The IT Services Market is to Touch $1,691.92 Billion by 2030; Rising Demand for Cloud-Based IT Services and Emerging Big Data Technology Propels Market Growth.

The IT Services Market size is estimated to reach $1,691.92 billion by 2030, growing at a CAGR of 9.5% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “IT Services Market Size, Share & Trends Analysis Report- By Service Type (Professional Services (System Integration (Application Integration, Application Development, Application Testing, Application Lifecycle Management). Infrastructure Integration (Data Center, Security, Mobility, Network and Others), Training and Education, Consulting), Managed Services (Managed Security, Managed Data Center, Managed Network, Managed Mobility, Others), Telecom Services), By Business Function (Finance and Accounting, Human Resources, Sales and Marketing, Supply Chain Management, Operations and Support, Manufacturing), By Organization Size (SME, Large Enterprises), By Deployment Type (Cloud, On-Premises), By End User Industry (Banking, Financial Services, and Insurance, Media and Entertainment, Government and Defense, Communication and Technology, Consumer Goods and Retail, Healthcare, Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”

Rising demand for cloud-based IT services and emerging big data technology are fueling the growth of the IT Services industry during the forecast period.

In 2023, North America emerged as the largest market for IT services, boasting a market share exceeding 35.23%. This dominance is largely attributed to the region's extensive adoption of cloud-based IT solutions, which has significantly driven market growth. North America is responsible for a substantial portion of global cloud traffic, with projections indicating a compound annual growth rate (CAGR) of 14% from 2024 to 2031. By 2025, it is expected to account for nearly 54% of global cloud traffic. Additionally, approximately 75% of businesses in the region utilize some form of managed services, further solidifying its leading position in the IT services landscape. 

Since 2020, many industries have shifted from on-premise software to cloud-based solutions. These services provide access to comprehensive enterprise applications at a lower cost, eliminating significant upfront investments in software and hardware. Cloud computing allows businesses to scale operations easily, making it an increasingly valuable and cost-effective option for SMEs. Additionally, it introduces new capabilities and opportunities for growth. Major IT service providers estimate that cloud IT services can reduce deployment costs by 45%-50%. Consequently, startups are investing in this technology, giving end users a wide array of vendor options to choose from for their needs.

Data consumption has surged due to high-speed internet, increased industrial automation, and widespread mobile device usage. This growth presents substantial opportunities for IT service management. Concurrently, colocation data centers are experiencing heightened demand as companies digitize their operations and become more reliant on IT services. The process and manufacturing sectors are adopting industrial IoT to enhance operational efficiency, generating vast amounts of data that positively impact the IT services market. The industrial IoT market is projected to reach $100 billion by 2025, growing at a CAGR of 18.56% from 2023 to 2025, indicating promising prospects for IT services.