NEW YORK, Dec. 16, 2021 /PRNewswire/ -- According to the latest report "IT services market by Service (IT consulting and other services, Internet services and infrastructure, and Data processing and outsources services) and Geography (APAC, North America, Europe, South America, and MEA) - Forecast and Analysis 2021-2025", by Technavio, the potential IT services market growth difference will be USD 478.39 Bn from 2020 to 2025. The report also identifies the market to register an accelerating growth momentum at a CAGR of 8.27% during the forecast period.
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Frequently Asked Questions:
Based on segmentation by Service, which is the leading segment in the market? IT Consulting and other services will be the leading service segment of the market.
What is the key market driver? Growing adoption of edge data centers is notably driving the market
At what rate is the market projected to grow? The market is projected to accelerate at a CAGR of 8.27% during the forecast period
What will be the YOY for 2021? The YOY estimation for 2021 is 6.35%.
How big is the APAC market? 40% of the growth will originate from APAC.
IT Services Market 2020-2025: Driver and Challenge Analysis
The growing adoption of edge data centers is one of the prominent IT services market drivers leading the market growth. In addition, other factors such as surging need to adhere to regulatory guidelines and ensure compliance and growing demand for IoT and big data operations will also drive the market growth in the upcoming years. Furthermore, vendors in the market are focusing on investing heavily in retaining and expanding their consumer base by developing innovative solutions catering to the dynamically changing consumer requirements.
However, factors such as risks involved in outsourcing, shortage of domain expertise, and lack of quality standards in SLAs might limit the market's growth during the forecast period. Outsourcing could result in a loss of control as the outsourced agency may make excessive demands and change business rules. Such actions are likely to lead to high levels of dissatisfaction among organizations. In addition, there is a shortage of skilled financial and fast decision-making professionals, such as mathematicians, statisticians, data scientists, and data analysts.
IT Services Market 2020-2025: Segmentation Analysis
IT Consulting And Other Services
Internet Services And Infrastructure
Data Processing And Outsources Services
The IT services market share growth by the IT consulting and other services segment will be significant during the forecast period. The adoption of advanced technologies such as big data analytics, AI, and cloud-based computing to reduce costs and increase operational efficiencies is enhancing the need for other services. Information technology (IT) consulting and other services mainly include consulting, systems integration, and other services, such as information management and education and training.
APAC was the largest revenue-generating regional segment of IT services market in 2020 and will continue to lead its dominant position in the market during the forecast period by capturing 40% of the overall market growth. APAC is an attractive market for IT services because of the fast rate of technology implementation across industries and the influx of SMEs in the region. The growth in services such as IT consulting and data processing and outsourcing services is primarily attributed to the increasing use of advanced technologies, including analytics and cloud computing, and the expanding consumer base.
The market is fragmented, and the degree of fragmentation will accelerate during the forecast period. Accenture Plc, Cognizant Technology Solutions Corp., DXC Technology Co., Fujitsu Ltd., Hewlett Packard Enterprise Co., International Business Machines Corp., Microsoft Corp., Oracle Corp., Telefonaktiebolaget LM Ericsson, and Toshiba Corp. are some of the major market participants. In a bid to help players strengthen their market foothold, this IT services market forecast report provides a detailed analysis of the leading market vendors. The report also empowers industry honchos with information on the competitive landscape and insights into the different product offerings offered by various companies.
About Us Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.