This report describes and explains the IT services market and covers 2017-2022, termed the historic period, and 2022-2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.
The global IT services market reached a value of nearly $3,231.98 billion in 2022, having grown at a compound annual growth rate (CAGR) of 6.8% since 2017. The market is expected to grow from $3,231.98 billion in 2022 to $4,655.24 billion in 2027 at a rate of 7.6%. The market is then expected to grow at a CAGR of 9.9% from 2027 and reach $7,455.81 billion in 2032.
Growth in the historic period resulted from the emerging markets growth, the increased internet penetration, the growing adoption of the cloud in SMEs, the increasing government support and the coronavirus pandemic.
Going forward, the rising penetration of e-commerce, the increasing development of smart cities, the emergence of start-ups and the rising adoption of IoT will drive the growth. Factors that could hinder the growth of the IT services market in the future include the Russia-Ukraine war and the rising interest rates.
The IT services market is segmented by type into hardware support services, software and BPO services and cloud services. The software and BPO services market was the largest segment of the IT services market segmented by type accounting for 56.7% of the total in 2022. Going forward, the software and BPO services market is expected to be the fastest growing segment in the IT services market segmented by type, at a CAGR of 8.4% during 2022-2027.
The hardware support services market is further segmented by type into computer and peripherals support services, storage and servers support services, networking support services and other hardware support services. The networking support services market was the largest segment of the hardware support services market segmented by type accounting for 86.4% of the total in 2022. Going forward, the networking support services market is expected to be the fastest growing segment in the hardware support services market segmented by type, at a CAGR of 6.0% during 2022-2027.
The software and BPO services market is further segmented by type into software services and BPO services. The software services market was the largest segment of the software and BPO services market segmented by type accounting for 83.0% of the total in 2022. Going forward, the software services market is expected to be the fastest growing segment in the software and BPO services market segmented by type, at a CAGR of 9.3% during 2022-2027.
The cloud services market is further segmented by type into infrastructure as a service (IaaS); platform as a service (PaaS); software as a service (SaaS) and business process as a service (BPaaS). The software as a service (SaaS) market was the largest segment of the cloud services market segmented by type accounting for 52.8% of the total in 2022. Going forward, the infrastructure as a service (IaaS) market is expected to be the fastest growing segment in the cloud services market segmented by type, at a CAGR of 18.0% during 2022-2027.
The IT services market is segmented by enterprise size into small and medium enterprises (SMEs) and large enterprises. The large enterprises market was the largest segment of the IT services market segmented by enterprise size accounting for 63.0% of the total in 2022. Going forward, the large enterprises market is expected to be the fastest growing segment in the IT services market segmented by enterprise size, at a CAGR of 7.8% during 2022-2027.
The IT services market is segmented by end-use industry into BFSI (banking, financial services and insurance), retail and wholesale, communication, media and technology, manufacturing, life science and healthcare and other end-users. The BFSI market was the largest segment of the IT services market segmented by end-use industry accounting for 39.0% of the total in 2022. Going forward, the life science and healthcare market is expected to be the fastest growing segment in the IT services market segmented by end-use industry, at a CAGR of 8.3% during 2022-2027.
The IT services market is segmented by service provider location into North America, Asia-Pacific, Western Europe, Eastern Europe and Rest of the World. The North America market was the largest segment of the IT services market segmented by service provider accounting for 49.9% of the total in 2022. Going forward, the rest of the world market is expected to be the fastest growing segment in the IT services market segmented by service provider, at a CAGR of 8.2% during 2022-2027.
Western Europe was the largest region in the IT services market, accounting for 31.4% of the total in 2022. It was followed by the North America, and then the other regions. Going forward, the fastest-growing regions in the IT services market will be South America and the Middle East where growth will be at CAGRs of 16.3% and 14.7% respectively. These will be followed by Africa and Eastern Europe where the markets are expected to grow at CAGRs of 11.5% and 10.7% respectively.
The IT services market is fairly fragmented, with a large number of players. The top ten competitors in the market made up to 11.43% of the total market in 2021. Microsoft was the largest competitor with 3.05% share of the market, followed by Amazon.com Inc with 2.08%, International Business Machines Corporation with 1.00%, Dell Technologies Inc with 0.97%, SAP SE with 0.81%, Intel Corporation with 0.76%, Nippon Telegraph And Telephone Corp with 0.72%, telefonaktiebolaget lm ericsson with 0.72%, Cisco Systems, Inc. with 0.67% and TCS with 0.66%.
The top opportunities in the IT services market segmented by type will arise in the software and BPO services segment, which will gain $910.78 billion of global annual sales by 2027. The top opportunities in the hardware support services market segmented by type will arise in the networking support services segment, which will gain $282.41 billion of global annual sales by 2027. The top opportunities in the software and BPO services market segmented by type will arise in the software services segment, which will gain $848.25 billion of global annual sales by 2027. The top opportunities in the cloud services market segmented by type will arise in the infrastructure as a service (Iaas) segment, which will gain $100.61 billion of global annual sales by 2027. The top opportunities in the IT services market segmented by enterprise size will arise in the large enterprises segment, which will gain $932.20 billion of global annual sales by 2027. The top opportunities in the IT services market segmented by end-user industry will arise in the BFSI segment, which will gain $541.14 billion of global annual sales by 2027. The top opportunities in the IT services market segmented by service provider location will arise in the North America segment, which will gain $739.62 billion of global annual sales by 2027. The IT services market size will gain the most in China at $239.02 billion.
Market-trend-based strategies for the IT services market include leveraging data analytics to find key information from raw data, focusing on using artificial intelligence (AI) to increase the efficiency, focusing on quantum computing for seamless data encryption, focusing on leveraging augmented reality, focusing on cloud desktops and focusing on strategic partnerships and collaborations.
Player-adopted strategies in the IT services market include expanding cloud offerings and digital transformation services, expanding reach and presence in the Asia Pacific region, expanding hybrid and multi-cloud capabilities through strategic acquisitions, launching new products through collaborations and partnerships and strengthening geographical footprint through the launch of new solutions.
To take advantage of the opportunities, the publisher recommends the IT services companies to focus on adoption of big data analytics, focus on use of artificial intelligence, focus on quantum computing, increase focus on virtual cloud desktops, focus on the internet of things (IoT), expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships and collaborations, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, continue to target fast-growing end-user industries, focus on large enterprises and focus on the urban population.
The global IT services market reached a value of nearly $3,231.98 billion in 2022, having grown at a compound annual growth rate (CAGR) of 6.8% since 2017. The market is expected to grow from $3,231.98 billion in 2022 to $4,655.24 billion in 2027 at a rate of 7.6%. The market is then expected to grow at a CAGR of 9.9% from 2027 and reach $7,455.81 billion in 2032.
Growth in the historic period resulted from the emerging markets growth, the increased internet penetration, the growing adoption of the cloud in SMEs, the increasing government support and the coronavirus pandemic.
Going forward, the rising penetration of e-commerce, the increasing development of smart cities, the emergence of start-ups and the rising adoption of IoT will drive the growth. Factors that could hinder the growth of the IT services market in the future include the Russia-Ukraine war and the rising interest rates.
The IT services market is segmented by type into hardware support services, software and BPO services and cloud services. The software and BPO services market was the largest segment of the IT services market segmented by type accounting for 56.7% of the total in 2022. Going forward, the software and BPO services market is expected to be the fastest growing segment in the IT services market segmented by type, at a CAGR of 8.4% during 2022-2027.
The hardware support services market is further segmented by type into computer and peripherals support services, storage and servers support services, networking support services and other hardware support services. The networking support services market was the largest segment of the hardware support services market segmented by type accounting for 86.4% of the total in 2022. Going forward, the networking support services market is expected to be the fastest growing segment in the hardware support services market segmented by type, at a CAGR of 6.0% during 2022-2027.
The software and BPO services market is further segmented by type into software services and BPO services. The software services market was the largest segment of the software and BPO services market segmented by type accounting for 83.0% of the total in 2022. Going forward, the software services market is expected to be the fastest growing segment in the software and BPO services market segmented by type, at a CAGR of 9.3% during 2022-2027.
The cloud services market is further segmented by type into infrastructure as a service (IaaS); platform as a service (PaaS); software as a service (SaaS) and business process as a service (BPaaS). The software as a service (SaaS) market was the largest segment of the cloud services market segmented by type accounting for 52.8% of the total in 2022. Going forward, the infrastructure as a service (IaaS) market is expected to be the fastest growing segment in the cloud services market segmented by type, at a CAGR of 18.0% during 2022-2027.
The IT services market is segmented by enterprise size into small and medium enterprises (SMEs) and large enterprises. The large enterprises market was the largest segment of the IT services market segmented by enterprise size accounting for 63.0% of the total in 2022. Going forward, the large enterprises market is expected to be the fastest growing segment in the IT services market segmented by enterprise size, at a CAGR of 7.8% during 2022-2027.
The IT services market is segmented by end-use industry into BFSI (banking, financial services and insurance), retail and wholesale, communication, media and technology, manufacturing, life science and healthcare and other end-users. The BFSI market was the largest segment of the IT services market segmented by end-use industry accounting for 39.0% of the total in 2022. Going forward, the life science and healthcare market is expected to be the fastest growing segment in the IT services market segmented by end-use industry, at a CAGR of 8.3% during 2022-2027.
The IT services market is segmented by service provider location into North America, Asia-Pacific, Western Europe, Eastern Europe and Rest of the World. The North America market was the largest segment of the IT services market segmented by service provider accounting for 49.9% of the total in 2022. Going forward, the rest of the world market is expected to be the fastest growing segment in the IT services market segmented by service provider, at a CAGR of 8.2% during 2022-2027.
Western Europe was the largest region in the IT services market, accounting for 31.4% of the total in 2022. It was followed by the North America, and then the other regions. Going forward, the fastest-growing regions in the IT services market will be South America and the Middle East where growth will be at CAGRs of 16.3% and 14.7% respectively. These will be followed by Africa and Eastern Europe where the markets are expected to grow at CAGRs of 11.5% and 10.7% respectively.
The IT services market is fairly fragmented, with a large number of players. The top ten competitors in the market made up to 11.43% of the total market in 2021. Microsoft was the largest competitor with 3.05% share of the market, followed by Amazon.com Inc with 2.08%, International Business Machines Corporation with 1.00%, Dell Technologies Inc with 0.97%, SAP SE with 0.81%, Intel Corporation with 0.76%, Nippon Telegraph And Telephone Corp with 0.72%, telefonaktiebolaget lm ericsson with 0.72%, Cisco Systems, Inc. with 0.67% and TCS with 0.66%.
The top opportunities in the IT services market segmented by type will arise in the software and BPO services segment, which will gain $910.78 billion of global annual sales by 2027. The top opportunities in the hardware support services market segmented by type will arise in the networking support services segment, which will gain $282.41 billion of global annual sales by 2027. The top opportunities in the software and BPO services market segmented by type will arise in the software services segment, which will gain $848.25 billion of global annual sales by 2027. The top opportunities in the cloud services market segmented by type will arise in the infrastructure as a service (Iaas) segment, which will gain $100.61 billion of global annual sales by 2027. The top opportunities in the IT services market segmented by enterprise size will arise in the large enterprises segment, which will gain $932.20 billion of global annual sales by 2027. The top opportunities in the IT services market segmented by end-user industry will arise in the BFSI segment, which will gain $541.14 billion of global annual sales by 2027. The top opportunities in the IT services market segmented by service provider location will arise in the North America segment, which will gain $739.62 billion of global annual sales by 2027. The IT services market size will gain the most in China at $239.02 billion.
Market-trend-based strategies for the IT services market include leveraging data analytics to find key information from raw data, focusing on using artificial intelligence (AI) to increase the efficiency, focusing on quantum computing for seamless data encryption, focusing on leveraging augmented reality, focusing on cloud desktops and focusing on strategic partnerships and collaborations.
Player-adopted strategies in the IT services market include expanding cloud offerings and digital transformation services, expanding reach and presence in the Asia Pacific region, expanding hybrid and multi-cloud capabilities through strategic acquisitions, launching new products through collaborations and partnerships and strengthening geographical footprint through the launch of new solutions.
To take advantage of the opportunities, the publisher recommends the IT services companies to focus on adoption of big data analytics, focus on use of artificial intelligence, focus on quantum computing, increase focus on virtual cloud desktops, focus on the internet of things (IoT), expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships and collaborations, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, continue to target fast-growing end-user industries, focus on large enterprises and focus on the urban population.
Table of Contents
1. Executive Summary2. Table Of Contents3. List Of Figures4. List Of Tables5. Report Structure7. Product/Service Analysis - Product/Service Examples23. Competitive Landscape And Company Profiles
6. Introduction And Market Characteristics
8. Supply Chain Analysis
9. Customer Information
10. Major Market Trends
11. Global IT Services Market Size And Growth
12. IT Services Market, Regional Analysis
13. Global Market Segmentation
14. IT Services Market Segments
15. Market Comparison with Macro Economic Factors
16. Asia-Pacific Market
17. Western Europe Market
18. Eastern Europe Market
19. North America Market
20. South America Market
21. Middle East Market
22. Africa Market
24. Company Profiles
25. Key Mergers And Acquisitions
26. Market Background: Information Technology Market Characteristics
27. Opportunities And Strategies
28. IT Services Market, Conclusions And Recommendations
29. Appendix
Executive Summary
IT Services Global Market Opportunities and Strategies to 2032 provides the strategists; marketers and senior management with the critical information they need to assess the global IT services market as it emerges from the COVID-19 shut down.Reasons to Purchase
- Gain a truly global perspective with the most comprehensive report available on this market covering 50 geographies.
- Understand how the market is being affected by the coronavirus and how it is likely to emerge and grow as the impact of the virus abates.
- Create regional and country strategies on the basis of local data and analysis.
- Identify growth segments for investment.
- Outperform competitors using forecast data and the drivers and trends shaping the market.
- Understand customers based on the latest market research findings.
- Benchmark performance against key competitors.
- Utilize the relationships between key data sets for superior strategizing.
- Suitable for supporting your internal and external presentations with reliable high-quality data and analysis
Description:
Where is the largest and fastest-growing market for IT services? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The IT services market global report answers all these questions and many more.The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market’s history and forecasts market growth by geography. It places the market within the context of the wider IT services market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics
- Product Analysis
- Supply Chain
- Customer Information
- Key Trends
- Global Market Size and Growth
- Regional Analysis
- Market Segmentation
- Regional Market Size and Growth
- Competitive Landscape
- Key Mergers and Acquisitions
- Market Opportunities and Strategies
- Conclusions and Recommendations
- Market Background: Information Technology Market
- Appendix
Scope:
Markets Covered:
1) By Type: Hardware Support Services; Software and BPO Services; Cloud Servicesa) By Hardware Support Services: Computer and Peripherals Support Services; Storage and Servers Support Services; Networking Support Services; Other Hardware Support Services
b) By Software and BPO Services: Software Services; BPO Services
c) By Cloud Services: Infrastructure As A Service (IaaS); Platform As A Service (PaaS); Software As A Service (SaaS); Business Process As A Service (BPaaS)
2) By Enterprise Size: Small and Medium Enterprises (SMEs); Large Enterprises
3) By End-Use Industry: BFSI (Banking, Financial Services and Insurance); Retail and Wholesale; Communication, Media and Technology; Manufacturing; Life Science and Healthcare; Other End-Users
4) By Service Provider Location: North America; Asia-Pacific; Western Europe; Eastern Europe; Rest Of The World
Companies Mentioned: Microsoft; Amazon.com Inc; International Business Machines Corporation; Dell Technologies Inc; SAP SE
Countries: Australia; China; Bangladesh; India; Indonesia; Japan; South Korea; Thailand; Vietnam; Malaysia; Singapore; Philippines; Hong Kong; New Zealand; USA; Canada; Mexico; Brazil; Chile; Argentina; Colombia; Peru; France; Germany; UK; Austria; Belgium; Denmark; Finland; Ireland; Italy; Netherlands; Norway; Portugal; Spain; Sweden; Switzerland; Russia; Czech Republic; Poland; Romania; Ukraine; Saudi Arabia; Israel; Iran; Turkey; UAE; Egypt; Nigeria; South Africa
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time-series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; IT services indicators comparison.
Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Companies Mentioned
- Microsoft
- Amazon.com Inc
- International Business Machines Corporation
- Dell Technologies Inc
- SAP SE
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 443 |
| Published | June 2023 |
| Forecast Period | 2021 - 2031 |
| Estimated Market Value ( USD | $ 3232 Billion |
| Forecasted Market Value ( USD | $ 7455.8 Billion |
| Compound Annual Growth Rate | 8.7% |
| Regions Covered | Global |
| No. of Companies Mentioned | 5 |
