U.S. IT Services Market Share to Witness Significant Revenue Growth

U.S. IT Services Market Summary

The U.S. IT services market size was valued at USD 405.7 billion in 2023 and is projected to expand at a CAGR of 7.9% from 2024 to 2030. The rapid penetration of big data analytics, artificial intelligence (AI), Internet of Things (IoT), and machine learning (ML) has significantly transformed the business landscape, driving higher reliance on IT services. Alongside, the rising demand for advanced cybersecurity solutions to address privacy protection concerns has prompted organizations to make substantial investments in IT infrastructure. Industry incumbents are increasingly innovating and leveraging technological advancements and greater data availability to enhance service delivery, efficiency, and competitiveness.

A growing trend among U.S. consumers has been the widespread adoption of cloud-based solutions and software-as-a-service (SaaS) platforms. Enterprises across various sectors have turned to advanced IT services to enable automation, optimize supply chain management, and improve agility. Cloud computing and business intelligence tools have become pivotal for reducing operational costs, enhancing decision-making, and boosting organizational performance. Customers have increasingly demanded personalization, customization, and mobility in IT services, which has driven service providers to design new, user-centric solutions. Digitalization has therefore gained strong traction as businesses aim to achieve greater productivity and a more seamless customer experience.

Key Market Trends & Insights

• The reactive IT services segment led the U.S. IT services market in 2023, accounting for 55.5% of total revenue. This dominance was fueled by growing demand for cloud-based services that provide alerting, monitoring, and incident management capabilities. Additionally, the rising cost associated with system downtime has pushed enterprises to allocate higher budgets toward robust reactive IT services to ensure operational continuity and protect critical IT assets.
• The operations and maintenance segment is anticipated to witness steady growth, supported by the expanding adoption of AI, ML, and robotic process automation (RPA). Moreover, the increasing penetration of cloud computing and data analytics has further encouraged businesses to invest in IT services aimed at enhancing operational stability and efficiency. These investments are helping companies reduce manual intervention, streamline workflows, and achieve higher productivity levels.
• The application management segment is expected to expand considerably, driven by the growing need to minimize ownership costs, improve application performance, strengthen reliability, and ensure data security. Advanced application management solutions allow businesses to monitor, optimize, and maintain critical applications more effectively, which is becoming essential as enterprises continue to scale their digital ecosystems.
• The AI and machine learning segment is projected to show significant growth throughout the forecast period. This is primarily due to the increasing role of automation in reshaping industries, as organizations deploy AI and ML tools to improve customer service, enhance predictive maintenance, and deliver real-time fraud detection solutions. These technologies are creating new opportunities for innovation while simultaneously ensuring greater operational resilience.
• The on-premises segment is also expected to grow, largely supported by rising demand among enterprises to manage sensitive data and mission-critical applications within controlled environments. Businesses are opting for on-premises IT services for their ability to provide enhanced security, greater customization, and compliance with stringent industry regulations.
• In terms of enterprise size, large enterprises are forecast to generate significant demand during the forecast period. This is mainly attributed to their accelerated adoption of cloud computing and advanced IT services. Large organizations continue to invest in IT solutions to improve efficiency, increase agility, and enhance customer experience, thereby sustaining their competitive positioning.
• The IT and telecom segment is set to witness robust growth, driven by widespread adoption of cloud solutions and managed IT services. Companies in this sector are investing in specialized IT services to optimize efficiency, reduce costs, modernize infrastructure, and strengthen decision-making processes. The growing focus on customer experience and digital innovation further underlines the segment’s importance within the broader U.S. IT services market.

Order a free sample PDF of the U.S. IT Services Market Intelligence Study, published by Grand View Research.

Market Size & Forecast

• 2023 Market Size: USD 405.7 billion
• 2030 Projected Market Size: USD 695.6 Billion
• CAGR (2024 - 2030): 7.9%

Key Companies & Market Share Insights

Leading companies operating in this space include IBM, Amazon, Cisco, Hewlett Packard Enterprise Development LP, and Microsoft, which are adopting both organic and inorganic strategies to strengthen their foothold. For instance, in March 2024, Wipro collaborated with Nutanix to accelerate hybrid multi-cloud adoption and digital transformation, with the added goal of reducing carbon emissions and energy consumption in data centers. Similarly, in January 2024, IBM partnered with American Tower to enhance hybrid multi-cloud computing capabilities at the edge, enabling faster and more efficient data processing. In March 2023, Hewlett Packard Enterprise acquired OpsRamp to streamline IT investment management and simplify multi-vendor, multi-cloud environments.

Mergers, acquisitions, and partnerships are also shaping the market. For example, HPE announced in January 2024 its acquisition of Juniper Networks to strengthen AI-powered innovations, while DXC Technology and Amazon Web Services teamed up in November 2023 to accelerate cloud adoption and drive efficiencies through digital transformation initiatives. Such collaborations underscore the dynamic nature of the IT services sector and highlight the emphasis on expanding portfolios and delivering value-driven offerings.

Key Players

• Amazon Web Services, Inc.
• Avaya
• Cisco Systems, Inc.
• DXC Technology Company
• Fortinet, Inc.
• Hewlett Packard Enterprise Development LP
• Huawei Technologies Co., Ltd.
• IBM Corp.
• Juniper Networks, Inc.
• Microsoft
• Broadcom (Symantec Corporation)
• Oracle

Explore Horizon Databook – The world's most expansive market intelligence platform developed by Grand View Research.

Conclusion

The U.S. IT services market is expected to experience sustained growth, supported by the increasing adoption of cloud computing, AI, ML, and IoT across diverse industry verticals. With rising demand for cybersecurity, application management, and automation solutions, enterprises are investing in IT services to improve performance, security, and customer experience. The dominance of reactive IT services and strong adoption of cloud-based and AI-driven platforms highlight the industry’s focus on efficiency and resilience. Moving forward, collaborations, acquisitions, and innovation will remain central to driving competitiveness, positioning IT services as a critical enabler of digital transformation and long-term economic progress.