitions/Technology Launches

• In December 2023, Analytics cloud platform Alteryx is going private. It’s agreed to be acquired by Clearlake Capital and Insight Partners in a deal valued at $4.4 billion. 
• In December 2023, IT outsourcer Cognizant snapped up Thirdera, a ServiceNow partner based in Colorado, and added almost 1,000 employees to its workforce of almost 350,000.
• In November 2023, Accenture completed its acquisition of Solnet, an IT services provider with deep technology consulting experience for New Zealand government and private organizations across multiple industries

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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 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 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 Service Type (Market Size -$Million / $Billion)
        8.1 Introduction 
        8.2 Professional Services 
                 8.2.1 System Integration
        Application Integration
        Application Development
        Application Testing
        Application Lifecycle Management
  Infrastructure Integration
         Data Center
         Others (Communication and Information Management)
           8.2.2 Training and Education
           8.2.3 Consulting
 9.3 Managed Services 
            9.3.1 Managed Security
            9.3.2 Managed Data Center
            9.3.3 Managed Network
            9.3.4 Managed Mobility
            9.3.5 Others (Managed Communication and Information)
 9.4 Telecom Services
10. IT Services Market - By Organization Size (Market Size -$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 / $Billion)
13.1 Introduction 
13.2 Banking, Financial Services, and Insurance 
13.3 Media and Entertainment 
13.4 Government and Defense 
13.5 Communication and Technology 
13.6 Consumer Goods and Retail 
13.7 Healthcare 
13.8 Others
15. IT Services- By Geography (Market Size -$Million / $Billion)
        15.1 North America IT Services Market - North America Segment Research
        15.2 North America Market Research (Million / $Billion)
            15.2.1 Segment type Size and Market Size Analysis
            15.2.2 Revenue and Trends
            15.2.3 Application Revenue and Trends by type of Application
            15.2.4 Company Revenue and Product Analysis
            15.2.5 North America Product type and Application Market Size
         Rest of North America
        15.3 North America IT Services- South America Segment Research
        15.4 South America Market Research (Market Size -$Million / $Billion)
            15.4.1 Segment type Size and Market Size Analysis
            15.4.2 Revenue and Trends
            15.4.3 Application Revenue and Trends by type of Application
            15.4.4 Company Revenue and Product Analysis
            15.4.5 South America Product type and Application Market Size
         Costa Rica
         Rest of South America
        15.5 North America IT Services- Europe Segment Research
        15.6 Europe Market Research (Market Size -$Million / $Billion)
            15.6.1 Segment type Size and Market Size Analysis
            15.6.2 Revenue and Trends
            15.6.3 Application Revenue and Trends by type of Application
            15.6.4 Company Revenue and Product Analysis
            15.6.5 Europe Segment Product type and Application Market Size
         Rest of Europe
        15.7 North America IT Services - APAC Segment Research
        15.8 APAC Market Research (Market Size -$Million / $Billion)
            15.8.1 Segment type Size and Market Size Analysis
            15.8.2 Revenue and Trends
            15.8.3 Application Revenue and Trends by type of Application
            15.8.4 Company Revenue and Product Analysis
            15.8.5 APAC Segment - Product type and Application Market Size
         South Korea
         Hong Kong
         Rest of APAC
        15.9 North America IT Services - Middle East Segment and Africa Segment Research
        15.10 Middle East & Africa Market Research (Market Size -$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
         Saudi Arabia
            15.10.6 Africa Segment Analysis
         South Africa
         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 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 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