APAC IT Services Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 8.30 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
APAC IT Services Market Analysis
The Asia-Pacific IT Services Market revenue is expected to grow at a CAGR of 8.3% over the next five years. Increased IT spending, advanced technology such as artificial intelligence, and ever-expanding cloud-based offerings have increased the demand for the IT services market.
- Key players in the IT services market are focusing on expanding their businesses and strengthening their market positions through collaborations and partnerships. For instance, 21 Vianet Blue Cloud partnered with Microsoft to accelerate ever-growing digital needs.
- The demand for network services and data center construction will grow over the next five years. For Instance, the Keppel Data Center Fund II will collaborate with Heying to create a new greenfield data center in Greater Beijing. Construction will be completed by the end of the current year.
- The extensive use of digital payments and the introduction of advanced technologies such as AI, cloud computing, and blockchain technology used in the end-user industries are likely to drive the growth of the IT services market over the next five years. For instance, HSBC has signed a multi-year agreement with Oracle to accelerate the bank's digital transformation.
- The adoption of remote healthcare and wearable devices in this sector has been gaining traction over recent times, which, in turn, has been one of the significant factors influencing the healthcare IT market. The major trends in wearable connected devices include increasing demand for pain management wearable devices, increasing use of wearables for cardiovascular disease management, and others. For instance, Cognizant and Microsoft cooperated to develop a new digital health solution to improve remote patient monitoring.
- During the COVID-19 outbreak, there was a growing adoption of cloud services which is expected to create a favorable market scenario for the growth of the IT services market. The post COVID-19 scenario has led to a remarkable increase in the usage of digital solutions across the Asia-Pacific. The rising adoption of advanced technologies and increasing cyber security investment are some of the major factors driving the demand for IT services in the Asia-Pacific.
APAC IT Services Market Trends
This section covers the major market trends shaping the Asia-Pacific IT Services Market according to our research experts:
Growing Demand for Cloud Services
- The IT services market is gaining traction with advanced technology, such as cloud computing. Artificial intelligence is also extending its application across the end-user segment, fueling market growth over the next five years. For Instance, Keppel Data Centers Holding (Keppel DC) has announced a collaboration with AsiaPac Technology (AsiaPac, a wholly-owned subsidiary of M1 Limited), which will offer Keppel DC's clients access to hybrid and multi-cloud services effectively and rapidly support their business's changing needs.
- Increased cloud adoption will result in a higher volume of data generation and, as a result, a higher need for data storage and processing. For Instance, Alibaba Cloud has pledged to invest USD 1 billion in enhancing ecosystem capabilities while displaying new products and comprehensive customer support for complete services.
- Philips launched the HealthSuite System of Engagement with new AI capabilities to accelerate the digitalization of healthcare. HealthSuite System of Engagement is a comprehensive set of capabilities leveraging intelligence in dynamic workflows, securely harnessing the power of data across the health continuum. New HealthSuite AI capabilities include cloud-based managed AI workflow and DICOM interoperability in a secure environment. Such initiatives in the healthcare sector would drive more demand for the IT services market.
- During the COVID-19 pandemic and post-COVID-19 scenario, most people preferred the work-from-home model, thus creating more demand for cloud-based services. Key players in the market are now concentrating on expanding their cloud computing services that support 5G networks.
India is Expected to Register Significant Market Growth During the Forecast Period
- The growing adoption of cloud computing in India, increasing internet penetration, data center construction, government regulations for data generated in the country, and growing investment by foreign players are some of the major factors driving the demand for the IT services market in India.
- According to the National Broadband Plan conceived by the Federal Communications Commission (FCC) in India, the healthcare industry can save around USD 700 billion in the next 15-20 years with remote patient monitoring technology. Such advancement in the healthcare industry will create new growth opportunities for the IT services market.
- The growing adoption of cloud-based solutions and services for the storage of critical information of customers and the increasing number of cyberattacks are driving the demand for cloud-based services in the BFSI segment. For Instance, Oracle offers a local cloud in India to drive growth in the banking sector. Oracle has clients such as Axis Bank, ICICI Bank, Federal Bank, Kotak Mahindra Bank, and SBI Card.
- Data center construction is growing in India and thus increases demand for the IT services market. For Instance, Microsoft plans to construct its fourth data center in India at Hyderabad, Telangana, which will be operational by the end of 2025. The corporation intends to invest over Rs 15,000 crore over 15 years in building this data center.
- According to NASSCOM, the data center construction investment is growing, and by 2025 data center construction investment is expected to reach USD 4.6 billion. Such investment activities would create more demand for the IT services market over the next five years.
APAC IT Services Industry Overview
The Asia-Pacific IT services market is highly competitive. Key players in the IT services market dominate the market in terms of market share. Some major market players are Accenture Plc, Capgemini SE, Cognizant Technology Solutions, Infosys Ltd, and Tata Consultancy Services Ltd.
As of August 2022, Tata Consultancy Services is building an advanced research and innovation facility in Hyderabad to incubate digital solutions for Consumer Packaged Goods (CPG) firms that use SAP systems.
In November 2022, Tata Consultancy Services expanded its collaboration with Randstad to modernize the latter's application estate on a cloud, boost the security posture and accelerate its growth.
APAC IT Services Market Leaders
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Accenture Plc
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Capgemini SE
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Cognizant Technology Solutions
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Infosys Ltd
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Tata Consultancy Services Ltd.
*Disclaimer: Major Players sorted in no particular order
APAC IT Services Market News
- November 2022: HCLTech introduced a cybersecurity suite hosted by Amazon Web Services. This strengthens and expands HCLTech's Cloud Security-as-a-Service (CSaaS) capabilities for AWS-based companies.
- November 2022:HCL Tech signed a multi-year deal with SR Technics to digitally change the company's operations. HCL Tech will use RISE with SAP to deploy a new greenfield SAP S/4HANA system hosted by Microsoft Azure. SR Technics will be able to change and streamline its company processes by moving to an agile, cloud-based ERP platform, upgrading the application stack, and optimizing IT operating costs.
- November 2022: Infineon Technologies AG presented Tata Consultancy Services (TCS) with the 2022 Best IT Supplier Award at the Infineon Global Supplier Day 2022. TCS was recognized for the second time in three years for generating continuous innovation and consistently delivering high-quality services across business functions.
APAC IT Services Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of the Impact of COVID-19 on the market
4.5 Regulatory Landscape
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Acceleration of Digital Transformation Across Industries and Adoption of New Technologies
5.1.2 Growing Emphasis on Leveraging the Core Competencies by Outsourcing Non-core Operations
5.2 Market Restraints
5.2.1 Data Security, Customization, and Data Migration
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 IT Consulting and Implementation
6.1.2 IT Outsourcing
6.1.3 Business Process Outsourcing
6.1.4 Other Types
6.2 By End-user
6.2.1 Manufacturing
6.2.2 Government
6.2.3 BFSI
6.2.4 Healthcare
6.2.5 Retail and Consumer Goods
6.2.6 Logistics
6.2.7 Other End-users
6.3 By Country
6.3.1 Australia
6.3.2 China
6.3.3 India
6.3.4 Japan
6.3.5 Indonesia
6.3.6 Malaysia
6.3.7 Singapore
6.3.8 South Korea
6.3.9 Taiwan
6.3.10 Thailand
6.3.11 Rest of Asia-pacific
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Accenture Plc
7.1.2 Capgemini SE
7.1.3 Cognizant Technology Solutions
7.1.4 Infosys Ltd.
7.1.5 Tata Consultancy Services Ltd.
7.1.6 Wipro Ltd.
7.1.7 Oracle Corporation
7.1.8 Google
7.1.9 Microsoft
7.1.10 Dell Technologies Inc.
7.1.11 HCLTech
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
APAC IT Services Industry Segmentation
Asia-Pacific IT services leverage technology and business expertise to help organizations create, manage, and optimize information and business processes.
The Asia-Pacific IT Services Market is segmented by Type (IT Consulting & Implementation, IT Outsourcing, Business Process Outsourcing), End-user (Manufacturing, Government, BFSI, Healthcare, Retail & Consumer Goods, Logistics), and Country.
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Type | |
| IT Consulting and Implementation | |
| IT Outsourcing | |
| Business Process Outsourcing | |
| Other Types |
| By End-user | |
| Manufacturing | |
| Government | |
| BFSI | |
| Healthcare | |
| Retail and Consumer Goods | |
| Logistics | |
| Other End-users |
| By Country | |
| Australia | |
| China | |
| India | |
| Japan | |
| Indonesia | |
| Malaysia | |
| Singapore | |
| South Korea | |
| Taiwan | |
| Thailand | |
| Rest of Asia-pacific |
APAC IT Services Market Research FAQs
What is the current Asia-Pacific IT Services Market size?
The Asia-Pacific IT Services Market is projected to register a CAGR of 8.30% during the forecast period (2024-2029)
Who are the key players in Asia-Pacific IT Services Market?
Accenture Plc, Capgemini SE, Cognizant Technology Solutions, Infosys Ltd and Tata Consultancy Services Ltd. are the major companies operating in the Asia-Pacific IT Services Market.
What years does this Asia-Pacific IT Services Market cover?
The report covers the Asia-Pacific IT Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific IT Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What future trends are expected to dominate the Asia-Pacific IT Services Market?
Future trends that are expected to dominate the Asia-Pacific IT Services Market are a) Integration of AI and machine learning b) Increased focus on cybersecurity services c) Continued growth of cloud services
Asia-Pacific IT Services Industry Report
The Asia Pacific IT services market is experiencing robust growth, driven by the increasing adoption of cloud-based solutions and digital transformation across various sectors. Key segments like cloud infrastructure services and digital payments are expanding significantly, with enterprises adopting multi-cloud environments to boost operational efficiency and cut costs. The proactive IT services segment is also projected to grow rapidly as organizations aim to optimize IT resources, improve security, and enhance customer experience. Additionally, the surge in demand for data centers, spurred by the rollout of 5G technology and relaxed data control regulations, is fueling market growth. Investments in AI and Big Data are further propelling the market, especially in healthcare and retail, where there is a focus on data-driven decision-making and enhancing consumer engagement through technology. The Asia Pacific region remains a critical hub for IT services, with continuous innovations and strategic investments driving the market forward. This summary encapsulates insights from the Asia IT services market research and highlights the IT services Asia Pacific market size by application, reflecting the dynamic changes and opportunities within the region. For detailed statistics, market share, size, revenue growth rate, and a forecast outlook, access the Mordor Intelligence™ Industry Reports. Download a free report PDF sample for more detailed analysis.
