Applying growth: Despite growing competition, revenue is likely to rise over the next five years

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 business capital expenditure and a rising number of mobile connections. Many companies have regarded 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 more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Increasing IT adoption has supported revenue and profit growth over the past five years
  • Increasing internet speeds over the past five years have supported demand for the industry’s services
  • Operators are expected to continue to comply with existing EU laws following the UK’s exit
  • Industry Report - Industry Locations Chapter

    Like most computer-based service companies, most of the industry's establishments are located in London and the South East, as a large share of economic activity and a sizeable proportion of IT spending taking place in and around the capital.LondonLondon is the hub of the finance sector in the United Kingdom and the main location of some of the industry's largest markets. Consequently, 26.5% of establishments are located in this area. The finance sector is one of the largest markets for data services and a high proportion of financial establishments are located in the city, including some of the world's largest banks. Approximately one-quarter of all financial services establishments are located in London...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 IT and telecommunications adoption 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?

    This 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
  • IT and telecommunications adoption
  • Business capital expenditure
  • Number of mobile connections

  • Current Performance
  • Cloud computing
  • Commercial market growth
  • Mobile demand
  • Offshoring threats
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulatory landscape
  • Technological change
  • Head in the cloud
  • Applied growth
  • 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
  • Finance 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
    ProfitWagesPurchasesDepreciationOther costs
  • 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
    IBM United Kingdom Ltd, Entserv UK Ltd, EMEA Ltd,
  • Table: IBM United Kingdom Ltd - financial performance
  • Table: Entserv UK Ltd - financial performance
  • Table: EMEA 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
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • 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 is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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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