Data Processing & Hosting Services in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: July 2024
NAICS 51821Revenue
$291.4bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
704k
Businesses
55,702
Wages
$XX.Xbn
Data Processing & Hosting Services in the US industry analysis
The US data processing and hosting services industry is navigating a dynamic environment marked by rising demands and revolutionary trends. As digitalization accelerates, data centers have evolved from simple infrastructure to essential strategic assets. These hubs now power services ranging from cloud computing to advanced data analytics. In 2024, the global data center market, including giants like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP), achieved a substantial revenue of $343.1 billion, following a strong compound annual growth rate (CAGR) of 8.9% since 2019. Alongside these behemoths, smaller specialized providers cater to sectors like healthcare, financial services, and government agencies with precision-placed data storage solutions.
Trends and Insights
- Despite COVID slamming the economy as a whole, data centers continued to thrive, driven by the growing internet traffic volume and rock-bottom interest rates. They currently host a significant percentage of the United States' GDP-generating activities.
- Web hosting services are the fastest-growing product segment in the industry. Its share of revenue has nearly doubled over the past 10 years.
- Companies in this industry are located in proximity to their major clients or major users, particularly with a focus on edge computing. Major clients, such as telecommunication companies, are often located in major US cities, or even abroad.
- Competition is based mainly on price, uptime reliability, and total capacity, though many services in the industry have a somewhat low differentiation ceiling.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 5.4 % over the past five years, to reach an estimated $291.4bn in 2024.
Trends and Insights
Data center growth has thundered ahead, fueled by a growing cloud
- Growth for data processors has been most significantly spurred by the advent and popularization of cloud computing, one of the industry's fastest-growing product offerings.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
A looming recession will further stimulate megalithic tech giants while damaging tiny data centers
- Possible economic downturns, like a 2024 recession, pose unsettling risks for the data processor and storage industry. A recession could hinder needed investment in infrastructure upgrades and expensive new data center locations, potentially compromising the industry's substratum.
Biggest companies in the Data Processing & Hosting Services in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Amazon.Com, Inc. | 23,031.3 | 1,669.1 | 7.2 | |
International Business Machines Corporation | 19,397.0 | 1,910.8 | 9.9 | |
Salesforce.Com, Inc. | 17,900.9 | 471.8 | 2.6 |
To view the market share and analysis for all 48 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Business process management , Data storage and management services and Application service provisioning. Business process management is the largest segment of the Data Processing & Hosting Services in the US.
Trends and Insights
Companies without a website effectively don't exist
- Web hosting services are indispensable for maintaining a company's digital footprint. Large firms often deploy self-hosting solutions but leverage external expertise for backend management to ensure the reliability and uptime of their websites.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Credit Card Processing & Money Transferring in the US
- Payroll & Bookkeeping Services in the US
- Accounting Services in the US
- Tax Preparation Services in the US
- IT Consulting in the US
International industries
- Data Processing & Hosting Services in Canada
- Cloud Storage Services in Australia
- Cloud Hosting and Data Processing Services in Australia
- Data Processing and Web Hosting Services in New Zealand
- Data Processing & Hosting Services in the UK
Table of Contents
About this industry
Industry definition
This industry provides data processing or hosting services. 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 data processing.
What's included in this industry?
Application hosting Application service provider servicesData entry servicesData processing computer servicesData processingDatabase managementWeb hostingCompanies
Amazon.Com, Inc.International Business Machines CorporationSalesforce.Com, Inc.Purchase this report to view all 48 major companies in this industry.
Related Terms
DATA WAREHOUSINGINFORMATION TECHNOLOGY (IT)SOFTWARE AS A SERVICE (SAAS)APPLICATION SERVICE PROVIDER (ASP)CLOUD COMPUTINGOUTSOURCINGIndustry Code
NAICS 51821 - Data Processing & Hosting Services in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Despite COVID slamming the economy as a whole, data centers continued to thrive, driven by the growing internet traffic volume and rock-bottom interest rates. They currently ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Web hosting services are the fastest-growing product segment in the industry. Its share of revenue has nearly doubled over the past 10 years.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Companies in this industry are located in proximity to their major clients or major users, particularly with a focus on edge computing. Major clients, such as telecommunicati...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competition is based mainly on price, uptime reliability, and total capacity, though many services in the industry have a somewhat low differentiation ceiling.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Industry concentration has declined over the past 20 years as smaller and more innovative companies have continued to enter the industry, which indicates that the industry is ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Amazon.Com, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of International Business Machines Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Salesforce.Com, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 45 additional companies
Detailed analysis
- Description and key data for Amazon.Com, Inc., and factors influencing its performance in the industry
- Description and key data for International Business Machines Corporation, and factors influencing its performance in the industry
- Description and key data for Salesforce.Com, Inc., and factors influencing its performance in the industry
- Description, key data and performance trends for 45 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Regulations are mostly focused on protecting consumer data and giving consumers more control over the information they share. These regulations apply most often to operators ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Like other technology sectors, data center designers and maintainers are earning quite high wages as a skill shortage continues. In 2024, the average annual compensation will...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Data Processing & Hosting Services in the US industry in United States in 2024?
The market size of the Data Processing & Hosting Services in the US industry in United States is $291.4bn in 2024.
How many businesses are there in the Data Processing & Hosting Services in the US industry in 2024?
There are 55,702 businesses in the Data Processing & Hosting Services in the US industry in United States, which has grown at a CAGR of 0.8 % between 2019 and 2024.
Has the Data Processing & Hosting Services in the US industry in United States grown or declined over the past 5 years?
The market size of the Data Processing & Hosting Services in the US industry in United States has been growing at a CAGR of 5.4 % between 2019 and 2024.
What is the forecast growth of the Data Processing & Hosting Services in the US industry in United States over the next 5 years?
Over the next five years, the Data Processing & Hosting Services in the US industry in United States is expected to grow.
What are the biggest companies in the Data Processing & Hosting Services in the US market in United States?
The biggest companies operating in the Data Processing & Hosting Services market in United States are Amazon.Com, Inc., International Business Machines Corporation and Salesforce.Com, Inc.
What does the Data Processing & Hosting Services in the US in United States include?
Application hosting and Application service provider services are part of the Data Processing & Hosting Services in the US industry.
Which companies have the highest market share in the Data Processing & Hosting Services in the US in United States?
The company holding the most market share in United States is Amazon.Com, Inc..
How competitive is the Data Processing & Hosting Services in the US industry in United States?
The level of competition is high and increasing in the Data Processing & Hosting Services in the US industry in United States.
