June 16, 2024
Green IT Services Market

Green IT Services is Estimated to Witness High Growth Owing to Increased Energy Efficiency and Sustainability Measures

Green IT services involve the environmentally sustainable usage and disposal of computers and other technology equipment. These services help businesses and individuals reduce energy consumption and electronic waste through virtualization, remote infrastructure management, equipment reuse and recycling. The industry offers green data center services to improve efficiency through solutions like renewable energy use, optimized cooling systems, modular designs and intelligent monitoring software. Data centers account for 1-2% of global electricity usage, making energy efficiency a key priority. Green IT services allow organizations to reduce carbon footprint while cutting operational costs over the long run.

The Global Green IT Services Market is estimated to be valued at US$ 16.14 Bn in 2024 and is expected to exhibit a CAGR of 4.9% over the forecast period 2024 to 2031.

Key Takeaways

Key players: Key players operating in the Green IT Services market are Imerys Group, Milliken & Company Inc., PCI Augsburg GmbH, Rocla, Wagners, Universal Enterprise, Schlumberger Ltd, Murray & Roberts Cementation Co. Ltd., Banah UK Ltd and Zeobond Pty Ltd.

Key opportunities: Rising demand for energy efficient solutions especially in the data center industry is a major opportunity. Additionally, growing emphasis on sustainable business practices and compliance with environmental regulations will drive the need for green IT services.

Technological advancements: Advancements in areas like modular data center design, energy efficient cooling techniques, renewable power integration, precision monitoring systems and automated equipment reuse are enhancing the effectiveness of Green IT Services Market Size. Edge computing adoption will also boost energy savings through localized processing and storage.

Market drivers
Stringent environmental regulations: Strict laws on waste disposal and carbon emissions mandate the adoption of eco-friendly practices across industry verticals, propelling demand for green IT optimization services.

Cost reductions: Green IT services enable businesses to reduce operational expenditure through efficient resource usage. Long-term cost savings is a major driver as energy bills account for a substantial percentage of total data center costs.

Sustainability goals: Growing consumer and investor focus on corporate social responsibility is compelling companies to lower environmental impact and publish sustainability reports, driving utilization of green IT solutions.

Current Challenges in Green IT Services Market

The Green IT Services Market is still in a nascent stage of development and facing numerous challenges. Advanced green technologies are yet to be fully adopted by organizations across the sectors. High initial costs related to upgrading and retrofitting existing infrastructure with energy-efficient solutions is a major roadblock. There is also lack of demand from small and medium enterprises due to financial constraints and insufficient awareness about long-term economic and environmental benefits. Absence of incentives and supportive government policies in some countries further hinders the growth potential of the green IT services market. Skill gaps and shortage of properly trained workforce to implement new green solutions pose another key challenge. Setting up an effective framework to measure carbon footprint reduction and evaluate the ROI is difficult for service providers. Sustainable practices also need to be integrated across entire supply chain networks of companies.

SWOT Analysis

Strength: Growing concerns about climate change and environmental protection are driving greater emphasis on green initiatives. Demand is surging for managed services that can help organizations lower energy consumption and carbon footprint of their IT infrastructure and operations.
Weakness: Limited expertise and insufficient proven track record are restricting the growth opportunities for new entrants in green IT services domain. Lack of standards and common definitions also pose operational challenges.
Opportunity: Adoption of innovative digital technologies like cloud computing, IoT and edge computing provides huge scope for service providers to develop sustainable solutions. Rising need for monitoring and reporting of ESG goals and metrics opens up new revenue streams.
Threats: Stiff competition from conventional IT service majors expanding into green offerings. Introduction of stringent environmental regulations in future could increase compliance costs.

Geographical Regions

North America currently dominates the global green IT services market in terms of value owing to stringent carbon emission norms and proactive stance of governments and organizations towards sustainability. Majority of key players also operate from this region. Europe is another major regional market supported by favorable policies encouraging adoption of eco-friendly practices across sectors. Asia Pacific is projected to witness the fastest growth during the forecast period on back of rapidly developing economies, growing awareness about environmental protection and presence of leading cloud and data center facilities. China, India are emerging as highly lucrative markets.

Fastest Growing Region

Asia Pacific region is poised to register the fastest growth in the green IT services market over the next decade. This is attributed to increasing digitization, internet penetration, urbanization and expansion of data center activities in economies like China, India and other Association of Southeast Asian Nations (ASEAN) countries. Rising affluence, deployment of sustainable technologies, focus onto green investments as well as pressure to curb carbon emissions are some key factors driving the adoption of energy-efficient IT solutions in APAC region. Additionally, presence of global technology giants and low-cost skilled talent availability provide significant tailwinds. The region is estimated to witness a CAGR of around 6.2% during 2024-2031 in green IT services space.

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