IT Infrastructure Services Market

IT Infrastructure Services Market Overview

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.

COVID 19 Analysis

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.

Market Dynamics

Market Drivers

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.

Market Opportunities

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.

Market Restraints

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.

Market Challenges

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.

Cumulative Growth Analysis

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.

Value Chain Analysis

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.

IT Infrastructure Services Market Segment Overview

Based on Type

• Network Management Service
• Virtualization Security
• Enterprise System Management
• It Security Management
• Data Center Vittualization Services
• Others 

Based on Service Type

• Consulting
• Planning Integration and Implementation
• Maintenance
• Managed Services

Based on Organization Size

• Small-Sized Enterprises
• Medium-Sized Enterprises
• Large-Sized Enterprises

Based on End-User Industries

• Automotive
• Chemicals
• Retail and Consumer Goods
• IT and Telecommunication
• Healthcare
• Government
• BFSI
• Manufacturing
• Others

Regional Analysis

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.

Competitive Landscape

• Clover Infotech Private LimitedYASH Technologies
• PC Solutions
• IBM
• Fingent Corporation
• Tata Communications
• Netmagic Solutions
• Rave Technologies Pvt. Ltd
• Fujitsu
• Amnet Technology Pte Ltd
• Synoptek
• LLC
• Vaysinfotech
• Cognizant
• Neusoft Corporation
• Talent Technology Services Limited.
• Microsoft (US) 

Recent Developments

• In February 2022, the two companies, T-Mobile US and Deutsche Telekom, undertook a task in the area of Web3 development and 5G, seeking to broaden their scope of operations under the term T Challenge. The solutions generated by those companies are to be incorporated into Web3 using the capabilities of 5G.
• In July 2022, a new partnership was formed by Google Cloud and Deutsche Telekom with a shared goal through a joint roadmap to revolutionize the telecommunications industry by using the capabilities of the cloud to further integrate mobile and connected devices in the network of Deutsche Telekom.
• September 2023: Cloud4C, a provider of cloud-managed services oriented towards applications, was able to acquire the Google Cloud Specialization for Infrastructure Services in the APAC region. Consequently, the business was able to have a lot of exposure to various Google Cloud products, solutions, and industries and became a Specialized Partner with the firm. This highlights Cloud4C’s level of specialization with respect to being able to render end-to-end managed infrastructure modernization and more comprehensive Google Cloud-powered digital transformation services across APAC markets.
• May 2023: Kyndryl Holdings Inc., a global leader in providing IT infrastructure services, and Cloudflare Inc., an IT service management company in the U.S, entered into a partnership with a view towards assisting organizations in transforming and expanding their corporate networks using managed WAN-as-a-Service in conjunction with Cloudflare Zero Trust. Thanks to this agreement, companies can now interconnect to various clouds much more effectively with the use of Kyndryl’s professional end-to-end managed networking services integrated with the powerful technology platform of Cloudflare.
• October 2022: Gulf Bridge International (GBI), in collaboration with Alliance International Management (AIM), has entered into a partnership deal where they would provide digital infrastructure services in the Middle East. As per the terms of the partnership, the Smart Network of GBI, which integrates both Subsea and Terrestrial Fiber assets, would be the one to provide the said digital infrastructure services.
• June 2022: A collaboration in technology was signed by Cisco Systems and Kyndryl, who is an IT infrastructure services company that was formed as a spin-off of the managed infrastructure services sector of IBM. This collaboration brings together Kyndryl's managed services capabilities with Cisco's products. As part of its enterprise-grade Network and Edge Computing Solutions practice, the biggest solutions provider in the world is embedding Cisco's technologies. Kyndryl Cloud and Cisco together are expected to deliver advanced services layered security solutions, SDN, software-defined WAN products, and new private cloud services, network, and edge computing solutions.

Report Overview

This Report Has Covered:

• Market Overview
• COVID 19 Analysis
• Market Dynamics
• Cumulative Growth Analysis
• Value Chain Analysis
• Segment Overview
• Regional Analysis
• Competitive Landscape
• Recent Developments