United States IT Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

United States IT Services Market is segmented by Service Type (Managed Services, Project Oriented Services, Support Services) by deployment (Cloud, On-premises), by Size (Small and Medium Enterprises and Large Enterprises), by End-user Industry (BFSI, IT & Telecommunication, Healthcare, Retail, Manufacturing, Government).

Market Snapshot

united states it services market size
Study Period: 2020-2027
Base Year: 2021
CAGR: 6.31 %
united states it services market share

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Market Overview

United States IT Services Market is expected to register a CAGR of about 6.31% during the forecast period, 2022-2027.

  • IT services are offered with support and management services. This will allow the customers to use IT without managing maintenance, scalability, resilience, and security complexities. IT services are offered by internal teams or external partners. IT services provide software support services that are generally technical support or break/fix services that are delivered for specific software products.
  • The penetration of smartphones and tablets is increasing in the United States, which is also likely to drive the BYOD policy. This will further grow with the rapid integration of IoT across various industries and sectors. This is projected to propel the adoption and incorporation of managed services, thereby fueling the growth of the studied market.
  • Furthermore, IT cloud services are growing due to huge cloud deployments across end-user sectors. For example, the U.S. market is home to most of the world's largest cloud providers, and the country has a significant proportion of cloud storage. The volume of data produced in the country has become a major driver of cloud adoption.
  • In addition, IT services are also gaining popularity inside the hybrid IT-managed environment due to the rise of the Industrial Internet of Things (IIoT) throughout the Industry 4.0 platform. Artificial Intelligence (AI) is expanding throughout the manufacturing and design sectors, boosting market demand for IT services during the projection period.
  • The COVID-19 pandemic has had a positive impact on the market. The pandemic has forced companies to quickly digitalize their business models, form flexible and remote working surroundings, reach clients, and handle employees predominately over digital channels. This generates an opportunity for the IT services to be reactive to the escalating number of cybersecurity attacks and an increasing number of businesses necessitating cybersecurity services.

Scope of the Report

Business operations and organizations use the information technology (IT) services sector to develop, manage, and transmit information. The market is divided into four segments by Service Type (Managed Services, Project Oriented Services, Support Services) by deployment (Cloud, On-premises), by Size (Small and Medium Enterprises and Large Enterprises), by End-user Industry ( BFSI, IT & Telecommunication, Healthcare, Retail, Manufacturing, Government and ​Other End-user Industries ).

By Type
Managed Services
Project Oriented Services
Support Services
By Deployment
Cloud
On-premises
By Size
Small and Medium Enterprises
Large Enterprises
By End-user Industry
BFSI
IT & Telecom​munication
Healthcare
Retail
Manufacturing
Government
​Other End-user Industries

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Key Market Trends

Rising Cyberthreats Increased the Adoption of IT Services

  • In 2021, the FBI (The Federal Bureau of Investigation) reported receiving 2000 internet cybercrimes daily. Information technology (IT) becomes more integrated with physical infrastructure operations. CISA (Cybersecurity & Infrastructure Security Agency) strengthens the security and resilience of cyberspace, an important homeland security mission.
  • The Cyber Safety Review Board (CSRB) found that organizations that responded most effectively to the Log4j event understood their use of Log4j and had technical resources and mature processes to manage assets, assess risk, and mobilize their organization and key partners to action. Most modern security frameworks call out these capabilities as best practices. For Instance, In January 2021, Microsoft noticed cybersecurity attacks through Remote Code Execution. Increasing cyber-attacks will drive more demand for the IT services market to provide additional security and support services. The cloud-based communications tools play an essential role in supporting the application of technology to prevent cyber attacks.
  • The changing environment of Information Technology (IT) infrastructure, particularly in small and medium-sized businesses (SMEs), consistently priorities the outsourcing of cybersecurity solutions, is causing the United States IT services market to expand. For instance, Fujitsu was hired by Kpaul Properties Llc to replace a physical server with a virtualized environment. Kpaul Properties Llc is one of the U.S. leading producers and distributors of IT products. Outsourcing IT services has reduced the company's cost by around 15%.
  • United States critical infrastructure faces advanced threats of cyber-attacks. The Federal, state, local, tribal and territorial governments, and the private sector, will experience an array of cyber-enabled threats designed to access sensitive information, steal money, and force ransom payments. For Instance, Russia and China are the most capable nation-state cyber adversaries that can disrupt or damage U.S. critical infrastructure networks via cyber-attacks. Iranian and North Korean cyber actors also threaten U.S. systems, networks, and information. Iran continues to present a cyber espionage threat and is developing access in the Homeland that could be repurposed for destructive cyber-attacks.
united states it services industry

Rising demand for cloud-based IT services

  • The private and government organizations are migrating from short-term to long-term implications. Implementing cloud computing solutions is one of the long-term implications. The companies are switching to cloud-based IT services. Cloud-based IT services can access a wide range of IT services and applications through the cloud, from data backups to communications solutions.
  • In the United States, IT cloud services are witnessing growth due to the massive cloud deployments across the end-user industries. For instance, IT, BFSI, Telecom, and Media and Entertainment have impacted positively because of the work from home and stay-at-home scenarios. During the COVID-19 lockdown, cloud-based services have become essential to continuing business, and the adoption of cloud-based services is the key to unlocking organizational growth.
  • During the COVID-19 pandemic, the BYOD policy is probably driven by the growing use of smartphones and tablets in the US. For instance, in January 2022, US Census Bureau and Consumer Technology Association predicted that the sales of smartphones in the US would increase from USD 73 billion in 2021 to USD 74.7 billion in 2022. This is anticipated to grow further with the quick adoption of IoT across several sectors and industries. This will create more demand for cloud-based IT services.
  • Many banking and financial services are moving to cloud-based services due to the significant complexity and concerns about security, risk, governance, and control. Various market vendors are driving their investments to accelerate the digital transformation. For instance, in May 2021, EY and IBM announced to launch Center of Excellence to help financial institutions accelerate their digital transformation using hybrid cloud solutions. The Center of Excellence is an integrated virtual center that offers services in regulatory compliance, digital trust, and security to assist clients in leveraging the cloud at scale.
united states it services market report

Competitive Landscape

In the United States IT Services Market the degree of competition is high and expected to remain the same throughout the forecasted period. The U.S. IT services market is dominated by major players, such as Hewlett Packard Enterprise and Cisco Systems Inc and etc., These players are constantly providing increased and enhanced offerings. In order to sustain in the market and retain their clients, the companies are employing powerful competitive strategies. This factor intensifies the competitive rivalry in the market.

  • February 2022 - Cisco collaborated with its global partners to introduce the promise of private 5G to enterprises. It reduces the technical, financial, and operational risks in managing enterprise private 5G networks for business clients. Cisco is working closely with two leading ORAN vendors to incorporate ORAN technology into Cisco Private 5G, which is currently in customer trials with Airspan and JMA. Several private 5G pilots and education, entertainment, government, manufacturing, and real estate projects are underway.

Recent Development

  • July 2022 - Hewlett Packard Enterprise (HPE) announced that AntemetA, a French cloud service provider, selected HPE GreenLake to introduce new automated disaster recovery, a new cloud-native data solution that protects data from the edge to the cloud, to build a manageable, flexible, and highly secure private hosting infrastructure to support strategic workloads and drive new business growth.
  • July 2021 - Hewlett Packard Enterprise acquired Zerto, a prominent cloud data management, and protection player, in a transaction valued at USD 374 million. This acquisition expands HPE GreenLake and continues to deliver on HPE Storage's shift to a cloud-native, software-defined data services business.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Threat of New Entrants

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Bargaining Power of Suppliers

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Threat of Substitute Products

    3. 4.3 Assessment of the Impact of COVID-19 on the market

    4. 4.4 Market Drivers

      1. 4.4.1 Growing ICT spending and rising adoption of IT services among SMBs

      2. 4.4.2 Growing Emphasis on Leveraging the Core Competencies by Outsourcing Non-core Operations

      3. 4.4.3 Greater Access to a Larger Pool of Talent and Scope for Innovation (as Opposed to Onboarding Expertise) ​

    5. 4.5 Market Restraints

      1. 4.5.1 Concern over privacy and security

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Managed Services

      2. 5.1.2 Project Oriented Services

      3. 5.1.3 Support Services

    2. 5.2 By Deployment

      1. 5.2.1 Cloud

      2. 5.2.2 On-premises

    3. 5.3 By Size

      1. 5.3.1 Small and Medium Enterprises

      2. 5.3.2 Large Enterprises

    4. 5.4 By End-user Industry

      1. 5.4.1 BFSI

      2. 5.4.2 IT & Telecom​munication

      3. 5.4.3 Healthcare

      4. 5.4.4 Retail

      5. 5.4.5 Manufacturing

      6. 5.4.6 Government

      7. 5.4.7 ​Other End-user Industries

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Citrix Systems Inc.

      2. 6.1.2 Cisco Systems Inc.

      3. 6.1.3 Dell EMC 

      4. 6.1.4 IBM Corporation

      5. 6.1.5 Hewlett Packard Enterprise

      6. 6.1.6 Microsoft Corporation

      7. 6.1.7 TCS Limited

      8. 6.1.8 Toshiba Corporation

      9. 6.1.9 Verizon Communications Inc.

      10. 6.1.10 Fujitsu Ltd

      11. 6.1.11 Accenture plc

    2. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

  8. 8. FUTURE OF THE MARKET

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Frequently Asked Questions

The United States IT Services Market market is studied from 2020 - 2027.

The United States IT Services Market is growing at a CAGR of 6.31% over the next 5 years.

Hewlett Packard Enterprise, Cisco Systems Inc., Toshiba Corporation, IBM corporation, Dell Inc. (Dell EMC) are the major companies operating in United States IT Services Market .

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