by Green IT services are gaining significant traction over the past few years driven by the increasing digitization trend across industries and growing focus on sustainability. Green IT services help organizations optimize their IT infrastructure and operations to reduce environmental impacts. This includes data center optimization, virtualization, cloud and co-location services, asset recovery and end-of-life product management, and green software which monitor and analyze energy consumption.
The Global Green IT Services Market is estimated to be valued at US$ 16.14 Mn in 2024 and is expected to exhibit a CAGR of 4.9% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the Green IT Services are Imerys Group, Milliken & Company Inc., PCI Augsburg GmbH, Rocla, Wagners, Universal Enterprise, Schlumberger Ltd, Murray & Roberts Cementation Co. Ltd, Banah UK Ltd, Zeobond Pty Ltd and Uretek.
The increasing awareness about environmental protection and stringent regulations around the world regarding carbon emission is fueling the demand for green IT services. Organizations are relying more on green IT services to monitor and optimize their energy usage, waste generation and establish sustainable practices.
The global green IT services market is also witnessing strong growth due to expansion of key players into new geographical locations. Major players are focusing on countries in Asia Pacific and Latin America where digitization agenda is high on priority. This is expected to present significant growth opportunities for green IT services providers over the coming years.
Market key trends
One of the key trends driving the growth of green IT services market is increasing adoption of cloud computing. More organizations are shifting their data and applications to the cloud which helps reduce server sprawl and optimize infrastructure resource utilization. This has significant benefits in terms of energy savings, lower carbon footprint and sustainability. It is estimated that cloud computing can help reduce up to 60% of the overall IT expenditure for organizations.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the Green IT Services Market Demand requires significant capital investments and expertise to operate efficiently and provide quality services. The presence of established players also acts as a deterrent for new players.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of a large number of players providing similar services. Buyers can negotiate on price and demand better terms.
Bargaining power of suppliers: IT infrastructure providers and various technology consultants have considerable bargaining power over green IT service providers as switching costs for these suppliers are low.
Threat of new substitutes: Substitute technologies do not pose significant threat presently as green IT services provide unique offerings centered around sustainability and energy efficiency.
Competitive rivalry: The competitive rivalry is intense as players compete on factors like pricing, energy audits, infrastructure optimization, consulting etc. to gain market share.
Geographical regions with market concentration: North America currently holds the major share of the global green IT services market owing to stringent environmental regulations and active adoption of green initiatives by organizations. The United States accounts for the bulk of regional market value.
Europe is another major regional market driven by supportive government policies encouraging sustainability. Key country markets include the UK, Germany, and France.
Fastest growing geographical region: The Asia Pacific region is expected to witness the highest growth in the green IT services market during the forecast period. Rapid digitalization, growing emphasis on energy efficiency, and presence of emerging economies like China and India are some of the key factors driving adoption. Initiatives to reduce carbon footprint will further propel the regional market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
