Cloud nine: Companies will increasingly capture more data, requiring the expertise of industry operators

The Data Processing and Hosting Services industry provides infrastructure used for a variety of information technology (IT)-related activities, ranging from web hosting to automated data-entry services. Over the five years to 2017, businesses have increasingly outsourced their IT infrastructure needs, directly benefiting industry operators. The advent and popularization of cloud computing, one of the industry's fastest-growing product offerings, has similarly led to greater demand. Over the next five years, industry revenue is expected to grow. As the technology required to process and host data becomes more complex, the level of expertise needed to effectively manage large data centers will rise...purchase to read more.

Industry Statistics & Market Size
Revenue
$175bn
Annual Growth 13-18
6.6%
Forecast Growth 18-23
Profit
Employment
706,390
Businesses
69,569
Market Share of Companies

Industry Threats & Opportunities

  • A primary driver of growth has been the investment in outsourcing application hosting to specialized companies
  • Growth in global connectivity has facilitated greater offshoring
  • Consolidation is expected to be the dominant trend among the industry’s larger companies
  • Industry Report - Industry Investment Chapter

    The Data Processing and Hosting Services industry has a low level of capital intensity. For every $1.00 spent on wages, an estimated $0.06 is allocated toward capital expenditure in 2018. Although investment in capital has remained stable over the past five years, wages’ share of revenue has risen. Still, the industry’s capital intensity level has remained steady during the five years to 2018.The industry is labor, skill and knowledge-intensive, but with significant need for computing and software-related equipment. Labor costs are the largest expense for industry operators, representing an estimated 38.6% of revenue in 2018. As ...purchase to read more.

    Additional Insights for the Data Processing & Hosting Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Data Processing & Hosting Services Industry are

  • Effective quality control
  • Having a cost-effective distribution system
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Percentage of services conducted online and Corporate profit in the Data Processing & Hosting Services industry impact industry performance..

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    What's in this report

    What is the Data Processing & Hosting Services Industry?

    This industry provides data processing or hosting activities. Data processing services provide specialized reports from information supplied by clients. Hosting services can include web and application hosting. Services range from automated data entry to processing data.

    Industry Products
  • Business process management
  • Data storage and management services
  • Application service provisioning
  • Other services
  • Industry Activities
  • Application hosting
  • Application service provider services
  • Data entry services
  • Data processing computer services
  • Data processing
  • Database management
  • Web hosting
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Percentage of services conducted online
  • Corporate profit
  • Number of mobile internet connections
  • Demand from internet publishing and broadcasting
  • Price of computers and peripheral equipment

  • Current Performance
  • The cloud spurs growth
  • Outsourcing by large companies
  • Offshoring threat
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Outsourcing drives growth
  • Shift to online services
  • Growth and consolidation
  • Table: Data Processing & Hosting Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Data Processing & Hosting Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Finance and Insurance
  • Public Administration
  • Internet Publishing and Broadcasting

  • Key Selling Industries
  • Computer Manufacturing
  • Computer Peripheral Manufacturing
  • IT Consulting
  • Software Publishing
  • Wired Telecommunications Carriers

  • Products & Services
  • Other services
  • Application service provisioning
  • Data storage and management services
  • Business process management
  • Chart: Data Processing & Hosting Services Industry Products and Services Segmentation

  • Demand Determinants
  • Business sentiment
  • Cost of technology
  • Price of existing services

  • Major Markets
  • Non-financial enterprises
  • Resellers
  • Financial firms
  • Government organizations
  • Content providers
  • Chart: Major Market Segmentation for the Data Processing & Hosting Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationRent and utilities, marketing and other
  • Chart: Cost Structure Benchmarking – Sector vs Data Processing & Hosting Services

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Data Processing & Hosting Services Industry

  • Industry Globalization
    International Business Machines Corp.,
  • Table: International Business Machines Corp. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Data Processing & Hosting Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Data Processing & Hosting Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Percentage of services conducted online (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Application Service Provider (Asp)
  • A business that provides computer-based services to customers over a network.
  • Cloud Computing
  • Computing model in which companies' computer applications are hosted in outside servers accessible via the internet and managed by third-party operators.
  • Data Warehousing
  • The collection of data and the establishment of a common format for different data sets to enable them to work together and be stored in one place.
  • Information Technology (It)
  • The acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by microelectronics-based computing and telecommunications.
  • Outsourcing
  • To procure goods or services under contract with an outside supplier.
  • Software As A Service (Saas)
  • Software that is deployed over the internet and runs behind a firewall in a person's local area network or personal computer.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Data Processing & Hosting Services provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Data Processing & Hosting Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Data Processing & Hosting Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Data Processing & Hosting Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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