A steady process: Revenue is expected to rise in line with the adoption of cloud computing

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. At the beginning of the five-year period through 2017-18, in 2013-14, industry revenue increased strongly, boosted by increased business capital expenditure and a rising number of mobile connections. Many companies have regarded cloud computing as an innovative solution to reduce their operating costs, which has led to the introduction of new services that make the sharing of data more efficient...read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 13-18
0.6%
Forecast Growth 18-23
Profit
Employment
39,924
Businesses
3,135

Industry Threats & Opportunities

  • Despite uncertainty resulting from the EU referendum, revenue is expected to increase
  • A rising number of businesses has expanded the potential market for the industry
  • Competition from overseas companies with lower costs is expected to rise over the next five years
  • 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
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulatory landscape
  • Technological change
  • Look to the clouds
  • 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 competitionExternal 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,
  • Table: IBM United Kingdom 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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 provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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