Proliferation of Data, Shift to Offsite Storage to Boost US IT Service Revenues

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Sep 28, 2022, 14:17 ET

Inflation will bolster nominal revenue growth in near term

CLEVELAND, Sept. 28, 2022 /PRNewswire/ -- Revenues for the US IT services industry are forecast to rise 6.0% yearly in nominal dollars through 2026, according to IT Services: United States, a report recently released by Freedonia Focus Reports. Inflation will play a significant role in driving gains. The ongoing economy-wide shift from on-site capabilities to XaaS ("anything-as-a-service") solutions will underpin gains. The continued proliferation of mobile and internet of things (IoT) devices – appliances and other everyday objects enhanced with electronics and network connectivity – will also drive the need for larger amounts of data storage and processing capacity accessible via the internet. In addition, the swelling value of data stored in company servers combined with the increasing sophistication of cyberattacks will support spending on security services and upgrades over the forecast period. Further growth will be restrained by competition from in-house capabilities maintained by potential customers.

In 2022, revenues for IT services are expected to see year over year gains of nearly 13% from 2021. Gains will largely stem from rising prices due to significant inflation. Short-term growth will be driven by enhanced security needs as a higher-than-normal number of workers work from home. This is expected to taper off over the forecast period, as workers increasingly return to the office.

These and other key insights are featured in IT Services: United States. This report forecasts to 2022 and 2026 US IT services revenue in nominal US dollars. Total revenue is segmented by service type in terms of:

infrastructure provisioning and management
custom applications
infrastructure design and development
technical consulting
technical support
training

To illustrate historical trends, total revenue and the various segments are provided in annual series from 2011 to 2021.

US IT service revenues include income from all domestic locations primarily engaged in providing IT services. This report represents the revenues of employer firms; nonemployer firms are excluded. Revenues further exclude services (such as product assembly, installation, and support) provided by computer, peripheral, or software retailers and wholesalers.

More information about the report is available at:
https://www.freedoniafocusreports.com/IT-Services-United-States-FF95042/?progid=91541

About Freedonia Focus Reports
Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Services & Industries reports can be purchased at Freedonia Focus Reports or MarketResearch.com.

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