Big opportunities: The rise of big data will continue boosting industry revenue growth

Outsourcing has become a key aspect of many modern businesses, benefiting the Data Processing and Web Hosting Services industry. As computers and smartphones have become more widespread and sophisticated, and as data processing has grown in complexity, more businesses have been seeking expert help. Outsourcing has been a major factor influencing industry revenue growth over the past five years. Although outsourcing has been a boon to the industry, the prevalence of offshoring has constrained revenue growth. Overseas technology companies have been increasingly improving operational efficiencies, which has boosted the appeal of outsourcing some functions to low-cost countries. Industry revenue is forecast to grow at an annualised 5.7% over the five years through 2017-18, to reach $ more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Firms have been increasingly outsourcing data processing due to the rise of big data
  • Large industry players have been reducing operating expenses by hiring low-cost foreign labour
  • Wage costs are forecast to rise as larger industry operators demand higher quality labour
  • Industry Report - Industry Key Buyers Chapter

    The Data Processing and Web Hosting Services industry is characterised by moderate market share concentration. The top four players are expected to account for just over 40% of industry revenue in 2017-18. Industry concentration has increased marginally over the past five years, as smaller players have struggled to distinguish themselves in the industry while larger players have provided new services for large companies and governments. Consequently, many larger companies have been purchasing smaller players to assist with growth during this time. Despite the strong proportion of revenue commanded by the largest four players, industry concentration is influenced by the range of services offered. Thi...purchase to read more.

    Additional Insights for the Data Processing and Web Hosting Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Data Processing and Web Hosting Services Industry are

  • Highly trained workforce
  • Ability to compete on tender
  • Production of premium goods/services
  • IBISWorld analysts also discuss how external factors such as Capital expenditure on computer software and Demand from financial and insurance services in the Data Processing and Web Hosting Services industry impact industry performance..

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    What's in this report

    What is the Data Processing and Web Hosting Services Industry?

    Industry companies primarily provide electronic data processing or hosting services. Specialised hosting activities include web hosting, streaming services or application hosting, application service provisioning, and general timesharing mainframe facilities to customers. The industry excludes processing payroll services and financial transactions, such as credit card transactions.

    Industry Products
  • Business process management and data processing
  • Application service provisioning
  • Hosting
  • Industry Activities
  • Application and web hosting
  • Application service provision
  • Automated data processing
  • Computer input preparation
  • Data entry (electronic)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Capital expenditure on computer software
  • Demand from financial and insurance services
  • Government consumption expenditure
  • Demand from online shopping

  • Current Performance
  • Industry structure
  • Outsourcing
  • Offshoring
  • Hosting
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry structure
  • Outsourcing
  • Hosting
  • Table: Data Processing and Web Hosting Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Data Processing and Web Hosting Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Financial and Insurance Services
  • Public Administration and Safety
  • Online Shopping

  • Key Selling Industries
  • Computer and Computer Peripheral Wholesaling
  • Computer System Design Services
  • Software Publishing
  • Telecommunications Services

  • Products & Services
  • Hosting
  • Application service provisioning
  • Business process management and data processing
  • Other
  • Chart: Data Processing and Web Hosting Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other
  • Finance and insurance sectors
  • Government
  • Energy and resource sectors
  • Chart: Major Market Segmentation for the Data Processing and Web Hosting Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Depreciation
  • Rent
  • Utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Data Processing and Web Hosting Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Data Processing and Web Hosting Services Industry

  • Industry Globalization
    IBM A/NZ Holdings Pty Limited, Hewlett-Packard Australia Pty Ltd, Melbourne IT Ltd, Macquarie Telecom Group Limited,
  • Table: IBM A/NZ Holdings Pty Limited - financial performance
  • Table: Hewlett-Packard Australia Pty Ltd - financial performance
  • Table: Melbourne IT Ltd - financial performance
  • Table: Macquarie Telecom Group Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Data Processing and Web 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 and Web Hosting Services Industry
  • 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
    Big Data
  • Sets of typically unstructured data that are beyond the capabilities of traditional data processing methods and applications.
  • Data Processing
  • The examination and manipulation of data to draw out meaningful information.
  • Hosting
  • The storage of files on a server, which are consequently accessible online.
  • Offshoring
  • Sourcing services from external entities from international locations.
  • Public Cloud
  • A cloud computing model allowing users to access services via a virtualised environment, constructed using pooled shared physical resources connected over a public network such as the internet.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Data Processing and Web Hosting Services market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
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    This report on Data Processing and Web 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 of 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 and Web 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 and Web 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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