The global Hardware Support Services Market is estimated to be valued at US$ 1,158.85 Bn in 2023 and is expected to exhibit a CAGR of 9.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Hardware support services refer to technical support provided by hardware manufacturers or third-party vendors for maintenance and repair of servers, storage devices, networking equipment, and other hardware devices deployed in data centers and enterprises. These services ensure smooth business operations by resolving hardware issues and downtime through on-site repair and replacement, remote assistance, and preventive maintenance of systems. Growing digital transformation across industries is increasing reliance on network infrastructure and data center equipment which is driving demand for hardware support services.
Market key trends:
One of the key trends in the hardware support services market is managed service contracts. Many companies are opting for long-term managed service contracts with hardware vendors or third-party service providers for preventive maintenance of critical systems. This ensures predictable operational costs along with priority resolution of issues. Another major trend is the rise of hybrid IT support models where enterprises leverage both on-premises support engineers as well as remote support technicians through virtual platforms. This collaborative approach allows faster resolution of hardware issues while optimizing resource deployment. Growing focus on predictive maintenance through integration of AI and IoT is also helping vendors move from reactive to proactive maintenance approach.
Porter’s Analysis
Threat of new entrants: Low fixed costs and economies of scale in areas such as manufacturing, equipment, and customer service provide significant barriers to new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power in the hardware support services market due to the availability of a wide range of services providers in the market. However, switching costs associated with changing service providers provide some pricing power to existing players.
Bargaining power of suppliers: Hardware support services providers have moderate to high bargaining power over suppliers as there are many equipment suppliers and brands available in the market.
Threat of new substitutes: No direct substitute services exist currently for hardware support services. However, software services is an indirect substitute to some extent.
Competitive rivalry: High as the market is highly fragmented and competitive with the presence of numerous global and regional players.
Key Takeaways
The Global Hardware Support Services Market Size is expected to witness high growth, exhibiting CAGR of 9.3% over the forecast period, due to increasing demand for managing and supporting IT infrastructure across industries.
The North America region dominated the market in 2023 with a share of over 35%, due to significant investments in advanced technologies across industries in the US and Canada. Asia Pacific is expected to witness the fastest growth during the forecast period, attributed to rapid digitalization and growing adoption of advanced technologies in developing nations such as China and India.
Key players operating in the hardware support services market include Dell, IBM, Hewlett Packard Enterprise, Fujitsu, Lenovo, Hitachi, Toshiba, Apple, Samsung, Microsoft, Cisco, HCL Technologies, Wipro, Infosys, Tata Consultancy Services, Tech Mahindra, Unisys, Dimension Data, and Getronics. These players are focusing on new service launches and partnerships to strengthen their market position. For instance, in 2022, Dell launched ProSupport Plus for automated IT management to enhance customer experience.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.