Global Green IT Services Market Size, Share & Trends Analysis Report By Type (Software and Services), By Deployment (On-premises and Cloud), By End-Use, By Regional Outlook and Forecast, 2024 - 2031
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Accenture PLC
Amazon Web Services, Inc(Amazon.com, Inc.)
Cisco Systems, Inc
Dell Technologies, Inc
Google LLC(Alphabet Inc)
Hewlett Packard Enterprise Company
IBM Corporation
Infosys Limited
Microsoft Corporation
Wipro Limited
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The Global Green IT Services Market size is expected to reach $49.53 billion by 2031, rising at a market growth of 15.5% CAGR during the forecast period.
The swift proliferation of data centers, driven by heightened internet utilization and advancements in telecommunications, has necessitated that enterprises within this sector embrace environmentally sustainable IT practices. Hence, the IT & telecommunications segment witnessed nearly 1/4th revenue share in the market in 2023. This can be attributed to the sector's high energy consumption and the growing need for energy-efficient solutions to manage vast data and infrastructure. Many leading organizations have prioritized sustainability initiatives, such as using renewable energy, optimizing cooling systems, and employing virtualization technologies to reduce their carbon footprint and operational costs.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In December, 2024, Amazon Web Services, Inc. teamed up with Orbital Materials, a chemical manufacturing company to enhance data center sustainability using AI-driven materials. The collaboration aims to improve carbon removal, optimize cooling, and reduce water usage. Additionally, In December, 2024, Infosys Limited teamed up with RheinEnergie, a utility company to support enterprises in their energy transition and sustainability efforts. Utilizing Infosys' Energy Cloud, part of Infosys Cobalt and Topaz, the collaboration will improve energy efficiency.
Based on the Analysis presented in the KBV Cardinal matrix; Google LLC and Microsoft Corporation are the forerunners in the Green IT Services Market. In October, 2023, Google LLC announced the partnership with Deloitte, a business consulting and services company to drive sustainable energy transformation using AI, cloud, and geospatial technology. This enables data-driven solutions to reduce emissions, promote clean technology, and help businesses transition to a sustainable future. Companies such as Amazon Web Services, Inc., Cisco Systems, Inc., and IBM Corporation are some of the key innovators in Green IT Services Market.
Market Growth Factors
The emergence of carbon-neutral data centers that function utilizing renewable energy sources such as wind, solar, and hydroelectric power. These data centers are equipped with cutting-edge technologies to minimize energy wastage and maximize operational efficiency. By incorporating innovations like liquid cooling systems and energy recovery mechanisms, these facilities set new standards for sustainable IT operations. Thus, these advancements collectively drive the growth of the green IT services market by offering businesses scalable and sustainable solutions.
Cloud computing enables organizations to optimize resource allocation using shared, multi-tenant infrastructure. This approach ensures that computing resources are utilized more efficiently, reducing overall energy consumption compared to the traditional model of underutilized, on-premises servers. Cloud platforms also offer scalability, allowing businesses to adjust their computing needs dynamically, contributing to resource efficiency. Therefore, as more companies embrace cloud computing, the collective shift towards energy-efficient IT practices is expected to significantly advance global sustainability efforts.
Market Restraining Factors
Organizations may be required to allocate resources toward specialized software, employee training, and consulting services to facilitate successful implementation. The return on investment (ROI) from green IT, while promising in the long term due to lower energy costs and regulatory benefits, may not be immediately visible. This delayed ROI can discourage businesses, particularly those in industries where profitability is tightly linked to cost-cutting and immediate financial gains. Furthermore, the perception of green IT as an expensive venture can also deter organizations already managing tight margins or recovering from economic uncertainties. Hence, these factors may hamper the growth of the market.
Type Outlook
Based on type, the market is bifurcated into software and services. The software segment garnered 62% revenue share in the market in 2023. This lead can be ascribed to the increasing utilization of energy-efficient software solutions, including virtualization tools, cloud-based platforms, and energy management systems. The increasing demand for data analytics and monitoring tools that provide real-time insights into energy efficiency further boosted the adoption of green IT software. Businesses across various industries recognized the value of these solutions in enhancing operational efficiency while contributing to environmental sustainability.
Deployment Outlook
On the basis of deployment, the market is classified into cloud and on-premises. The cloud segment recorded 49% revenue share in the market in 2023. Cloud computing diminishes the necessity for organizations to sustain energy-intensive on-premises data centers, as cloud service providers generally utilize cutting-edge, energy-efficient infrastructure. The ability to access advanced technologies such as virtualization, resource sharing, and remote management makes cloud deployments highly appealing for businesses aiming to reduce their environmental footprint. Additionally, many leading cloud providers have committed to using renewable energy sources and carbon-neutral practices, further enhancing the appeal of cloud-based solutions for organizations prioritizing sustainability.
End Use Outlook
By end use, the market is divided into IT & telecommunications, BFSI, healthcare & life sciences, manufacturing, retail, government & public sectors, energy & utilities, and others. The healthcare & life sciences segment procured 17% revenue share in the market in 2023. This sector's rapid digitization, including adopting electronic health records, telemedicine, and advanced medical technologies, has increased its IT infrastructure needs. To address the growing energy demands and align with sustainability goals, healthcare organizations have begun investing in green IT solutions. Furthermore, the sector's focus on improving operational efficiency and reducing costs has driven the integration of energy-efficient systems and cloud-based technologies.
Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment recorded 38% revenue share in the market in 2023. This region's leadership in the green IT services market is driven by several factors, including a strong regulatory framework promoting sustainability, the presence of major IT and technology companies, and high levels of digital transformation. Governments and organizations in North America have undertaken substantial investments in renewable energy sources and energy-efficient technologies to align with environmental objectives and mitigate operational expenses.
Recent Strategies Deployed in the Market
Aug-2024: Accenture PLC acquired Boslan, an engineering consultancy specializing in net-zero infrastructure and sustainable IT projects. Boslan, with expertise in renewable energy, smart grids, and data centers, strengthens Accenture's hybrid energy strategy. The acquisition supports AI-driven solutions to help clients manage assets and reduce carbon emissions across various industries.
Dec-2023: Infosys Limited announced the partnership with Shell, an Oli Industry Company to accelerate green data centers by adopting immersion cooling technology. Using Shell's Immersion Cooling Fluid and Infosys' AI-driven Topaz, they aim to reduce energy consumption and CO2 emissions. This partnership supports the transition to sustainable, energy-efficient data centers, helping businesses achieve environmental goals.
Sep-2023: Hewlett Packard Enterprise Development LP teamed up with Schneider Electric an automation machinery manufacturing company for sustainability and IT services. The collaboration includes offering tools like the HPE Sustainability Dashboard, IT energy consumption monitoring, sustainability workshops, asset upcycling services, and strategies for energy efficiency and renewable energy adoption.
Jun-2023: Microsoft Corporation announced the launch of Microsoft Cloud for Sustainability, helps organizations reduce their environmental impact by providing data-driven insights for sustainability. It includes AI-powered tools for carbon, water, and waste management, and assists with ESG reporting.
May-2023: IBM Corporation announced the partnership with Microsoft, a techonology company to accelerate sustainable cloud modernization. By leveraging IBM Consulting's expertise and Microsoft's tools, organizations can optimize cloud infrastructure to reduce energy consumption and carbon emissions. Their solutions include lifecycle cloud carbon accounting, application modernization, and sustainable design principles to help businesses achieve sustainability goals.
List of Key Companies Profiled
Accenture PLC
Amazon Web Services, Inc. (Amazon.com, Inc.)
Cisco Systems, Inc.
Dell Technologies, Inc.
Google LLC (Alphabet Inc.)
Hewlett Packard Enterprise Development LP
IBM Corporation
Infosys Limited
Microsoft Corporation
Wipro Limited
Global Green IT Services Market Report Segmentation
By Type
Software
Services
By Deployment
On-premises
Cloud
By End Use
IT & Telecommunications
BFSI
Healthcare & Life Sciences
Manufacturing
Government & Public Sectors
Energy & Utilities
Retail
Other End Use
By Geography
North America
US
Canada
Mexico
Rest of North America
Europe
Germany
UK
France
Russia
Spain
Italy
Rest of Europe
Asia Pacific
China
Japan
India
South Korea
Singapore
Malaysia
Rest of Asia Pacific
LAMEA
Brazil
Argentina
UAE
Saudi Arabia
South Africa
Nigeria
Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
1.1 Market Definition
1.2 Objectives
1.3 Market Scope
1.4 Segmentation
1.4.1 Global Green IT Services Market, by Type
1.4.2 Global Green IT Services Market, by Deployment
1.4.3 Global Green IT Services Market, by End Use
1.4.4 Global Green IT Services Market, by Geography
1.5 Methodology for the research
Chapter 2. Market at a Glance
2.1 Key Highlights
Chapter 3. Market Overview
3.1 Introduction
3.1.1 Overview
3.1.1.1 Market Composition and Scenario
3.2 Key Factors Impacting the Market
3.2.1 Market Drivers
3.2.2 Market Restraints
3.2.3 Market Opportunities
3.2.4 Market Challenges
Chapter 4. Competition Analysis - Global
4.1 KBV Cardinal Matrix
4.2 Recent Industry Wide Strategic Developments
4.2.1 Partnerships, Collaborations and Agreements
4.2.2 Product Launches and Product Expansions
4.2.3 Acquisition and Mergers
4.3 Market Share Analysis, 2023
4.4 Top Winning Strategies
4.4.1 Key Leading Strategies: Percentage Distribution (2020-2024)