Report Overview
Product Overview
North America IT Services Market to surpass USD 965.5 billion by 2031 from USD 457.6 billion in 2021 at a CAGR of 7.8% in the coming years, i.e., 2021-2031.
IT services are the use of business and technical knowledge to assist companies in producing, managing, and optimizing information and business processes. Based on the competencies necessary to supply services such as planning, construction, and execution, the market for IT services can be classified into three categories. Among the various types of services accessible are infrastructure services, business process services, and application services. Because of increased advancements and strong digitalization that benefits all verticals, including clients, the IT Services market is booming, especially in North America.
Market Highlights
North America IT Services Market is expected to register substantial growth with a CAGR of 7.8% by 2031
North America IT Services Market to surpass USD 965.5 billion by 2031 from USD 457.6 billion in 2021 at a CAGR of 7.8% in the coming years, i.e., 2021-2031. The North American IT Services market is influenced by factors such as the rising trend of big data and analytics, the growing interest of small and medium-sized organizations in adopting IT services, and increased IT expenditure. As a result of the massive expansion in digital data, businesses have migrated to cloud services, hastening the adoption of IT services.
North America IT Services Market: Segments
Managed Services segment is expected to lead the market with the highest CAGR during 2021-31
On the basis of Service Model, the North America IT Services Market is divided into Telecom service, Professional service, and Managed service. Professional Services help businesses improve infrastructure flexibility and scalability while offering outstanding service in response to the unique needs of their customers. Firms are increasingly outsourcing their operational, day-to-day IT infrastructure services to 3rd-party suppliers in order to focus on their core business activities. As a result of this problem, demand for managed services is expected to rise.
On-Premises segment is projected to witness maximum growth during 2021-31
Based on Deployment Model, the North America IT Services market is segmented into On-Premises, Cloud. The implementation of managed services on-premises is time- and capital-intensive, but it ensures greater privacy and data integrity. To keep managed services working well, it also demands the assistance of professionals. Cloud-based managed services, conversely, are becoming increasingly popular due to their scalability, reliability, and flexibility. The cloud requires less hardware than on-premises implementation and can be easily extended to match organizational demands. Cloud-based services are cost-effective and provide the most up-to-date technology, communication, and software capabilities.
Market Dynamics
Drivers
Growing enterprises’ shift towards adoption of digital transformation is boosting the market
Enterprises are concerned about the costs of on-premises data hosting, both in terms of setup and ongoing maintenance. Additional concerns for firms include labor expenditures and issues with downtime. The current competitive landscape and global economic conditions have accelerated the use of cost-efficient business model reconfiguration strategies. Another factor pushing cloud adoption is the growing trend among firms towards digital transformation and the speeding of customer experience, both of which reduce corporate costs.
Rising awareness of cloud technology and its benefits
Pay-as-you-go cloud computing allows organizations to pay for cloud services based on how often they use them, resulting in lower costs. Some of the most widely used cloud services are platforms, infrastructure, and software hosted by third-party providers and made available to clients over the internet.
Restraint
Increasing need to meet the regulatory and compliance needs
The importance of meeting regulatory and compliance standards has progressively increased in recent years, owing to changing business needs, an increase in data breaches and cyber-attacks, and growing data security concerns. Furthermore, firms must strive to remain competitive by adhering to regulatory standards, avoiding financial penalties, preventing customer and revenue losses, and preventing legal action.
North America IT Services Market:
Key Players
- IBM
Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis
- Hewlett Packard Enterprise
- Accenture
- Cognizant
- HCL Technologies
- Wipro
- Infosys
- Rackspace
- CISCO
- Others prominent players
North America IT Services Market: Regions
North America IT Services Market is segmented based on regional analysis into major regions: The United States and Canada. North America is a mature market with respect to IT Service offer adoption, thanks to a large number of enterprises with contemporary IT infrastructure and the availability of technical talents. The United States (primarily) and Canada are the main contributors to the growth of the North American IT Services market. Healthcare is the most popular vertical, followed by Government and Defense. As the benefits of implementing IT services and providing efficient and improved support become more obvious, more firms are likely to do so.
Impact of COVID-19 on North America IT Services Market
In recent years, the global economy has become much more linked. Disruptions in global supply chains, lower demand for imported products and services, and a rise in the unemployment rate are all evidence of the detrimental effects of various containment efforts. Risk aversion has increased in the financial industry, owing to historically low interest rates and large decreases in equities and commodity prices.
North America IT Services Market is further segmented by region into:
- North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – The United States and Canada
North America IT Services Market report also contains analysis on:
North America IT Services Market Segments:
- By Service Model
- Telecom service
- Professional service
- Managed service
- By Deployment Type
- On-Premises
- Cloud
- By Vertical
- Banking, Financial Services, and Insurance (BFSI)
- Telecommunications
- IT and ITeS
- Government and Public Sector
- Retail and Consumer Goods
- Manufacturing
- Energy and Utilities
- Media and Entertainment
- Healthcare and Life Sciences
- Others
- North America IT Services Market Dynamics
- North America IT Services Market Size
- Supply & Demand
- Current Trends/Issues/Challenges
- Competition & Companies Involved in the Market
- Value Chain of the Market
- Market Drivers and Restraints
North America IT Services Market Report Scope and Segmentation
|
Report Attribute |
Details |
|
Market size value in 2021 |
USD 457.6 billion |
|
Revenue forecast in 2031 |
USD 965.5 billion |
|
Growth Rate |
CAGR of 7.8% from 2021 to 2031 |
|
Base year for estimation |
2020 |
|
Quantitative units |
Revenue in USD million and CAGR from 2021 to 2031 |
|
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
|
Segments covered |
Service Model, Deployment Type, Vertical, and Region |
|
Regional scope |
The United States, Canada |
|
Key companies profiled |
IBM, Hewlett Packard Enterprise, Accenture, Cognizant, HCL Technologies, Wipro, Infosys, Rackspace, CISCO, and Other Prominent Players. |
Frequently Asked Questions (FAQ):
North America IT Services Market size was estimated at USD 457.6 billion in 2021 and is expected to reach USD 965.5 billion in 2031.
IT services assist clients and consumers in understanding how to repair computer-related devices. They also assist with the upkeep of computer and web performance according to the needs of the customer.
The Managed Services segment accounted for the largest North America IT Services Market share.
Key players in the North America IT Services Market include IBM, Hewlett Packard Enterprise, Accenture, Cognizant, HCL Technologies, Wipro, Infosys, Rackspace, CISCO, and others.
The presence of advanced IT infrastructure and the availability of technical expertise are two significant drivers driving the North American IT services market.
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