IT Services Market Growth Analysis | 2023-2028

Market Insights

The IT services market was estimated at USD 103.12 billion in 2022 and is likely to grow at a CAGR of 9.80% during 2023-2028 to reach USD 181.19 billion in 2028.

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Market Dynamics

Introduction

IT services encompass a broad range of technical support, solutions, and expertise designed to optimize and manage technology infrastructure, applications, and processes within organizations. These services include software development, network management, cybersecurity, cloud computing, data analytics, and IT consulting. They aim to enhance operational efficiency, ensure system reliability, and drive innovation across industries. IT services are vital for businesses to adapt to evolving technological trends, improve productivity, and gain a competitive edge in the digital landscape. From small enterprises to large corporations, IT services provide tailored solutions to meet diverse needs, enabling seamless communication, collaboration, and growth in a connected world.

Market Drivers

The IT services 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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Key Players

The following are the key players in the IT services market:

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

Note: The above list does not necessarily include all the top players in the market.

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Segments Analysis

By Service Type

"The managed security services segment contributed a revenue share of more than 40% in 2022."

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 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, a significant demand for managed security services increased IT services market revenue.

By Development Type

"The cloud services segment is expected to remain dominant during the forecast period."

The market is segmented as cloud and on-premises. The cloud services segment is expected to remain dominant as well as the 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

"The BFSI (banking, financial services, and insurance) segment leads the market during the forecast period."

Based on the end-use industry type, the 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 market provides the best solutions to them.

Regional Insights

"North America is estimated to be the fastest-growing IT service market during the forecast period."

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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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s IT services market realities and future market possibilities for the forecast period of 2023 to 2028. After a continuous interest in our IT services market report from the industry stakeholders, we have tried to further accentuate our research scope to the IT services market to provide the most crystal-clear picture of the market. The report segments and analyses the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

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 1000 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 15 detailed primary interviews with the market players across the value chain in all four regions and 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 market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market 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, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, India, Australia, South Korea, and the Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others)

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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 to sales@stratviewresearch.com.