US Data Processing & Hosting Industry to Grow 8% Annually Through 2020

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Oct 25, 2016, 12:00 ET

CLEVELAND, Oct. 25, 2016 /PRNewswire/ -- Revenues of the US data processing and hosting (DP&H) industry are forecast to rise 7.8% annually through 2020. Increases will be spurred by expanding demand for cloud services, as well as the information technology (IT) services needed to assist in the transition to and maintenance of cloud-based services.

Non-US Firms & On-Site Servers Constrain Growth

Data processing, IT provisioning, and hosting service revenues – the largest segment of the industry – are projected to increase 8.0% annually through 2020. Revenue growth will be driven by expanding demand for hosting services as companies continue to move processes to the cloud. Further advances will be restrained by competition from foreign firms and on-premises server options, including hybrid cloud architecture that combines on-premises data centers with hosting services.

These findings are featured in Data Processing & Hosting: United States.

http://www.freedoniagroup.com/freedonia-focus/FF95031/data-processing-and-hosting-united-states.htm

The report forecasts US DP&H service revenues in US dollars to 2020. Total revenues are segmented by source in terms of:

data processing, IT provisioning, and hosting
IT technical consulting
IT design and development
IT technical support
information and document transformation
other sources such as software publishing and reselling services for computer hardware and software.

US DP&H service providers' revenue includes income from all domestic locations primarily engaged in providing infrastructure for hosting or data processing services. Thus, receipts from other activities performed by these locations are included in total revenue. Receipts from establishments that may provide such services but are primarily engaged in a different activity are excluded from this report. Revenues from payroll and financial transaction processing services are also excluded from this report.

Total revenues are also segmented by market as follows:

businesses
households and individuals
governments.

To illustrate historical trends, total revenues and the various segments are provided in annual series from 2005 to 2015.

Please link any media or news references to our report page or to www.freedoniagroup.com.

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