by 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 assess their carbon footprint and optimize IT infrastructure and operations to reduce electricity consumption and carbon emissions. This includes carbon accounting and reporting, IT asset disposal and recycling services, green data center services, and more. Adoption of green IT practices can help lower energy bills, enhance compliance with environmental regulations, and improve brand image.
Market Dynamics:
The growth of the green IT services market is attributed to increasing carbon reduction initiatives by organizations worldwide to mitigate negative environmental impact. Stringent regulatory policies related to carbon emissions are also compelling companies to adopt environment-friendly IT practices and services. For instance, regulations such as REACH and WEEE force organizations to dispose of or recycle electronics responsibly. Moreover, rising energy costs are driving demand for green IT services that optimize power consumption of IT infrastructure and reduce long-term operational costs for organizations. Cost savings achieved through green IT investments act as a key driver for market growth.
SWOT Analysis :
Strength: Three sentence explanation
– Green IT solutions help organizations reduce carbon footprint and optimize resource usage which helps in cost cutting. Growing awareness about environment protection is driving adoption of green IT services. Data centers are major adopters of green IT as it helps lower huge energy costs.
Weakness: Three sentence long explanation
– Lack of expertise and skilled professionals for implementing green IT solutions is a challenge. Initial investment required for transitioning to green technologies can be expensive for some organizations. There is less awareness about benefits of green solutions in developing regions.
Opportunity: Three sentence long explanation
– Increasing regulations around emission cuts and efficiency standards present big opportunities. Growing “Work from home” trend amid pandemic increased demand for cloud and managed IT services which are more energy efficient compared to traditional data centers. Transition to digital technologies offer scope to develop innovative green solutions.
Threats: Two sentence explanation
– Slow economic conditions can reduce IT spending and stall green investments. Competition from open source and in-house developed green solutions can threat proprietary solutions.
Key Takeaways :
The Global Green IT Services Market Size is expected to witness high growth, exhibiting a CAGR of 12% over the forecast period, due to increasing environmental regulations around the world to curb carbon emissions. North America dominates the market currently due to strict emission norms and high electronics waste generation in the region. The Asia Pacific region is anticipated to experience fastest growth on back of rapid digitization and industrialization in countries like China and India.
Regional analysis
The Asia Pacific region is expected grow at a CAGR of over 15% during the forecast period. China, India and other developing Asian countries are digitalizing rapidly which requires extensive IT infrastructure expansion. This provides huge potential for green IT service providers. Governments in the region have also stepped up efforts to improve efficiency and sustainability of operations.
Key players analysis
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 developing intelligent and analytics driven solutions to help customers optimize energy usage and costs. Partnerships and acquisitions have also increased to strengthen green offerings portfolios.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
