by Market Overview:
Green IT services aim to reduce the harmful effects of IT on the environment through sustainable and eco-friendly practices. This includes refurbishing and recycling of IT assets, optimizing energy consumption in data centers, reducing paper usage, and providing consulting services to companies for improving their environmental footprint. Green IT services help organizations meet their sustainability targets and gain a competitive edge through reduced operational costs and compliance with environmental regulations.
The global Green IT Services Market is estimated to be valued at US$ 14.01 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing concern regarding carbon emissions from data centers and enterprise IT infrastructure is a major driver for the green IT services market. Data centers worldwide are estimated to consume around 3% of global electricity. As a result, service providers are offering solutions such as eco-friendly cooling systems, efficient server virtualization, and cloud computing to reduce energy consumption. Organizations are also outsourcing green IT initiatives to specialized service companies to gain expertise and effectively implement sustainability strategies. Stringent environmental regulations in countries across North America and Europe regarding greenhouse gas emissions are further boosting the demand for green IT services. For instance, the European Union initiated the “20-20-20” plan in 2008 aimed at reducing carbon emissions by 20% and increasing the share of renewable energy to 20% by 2020. Such initiatives and regulatory compliance make green IT an important part of business operations.
Segment Analysis
The green IT services market is dominated by the carbon accounting and management sub-segment. This sub-segment accounts for over 35% of the total green IT services market share owing to increasing awareness about carbon footprint monitoring and reduction across industries. Enterprises are increasingly adopting carbon accounting software and services to track as well as lower their organizational carbon footprint from IT operations.
PEST Analysis
Political: Environment protection laws and regulations in many countries have made carbon reporting mandatory for large organizations, driving demand for carbon accounting services.
Economic: The rising cost of energy is motivating companies to deploy energy-efficient IT solutions and services to optimize power consumption and lower operational costs.
Social: Growing environmental consciousness among users has increased pressure on enterprises to reduce emission footprints and adopt greener practices throughout operations.
Technological: Advancements in technologies such as AI, IoT, cloud computing enable better monitoring of energy usage and offer tools for analysis to identify optimization opportunities.
Key Takeaways
The global Green IT Services Market Growth is expected to witness high growth, exhibiting a CAGR of 12% over the forecast period, due to increasing focus on reducing carbon footprint of businesses.
North America is the largest and fastest growing regional market for green IT services. Strict environmental regulations in the US and Canada regarding carbon emissions make monitoring and reduction compulsory for large enterprises.
Key players: Key players operating in the green IT services market are Schneider Electric SE, Accuvio Sustainability Software, Cority Software Inc., IBM Corporation, Johnson Controls, Dakota Software Corp, Accenture PLC, Enablon SA and SAP SE. Schneider Electric SE dominates the market owing to its comprehensive portfolio of energy management and automation solutions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
