IT Services Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 1.20 Trillion |
| Market Size (2029) | USD 1.81 Trillion |
| CAGR (2024 - 2029) | 8.38 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
IT Services Market Analysis
The IT Services Market size is estimated at USD 1.20 trillion in 2024, and is expected to reach USD 1.81 trillion by 2029, growing at a CAGR of 8.38% during the forecast period (2024-2029).
The rising IT expenditures throughout the world, alongside the growing embrace of software-as-a-service and expanding cloud solutions, underscore a surging demand for IT services. With an enhanced IT infrastructure, the frequency of data breaches is on the rise, driving the market growth opportunities significantly.
- The IT Services market is witnessing robust growth, driven by several key factors. Primary among these is digital transformation, where businesses are leveraging digital technologies to boost efficiency, enhance customer experiences, and foster innovation. Moreover, the surge in the adoption of cloud computing is providing businesses with scalable and cost-efficient IT solutions. The rise in big data and analytics underscores the need for sophisticated IT services to manage and derive insights from data.
- Also, the rise in technological advancements like 5G, Blockchain, AR, and AI are likely to have a positive impact on the offerings of IT services. With 5G technology on its way, it is likely to ensure that companies may set up networks on their premises. According to Ericsson, by the end of 2029, global 5G subscriptions are projected to surpass 5.3 billion, representing 58% of all mobile subscriptions. 5G is set to take the lead as the primary mobile access technology by 2028. Notably, in Q4 2023 alone, 5G subscriptions surged by 154 million, reaching a total of 1.57 billion.
- The rise in IoT device adoption, coupled with the surge in remote work setups, is amplifying the demand for robust IT infrastructure and support. Simultaneously, as IT landscapes grow more intricate and demand specialized skills, organizations are increasingly turning to outsourcing for IT services, fuelling market expansion.
- However, factors like increasing operational challenges such as perceived loss of control and identification of key goals, as well as growing data breaches, cost concerns over product customization, and data migration, are some of the reasons that can act as a significant matter of concern, further restricting the market's growth throughout the forecast period.
IT Services Market Trends
Cloud Services is Gaining Traction Due to the Emergence of Cloud-based Platform
- Companies in this digital age are striving for agility through the adoption of new technologies, primarily by transitioning to cloud-based environments. Operating in the cloud involves establishing embedded connections and intelligence. This fosters the seamless integration of smart operations and lays a robust foundation for cloud-linked digital services. According to Flexera Software, in 2024, 49 percent of respondents are already running significant workloads on Amazon Web Services (AWS).
- Cloud-based infrastructure provides flexible, on-demand access to the resources underlying these new digital business solutions. Due to advancements in IT operation across the cloud-based platform, IT services have become more data-driven and real-time, creating greater value for the business, especially in operational efficiency, business opportunity discovery, and remote access optimization.
- There has been a significant breakthrough in cloud computing over the past few years, as cloud solutions offer various significant advantages. As the demand for cloud services is expected to grow over the next few years, with immense demand from the IT and telecommunication industry across the ever-growing corporate sector, the scope for IT infrastructure services from these end users is expected to grow rapidly.
- In April 2024, Cloud Software Group, Inc., and Microsoft Corp. declared that they are strengthening their collaboration plans through an extensive eight-year strategic partnership. This collaboration aims to bolster the market presence of Citrix's virtual application and desktop platform. Furthermore, it will pave the way for the joint creation of innovative cloud and AI solutions underpinned by a unified product roadmap.
- To increase productivity, governance, and control, many organizations aim to deploy their systems' core to the cloud. Various market vendors are driving their investments to accelerate digital transformation. For instance, in May 2024, Telef贸nica and Google Cloud broadened their collaboration, aiming to deliver top-tier cloud solutions to the market. Their shared goal is to empower businesses to expedite their digital evolution. This renewed partnership entails the expansion of Google Cloud services, available through Telef贸nica Tech, specifically tailored for the B2B sector. The collaboration also emphasizes a joint focus on advanced innovations, notably in artificial intelligence (AI) and generative AI (Gen AI).
North America is Expected to Register Significant Market Growth During the Forecast Period
- Rapid technological advancements, a surge in cloud computing adoption, and a rising demand for cybersecurity solutions propel North America's IT services market. Businesses are ramping up digita l transformation efforts to boost their efficiency and competitive edge. The market is further bolstered by the widespread adoption of IoT devices and the surge in big data analytics. Moreover, the shift to remote work, hastened by the COVID-19 pandemic, has emphasized the overall significance of resilient IT infrastructure and managed services. The ascent of AI and machine learning technologies further enriches the market's landscape.
- The banking and financial institutions in the United States are accelerating spending on information technology services, which is helped by higher growth in the banking sector and improving economic fundamentals. Many enterprises in the region have begun adhering to newer methods and processes to gain a competitive advantage, resulting in the increasing adoption of emerging technologies, like AI, IoT, machine learning (ML), Blockchain, robotics, and data science. The region is witnessing a surge in IoT applications and sales, propelled by the increasing digitalization and adoption of connected devices in business and industry. This shift is paving the way for the expansion of IT services in the region.
- The market witnessed intense competition, fuelled by both established and emerging players. These industry participants deploy a mix of organic and inorganic strategies to enhance their competitive edge, consequently amplifying market growth prospects. For instance, in October 2023, Pax8, a cloud commerce marketplace, teamed up with CyberFOX to offer managed service providers (MSPs) specialized identity access management (IAM) solutions, with a focus on privileged access management (PAM) via their exclusive product, AutoElevate. CyberFOX, with a track record of assisting more than 2000 MSPs, is dedicated to enhancing efficiencies, boosting productivity, and creating new revenue avenues for its clientele, primarily comprising small and medium-sized businesses (SMBs).
- Also, in March 2024, Cognizant renewed its enduring partnership with Pon IT, a subsidiary of the Dutch conglomerate Pon Holdings. This extension solidifies Cognizant's role as the provider of cloud-managed services for Pon IT's diverse operating entities. As the collaboration progresses, Cognizant is set to introduce additional enhancements, paving the way for Pon IT to leverage a more agile, intuitive, and integrated cloud infrastructure.
IT Services Industry Overview
The IT services market, characterized by intense competition, is primarily led by a wide range of market players. While these players currently hold significant market shares, the landscape is shifting. The rise of advanced IT consultancy services is empowering new entrants, enabling them to bolster their positions, particularly in emerging economies.
- May 2024: CrowdStrike and Tata Consultancy Services (TCS) signed a strategic partnership to power TCS鈥� extended managed detection and response (XMDR) services with the AI-native CrowdStrike Falcon XDR platform. This partnership enables TCS to leverage the comprehensive security features of the Falcon platform. This includes cloud security and next-gen SIEM, facilitating an AI-driven transformation of their SOC to enhance breach prevention.
- July 2023: Windstream Enterprise, an IT-managed service provider, launched a new portfolio of IT Managed Services powered by ATSG, providing enterprise customers access to an entire range of turnkey services to control and power their virtual workspace, digital infrastructure, and cybersecurity needs.
IT Services Market Leaders
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IBM Corporation
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Hewlett Packard Enterprise Company
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Fujitsu Ltd.
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Toshiba Corporation鈥�
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Microsoft Corporation鈥�
*Disclaimer: Major Players sorted in no particular order
IT Services Market News
- January 2024: Global technology company FPT Software signed a strategic partnership with Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group. The two companies are set to delve into new collaborative opportunities, particularly in cloud migration and digital analytics. This partnership highlights FPT Software's broad tech expertise, spanning consulting, migration, delivery, and cloud-managed services.
- August 2023: Veritas Technologies, the provider of secure multi-cloud data management, launched the Veritas Managed Service Provider Program, a specially designed initiative within Veritas Partner Force. The purpose-built program provides managed service providers (MSPs) with incentives, extensive training, and flexible pricing models. These empower MSPs to broaden their service portfolios and seize opportunities in the rising demand for data protection and cloud-native cyber resilience solutions.
IT Services Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of the Impact of COVID-19 on the market
4.4 Market Drivers
4.4.1 Growing Emphasis on Leveraging the Core Competencies by Outsourcing Non-core Operations
4.4.2 Greater Access to a Larger Pool of Talent and Scope for Innovation (As Opposed to Onboarding Expertise)
4.4.3 Cloud Services is Gaining Traction Due to the Emergence of Cloud-based Platform
4.5 Market Challenges
4.5.1 Operational Challenge (Such As Perceived Loss of Control and Identification of Key Goals)
5. MARKET SEGMENTATION
5.1 By Service Type
5.1.1 Professional (System Integration and Consulting)
5.1.2 Managed
5.2 By Size
5.2.1 Small and Medium Enterprises
5.2.2 Large Enterprises
5.3 By End-user Industry
5.3.1 BFSI
5.3.2 Telecommunication
5.3.3 Healthcare
5.3.4 Retail
5.3.5 Manufacturing
5.3.6 Government
5.3.7 Other End-user Industries
5.4 By Geography***
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.3 Asia
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 Singapore
5.4.3.5 Indonesia
5.4.3.6 Malaysia
5.4.3.7 Vietnam
5.4.3.8 Thailand
5.4.4 Australia and New Zealand
5.4.5 Latin America
5.4.6 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Citrix Systems Inc.
6.1.2 Cisco Systems Inc.
6.1.3 Dell EMC
6.1.4 IBM Corporation
6.1.5 Hewlett Packard Enterprise
6.1.6 Microsoft Corporation
6.1.7 TCS Limited
6.1.8 Toshiba Corporation
6.1.9 Verizon Communications Inc.
6.1.10 Fujitsu Ltd
- *List Not Exhaustive
7. RELATIVE POSITIONING OF KEY VENDORS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
IT Services Industry Segmentation
IT services apply technical and business expertise to assist organizations in creating, managing, and optimizing their information and business processes. The scope of the market is considered by service type, size, end-user industry, and geographical analysis throughout the forecast period. The scope of the study considered was project-oriented (integration, consulting application, and development), managed services (application ma nagement, outsourcing, and infrastructure services), and support services (hardware and software and IT knowledge) while evaluating the market size.
The IT services market is segmented by service type (professional (system integration and consulting) and managed services), size (small and medium enterprises and large enterprises), end-user industry (BFSI, telecommunication, healthcare, retail, manufacturing, government, and other end-user industries), and by geography (North America [United States and Canada], Europe [Germany, United Kingdom, and France], Asia-Pacific [China, Japan, India, Singapore, Indonesia, Malaysia, Vietnam, and Thailand], Latin America, and Middle East and Africa). The market sizes and forecasts are provided for a value of USD for all the above segments.
| By Service Type | |
| Professional (System Integration and Consulting) | |
| Managed |
| By Size | |
| Small and Medium Enterprises | |
| Large Enterprises |
| By End-user Industry | |
| BFSI | |
| Telecommunication | |
| Healthcare | |
| Retail | |
| Manufacturing | |
| Government | |
| Other End-user Industries |
| By Geography*** | ||||||||||
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| Australia and New Zealand | ||||||||||
| Latin America | ||||||||||
| Middle East and Africa |
IT Services Market Research FAQs
How big is the IT Services Market?
The IT Services Market size is expected to reach USD 1.20 trillion in 2024 and grow at a CAGR of 8.38% to reach USD 1.81 trillion by 2029.
What is the current IT Services Market size?
In 2024, the IT Services Market size is expected to reach USD 1.20 trillion.
Who are the key players in IT Services Market?
IBM Corporation, Hewlett Packard Enterprise Company, Fujitsu Ltd., Toshiba Corporation鈥� and Microsoft Corporation鈥� are the major companies operating in the IT Services Market.
Which is the fastest growing region in IT Services Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in IT Services Market?
In 2024, the North America accounts for the largest market share in IT Services Market.
What years does this IT Services Market cover, and what was the market size in 2023?
In 2023, the IT Services Market size was estimated at USD 1.10 trillion. The report covers the IT Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the IT Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the emerging trends in the IT Services Market?
Emerging trends in the IT Services Market are a) Integration of IoT b) Increased focus on cybersecurity services c) Adoption of hybrid cloud solutions
IT Services Industry Report
The global IT services market is experiencing robust growth, driven by the increasing adoption of digital technologies such as AI, machine learning, and cloud computing across various industry verticals. This market growth is further fueled by the rising demand for cybersecurity solutions and data analytics, as businesses seek to enhance data security and leverage big data for improved decision-making. The IT services industry is witnessing a surge in demand from small and medium enterprises (SMEs), which are increasingly relying on IT services for digital transformation and to compete effectively in the global market.
Regionally, North America has been a dominant player, but the Asia Pacific region is projected to experience the fastest growth, driven by increased IT spending and the integration of advanced technologies by businesses. The market overview indicates that the IT services market is poised for continued expansion, with trends like cloud services, IoT, and automation shaping the future of the industry.
For a comprehensive industry analysis, the IT Services Market Report is segmented by service type, size, end-user industry, and geography. The report offers market forecasts and size in value for all the above segments. This industry research provides valuable insights into industry trends, market segmentation, and market data, essential for understanding the market value and growth rate.
The market forecast highlights the potential for significant growth, driven by industry leaders and market leaders who are pioneering advancements in technology. The report pdf, available for download, includes detailed industry reports, market outlook, and industry statistics, providing a thorough industry overview and market predictions.
In summary, the IT services market is characterized by rapid market growth and a positive industry outlook. The market review underscores the importance of industry information, market segmentation, and market value in shaping the future of IT services. For those seeking detailed industry sales and market predictions, the report example provided in the report pdf is an invaluable resource for understanding the dynamics of this evolving industry.
