A rising number of companies are going digital, which indicates the surging efficiency of IT infrastructure services. The three types of cloud computing are infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS).
Growing numbers of businesses count on cloud software to make their operations more flexible and scalable. A company may be able to save money, make better use of its resources, and work more quickly if it moves its operations to the cloud. Also, multicloud and mixed options are becoming more common, which helps businesses handle their tasks better and give resilience. Safety concerns are still very important when it comes to IT system services. Businesses spend a lot of money on strong security solutions to keep their systems and data safe because the number of hacks has gone up very quickly.
Because of this, there is more demand for controlled security services like compliance management, danger prevention, and incident response. Edge computing is another big trend in the market for IT infrastructure services. Businesses can handle and examine data more closely to where it was created with edge computing solutions. This is especially useful as more and more data is being created at the edge. This cuts down on delay and helps people make quick choices, especially in emergencies. Service providers for IT systems are going through a lot of changes because of automation and artificial intelligence (AI). Businesses are using technology more and more to do their work faster, lessen the chance that people will make mistakes, and make routine chores easy. Artificial intelligence is growing to encourage strategic IT management.
The market for IT infrastructure services is turning toward DevOps methods progressively. The DevOps way of working encourages continuous development and delivery (CI/CD). This makes it simple for teams working on operations and development to join forces and complete their tasks. This method not only cuts down on the time it takes to build and get a product to market, but it also broadens the use of apps and services. By letting apps run in a consistent and adaptable way across a wide range of environments, containerization technologies like Docker and Kubernetes can assist DevOps projects.
The IT infrastructure Services Market is projected to grow from USD 76.85 billion in 2024 to USD 179.67 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.20% during the forecast period (2024 - 2032). Additionally, the market size for IT infrastructure services was valued at USD 69.11 billion in 2023.
IT infrastructure Service is considered as the backbone for the enterprise as that efficiently manages the data and provides efficient data-driven decisions. The consulting services help organizations in handling the processes such as planning, integration, and data management. The service provides in the market also chooses to provide complete service for the enterprise to manage their key business operations. The growing urbanization and industrialization in several developed countries are considered as the key market drivers of the IT infrastructure services market.
Figure 1: IT Infrastructure Services Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The increasing deployment of cloud-based solutions is also further propelling the IT infrastructure market growth owing to their potential benefits such as flexibility and efficient data storage. The varied end-users of the IT infrastructure services such as BFSI, healthcare, manufacturing, retail are also presenting lucrative opportunities for the overall growth of the IT infrastructure services market. Some of the management services include DBMS management, application performance management, network management, configuration management, asset management. Deploying these management services would potentially increase the quality of the business processes and further develop the business processes towards increasing return on investment.
The COVID 19 has brought in several hindrances to the industrial verticals and production activities. The prolonged lockdown, restrictions in the movement, reduced labor, and reduced business operations have reduced the return on investment for the industries. The IT sectors were adopting the work from home trends and cloud technologies for business continuity which has led to the productivity of the IT sectors and other industrial verticals even during the pandemic. Such factors have increased the IT infrastructure services market value. The government of several countries was also offering their support for the IT infrastructure services market growth, which has provided opportunities for several organizations.
The increasing number of organizations in the IT sector and the higher data generation rate in those organizations are driving the overall growth of the IT infrastructure services market.
The increasing return on investment in the IT sectors and increasing investment in the IT infrastructure services market are considered as the major market drivers of the IT infrastructure services market. The increasing deployment of cloud-based solutions and automated business processes are also fuelling the IT infrastructure market growth in recent times.
The demand for the faster accessing of data and the demand for cloud-based technologies due to their convenience are propelling several industries to adopt IT infrastructure services. The emerging digitalization and the cost-effective options are presenting lucrative growth opportunities for the IT infrastructure services market growth.
The disaster recovery services and other forms of IT infrastructure services help the firms in business continuity in any case, even during unforeseen circumstances. The advent of hybrid methods that combines the private and public cloud is promoting the overall growth of the IT infrastructure services market.
Privacy and data protection are considered as the major restraining factors of the IT infrastructure services market. As the deployment of Cloud-based services is gaining popularity in recent years, they come with restraints that significantly affect data protection.
The complex infrastructure requires regular maintenance and skilled professionals to efficiently merge the existing systems with the new ones. The integration might interrupt the overall performance of the firm or organization. The deployment costs and the maintenance costs are also considered as a major restraint for the overall growth of the IT infrastructure services market.
The integration concerns in the IT infrastructure services are considered as the major challenge by the vendors. The customization for the organization and the integration of the required protocols are extremely difficult in the IT infrastructure services market.
Lack of standardized protocols and procedures for the communication and the adaptation of cloud-based technologies for the firms that have the on-premise infrastructure is considered as the major challenge for the IT infrastructure market.
The IT infrastructure services industry is expected to surpass the market value of over USD 120.15 billion by the year 2025 while registering a CAGR of 10.50% during the forecast period. The growth of the market is highly influenced by the features such as network management services, visualization solutions, Data consolidation, and much more. Such services have potentially transformed the IT infrastructure and have increased the overall quality of the services offered. Such service providers are entire infrastructure and also they are partnering with the leading technology providers such as IBM, Microsoft, CISCO to offer the best services to the firms and organizations.
The management of the data that are generated in vast volumes requires protocols to manage effectively and guide the organization further. Such factors are increasing the overall growth of the IT Infrastructure services market.
For some years, the daily operations of the organizations such as troubleshooting of the servers, break-fix were given to the expertise of IT service vendors. The increasing adaptation of digital technologies and cloud-based technologies has increased the quality and has transformed the infrastructure into a modern one. A recent report has stated that over 80% of the enterprises are reliant on cloud-based services; the workloads of these enterprises are transformed into cloud-based solutions.
Cost efficiency and operational efficiency are the key features offered by the managed services. Integrating the IT infrastructure services enhances the continuous improvement in the overall operational and business processes. A recent survey has shown that the integration of IT infrastructure increases the efficiency by 50-60% and the up-gradation of the new hardware is appreciated as the old hardware systems might not be compatible with the existing requirements.
Based on Type
Based on Service Type
Based on Organization Size
Based on End-User Industries
Currently, North America is holding the largest market share in the IT infrastructure services market owing to the economic condition of the country, which has led to the increasing investment in the IT infrastructure services market by the established market player across North America. The presence of numerous market verticals such as Consumer goods, healthcare, and manufacturing sectors across the region requires effective management of the IT infrastructure. Effective management effectively mitigates the security issues and improves the quality of the business operations. The increasing number of IT sectors and multiple organizations and the developing infrastructure across the region is also considered as the major reason for the growth of the market.
On the other hand, European countries are witnessing the higher growth in the IT infrastructure services market next to North America, owing to the stringent regulations imposed across the region such as GDPR and the increasing number of industrial verticals, which effectively presents lucrative opportunities for the overall growth of IT infrastructure market.
In the year 2019, one of the leading market players, Host Color has launched the managed cloud-based infrastructure that is available for the public cloud servers, private cloud and it also integrates with the Linux or window-based operating systems which are considered as highly beneficiary.
Several inventions have been made in the market, which include automated assets, self-services, and digital workplace apps, etc. Moreover, the user-friendly industries are also impacting the IT infrastructure services market growth.
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