United Kingdom IT Services Market Size (2024 - 2029)

United Kingdom IT Services Market Analysis

The United Kingdom IT Services Market size is estimated at USD 105.30 billion in 2024, and is expected to reach USD 146.60 billion by 2029, growing at a CAGR of 6.84% during the forecast period (2024-2029).

The increasing use of internet applications and services, as well as the growing availability of wireless devices such as smartphones, other smart gadgets, and associated apps, are significantly driving the growth of the UK IT services market.

• Significant investments in various IT solutions in the United Kingdom have been made, with the overall adoption of software-as-a-service (SaaS) and increased cloud-based products demonstrating the rising industrial requirements for IT services. Digital transformation and automation are also trending in the country, fueling the demand for IT services.
• Many prominent SaaS companies have ventured into the United Kingdom, where the market is expanding. SaaS growth is mainly fueled by technological advancements, such as the adoption of artificial intelligence and machine learning. The country's SaaS market is still maturing, offering investors a broad scope of opportunities to invest in IT solutions. For example, in March 2022, Amazon Web Services announced plans to invest more than GBP 1.8 billion (USD 2.2 billion) over the next two years in building out its overall UK data center presence as the demand for its public cloud services continues to increase significantly. During the intervening years, its presence in the United Kingdom has allowed AWS to secure many lucrative and high-profile deals with private sector organizations and central government departments in the financial, healthcare, and pharmaceutical services industries.
• Moreover, the market is witnessing various mergers, partnerships, and acquisitions. For instance, in October 2022, Arqit Quantum Inc., a provider of quantum-safe encryption, signed a contract with Nine23 Ltd, a cyber security solutions provider primarily for the UK-compliant and regulated industries, to deploy Arqit's QuantumCloud. It is mainly a symmetric key agreement software on Nine23's UK Sovereign Secure Private Cloud infrastructure, Platform FLEX, to deliver the highest level of assurance for its clients and customers.
• However, the rise in various data security-related issues and data breaching risks in the country could be a significant factor, restricting the overall market's growth throughout the forecast period.
• Working techniques of several companies transitioned to remote working scenarios during the COVID-19 pandemic, resulting in an increased demand for cloud computing services. IT companies shipped computers to employees' homes and had them equipped with Wi-Fi adapters, power backup sources, and broadband connections. The virtual private network bandwidth was increased, and backend capacity was increased to meet the increased number of concurrently connected remote users. Virtual working was made possible because of cloud-based remote access solutions. Thus, the market initially faced challenges during the pandemic, but gradually, it had a good impact on IT services because of the increasing need for service.

United Kingdom IT Services Industry Segmentation

IT services allow organizations to access the technical tools and information they need to carry out their daily operations and duties. These services are frequently managed by teams with experience in IT or computer science for enterprises across a wide range of industries. Numerous IT services can assist firms and aid their smooth and efficient operation. Many of these services enable employees to interface with technology that helps them perform their daily tasks or communicate with coworkers.

The UK IT services market is segmented by type (IT outsourcing, IT consulting & implementation, and business process) and end user (IT and telecommunication, government, BFSI, energy & utilities, consumer goods & retail, and other end users).

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.