by Market Overview:
Green IT services help organizations reduce their carbon footprint and environmental impact of IT usage by promoting environment-friendly practices. It focuses on designing, manufacturing, using and disposing of computer, servers and associated subsystems efficiently and effectively with minimal or no impact on the environment. Green IT services aim to achieve environmental sustainability with effective use of resources, reuse, recycle and optimizing efficiency. It helps organizations reduce their energy and cooling costs, comply with government regulations and develop a green corporate image. Growing concerns over climate change and environmental protection has increased the awareness regarding reduced carbon footprint which is driving the demand for green IT services across industries globally.
The global 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 key trends:
One of the major trends in the green IT services market is the increased adoption of cloud services. Cloud computing allows centralizing server and storage infrastructure at large data centers resulting in improved resource utilization and cost benefits. This reduces the number of physical servers required and associated power consumption. Companies are migrating their applications, workloads and data to public and private cloud platforms to gain operational efficiency and reduce carbon emissions. Growing focus on renewal energy initiatives is another key trend. Data centers are investing in renewable energy sources like solar and wind power for their operations. Countries are framing favorable policies to promote the use of clean energy. Hardware virtualization is also gaining traction which allows running multiple operating systems and workloads on a single physical server thereby improving resource utilization and reducing carbon footprint. Emerging technologies like artificial intelligence, big data and IoT are also driving the adoption of green practices.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the Green IT Services market is moderate. While the capital requirements to establish an IT services company are relatively low, the presence of major players makes it difficult for new entrants to acquire new clients and scale up operations.
Bargaining power of buyers: The bargaining power of buyers is high due to the availability of many players offering similar services. Buyers can negotiate on price and service quality.
Bargaining power of suppliers: IT hardware and software vendors that supply required technologies to Green IT service providers have moderate bargaining power due to the dependence of service providers on them.
Threat of new substitutes: Substitutes like in-house IT teams pose low threat as outsourcing specific services allows companies to focus on their core business.
Competitive rivalry: The competitive rivalry in the market is high due to the presence of many global and regional players competing on service offerings and pricing.
Key Takeaways
The global Green IT Services Market Growth is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing awareness about energy conservation and carbon footprint reduction among enterprises. North America dominates the market currently due to stringent government regulations and presence of major players. Europe is also a significant market driven by focus on efficient resource utilization.
The Green IT Services market size for 2023 is US$ 14.01 Bn. Regional analysis shows that North America accounts for over 35% market share currently owing to focus on sustainable development. Europe follows with a share of over 30% supported by efforts to achieve carbon neutrality by 2050. Asia Pacific is expected to witness fastest growth at a CAGR of 14% during the forecast period on back of rapid digitalization and industrialization.
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. Major players are focusing on portfolio expansion and partnerships to tap into growth opportunities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
