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.
Green IT services help organizations reduce their carbon footprint and environmental impact through sustainable practices and technologies such as energy-efficient data centers, virtualization, consolidation servers, power management solutions, and e-waste management and disposal. These services enable companies to improve efficiency and reduce operating costs. They also help comply with environmental regulations by optimizing IT infrastructure to optimize resource consumption including energy, water and paper. Various industries rely on IT infrastructure and have a massive carbon footprint. Green IT services allow organizations across industries to measure and reduce their environmental impact and achieve sustainability goals.
Market key trends:
One of the key trends in the green IT services market is growing emphasis on data center consolidation and virtualization. As data centers consume massive amounts of energy, virtualization solutions allow more efficient utilization of existing infrastructure by consolidating multiple physical servers onto fewer physical machines, reducing total energy needs. Another trend is the increasing adoption of cloud-based services which reduce the need for physical infrastructure and optimize resource utilization through centralized management. Green IT services providers are also focusing on solutions like workspace services, end-point management and e-waste management to help organizations overcome challenges related to remote working during the pandemic and reduce electronic waste.
Threat of new entrants: The threat of new entrants in the green IT services market is low due to the presence of established global players and need for high initial investment.
Bargaining power of buyers: The bargaining power of buyers is high given the presence of various availability of green IT service providers. Buyers can negotiate on pricing and service quality.
Bargaining power of suppliers: Suppliers have low bargaining power due to availability of substitutes and focus of service providers on in-house capabilities.
Threat of new substitutes: New green technologies and services can pose threat to existing services. However, switching costs associated are high.
Competitive rivalry: Intense competition exists among key global players to gain higher market share through product differentiation and innovation.
The Global Green IT Services Market Demand is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing demand for energy-efficient solutions and focus on reducing carbon footprint.
Regionally, North America dominated the green IT services market in 2023 with a share of around 35%, owing to strict regulations regarding energy consumption and carbon emissions. Asia Pacific is anticipated to be the fastest growing market during the forecast period, attributed to rising energy costs and government measures promoting sustainable development.
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. Schneider Electric SE leads the market owing to its diverse portfolio of energy management solutions, while Accenture PLC has established itself as a prominent player through consultancy and advisory services.