Big opportunities: The rise of big data has boosted industry revenue growth

The Data Processing and Web Hosting Services industry has performed strongly over the past five years. Outsourcing has become a key aspect of many modern businesses, which has provided strong support for industry operators. More businesses have been seeking the industry’s services as computers and smartphones have become more widespread and sophisticated, and as data processing has grown in complexity. Although outsourcing has supported the industry, strong offshoring trends have limited revenue growth. Overseas technology companies have increasingly improved operational efficiencies, which has boosted the appeal of outsourcing some functions to countries with lower operating costs. Industry revenue is expected to grow at an annualised more.

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

Industry Threats & Opportunities

  • Clients have increasingly outsourced data processing due to the rise of big data
  • Large industry players have increasingly hired low-cost foreign labour to reduce operating expenses
  • Average wages 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 low market share concentration. The top four players are expected to account for just under 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 has determined the most important Key Success Factors for the Data Processing and Web Hosting Services 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 time-sharing 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
  • Other services
  • 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
  • Outsourcing
  • Offshoring
  • Industry structure
  • 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 services
  • Chart: Data Processing and Web Hosting Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Finance and insurance sectors
  • Other markets
  • 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
  • Chart: Cost Structure Benchmarking – Sector vs Data Processing and Web Hosting Services

  • Basis of 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, Arq Group Limited, Hewlett-Packard Australia Pty Ltd, Macquarie Telecom Group Limited,
  • Table: IBM A/NZ Holdings Pty Limited - financial performance
  • Table: Arq Group Limited - financial performance
  • Table: Hewlett-Packard Australia Pty 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 offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
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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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