Forecast of enterprise services in North America from 2021 to 2026 From Omdia

The following is the Forecast of enterprise services in North America from 2021 to 2026 From Omdia recommended by recordtrend.com. And this article belongs to the classification: Industry information.

With the lifting of restrictions related to COVID-19, the two North American markets in the United States and Canada are expected to resume economic growth from 2021, and the launch of the vaccination program has had a positive impact on the overall economy of both countries. Economic activity is picking up in all sectors, especially manufacturing, it, healthcare, telecommunications and professional services. Although the tourism, transportation and hotel industries are still in the recovery stage, they are expected to resume strong growth from 2022, especially when the borders are fully reopened and global restrictions are gradually lifted.

The International Monetary Fund (IMF) recently raised its forecast for US GDP growth in 2021 to 7%, the highest annual growth rate since 1984 (the forecast assumes that the Biden government’s ambitious spending plan will be implemented). Canada’s GDP is expected to grow by 5%, the highest level in the past 20 years.

Canada is slightly behind the United States in recovery, partly due to stricter blockade measures and the slow progress of the initial vaccination plan; However, Canada is rapidly catching up. The Canadian economy driven by energy and resources is expected to grow gradually in the next five years.

In terms of enterprise services and emerging technologies, omdia expects the following:

Emerging services including artificial intelligence (AI) and blockchain will grow at an annual rate of about 40% in 2021 and 2022. Then, as these innovative technologies increasingly become the mainstream of different use cases and vertical fields, the growth rate will gradually slow down to about 37%. By 2026, the size of the emerging services market in North America is expected to exceed 10 times its current (2021) size.

Cloud service is the second fastest growing category in the region (CAGR: 18% in 2022-26). The changing working mode (such as the increase of home office) promotes the transformation of local business load of enterprises to more manageable and agile cloud services, including software as a service (SaaS) and infrastructure as a service (IAAs). U.S. – based financial services and other large multinationals are leading in moving their core business load to the cloud environment. Most enterprises in North America tend to adopt some form of hybrid cloud instead of completely using public cloud. This hybrid cloud can be managed by it service providers and may be extended to the local infrastructure of the enterprise.

Although application services will become the largest category in 2020, it will be surpassed by stronger growth cloud services from 2023. Network and infrastructure services will no longer receive so much attention in the future, as most of the growth will come from other related technologies rather than new services dedicated to these traditional solutions.

Safety is still the most concerned issue for enterprise decision-makers; However, the growth rate of this category is expected to stabilize at about 10% per year, as most North American companies have invested a lot of money in security. Although new functions (increasingly including automation, artificial intelligence and cloud services) are increasing, there is not much room for double-digit growth.

As recovery and technology adoption accelerate, growth will peak in 2022 and then level off as maturity and uncertainty increase

Omdia believes that the United States and Canada (with a small increase) will resume growth, especially in the next two years. After that, with the increase of economic and geopolitical uncertainty, the economies of the two countries may slow down. However, investment in most IT service types is not necessarily associated with economic fluctuations, because enterprises are increasingly aware that it is worthwhile to invest in the latest digital technology, because it can minimize risk and improve stability and competitive advantage.

Areas that it service providers should focus on in 2022 and beyond include:

Artificial intelligence will become a catalyst for the growth of various enterprise services. Large service contracts increasingly include artificial intelligence and are expected to expand further in terms of transaction volume and number. AI services often feature automation and machine learning (ML) and are often associated with the Internet of things (IOT) environment, data analysis for business decisions, operational efficiency, and self-service portals for various stakeholders.

Customer and employee experience is the main driving force of enterprise services because business decision makers are keen to automate processes and highlight differences from competitors through more efficient and user-friendly portals, chat robots, virtual assistants and vertical industry-specific tools and applications. Such projects may need to mix different services to integrate end-to-end solutions, including infrastructure, cloud, security, network, workspace, application services and emerging technologies (such as artificial intelligence, blockchain, Internet of things and augmented reality [ar] / virtual reality [VR]).

Cloud services will benefit from increased investment – at the expense of network and infrastructure services. With the increasing integration of cloud environment and related services, hybrid cloud scenarios become more and more common. Service providers and their large-scale partners can seize the opportunity to provide end-to-end solutions – business load management using security and data sovereignty tools, and a wider range of cloud based storage and business applications (SaaS) (working with software suppliers).

The market scale of blockchain related professional and consulting services is expected to double every two years from 2020 to 2026. There are significant opportunities in this market, especially in the federal government, finance and transportation, although other vertical industries may increase blockchain investment in the next few years after the completion of small pilot projects.

Figure 1: North America enterprise services forecast, 2021–26 ($bn)

Source: Omdia

There are opportunities for solutions for specific vertical areas

Vertical industries in North America are adopting enterprise services and emerging technologies at their own pace and according to their specific business needs and business loads. Although driven primarily by the Internet of things environment, manufacturing and transportation are early adopters of most services, other industries are catching up quickly, providing major opportunities for service providers and their partners:

Given that larger digital transformation projects are expected to be promoted after early pilot projects, financial services, healthcare, retail and media will become the main users of various services in the next three to five years, with an annual growth rate of more than 10%. Such projects may involve artificial intelligence / machine learning, edge, 5g, blockchain and Internet of things based solutions, combined with various services, including network / cloud management, network security, workspace and application services.

The federal government, defense, telecommunications and energy / utilities sectors provide more opportunities for emerging technologies and related business services. However, these departments often need more customized solutions, usually combined with resource intensive consulting services, but after becoming their preferred supplier, long-term cooperation may bring huge profits. Especially in the United States, the federal government and the defense sector are huge markets. Large transactions often involve professional suppliers in these areas, as well as major large-scale enterprises, including Amazon Web services (AWS) and Microsoft azure. When other service providers and telecommunications companies need to be introduced, American companies are often favored for national security reasons.

Data analysis and breaking data silos are essential to achieve specific goals for vertical areas. North America is somewhat ahead of other regions in terms of analysis and insight based services and value creation through large amounts of data. Although data privacy is an ongoing problem, North American enterprises face fewer restrictions than their European counterparts. Although most analysis solutions are important to various industries, when providing them with any relevant services, having vertical industry-specific use cases and understanding the business challenges of each vertical industry are the key to differentiation, and it is best to provide end-to-end solutions.

Figure 2: American enterprises’ top spending priorities related to digital initiatives over the next 12–24 months

Source: Omdia Global Cloud IT Services Survey 2021; n=310, US respondents only (n=52), based on overall scoring of top priorities

With the continuous expansion of IT budget in the next few years, North American enterprises are increasingly investing in various services. Despite the increasing demand for emerging technologies and related services, the market competition is becoming more and more fierce because enterprises want their service provider partners to provide personalized customized solutions with vertical and technical expertise within the usually challenging schedule and limited budget. Omdia recommends that it service providers, including system integrators, management service providers (MSPs) and telecommunications companies, consider the following aspects:

Security is key, but it needs to be integrated into a broader solution. Due to the increase of criminal and state led attacks and the closer integration of Internet of things environment, database and system, there are more and more weak links. It is expected that network security will still be the top priority in the next few years. However, service providers may find it very difficult to sell network security solutions on their own, because compared with professional software suppliers, the value they can bring is to embed security into a variety of other services, including application and collaboration tools, as well as analysis, cloud and network management.

Provide enterprises with sufficient choices in cloud services. The growing interest and investment in cloud services (including IAAs and SaaS) provide great opportunities, and even enterprises will consider using them for the most critical business applications; However, customer expectations are also increasing rapidly. Work with major VLSI, local providers and telecom companies to differentiate by providing management and integration services that enable better governance, cost efficiency, security and data sovereignty as needed. Leverage your vertical and business expertise through consulting business and combine cloud solutions with other related areas, such as network and infrastructure services, as well as outsourcing and integration.

Focus on the fastest growing emerging technologies while maintaining traditional services. Build expertise and compelling solutions around AI / machine learning, blockchain, 5g, edge and the Internet of things, integrate them with existing enterprise systems and achieve clear business benefits, especially in terms of operational efficiency, cost savings and high-quality customer experience. Build popular use cases around these technologies according to vertical and business requirements, show these new use cases to new customers, and make up sales to existing customers based on existing services.

More reading: omdia: Global Enterprise Service forecast for 2021-2026 omdia: Asia Pacific Enterprise Service forecast for 2020-2025 Baidu released six offline industry recovery search big data report: the overall heat began to accelerate the recovery in February, and the demand of industries such as automobile, real estate decoration, production and manufacturing and recruitment rebounded in an all-round way. Galaxy Securities: enterprise SaaS is surging, Triple logic seizes the great opportunity of investment. The article in the 2016 Research Report on China’s enterprise service market, enterprise service | data service has become a battleground, explains in detail the 26 top enterprise service companies in the world omdia: AMOLED accounted for 29% of the total shipments of smart phone displays in 2020 GGV: more than a dozen American enterprise service companies visited and studied questmobile: 1q20 mobile Internet dark horse list giants tangled with enterprise services See the 2020 China enterprise service market trend insight report (attached with download) for insight into the fields of business, education and learning. Read futu 2q20 financial report: revenue Net profit increased by more than 150% year-on-year omdia: the main trend of smart home market in June 2021 omdia: the display based human-computer interface in software defined cars is completely changing the driving experience. Huachuang Securities: the fourth in-depth report of enterprise SaaS series (domestic Ecology) on the eve of the outbreak, the wind surged. Venture capital: briefing on enterprise service investment and financing in 2015

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