Green IT Services Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 24.36 Billion |
| Market Size (2029) | USD 49.44 Billion |
| CAGR (2024 - 2029) | 15.21 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Green IT Services Market Analysis
The Green IT Services Market size is estimated at USD 24.36 billion in 2024, and is expected to reach USD 49.44 billion by 2029, growing at a CAGR of 15.21% during the forecast period (2024-2029).
The use of sustainable sources has been a widely adopted trend as the enormous cost savings and optimization of the resources have proved to be a favoring factor for the industry.
- The growingThe growing focus on reducing carbon footprints and the rising need for eco-friendly services propel the growth of green IT services. Companies around the world have started improving efficiencies of operations. The need to reduce waste, efficiently utilize resources and reduce carbon footprints warrants deploying innovative and sustainable solutions.
- With the emergence of COVID-19, the vulnerability of supply chains has been exposed. A fragile ecosystem for most IT organizations includes critical IT service providers. Moreover, work-from-home mandates have led the service providers to ensure that mission-critical enterprise customers have the essential tools and technologies to enable service speed, security, quality, and overall efficacy.
- Many governments worldwide have, thus, initiated strict laws and regulations for industries to control emissions and reduce environmental damage. This is driving the adoption of green IT services. The companies are also allocating funds to reduce carbon footprints adhere to the standards, and improve brand perception.
- The Government of Indonesia is trying to accelerate the development of National Data Centers. In June 2022, the government of South Korea signed an agreement to develop a 100 million USD National Data Centre in Batam, the Riau Islands.
- Desktop virtualization, cloud services, green data centers, and SaaS (software as a service) become green IT solutions by offering sustainability as a feature. Industries and organizations are, thus, investing in these technologies and services, aiding the growth of the market studied.
- Cloud computing is expected to be one of the major drivers of this market. According to Cisco, Cloud data centers are expected to process 94% of the workloads in 2021. This is predicted to fuel the development of services offered on the cloud, thereby expanding this market.
Green IT Services Market Trends
Application in IT and Telecom to Drive the Green IT Service Market
- The use of green IT services is anticipated to grow in the IT and telecom industry as the number of start-ups and companies is increasing rapidly. Information technology and the telecom industry are among the foremost sectors utilizing green IT services in the recent past.
- Since there is a considerable presence of users on social media platforms, internet traffic has significantly increased. Storage and cloud space must be updated by installing powerful high-capacity servers to replace old, outdated ones. Green IT services come into the role by utilizing the same old disposing of computers products and using them in an environmentally friendly manner.
- The telecom industry has witnessed robust growth over the last few decades, aided by the growing adoption in developing regions. They support telephone systems, cabling, installation and repair, fault tracing, and survey services. Also, they ensure that the wiring installation's quality will be long-lasting and replace the old ones.
- In August 2022, GenCell Energy and Simtel announced the deployment of GenCell FOX ammonia-based off-grid power solution field test at a mobile telecom tower site in Romania, operated by Vodafone. The solution has been developed to comply with strict zero-emission sustainability objectives, ensure resilient 24/7 constant power even in extreme weather conditions, and minimize operating expenses by using economical and widely available liquid ammonia fuel.
North America to Have the Higher Market Share
- The rapidly growing market in the North American region has a diverse group of providers for green IT services, led by prominent software and service players. The government has also issued norms that promote the practice of green IT services.
- Johnson Controls helped establish energy performance contracting in 1983 and has enforced more than 3,000 performance contracts in North America alone. It controls facility audits to identify opportunities to improve the building envelope efficiency, lighting, HVAC, power management, water, and other systems.
- Many data centers are "going green" by leveraging alternative energy sources. For instance, Microsoft's data centers utilize wind, solar, or hydroelectricity. They have set goals of growing this to 60% by this decade and to an ongoing and higher percentage in years beyond that.
- Various kinds of partnerships are shaping the market landscape. For instance, in June 2021, Microsoft, Accenture, and Goldman Sachs announced a partnership with nonprofits, like the Linux Foundation and climate groups. The partnership focuses on expanding and sharing ways to build software that produces fewer carbon emissions when run in data centers.
- In June 2022, IBM announced its partnership with SL Green Realty Corp to leverage IBM sustainability software to help advance the company's environmental, social, and governance (ESG) strategy. SL Green will use software from Envizi, an IBM Company, to better understand and report on its environmental initiatives.
- In North America, the environmental regulations, rising energy costs, and expanding data centers are some of the challenges that drive the energy efficient and sustainable infrastructure to build green infrastructure, which gives different approaches to the entire infrastructure. Green IT services help the systems to reduce costs, alleviate operational issues, and prepare for the rapidly emerging regulatory environment.
Green IT Services Industry Overview
The Green IT services market is moderately fragmented as some of the leading players operating in the market are IBM Corporation, Johnson Controls, Accenture PLC, SAP SE, and Schneider Electric SE. To strengthen their market offerings, green technology and sustainability vendors have implemented a variety of organic and inorganic growth strategies, such as new product launches, product upgrades, partnerships and agreements, business expansions, and mergers and acquisitions. The market is highly competitive, without any dominating players. Hence, the market concentration will be medium.
- May 2022 - Schneider Electric announced several innovations at Hannover Messe 2022, aiming toward accelerating the path to net zero CO2 emissions for customers and partners. The company's technology and AVEVA insights allow firms to reach the next industrial generation with enhanced efficiency, resiliency, and sustainability.
- April 2022 - Johnson Controls announced that it had commissioned a new heat pump installation that will support Vattenfall, a European energy company, in attaining its goal to eliminate carbon emissions from its heating and power generation facilities by 2050.
Green IT Services Market Leaders
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IBM Corporation
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Johnson Controls
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SAP SE
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Accenture PLC
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Schneider Electric SE
*Disclaimer: Major Players sorted in no particular order
Green IT Services Market News
- April 2022 - Huawei proposed the "Green and Low Carbon" concept at the Huawei Global Analyst Summit (HAS) 2022 for its Huawei CloudFabric 3.0 Hyper-Converged Data Center Network (DCN) Solution in order to use lossless networks to improve computing efficiency and reduce computing footprint and embrace green computing.
- February 2022 - Super Micro Computer, Inc. (SMCI), a high-performance computing, storage, networking solutions, and green computing technology, unveiled a new short-depth multi-node system designed and optimized for 5G, IoT, and Edge applications. It is designed for environments where high-density computing and I/O are required in a small form factor or field locations, such as at the base of cell towers or high-traffic areas.
Green 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 Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of COVID-19 impact on the industry
4.5 MARKET DYNAMICS
4.6 Market Drivers
4.6.1 Increasing Environmental Concerns and Growing Focus on Reducing Carbon Footprints
4.6.2 Strengthening Government Regulations
4.7 Market Restraints
4.7.1 Managing Variable Energy and Resource Demands
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Software
5.1.2 Services
5.2 By End-user Vertical
5.2.1 Government
5.2.2 BFSI
5.2.3 IT and Telecom
5.2.4 Industrial
5.2.5 Healthcare
5.2.6 Other End-user Verticals
5.3 By Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 Latin America
5.3.5 Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 IBM Corporation
6.1.2 Accenture PLC
6.1.3 Johnson Controls
6.1.4 SAP SE
6.1.5 Schneider Electric SE
6.1.6 Enablon Sa
6.1.7 Accuvio Sustainability Software
6.1.8 Dakota Software Corp
6.1.9 Enviance Inc.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. FUTURE OF THE MARKET
Green IT Services Industry Segmentation
Green IT, also called green computing, is the study where the resources are used efficiently. It helps the manufacturers and encourages IT departments (in government, BFSI, industrial, and others) to produce environment-friendly products and to consider more virtualization, power management, and proper recycling habits.
The Green IT Services Market is segmented by Type (Software, Service), End-user Vertical (Government, BFSI, IT, and Telecom, Industrial, Healthcare), and Geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Type | |
| Software | |
| Services |
| By End-user Vertical | |
| Government | |
| BFSI | |
| IT and Telecom | |
| Industrial | |
| Healthcare | |
| Other End-user Verticals |
| By Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East & Africa |
Green IT Services Market Research FAQs
How big is the Green IT Services Market?
The Green IT Services Market size is expected to reach USD 24.36 billion in 2024 and grow at a CAGR of 15.21% to reach USD 49.44 billion by 2029.
What is the current Green IT Services Market size?
In 2024, the Green IT Services Market size is expected to reach USD 24.36 billion.
Who are the key players in Green IT Services Market?
IBM Corporation, Johnson Controls, SAP SE, Accenture PLC and Schneider Electric SE are the major companies operating in the Green IT Services Market.
Which is the fastest growing region in Green IT Services Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Green IT Services Market?
In 2024, the North America accounts for the largest market share in Green IT Services Market.
What years does this Green IT Services Market cover, and what was the market size in 2023?
In 2023, the Green IT Services Market size was estimated at USD 21.14 billion. The report covers the Green IT Services Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Green IT Services Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Green IT Services Industry Report
Statistics for the 2024 Green IT Services market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Green IT Services analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
