Rising data volumes, need for security and IT expertise to underlie revenue growth
CLEVELAND, Sept. 30, 2022 /PRNewswire/ -- Revenues for US data processing and hosting services are forecast to increase 7.0% annually in nominal dollars through 2026, according to Data Processing & Hosting: United States, a report recently released by Freedonia Focus Reports. Growth will be driven by increasing data volumes, security needs, and the information technology (IT) expertise needed to assist in the transition to and maintenance of cloud-based operations, in which computer processing resources or data storage are based in data centers. Continued increases in the use of cloud computing in big data, artificial intelligence (AI), machine learning (ML), and financial technology will drive increasingly complex computational workloads, supporting demand for more advanced ? and costly ? data processing and hosting services. Further growth will be restrained by ongoing competition from customers' own in-house operations.
In 2022, revenues for US data processing and hosting are expected to expand 15%. Advances will reflect projected 12% gains in information processing equipment fixed investment. Growth will be driven by customers' increasingly complex data needs and ongoing transition from on-premise operations to cloud services. Intense inflation will also support above-trend growth in nominal terms.
These and other key insights are featured in Data Processing & Hosting: United States. This report forecasts to 2022 and 2026 US data processing and hosting service revenues in nominal US dollars. Total demand is segmented by source in terms of:
Total demand is also segmented by market as follows:
To illustrate historical trends, total demand and the various segments are provided in annual series from 2011 to 2021.
US data processing and hosting service providers' revenue includes income from all domestic locations primarily engaged in providing infrastructure for hosting or data processing services. Thus, receipts from other activities performed by these locations are included in total revenue. Receipts from establishments that may provide such services but are primarily engaged in a different activity are excluded from this report. Revenues from payroll and financial transaction processing services are also not included in this report.
More information about the report is available at:
About Freedonia Focus Reports
Each month, The Freedonia Group ? a division of MarketResearch.com ? publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Services & Industries reports can be purchased at Freedonia Focus Reports or MarketResearch.com.
Analysis is intended to guide the busy reader through pertinent topics in rapid succession, including:
SOURCE The Freedonia Group
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