Information Technology Market Characteristics
The information technology (IT) market consists of sales of information technology (IT) services and related goods by entities (organizations, sole traders and partnerships) that apply computers, computer peripherals and telecommunications equipment to store, retrieve, transmit and manoeuvre data. The IT market involves services such as computer networking, broadcasting, systems design services and information distribution technologies like television and telephones and other equipment used during the process. This market includes segments such as IT services, computer hardware and telecoms. The IT market also includes sales of goods such as computers, computer peripherals and telecommunications equipment which are used in providing IT services.
Competitive Landscape of the Information Technology Market
Major players in the global information technology market include IBM, Fujitsu, Accenture, HP,TCS, NTT Data, Oracle, CapGemini, CSC, SAP, Amazon, Microsoft.
Information Technology Market Size
The information technology market size is expected to reach $2.5 trillion by 2022, significantly growing at a CAGR of around 8% during the forecast period. The growth in the information technology market is due to economic growth, technology development and high valuations of information technology companies.
However, the market for information technology is expected to face certain restraints from several factors such as high R&D expenditure, multinational operations difficulties and fluctuating manufacturing costs.
Information Technology Market Segmentation
The global information technology market is further segmented based on type and geography.
By Type - The information technology market is segmented into software and BPO services, hardware support services, and cloud services.
Among these segments, the software and BPO services market accounts for the largest share in the global information technology market.
By Geography - The global information technology market is segmented into North America, South America, Asia-Pacific, Eastern Europe, Western Europe, Middle East and Africa. Among these regions, the North America information technology market accounts the largest share in the global information technology market.
Trends in the Information Technology Market
The number of mergers and acquisitions in the IT services industry is rising significantly since the last decade. The IT industry is witnessing a massive change in the SMAC market—social, mobile, analytics and cloud. Acquisitions in the industry has led companies to increase the scale of their operations, develop more expertise and increase revenue.
Potential Opportunities in the Information Technology Market
With increasing software artificial intelligence (AI) and automation, adoption of Data Analytics in end user industries, the scope and potential for the global information technology market is expected to significantly rise in the forecast period.