Global Green IT Services Market Size USD 30.5 Billion By 2030 | CAGR of 10.6%

Introduction

Companies throughout the world have begun enhancing operational efficiencies. The need to decrease waste, utilize resources efficiently, and reduce carbon footprints necessitates implementing innovative and sustainable solutions. Increasing emphasis on carbon footprint reduction and rising demand for eco-friendly services are driving the expansion of green IT services.

Numerous countries across the globe have enacted stringent laws and regulations for enterprises to limit emissions and decrease environmental damage. This is boosting the use of environmentally friendly IT services. The corporations also allocate funds to lower their carbon footprints to comply with the criteria and enhance their brand's image. Integrating sustainability as a feature, desktop virtualization, cloud services, green data centers, and software as a service (SaaS) become green IT solutions. Consequently, industries and organizations are investing in these technologies and services, contributing to this market's expansion.

Market Dynamics

Strengthening Government Regulations to Drive the Global Green IT Services Market

The strengthening of regulatory and non-regulatory frameworks is anticipated to stimulate the growth of green businesses. While some governments have loosened enforcement of vital environmental policies and regulations, primarily due to the epidemic, preserving long-term commitments and adhering to their implementation will be essential. In addition, non-regulatory stakeholders, such as industry groups and civil society organizations, have pressured firms to improve their goods and procedures.

The European governments have been progressively tightening their carbon emission standards for enterprises operating in numerous industries. To comply with the government-mandated criteria, it is anticipated that enterprises operating in the region will progressively embrace greener services.

It has been demonstrated that companies that promote environmentally friendly business practices attract new clients who wish to purchase products and services from environmentally friendly enterprises. In addition, different government restrictions are compelling enterprises to control their carbon footprint, influencing the market demand for green IT services positively.

Increase in Social Media Platforms and Reduction in Carbon Footprint to Provide Opportunities for the Global Green IT Services Market

Due to a surge in social media platform users, both Internet traffic and the need for cloud storage have increased substantially. The replacement of old servers with high-capacity, energy-efficient, powerful servers is anticipated to influence the market's growth significantly.

In addition, businesses are introducing green IT service programs to encourage energy-efficient technologies to lower the carbon footprint of their IT development and service activities.

SAP announced a new program in Australia and New Zealand geared toward the energy and natural resources businesses (ANZ). Six startups in predictive analytics, industrial asset management, worker safety, and wellness have participated in the program.

Key Highlights

• The global green IT services market was valued at USD 12.3 billion in 2021 and is predicted to reach an expected value of USD 30.5 billion by 2030, registering a CAGR of 10.6% during the forecast period (2022-2030).
• By type, the global green IT services market is segmented into software and services. The services segment accounted for the largest market share and is estimated to grow at a CAGR of 12.6% during the forecast period.
• By end-user vertical, the global green IT services market is segmented into government, BFSI, IT and telecom, industrial, healthcare, and other end-user verticals. The industrial segment accounted for the largest market share and is estimated to grow at a CAGR of 9% during the forecast period.

Regional Insights

By region, the global green IT services market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.

North America accounted for the largest market share and is estimated to grow at a CAGR of 9% during the forecast period. Various government programs contribute to the expansion of the market. The Green New Deal, for instance, promises to cut carbon emissions in the United States. It anticipates obtaining all of the nation's electricity from renewable and zero-emission sources, digitizing the power grid, and retrofitting all buildings to be more energy efficient. During the UN Science-Policy-Business Forum in March 2019, the United Nations, several tech titans, and many policies, finance, and science communities collaborated to launch significant initiatives regarding the use of modern technology to create greener, cleaner, and more efficient solutions for sustainable development. Initiated in December 2017 at the UN Environment Assembly, the UN Research-Policy-Business Forum on the Environment seeks to discover and promote opportunities for green investments driven by advancements in science and technology, enabling policies, and innovative finance.

Europe is the second largest region and is predicted to reach an expected value of USD 9 billion by 2030, registering a CAGR of 10.2%. Due to the active role of the European Commission in implementing numerous initiatives, Europe has a substantial portion of the market. A recent European Union (EU) effort is asking individuals, communities, and organizations to participate in climate action and develop a greener Europe. Signatories pledge to increase their contributions to the green transition. In December 2020, the European Commission will announce a new Digital Europe Program for EUR 7.5 billion. Investments made under the Digital Europe Programme promote the Union's dual goals of a green transition and digital transformation and its resilience and strategic autonomy. The program is part of the next long-term EU budget, which will finance projects between 2021 and 2027. It will also support other EU programs, such as Horizon Europe, the EU's research and innovation project for which a political agreement has been achieved by the end of 2020, and the Connecting Europe Facility for digital infrastructure. H-CLOUD is a specific EU project in which green ICT is pursued at the European level. By the Green Deal objectives, H-CLOUD was entrusted with researching green computing and developing appropriate policies for cloud computing to decrease the digital industry's environmental impact. All of these measures contribute to sector expansion.

Asia-Pacific is the third largest region. The growth of the renewable energy market in the region is a result of the creation and acceptance of policies that encourage its growth. Additionally, numerous nations have a significant dedication to sustainability. Japan and Singapore have established carbon taxation regulations. China is attempting to limit the carbon footprint of Beijing's data centers by prohibiting facilities with high energy use. As part of its pledges to a 2015 global agreement aimed at limiting temperature rises, China has vowed to reach its absolute emissions peak by roughly 2030. Carbonstop, one of the significant providers of carbon management software and consulting services, assists Chinese businesses in calculating, analyzing, managing, and reporting carbon emissions. In addition, global firms are entering the region to expedite market development. In June 2020, ENGIE Impact expanded its services to the Asia-Pacific area, where the company would assist enterprises, communities, and governments in developing sustainability plans and implementing solutions that generate economic and environmental advantages.

Competitive Players

1. IBM Corporation
2. Accenture PLC
3. Johnson Controls
4. SAP SE
5. Schneider Electric SE
6. Enablon SA
7. Accuvio Sustainability Software
8. Dakota Software Corp
9. Cority Software Inc.

Recent Developments

• September 2022 - More than 77% of respondents, according to recent global market research from IBM (NYSE: IBM), have adopted a hybrid cloud strategy that can help drive digital transformation. However, most responding organizations have difficulty coordinating the complexity of all their cloud environments. Less than one-quarter of respondents worldwide manage their hybrid cloud infrastructures comprehensively, which can create blind spots and put data at risk. Organizations confront skills gaps, security issues, and compliance barriers.
• September 2022 - To support businesses in driving innovation and achieving their digital growth agendas, IBM (NYSE: IBM) today announced intentions to purchase Dialexa, a top provider of U.S. digital product engineering services. The acquisition is anticipated to broaden IBM's product engineering knowledge and enable it to provide clients with end-to-end digital transformation services.

Segmentation

1. By Type
   1. Software
   2. Services
2. By End-user Vertical
   1. Government
   2. BFSI
   3. IT and Telecom
   4. Industrial
   5. Healthcare
   6. Other End-user Verticals