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Data Processing & Hosting Services in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Data Processing & Hosting Services Market Research Report | NAICS 51821 | Nov 2016

Silver lining: Rising IT outsourcing and prevalence of online services will charge industry growth

IBISWorld’s Data Processing & Hosting Services market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

Report Snapshot
Market Share of Companies
Industry Statistics & Market Size
Revenue
$144bn
Annual Growth 11-16
6.8%
Annual Growth 16-21
Annual Growth
Profit
Profit
Employment
627,339
Businesses
64,031
Industry Threats & Opportunities
  • Many companies have cut internal IT management, outsourcing work to reduce costs
  • Due to lower overseas labor costs, international companies are able to offer services at a lower price
  • Consolidation is expected to be the dominant trend among the industry’s larger companies
  • ... purchase to read more

Industry Analysis & Industry Trends

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 2016, 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 Report - Starting a New Business Chapter

The industry's largest players have considerable capital investment, including server farms with incredible processing power. However, thousands of smaller companies perform some form of data processing outsourcing for smaller clients. For those wishing to enter the industry at its bottom end, the barriers do not pose a significant challenge.

The cost of establishing an operation in this industry is high due to the cost of computing and other equipment. For data hosting companies, the leasing of space on other companies' servers may offer a lower short-term initial cost solution to establishing a company in this industry. Nevertheless, data processing and application service providers have a lower need for capital. The.. ... 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 Number of mobile internet connections and Percentage of services conducted online in the Data Processing & Hosting Services industry impact industry performance... purchase to read more

     


    Industry ProductsRelated Reports

    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 and data processingIT computer network and network management servicesData storage and management servicesIT technical support services Application service provisioningOther servicesWebsite hosting services
     
    Industry Activities
    Application hosting Application service provider servicesData entry servicesData processing computer servicesData processingDatabase managementWeb hosting


    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Number of mobile internet connections
  • Percentage of services conducted online
  • Demand from internet publishing and broadcasting
  • Corporate profit
  • External competition for the Data Processing and Hosting Services industry
  • Price of computers and peripheral equipment
  • Private investment in computers and software
  • 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
  • Products & Markets
    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
  • Application service provisioning
  • Other services
  • Business process management and data processing
  • Data storage and management services
  • Website hosting services
  • IT technical support services
  • IT computer network and network management services
  • 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
  • Content providers
  • Government organizations
  • Chart: Major Market Segmentation for the Data Processing & Hosting Services Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Depreciation
  • Rent and utilities, marketing and other
  • Chart: Cost Structure Benchmarking – Sector vs Data Processing & Hosting Services
  • Basis of Competition
  • Internal competition
  • External competition
  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Data Processing & Hosting Services Industry
  • Industry Globalization
    Major Companies
    International Business Machines Corp.
    Hewlett Packard Enterprise Company
  • Table: International Business Machines Corp. - financial performance
  • Table: Hewlett Packard Enterprise Company - financial performance
  • Operating Conditions
    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
    Key Statistics
  • Table: Industry Data for the Data Processing & Hosting Services Industry
  • Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Percentage of services conducted online (2007-2021)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Table: Industry Financial Ratios
  • Jargon & Glossary
    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 allow 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.

  • Why Buy this Report?
    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 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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