Green IT Services Market Report Scope & Overview:

The Green IT Services Market was valued at USD 18.8 Billion in 2023 and is expected to reach USD 69.4 Billion by 2032, growing at a CAGR of 15.65% from 2024-2032. The adoption of emerging technologies in ICT is accelerating with AI, IoT, and edge computing advancements. Network infrastructure expansion, especially in 5G and fiber optics, is enhancing global connectivity, while cybersecurity incidents from 2020-2023 highlight the need for stronger security measures. Additionally, rising cloud service usage is driving demand for hybrid and multi-cloud solutions, with our latest report adding insights on Green IT Services, including energy-efficient data centers and carbon-aware computing.

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Green IT Services Market Dynamics

Drivers

• Organizations are adopting sustainable IT infrastructure to reduce carbon footprints and comply with green regulations.

Demand for Sustainable IT Infrastructure, A Key Factor for the Growth of Green IT Services Market. Data centers help organizations across the globe to reduce carbon footprints by implementing energy-efficient designs, virtualization, cloud computing, etc. Further propelling the market growth are the initiatives for green computing on the regulatory front, such as carbon tax policies and emission reduction goals. Also, the increasing focus of enterprises on the environmental impact is pushing them to utilize renewable energy sources in IT to maintain the longer-run sustainability and cost-effective aspect with better corporate social responsibility initiatives.

Restraints

• The high upfront costs of green IT solutions and infrastructure upgrades limit adoption, especially for SMEs.

Cost-saving and environmental advantages are long-term, resulting in high initial investment being a key restraining factor for adoption of Green IT Solutions. Investing in energy-efficient hardware, sustainable software solutions, and infrastructure upgrades is expensive and simply not financially viable for Lower-Middle segment businesses or SMEs. Additionally, the adoption of sustainable IT models is a challenge for several organizations, as it includes barriers such as employee training, implementation of green technologies, and adherence to strict environmental regulations.

Opportunities

• AI and IoT optimize energy consumption, automate processes, and enable carbon footprint tracking in IT systems.

Integration of AI with IoT is also paving the way for new opportunities in the Green IT Services Market Data centers leverage energy consumption optimization through AI-powered analytics, while IoT sensors across IT infrastructure help you monitor and reduce power usage. With smart automation, predictive maintenance takes place that minimizes hardware failures and energy losses. Additionally, there are also tools powered by AI that help businesses track their carbon emissions and reduce their carbon footprint. A surge in the adoption of AI and IoT in Green IT solutions is projected as enterprises embrace the process of digital transformation, further driving the market growth.

Challenges

• The absence of global Green IT standards and limited awareness hinder widespread adoption across industries.

Demand for Green IT is mainly dependent on global standards which are not yet available thus creating hurdles in the market growth. Additional regulations and standards for sustainability are set by diverse regions resulting in companies having difficulty crossing compliance standards. Furthermore, especially, SME businesses are especially unaware of Green IT services and do not consider sustainability in their IT strategy well. We must work with governments and industry organizations to ensure widespread harmonization and adoption of sustainable IT solutions across global marketplaces; tackling this challenge will not happen overnight, but will be achieved through coordinated efforts to raise awareness and accelerate commercialization.

Green IT Services Market Segment Analysis

By Type

In 2023, the software segment dominated the market and accounted for a significant revenue share. Corporations are adopting policies that require lower carbon emissions and greater energy efficiency. Software solutions that assist organizations in compliance with the regulations are thus in great demand. In November 2024, ZTE Corporation along with China Mobile Limited, announced their AI-based Green Telco Cloud solution. Instead, this latest premier system uses deep neural network models to enhance energy utilization in telco-cloud entities.

The services segment is expected to have the fastest CAGR. The growth of the services segment can be attributed to several factors, including increasing demand for sustainable practices, growing awareness and education,  and regulatory compliance. Sustainable IT is where businesses are trying to control the carbon footprint, so, as a result, the demand for consulting, implementation, and support services on green technology will be increased.

By Deployment

In 2023, The on-premises segment dominated the market and held the largest revenue share of more than 73%. Alike other industries like BFSI, healthcare, and government, the organizations are giving immense priority to Data security and regulatory compliance. On-premises solutions give organizations more control over the way that they manage information and security policies, mitigating the threat of data leaks and unauthorized access to sensitive information. In addition, an on-premises deployment gives the organization the agility to customize its IT infrastructure based on operational requirements.

The cloud segment is expected to grow at the fastest CAGR as compared to other factors. As we all know, Cloud computing is the latest trend in the world of technology and it provides us with easy access to various tools like AI, ML, big data analysis, etc. These technologies enhance operational efficiency and lead to greener IT by minimizing resource utilization.

By End-Use

In 2023, the IT and telecommunications segment dominated the market and accounted for a significant revenue share. Consumers are increasingly seeking eco-friendly and sustainable products and services. In network and IT infrastructure companies, companies are integrating green IT solutions within their operations to fulfill customer requirements and gain a competitive edge in the market.

The healthcare & life sciences segment is expected to grow at the fastest rate during the forecast period. With Green IT services healthcare facilities can optimize their IT infrastructure in turn leads to better energy consumption and costs associated with it. This will give you a very good return on investment that can be redirected to improving patient care and research initiatives by migrating to energy-efficient systems and virtualization technologies.

Regional Landscape

In 2023, North America dominated the market and accounted for 38% of the revenue share, environmentally sustainable infrastructures have been necessitated by the fast-paced growth of cloud computing and the number of data centers in North America. Green IT services reduce energy consumption in these facilities by optimizing cooling systems, using energy-efficient hardware, and integrating renewable energy sources, especially solar and wind energy.

The Asia Pacific green IT services market is expected to witness the fastest CAGR during the forecast period. Countries like China and India saw their cities explode with vendors offering their wares and services, all clamouring for IT infrastructure; The larger trend of big data surprises continues to grow, and there is a stronger focus on sustainable and energy-efficient IT by way of green data centers, virtualization, and cloud computing to help minimize the environmental cost of expanding big data.

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Key Players

 The major key players along with their products are

• IBM Corporation – IBM Green IT Services

• Hewlett Packard Enterprise (HPE) – HPE GreenLake

• Dell Technologies – Dell EMC PowerEdge Servers

• Cisco Systems, Inc. – Cisco Energy Management Suite

• Microsoft Corporation – Microsoft Azure Sustainability Calculator

• Accenture PLC – Accenture Green Cloud

• Schneider Electric SE – EcoStruxure IT

• SAP SE – SAP Environment, Health, and Safety Management

• Johnson Controls – Metasys Building Automation System

• Enablon SA – Enablon Sustainability Management Software

• Cority Software Inc. – Cority Environmental Management Software

• Dakota Software Corp. – Dakota EHS Management Software

• Enviance Inc. – Enviance Environmental Data Management

• Green Step Solutions – Green IT Auditing Services

• Green IT Consulting – Sustainable IT Infrastructure Solutions

Recent Developments

• In December 2024, AirTrunk unveiled a 1-megawatt rooftop solar system at its Malaysian data center in Johor Bahru, marking its inaugural renewable energy initiative in the region. 

• In December 2024, Dell reported significant revenue growth in its Infrastructure Solutions Group, attributed to its AI-focused efforts and the integration of energy-efficient technologies within its product suite, the Dell AI Factory.