IT Services Market Size

IT Services Market Analysis

The IT Services Market size is estimated at USD 1.20 trillion in 2024, and is expected to reach USD 1.81 trillion by 2029, growing at a CAGR of 8.38% during the forecast period (2024-2029).

Globally, the increased IT spending, coupled with the widespread adoption of software-as-a-service and increased cloud-based offerings, indicates the demand for IT services in the industry. With an improved IT infrastructure, threats related to data (data breaches) are also on the rise. This demands advanced security solutions over traditional ones. With this trend gaining traction in the market, companies have started to invest their resources in enhancing their advanced security offerings.

• Trends like 5G, Blockchain, AR, and AI, are likely to have an impact on the offerings of IT services. With 5G technology on its way, it is likely to ensure that companies may set up networks on their premises. The digital transformation is expected to enable either setting up new networks as per local frequencies or upgrading existing networks on LTE. This requires the creation of real-time IT locations to facilitate the automation and autonomy of complex systems.
• Data-driven analysis, supported by technology, is driving strategic decisions globally. Moreover, the amount of data generated worldwide is increasing tremendously. According to Seagate Technology PLC, the volume of data created globally is expected to increase to 47 zettabytes and 163 zettabytes in 2020 and 2025, respectively, from 12 zettabytes in 2015. To optimally utilize these data reserves, IT service providers must develop smart IT services and platforms to analyze the data for extraction and analysis.
• IT cloud services are witnessing growth due to the massive cloud deployments across the end-user industries. For instance, the US market houses the headquarters for the leading global cloud providers, where the country has a huge share of cloud storage. The amount of data being generated in the country has led to a significant driver of cloud adoption.
• Growing data breaches, cost concerns over product customization, and data migration are some of the reasons posing a threat to the market. For instance, in July 2022, T-Mobile agreed to pay USD 350 million to settle multiple class-action suits in the US stemming from a data breach disclosed last year affecting tens of millions of people.
• During COVID-19, the vulnerability of supply chains has been exposed. For most IT organizations, fragile ecosystems include providers of critical IT services. Work-from-home mandates have led the service providers to ensure that mission-critical enterprise customers have the tools and technologies to enable the speed, security, quality, and overall efficacy of services. Additionally, the post-pandemic period has witnessed significant investment by the organization in the IT Services market. They will look to meet future needs and capabilities owing to rising digital transformation across various end-user industries and to support the hybrid workplace.