May 21, 2024
Green IT Services Market

The Green IT Services Market is Estimated To Witness High Growth Owing To Trends Towards Carbon Footprint Reduction

The Green IT Services Market is estimated to be valued at US$ 14.01 Bn in 2023 and is expected to exhibit a CAGR of 12.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Green IT services help organizations to measure, maintain, and improve the eco-friendliness of their IT infrastructure and operations. These services help reduce carbon footprint and IT costs by optimizing data centers, virtualizing servers, monitoring energy usage of devices and replacing hardware with energy efficient ones. The growing environmental concerns and regulatory compliance drives demand for green IT services across industries.

Market key trends:

One of the major trends in the green IT services market is towards carbon footprint reduction. Organizations are increasingly focusing on minimizing their carbon emissions and becoming carbon neutral by adopting green IT initiatives. Green IT service providers help organizations assess IT infrastructure’s environmental impact, identify emission hotspots, and take necessary steps to improve energy efficiency. They offer carbon accounting and reporting solutions to track carbon footprints overtime and analyze the impact of various green projects. This allows companies to gain visibility into sources of emissions, set reduction targets and gain competitive advantages through sustainable practices.

Porter’s Analysis

Threat of new entrants: The green IT services market requires high initial investments and technologies which make it difficult for new players to enter the market.

Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of various established players offering similar green IT services.

Bargaining power of suppliers: Suppliers have low bargaining power as there are numerous component suppliers in the market.

Threat of new substitutes: There is low threat from substitutes as green IT services provide unique environmental and economic benefits.

Competitive rivalry: The market is highly competitive with companies competing on the basis of service quality, customer experience and pricing.

SWOT Analysis

Strength: Green IT services help organizations reduce carbon footprint and energy costs. They allow flexible working models like work from home which improve productivity.

Weakness: Transition to green IT involves high initial costs. Adoption of new technologies by organizations requires change management.

Opportunity: Stringent government regulations to curb emissions are increasing demand for emission reporting and sustainability services. Growing environmental awareness among consumers is encouraging organizations to adopt green solutions.

Threats: Availability of low-cost conventional IT services risks cannibalizing the green IT segment. Long replacement cycles of existing hardware and infrastructure slow the pace of transition.

Key Takeaways

The Global Green IT Services Market Demand is expected to witness high growth at a CAGR of 12% over the forecast period, due to increasing environmental regulations worldwide. By 2030, the market size is projected to reach US$ 38 billion.

Regionally, North America dominates currently due to stringent regulatory policies and commitments to reduce carbon footprint. Europe follows due to well-established emission reporting requirements. Asia Pacific is expected to grow the fastest owing to rapid industrialization and growing consumer awareness in large developing economies like China and India.

Key players operating in the green IT services market are Schneider Electric SE, Accuvio Sustainability Software, Cority Software Inc., IBM Corporation, Johnson Controls, Dakota Software Corp, Accenture PLC, Enablon SA and SAP SE. They provide end-to-end services and solutions across industries for carbon accounting, cloud services, hardware recycling, and monitoring resource consumption.

 

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it