HARDWARE SUPPORT SERVICES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global hardware support services market size is valued at US$ 1.16 Billion in 2024 and is expected to reach US$ 2.4 Billion by 2031, grow at a compound annual growth rate (CAGR) of 10.9% from 2024 to 2031. Hardware support services involve maintenance, troubleshooting, and repair of IT infrastructure like servers, storage, networks, and data center equipment by third-party vendors. These services optimize uptime and extend asset lifespans through solutions like technical support, parts replacement, installations, and managed services.

The rising adoption of Bring your own device policies, increasing deployment of data centers, growth in IT budgets, and the need to maximize Return on Investment  on existing hardware infrastructure are key factors driving the hardware support services market’s growth.

The hardware support services market is segmented by service type, enterprise size, end-user industry, hardware type, and region. By service type, the market is segmented into hardware replacement & repair, technical support, managed services, Installation & De-installation And Asset Recovery. The managed services segment accounts for the largest share, driven by outsourcing trends.

Hardware Support Services Market Regional Insights

• North America is expected to be the largest market for hardware support services during the forecast period, accounting for over 34% of the market share in 2024 The growth is attributed to early adoption of Bring Your Own Device trends, due to the high concentration of technology companies and advanced IT infrastructure.
• Asia Pacific is expected to be the second-largest market for hardware support services, accounting for over 32% of the market share in 2024. The growth is attributed to the rapid expansion of IT services and manufacturing hubs in countries like China, India, and South Korea.
• The Europe market is expected to be the fastest-growing market for hardware support services, with a CAGR of over 20% during the forecast period. The growth is explained by rising enterprise digitalization programs and the uptake of hardware in nations like Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe

Figure 1. Global Hardware Support Services Market Share (%), by Region, 2024

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Hardware Support Services Market Drivers:

• Rapid Technological Advancements: Rapid technological advancements are having a profound impact on the growth and dynamics of the global hardware support services market. As new devices, gadgets, and machines are being introduced at a lightning fast pace due to progress in areas such as artificial intelligence, the internet of things, 5G, cloud computing, etc. It is becoming increasingly difficult for consumers and businesses to keep up with the latest technologies and stay updated to leverage the full potential of these innovations. This has increased the need for reliable hardware support services that can assist customers with installation, maintenance, troubleshooting, and repairs of their electronic devices and systems
• Increased Adoption of IoT and Edge Computing: The rapid adoption of the Internet of Things (IoT) and edge computing technologies by enterprises across industries has been a major factor fueling the growth of the global hardware support services market. According to United Nations statistics, over 30 billion IoT devices are expected to be connected globally by 2025, generating huge amounts of data at the edge for applications across sectors like manufacturing, healthcare, transport, etc. Reliable on-site support will be essential to efficiently managing such distributed infrastructure and maintaining business continuity.

Hardware Support Services Market Opportunities:

• IoT Device Support: IoT devices support has immense potential in the global hardware support services market. As IoT devices spread rapidly across varied sectors like manufacturing, healthcare, automotive, etc., the need for reliable technical support will rise exponentially. Software updates, security threats, and interoperability challenges in an IoT environment. According to data from the UN Conference on Trade and Development, the number of IoT devices installed worldwide is estimated to grow from 25 billion in 2020 to over 55 billion by 2025.
• Cloud Integration Services: Cloud integration services are empowering the global hardware support services market to leap ahead by simplifying infrastructure management and support operations. By enabling seamless integration of diverse on premise and cloud-based hardware assets, configuration systems, and support workflows onto centralized cloud platforms, organizations can gain unified visibility and control. This allows them to streamline the dispatch of support technicians, shorten Mean Time To Repair (MTTR), offer self-service capabilities to customers, and enable collaborative troubleshooting between internal and external support teams. According to the International Telecommunication Union, remotely manageable connected devices will grow by over 30% from 2020 to 2023.

Hardware Support Services Market Trends:

• Proactive Maintenance: Proactive maintenance is emerging as an influential trend in the global hardware support services market. With proactive maintenance, hardware support companies are shifting their focus from reactive break-fix models to solutions that identify and address issues before they arise. In a 2022 report from the European Commission, companies adopting IoT-enabled condition monitoring saw equipment lifespans increase by 10-20% on average. Hardware and equipment are now able to be maintained in a planned, scheduled manner rather than awaiting failures to occur. This changes the nature of demand on the hardware support services market. With fewer reactive issues arising unexpectedly, support service providers are better able to manage staff workloads and schedules.
• Subscription-Based Models: Many hardware and electronics companies are moving from traditional one-time hardware purchase models to subscription-based approaches. This allows suppliers to retain a long-term connection and guarantee regular upgrades and maintenance, while clients benefit from more flexibility and predictable pricing. Customers appreciate the flexibility to adjust their subscription level up or down as their number of devices fluctuates. This plays an important role in industries like healthcare and education that rely on large networked fleets of devices but have unpredictable replacement cycles. According to data from the U.S. Census Bureau, between 2018 and 2021, shipments of PCs, tablets, and mobile phones from leading manufacturers to K-12 schools increased by over 15% annually on average. The growth and refresh of these device fleets drives new demand for scalable subscription support models among educational institutions.

Hardware Support Services Market Restraints:

• Rising Complexity of Hardware: The rising complexity of hardware devices is posing serious challenges for the growth of hardware support services market. With every new generation of devices, manufacturers are adding more advanced and intricate components to enhance functionality and performance. However, this increasing complexity makes hardware devices harder to repair for regular technicians. Multiple specialized components operating in tandem through minute circuits within compact spaces have elevated the requirements for troubleshooting skills. Addressing issues arising out of interactions between various interdependent parts needs experts with deeper product knowledge and expertise in various specialized sub-systems. This is making hardware support more resource-intensive in terms of time, effort, and trained workforce requirements.
• Counter Balance: Staying up to date with the latest technologies and resolving complex issues has become challenging due to the increasing advancements in computing devices and hardware every year. There will probably be a greater need for highly qualified hardware support services as hardware becomes more complex.
• Security Concerns: Security concerns surrounding customer and business data privacy have become a major hindrance to the hardware support services market's growth potential in recent years. As hardware support typically involves remote access to customers' devices for troubleshooting and repairs, the sharing of sensitive data is inevitable. However, numerous data breaches affecting major hardware companies have eroded customer trust and willingness to share access. This is a challenge for hardware support service providers to address, as their core business model depends on it. Customers are increasingly anxious about the risk of financial data, personal information, or proprietary business details getting into wrong hands during support. The ongoing wariness has led many to avoid relying on external service providers or delay repairs, thus hampering timely revenue opportunities.

• Counter Balance: Security concerns in the Hardware Support Services Market are critical but can be effectively managed with stringent security measures, comprehensive training, and a commitment to staying abreast of the latest protective technologies.

Recent Developments

New product launches

• In January 2022, IBM, an American multinational technology corporation, announced Watson Orchestrate, an AI-powered automation service designed to help companies streamline IT service desk operations
• In November 2021, Microsoft Corporation, an American multinational technology corporation headquartered in Redmond, Washington, launched Windows 365, a cloud service allowing enterprises to deploy and run cloud PCs virtually
• In June 2021, Cisco rolled out predictive maintenance capabilities for its Nexus switches to proactively identify hardware issues, develops, manufactures, and sells networking hardware, software, telecommunications equipment, and other high-technology services and products.

Acquisition and partnerships

• In October 2022, Infosys Limited is an Indian multinational information technology company that provides business consulting, information technology and outsourcing services.Acquired German IT services provider ODDITY to enhance its cloud, infrastructure, and SAP capabilities. Oddity is a Germany-based digital marketing, experience, and commerce agency.
• In August 2022, Tata Consultancy Services is an Indian multinational information technology services and consulting company headquartered in Mumbai. Acquired U.S.-based services firm INSPIRA to boost its healthcare IT consulting capabilities. INSPIRA is a global cybersecurity services organization.
• In April 2022, Wipro is an Indian multinational corporation that provides information technology, consultant and business process services and collaborated with IBM to provide managed services for infrastructure, applications, operations, and cybersecurity through automation innovations

Figure 2. Global Hardware Support Services Market Share (%), By Service Type, 2024

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Top companies in Hardware Support Services Market

• 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
• Getronics
• CompuCom

Definition: Hardware support services refer to maintenance, troubleshooting, and assistance services offered by third-party providers to optimize the uptime and performance of IT infrastructure, including servers, networks, storage, data centers, and other hardware equipment. These services include technical support, repair and replacement, installation & decommissioning, managed IT services, and asset recovery solutions.

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