IT Services Market Growth Analysis | 2023-28

Market Insights

The IT services market is estimated to grow from USD 103.12 billion in 2022 to USD 181.19 billion by 2028 at a CAGR of 9.80% during the forecast period.

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What are IT services?

IT administration refers to using business and technical expertise to empower organizations in the creation, management, and advancement of or access to data and business processes.

IT services are used in industries such as Banking, financial services and insurance, Telecommunication, Healthcare, Retail, Manufacturing, Government, and many more.

Key Players

Some of the major players in the market are-

• Cisco Systems Inc.
• Citrix Systems Inc.
• Dell EMC
• Fujitsu Ltd.
• Hewlett Packard Enterprise
• IBM Corporation
• Microsoft Corporation
• TCS Limited
• Toshiba Corporation
• Verizon Communications Inc.

Market Dynamics

The market is driven by a host of factors, some of which are noted below:

• The growing demand for IT services is mainly due applicability of services in different industries.
• Increasing adaptability of digitalization in various developing countries and increasing usage in small & medium enterprises.
• A major force behind the growth of the IT services market is the adoption of cloud computing.
• Cybersecurity is now a significant priority for businesses due to the rise in cyberattacks and data breaches. Network security, endpoint protection, threat intelligence, and incident response are among the many cybersecurity services that IT service companies provide.
• IT service providers are essential to implementing data analytics platforms, creating data models, and developing data-driven apps that assist organizations in deriving valuable insights from their data.

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Segments Analysis

By Service Type

The market is segmented into Managed Services, Project Oriented Services, and Support Services. The managed security services segment dominated the market and contributed a revenue share of more than 40% in 2022.

Almost half of the businesses, according to an NTT Ltd.-commissioned report by IDG, are looking for managed service providers to choose for their value-added services to minimize security risks, which have multiplied since the COVID-19 pandemic outbreak as staff members are working remotely and clients and business partners are completely reliant on electronic communication. As a result, there was a significant demand for managed security services, which increased market revenue.

By Development Type

The market is segmented as cloud and on-premises. The cloud services segment is expected to remain dominant as well as fastest growing during the forecast period owing to advancement in the IT sector and consumer preference for cloud computing due to its various benefits such as remote access optimization, operational efficiency, and business opportunity discovery.

By End-Use Industry Type

Based on the end-use industry type, the IT services market is segmented as BFSI, telecommunication, healthcare, retail, manufacturing, government, and others. The BFSI (Banking, financial services, and insurance) segment leads the market owing to various financial institutions' wide networking and central control units. These institutions require huge data handling and real-time support, and the IT services provide the best solutions to them.

Regional Insights

North America is estimated to be the most significant and fastest-growing IT service market during the forecast period, with the USA being the major country offering lucrative growth opportunities. The region’s growth is due to many IT service providers in the country. The USA is the IT and software hub of the world. The IT services market of North America is mainly driven by the huge IT budgets of governments. Europe and Asia-Pacific also offer substantial growth opportunities during the forecast period.

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Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market. 

The IT services market is segmented into the following categories. 

By Service Type:

• Managed Services 
• Project Oriented Services 
• Support Services

By Development Type:

• Cloud
• On-premise 

By Size Type:

• Small & Medium Enterprises 
• Large Enterprises 

By End-Use Industry Type:

• BFSI 
• Telecommunication 
• Healthcare 
• Retail 
• Manufacturing
• Government
• Others

By Region:

• North America (Country Analysis: the USA, Canada, and Mexico) 
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

We conducted more than 10 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market. 

What Deliverables Will You Get in this Report?

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Market Segmentation

• Current market segmentation of any one of the service types by end-use industry type.  

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry at sales@stratviewresearch.com.