IT Services Market Extends at a Healthy CAGR of 9.43% by 2032

Introduction

Between 2024 and 2032, the market for IT infrastructure services is anticipated to expand at a CAGR of 9.43%. Most organizations struggle to maintain the functioning and cost of their IT infrastructures. As a result, numerous businesses are entering the managed IT services market. Similarly, managed Infrastructure is gaining popularity since it enables organizations to concentrate on their primary operations. Emerging technologies, such as big data, have contributed to the growth of the IT Infrastructure Services Market. It is calculated that the Big Data Market will reach approximately $318 billion by 2030. Similarly, when the volume of data grows, the enterprise's IT infrastructure must ensure the most stable information security management to protect its data from hackers. Utilizing IT infrastructure services, this demand boosts the IT services market.

The efficacy of IT services in businesses depends on various factors and varies considerably between companies. Similarly, because each organization is unique, it employs specialized technologies to meet its specific business requirements. Due to the absence of standardization, it is challenging for businesses to assess the viability of IT services based on the success rate of the same technology in another organization. A typical IT setup may cost between $75 and $300 per user. Inadequate IT services may therefore place a significant cost strain on enterprises. Due to the low setup cost, cloud-based IT services are growing in popularity. Likewise, cloud-based IT services facilitate the expansion and contraction of businesses. As a result, numerous SMBs regard cloud-based IT services as the most efficient deployment platform.

Market Dynamics

Growing Smart Cities

Governments around the world are funding in the innovation of smart cities. The European Union supports smart city initiatives through money for research and environmental goals for member states. In emerging nations, the concept of smart cities is also rising. Around 300 smart city pilot projects in China and India are now being planned. These activities necessitate the implementation of cutting-edge IT infrastructure. This will be an important future growth driver for the IT services industry. Tencent has pledged to invest an additional $70 billion between 2022 and 2030 in cloud computing, artificial intelligence, and cybersecurity. Chinese firms have exhibited a significant willingness to establish themselves in India through investments. Nonetheless, their situation has gotten more hazardous as New Delhi's position on allowing Chinese technology and investment into its domestic market has shifted. This will be a significant future growth driver for the IT services industry.

The emergence of automation to reduce mundane tasks and momentous transformations

The rise of automation to eliminate menial tasks and radical changes in client demand, such as customized pricing and improved customer experience, are forcing businesses worldwide to adopt IT services. In addition, the COVID-19 pandemic put the professional services industry to the test by demanding widespread remote work and modifying company strategies in response to rapidly evolving market conditions. In addition, the COVID-19 outbreak prompted numerous technological advancements across industries, with corporations surviving the pandemic with the aid of technology by emphasizing resource management and talent acquisition. In the current economic climate, firms are rethinking their business models to guarantee they have the appropriate skill sets, capital, and resources to gain a long-term competitive advantage. Among the additional benefits of IT, professional services are Company Intelligence (BI), accurate forecasting, improved business processes, and lower resource waste. They also assist businesses in identifying cost-cutting opportunities. It is projected that several enterprises will utilize IT professional services to streamline their operations post-pandemic, supporting economic expansion.

The most promising software and BPO service prospects

By 2030, the software and BPO services market will provide enormous potential within the IT services industry, with global annual revenues of $1,691,2 billion. Software services will generate global annual sales of $1,519.4 billion by 2030, representing the software and BPO services industry segment with the most promising prospects. The market for hardware support services segmented by type will provide the most promising prospects among computer and peripherals support services by 2030, generating $198 billion in global yearly sales. The software as a service (SaaS) segment will generate $209.0 billion in annual global sales by 2030, making it the most valuable service type segment in the cloud services market. Small and medium-sized businesses will produce global annual sales of $1,349.4 billion by 2030, representing the section of the IT services market with the most promising prospects. In the IT services market split by end-use industry type, the most attractive opportunities will be found in the other category, generating global annual sales of $1,268.0 billion by 2030. In the United States, the IT services industry will expand the most to $466,3 billion.

Regional Analysis

Due to the widespread implementation of enterprise resource planning (ERP) and cloud services for data management, North America held more than 35% of the market share in 2021. In addition, expanding the region's retail business mandates inventory management, data analytics and reporting, and supplier-customer loyalty management, thereby fueling the region's growth. In addition, most foreign-owned U.S. affiliates are investing heavily in IT professional services research and development, which will help expand IT professional services throughout the area.

Asia-Pacific is expected to become one of the fastest-growing regional markets during the forecast period, with a CAGR of 12.6%. During the projected period, this region's legal & advisory and accounting service industries are forecast to have an exponential increase in demand for knowledge-based services, which will fuel growth. In addition, growing nations such as China and India are focused on IT development, offering further opportunities for IT professional services in the APAC area. In addition, the Asia-Pacific region is home to many small and medium-sized businesses that rely heavily on professional services to conduct daily operations.

Key Highlights 

• The Global IT Services Market was valued at USD 112.71 billion in 2023, and is projected to reach USD 253.62 billion by 2032, registering a CAGR of 9.43% from 2024 to 2032.
• In 2021, the project-oriented services category led the IT professional services market and accounted for more than 35% of its revenue.
• The cloud sector led the IT professional services industry in 2021, generating over 65% of total revenue.
• The technology businesses category led the market with a greater than 40% market share.
• North America defeated the market in 2021 and accounted for over 35% of the market share.

Competitive Players

1. Accenture
2. IBM Corporation
3. Tata Consultancy Services (TCS)
4. Capgemini
5. Infosys
6. Cognizant Technology Solutions
7. Wipro
8. DXC Technology
9. HCL Technologies
10. Atos
11. NTT Data
12. Fujitsu
13. Tech Mahindra
14. SAP SE
15. Oracle Corporation
16. Others

Recent Developments

Recent Developments

• In June 2022, Accenture Positioned as a Leader in IDC MarketScape for Adobe Experience Cloud Professional Services.
• In April 2022, Datto Launches Two Continuity Solutions that Provide the Last Line of Defense for MSPs Against Cyberattacks.
• In June 2022, Capgemini to expand its semiconductor design services in Europe for Intel Foundry Services customers.
• In June 2022, VMware Enhances Its Unique Lateral Security for Multi.

Segmentation

1. By Service Type
   
   1. Consulting Services
   2. Managed Services
   3. Support and Maintenance Services
   4. Outsourcing Services
   5. Cloud Services
   6. Application Services
   7. Training and Education Services
2. By Deployment Mode
   
   1. On-premise
   2. Cloud
3. By Organization Size
   
   1. Small and Medium Enterprises (SMEs)
   2. Large Enterprises
4. By End Use
   
   1. Technology Companies
   2. Consulting Companies
   3. Marketing & Communication Companies
   4. Others