Market Research Report
IT Services Market (2021 - 2026)
|IT Services Market (2021 - 2026)|
Published: January 24, 2021
Content info: 98 Pages
Delivery time: 2-3 business days
Global IT Services Market size is expected to reach $1123.57 billion by 2026, growing at a CAGR of 8.02% during 2021-2026. In 2019, 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 2018 and is expected to capture more than 80% market share by 2026. 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.
The IT services market report: "IT Services Industry Outlook- Forecast (2021-2026)", by IndustryARC, covers an in-depth analysis of the following segments of the IT Services Market.
IT Infrastructure services market is likely to increase at a CAGR of 9.76% during 2021-2026. 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 2026. 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.
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 2021-2026. In 2019, approximately 80% of companies worldwide were using some form of cloud based services, out of which 15%-20% companies are likely to choose 100% cloud based services in next 5 years. It is also expected that by 2021, 60% enterprise software will be fully cloud based.
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 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 2021. 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.
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 fund raising.
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 2026 growing at CAGR of 18.56% during 2021-2026. Thus, with the evolving big data concept in enterprises and businesses, the IT services market is likely to find opportunity during the forecast period.
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.
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 top 5 players were estimated approximately 29.77% in 2018. Acquisition, partnership, and Service differentiation are the key strategies adopted by most of the companies in this market.
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.
Financials would be provided on a best efforts basis for private companies