Hong Kong - IT Market by Type and End-user - Forecast and Analysis 2023-2027

Hong Kong IT Market Forecast 2023-2027

The Hong Kong  IT Market size is estimated to increase by USD 2.52 billion and grow at a CAGR of 6.87% between 2022 and 2027. The growth of the market depends on several factors, including the increased adoption of IT solutions among Hong Kong SMEs, the increased adoption of cloud-based services, and the increase in IT consolidation and IT modernization. The information technology (IT) market in Hong Kong is an integrated platform consisting of hardware, software, and services that help organizations store, process, transmit, and retrieve information. The IT department of an organization manages all the IT-related services, solutions, and software that integrate and streamline different processes to facilitate a smooth flow of information across the organization.

What will be the Size of the Hong Kong IT Market During the Forecast Period?

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Segmentation

This market report extensively covers market segmentation by type (services, hardware, and software) and end-user (BFSI, telecommunication, industrial, and others). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Market Segmentation By Type

The services segment is estimated to witness significant growth during the forecast period. The IT services mainly comprise consulting services, learning and training, development and integration, hardware maintenance and support, IT management, process management, and software support. Some of the main areas that have a potential growth of service segment include consulting and software maintenance and support services. Additionally, a majority of the spending of enterprises is spent on on application services, IT infrastructure services, cloud services, implementation, consulting, support, and maintenance services which is significantly fuelling the growth of this segment.

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The services segment was the largest segment and was valued at USD 1.88 billion in 2017. The increase in spending on IT services is fuelled by the growing need for IT professional services among enterprises in Hong Kong. Additionally, factors such as the growing need to develop improved business delivery systems and cost-effective models as well as the current shift from on-premises to cloud-based software and IT infrastructure deployment are expected to fuel the growth of the services segment. Furthermore, there is an increasing prevalence of IT outsourcing across several enterprises in Hong Kong which is significantly contributing to the growth of this segment. Hence, such factors are expected to fuel this segment which in turn will drive the market growth during the forecast period.

Market Segmentation By End-user

The increasing investment in IT solutions in the BFSI segment will increase the market during the forecast period. Factors such as reduction of costs, finding new revenue-generating streams, enhancing the security and compliance systems, and improving the efficiency of customer support are fuelling the rising investments in the BFSI segment. Additionally, several digital transformation initiatives are being undertaken by the BFSI sector in Hong Kong, thereby providing good potential for software and IT service providers. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market during the forecast period.

Market Dynamics and Customer Landscape

The Market is undergoing rapid transformation driven by technological developments and the increasing demand for automation in the professional services sector. With the rise of remote working, businesses are prioritizing IT services to streamline operations and enhance resource management. Talent recruiting is evolving to match emerging skill sets required for digital business strategies. Technologies like AR and digital transformation are reshaping business processes, while infrastructure upgrades, including 5G and LTE, support high-tech emergency framework systems. Cloud-based deployments with consumption-based pricing models are gaining traction, optimizing IT costs while expanding data storing capacity. However, security breaches remain a concern, prompting investment in robust cybersecurity measures. As businesses embrace agility and BI for forecasting, the IT market continues to evolve, driving innovation and shaping the future of industries worldwide.

 Key Market Driver

One of the key factors driving the market growth is the increased adoption of cloud-based services. There is an increasing restructuring across several enterprises in Hong Kong in order to survive and succeed in this digital age. As a result, there is a surge in adoption of cloud computing across different enterprises. These digital technologies are extensively adopted to improve existing business processes and customer experiences to meet the changing enterprise requirements and evolving business dynamics.

Moreover, there are numerous advantages offered by cloud-based solutions including the cost-effectiveness, flexibility, and scalability which are essential for digitization. Additionally, by leveraging technologies, such as Big Data, AI, and IoT, it helps enterprises in Hong Kong to revamp their business model. Hence, such factors are positively impacting the Hong Kong - IT market growth. Therefore, it is expected to drive the market growth during the forecast period.

Significant Market Trends

A key factor shaping the market growth is the increased adoption of IT as a service. IT as a services model can be referred to as a delivery model for organizations to manage their IT systems as per the strategic business requirements. There is an increasing adoption of IT as a service as several enterprises are trying to implement IT solutions to have a competitive edge in the market.

Moreover,  the main advantage of IT as a service is that it needs low, upfront investment to set up IT systems in organizations. Additionally, it also offers flexibility to change IT systems as per the requirements of separate business units within organizations. Hence, such factors are expected to positively impact the Hong Kong - IT market. Therefore, it is expected to drive market growth in the region during the forecast period.

Major Market Restrain

Data privacy and security concerns are one of the key challenges hindering the market growth. Cloud security management is a crucial task for the market players to protect online data. It is essential to secure online digital files from unauthorized access in the cloud-based IT infrastructure. However, these cloud infrastructures are highly dependent on a patchwork of open-source codes, which can introduce flaws to the cloud systems.

Moreover, as these public cloud infrastructure is affected by these glitches in the source code, it can significantly affect the various applications running in a cloud environment. Additionally, public clouds are more prone to cyber threats as they are easily accessible. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.

Market Customer Landscape

The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Hong Kong IT Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Accenture Plc: The company offers IT solutions such as generative artificial intelligence and Accenture cloud-first services.

Alphabet Inc: The company offers IT solutions such as contact center artificial intelligence and Google Cloud database migration.

Deloitte Touche Tohmatsu Ltd: The company offers IT solutions such as the Deloitte MIX digital enterprise platform and dedicated reporting solution.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Digital Realty Trust Inc.
• Ernst and Young Global Ltd.
• HCL Technologies Ltd.
• HP Inc.
• International Business Machines Corp.
• Microsoft Corp.
• NVIDIA Corp.
• Oracle Corp.
• Petabytes and Beyond Technology Ltd.
• Sanesys Consultancy Co.
• SAP SE
• Siemens AG
• SUNeVision Holdings Ltd.
• Tata Consultancy Services Ltd.
• Tech Mahindra Ltd.
• WebZap Technologies
• Wipro Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Type Outlook 
  • Services
  • Hardware
  • Software
• End-user Outlook 
  • BFSI
  • Telecommunication
  • Industrial
  • Others

Market Analyst Overview

The Market is undergoing significant transformation due to technological developments and the increasing adoption of automation across various sectors, including the professional services sector. Remote working has become a norm, driving businesses to rethink their business plans and strategies to adapt to this new paradigm. Talent recruiting now focuses on skill sets aligned with agile teams and high-tech emergency framework systems. Critical processes are being optimized through process improvement initiatives, while authentication protocols and bug fixes address security concerns amidst rising cyberattacks. The shift towards 5G technology and cloud-based deployments, including SaaS and PaaS models, is reshaping IT costs and consumption-based pricing models. Small and Medium Enterprises are leveraging cloud solutions with subscription-based business models, enhancing operational effectiveness and system integration across verticals.

Moreover, the market is evolving rapidly, driven by the imperative for resource management and innovative business strategies. Businesses rely on advanced tools and Business Intelligence (BI) solutions to optimize resources and navigate dynamic landscapes. Amidst fluctuating factors like the unemployment rate and financial market conditions, virtual war rooms facilitate agile decision-making. Service-level agreements ensure quality standards, while emerging technologies like Blockchain and LTE revolutionize data management and communication. However, concerns persist regarding security breaches and data security, particularly for small and medium-sized businesses. Cloud-based systems and as-a-service models offer scalable solutions to mitigate risks while maximizing efficiency. Firms are increasingly leveraging IT capabilities to enhance operations and drive growth in today's competitive landscape, emphasizing the critical role of IT in modern business strategies.

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What are the Key Data Covered in this Market  Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Hong Kong
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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