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IT Services Industry Outlook- Forecast (2021-2026)

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  • 93 Pages
  • January 2021
  • Region: Global
  • IndustryARC
  • ID: 5308984
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.

Report Coverage

The IT services market report: “IT Services Industry Outlook- Forecast (2021-2026)” covers an in-depth analysis of the following segments of the IT Services Market.

Key Takeaways

  • North America dominates the IT services market owing to rising preferences of companies to avail cloud based services.
  • The rising penetration IoT based devices and large volume of data generation in enterprises are creating new opportunity for IT services market.
  • Cloud based IT services is expected to accelerate the IT services market at a faster pace due to low cost deployment.
  • Lack of standardization would lead end users to spend in IT services with uncertain ROI, which may inhibit the IT services industry growth.

End User Type - Segment Analysis

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.

Deployment Type - Segment Analysis

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.

Geography - Segment Analysis

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.

Drivers - 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.
  • Emerging big data technology

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.

Challenges - IT Services Market

  • Lack of standardization

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.

Market Landscape

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.

Acquisitions/Technology Launches

  • 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

Table of Contents

1. IT Services Market - Overview
1.1 Definitions and Scope
2. IT Services Market - Executive summary
2.1 Market Revenue, Market Size and Key Trends by Company
2.2 Key Trends by type of Application
2.3 Key Trends segmented by Geography
3. IT Services Market
3.1 Comparative analysis
3.1.1 Product Benchmarking - Top 10 companies
3.1.2 Top 5 Financials Analysis
3.1.3 Market Value split by Top 10 companies
3.1.4 Patent Analysis - Top 10 companies
3.1.5 Pricing Analysis
4. IT Services Market Forces
4.1 Drivers
4.2 Constraints
4.3 Challenges
4.4 Porters five force model
4.4.1 Bargaining power of suppliers
4.4.2 Bargaining powers of customers
4.4.3 Threat of new entrants
4.4.4 Rivalry among existing players
4.4.5 Threat of substitutes
5. IT Services Market -Strategic analysis
5.1 Value chain analysis
5.2 Opportunities analysis
5.3 Product life cycle
5.4 Suppliers and distributors Market Share
6. IT Services Market - By Product Type (Market Size -$Million / $Billion)
6.1 Market Size and Market Share Analysis
6.2 Application Revenue and Trend Research
6.3 Product Segment Analysis
7. IT Services Market - By Service Type (Market Size -$Million / $Billion)
7.1 Introduction
7.2 Professional Services
7.2.1 System Integration Application Integration Application Development Application Testing Application Lifecycle Management Infrastructure Integration Data Center Security Mobility Network Others (Communication and Information Management)
7.2.2 Training and Education
7.2.3 Consulting
7.3 Managed Services
7.3.1 Managed Security
7.3.2 Managed Data Center
7.3.3 Managed Network
7.3.4 Managed Mobility
7.3.5 Others (Managed Communication and Information)
7.4 Telecom Services
8. IT Services Market - By Organization Size (Market Size -$Million / $Billion)
8.1 Introduction
8.2 Small and Medium Businesses
8.3 Enterprises
9. IT Services Market - By Deployment Type (Market Size -$Million / $Billion)
9.1 Introduction
9.2 On-Premises
9.3 Cloud
10. IT Services Market - By Business Function (Market Size -$Million / $Billion)
10.1 Introduction
10.2 Finance and Accounting
10.3 Human Resources
10.4 Sales and Marketing
10.5 Supply Chain Management
10.6 Operations and Support
10.7 Manufacturing
11. IT Services Market - By Vertical (Market Size -$Million / $Billion)
11.1 Introduction
11.2 Banking, Financial Services, and Insurance
11.3 Media and Entertainment
11.4 Government and Defense
11.5 Communication and Technology
11.6 Consumer Goods and Retail
11.7 Healthcare
11.8 Others
12. IT Services - By Application Type (Market Size -$Million / $Billion)
12.1 Segment type Size and Market Share Analysis
12.2 Application Revenue and Trends by type of Application
12.3 Application Segment Analysis by Type
13. IT Services- By Geography (Market Size -$Million / $Billion)
13.1 North America IT Services Market - North America Segment Research
13.2 North America Market Research (Million / $Billion)
13.2.1 Segment type Size and Market Size Analysis
13.2.2 Revenue and Trends
13.2.3 Application Revenue and Trends by type of Application
13.2.4 Company Revenue and Product Analysis
13.2.5 North America Product type and Application Market Size U.S Canada Mexico Rest of North America
13.3 North America IT Services- South America Segment Research
13.4 South America Market Research (Market Size -$Million / $Billion)
13.4.1 Segment type Size and Market Size Analysis
13.4.2 Revenue and Trends
13.4.3 Application Revenue and Trends by type of Application
13.4.4 Company Revenue and Product Analysis
13.4.5 South America Product type and Application Market Size Brazil Venezuela Argentina Ecuador Peru Colombia Costa Rica Rest of South America
13.5 North America IT Services- Europe Segment Research
13.6 Europe Market Research (Market Size -$Million / $Billion)
13.6.1 Segment type Size and Market Size Analysis
13.6.2 Revenue and Trends
13.6.3 Application Revenue and Trends by type of Application
13.6.4 Company Revenue and Product Analysis
13.6.5 Europe Segment Product type and Application Market Size U.K Germany Italy France Netherlands Belgium Denmark Spain Rest of Europe
13.7 North America IT Services - APAC Segment Research
13.8 APAC Market Research (Market Size -$Million / $Billion)
13.8.1 Segment type Size and Market Size Analysis
13.8.2 Revenue and Trends
13.8.3 Application Revenue and Trends by type of Application
13.8.4 Company Revenue and Product Analysis
13.8.5 APAC Segment - Product type and Application Market Size China Australia Japan South Korea India Taiwan Malaysia Hong Kong Rest of APAC
13.9 North America IT Services - Middle East Segment and Africa Segment Research
13.10 Middle East & Africa Market Research (Market Size -$Million / $Billion)
13.10.1 Segment type Size and Market Size Analysis
13.10.2 Revenue and Trend Analysis
13.10.3 Application Revenue and Trends by type of Application
13.10.4 Company Revenue and Product Analysis
13.10.5 Middle East Segment Product type and Application Market Size Israel Saudi Arabia UAE
13.10.6 Africa Segment Analysis South Africa Rest of Middle East & Africa
14. IT Services Market - Entropy
14.1 New product launches
14.2 M&A s, collaborations, JVs and partnerships
15. IT Services Market Company Analysis
15.1 Market Share, Company Revenue, Products, M&A, Developments
15.2 Accenture PLC
15.3 Capgemini
15.4 Cognizant Technology Solutions Corporation
15.5 Ericsson
15.6 Fujitsu
15.7 HCL Technologies Limited
15.8 Hewlett Packard Enterprise
15.9 Huawei Technologies Co. Ltd.
15.10 IBM Corporation
15.11 Infosys
15.12 Nokia Networks
15.13 Oracle Corporation
15.14 Tata Consultancy Services
15.15 Tech Mahindra
15.16 Wipro Limited
*Financials would be provided on a best efforts basis for private companies
16. IT Services Market - Appendix
16.1 Abbreviations
16.2 Sources
17. IT Services Market - Methodology
17.1 Research Methodology
17.1.1 Company Expert Interviews
17.1.2 Industry Databases
17.1.3 Associations
17.1.4 Company News
17.1.5 Company Annual Reports
17.1.6 Application Trends
17.1.7 New Products and Product database
17.1.8 Company Transcripts
17.1.9 R&D Trends
17.1.10 Key Opinion Leaders Interviews
17.1.11 Supply and Demand Trends