Gaining speed: Increasing IT adoption rates are forecast to support growth in the current year

Companies in the Data Processing and Hosting Services industry offer business process management and data processing, application services, data storage and management, IT support, network management and website hosting, as well as a wide variety of other services. The industry has transformed over the past decade as the growth of cloud computing has created new markets for operators. Demand for industry services has benefited from increased demand from banks and a rising number of mobile connections. Many companies regard cloud computing as an innovative way of reducing their operating costs, which has led to the introduction of new services that make the sharing of data more efficient. However, the lower turnover associated with cloud technology has weighed on revenue...read more.

Industry Statistics & Market Size
Revenue
£7.4bn
Annual Growth 15-20
-0.5%
Forecast Growth 20-25
Profit
Employment
9,105
Businesses
3,178

Industry Threats & Opportunities

  • Cloud computing introduced new services, but its lower turnover has weighed on revenue
  • The number of UK businesses has risen, expanding the potential commercial market for operators
  • Operators are expectedto continue being required to comply with existingEU data privacy laws
  • Industry Report - Industry Key Buyers Chapter

    The Data Processing and Hosting Services industry has a low level of market share concentration, as the four largest operators are expected to account for 24.2% of industry revenue in the current year. Over the past five years, the increasing strength of the top players and predominantly the emergence of Salesforce has led to the industry's level of market share increasing. The latest data indicates that 3% of industry operators employ over 50 staff members, whereas 78.3% have fewer than five employees. Therefore, the industry is fairly fragmented, with a large number of small enterprises. This is a result of the wide range of services provided by the industry, meaning enterprises can earn significant amounts of revenue through specialising in niche markets...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
  • Ensuring pricing policy is appropriate
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Demand from banks 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?

    The industry includes operators that provide infrastructure for hosting, data processing services and related activities. Specifically, these include web and application hosting, streaming services, and providing mainframe facilities, data processing and data entry services. The industry excludes any activities where the supplier only uses the computer as a tool.

    Industry Products
  • Business process management and data processing
  • IT support and network management
  • Data storage and management
  • Application service provisioning
  • Website hosting
  • Industry Activities
  • Performing application hosting services
  • Providing data entry services
  • Providing data processing computer services
  • Undertaking data processing
  • Performing database management
  • Providing web hosting services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business confidence index
  • Demand from banks
  • IT and telecommunications adoption
  • Number of mobile connections
  • Real effective exchange rate

  • Current Performance
  • Cloud computing
  • Commercial market growth
  • Business confidence
  • Demand and threats
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulatory landscape
  • Labour encryption
  • Competitive factors
  • Head in the cloud
  • 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
  • Banks
  • Consumers

  • Key Selling Industries
  • Computer Facilities Management Activities
  • Internet Service Providers
  • Software Development

  • Products & Services
  • Business process management and data processing
  • Other
  • IT support and network management
  • Data storage and management
  • Application service provisioning
  • Website hosting
  • Chart: Data Processing & Hosting Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other
  • Retail businesses
  • Financial and insurance firms
  • Manufacturing and industrial firms
  • Government institutions
  • 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
  • Profit
  • Wages
  • Purchases
  • Depreciation
  • Other costs
  • 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
    IBM United Kingdom Ltd, Salesforce.com EMEA Ltd, Entserv UK Ltd,
  • Table: IBM United Kingdom Ltd - financial performance
  • Table: Salesforce.com EMEA Ltd - financial performance
  • Table: Entserv UK Ltd - 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 (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Infrastructure As A Service (Iaas)
  • Computing capacity, such as data space and transfer speeds, that is provided as a service over an internet connection.
  • Provisioning
  • The process of providing users with access to data and technology resources.
  • Software As A Service (Saas)
  • Software that is deployed over the internet and runs behind a firewall in a person's local area network.
  • What Our Customers Say

    Why buy this report?

    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.

    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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