Tech Support Services Market
Tech Support Services Market Analysis by Customer Acquisition, Call Center Services, and Email & Live Chat Support for BFSI, Education, Healthcare, and Manufacturing from 2023 to 2033
Analysis of Tech Support Services Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Tech Support Services Market Outlook (2023 to 2033)
The global tech support services market is expected to be worth US$ 66.3 billion in the fiscal year 2023, up from US$ 63 billion in the fiscal year 2022. From 2023 to 2033, the market is expected to grow at a 5.3% CAGR, reaching a value of US$ 111 billion by the end of 2033.
The market is growing as a result of increased digital technology usage in different multiple end-use sectors, as well as enhanced social media, digital sites, internet access, and smart computing device infiltration. Furthermore, one of the predominant factors contributing to the expansion of the industry for tech support services is the burgeoning necessity for cost-effective methods of increasing efficiency.
Global digitization has multiplied the number of software systems, which can be expensive to produce in-house. Maintenance and application development lowers software expenditures while also providing the technical skills required to continue providing increased customer services. Since most regulations, techniques, and proposals of organizations around the world are dependent on how effectively they can modularize every procedure, automation has affected the way business is conducted.
Moreover, enterprises in a variety of industries have transformed into worldwide tech support outsourcing manufacturers to handle the technical aspects of their operations due to a shortage of technical capabilities and knowledge of technology.
In addition, original equipment manufacturers (OEM) and independent software vendors (ISV) are concentrating on technical support outsourcing because it allows them to concentrate on their primary advancements. Thus, this aspect is expected to contribute to market expansion.
Report Attributes |
Details |
Anticipated Base Year Value in 2022 |
US$ 63 Billion |
Expected Market Value in 2023 |
US$ 66.3 Billion |
Projected Forecast Value (2033) |
US$ 111 Billion |
Global Growth Rate (2023-2033) |
5.3% |
Expected Growth Rate of the US Market (2023-2033) |
5.2% CAGR |
Anticipated Growth Rate of China Market (2023-2033) |
6.8% CAGR |
Prominent Players in The Global Market |
|
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2018-2022 Tech Support Services Market Demand Analysis vs. Forecast 2023-2033
Companies have gained exceptional pace to provide top-notch service to customers and considerate employee concerns as a result of COVID-19 and its accelerated adoption of digital channels among clients.
The market was initially threatened during the disease outbreak due to a significant increase in call volume and a sudden shift to remote work-from-home concepts, but these modifications have given rise to an immense potential for the global tech support services Market during the historical period.
According to market research and competitive intelligence provider Fact.MR- the market for Tech Support Services reflected a value CAGR of 4.1% during the historical period, 2018-2022.
Over the forecast period (2023-2033), the market is expected to grow as a result of enhanced digital technology usage in different multiple end-use industries. One of the key factors driving the expansion of the market for technical support services is the growing necessity for cost-effective methods of increasing productivity.
Prominent Growth Drivers Influencing Tech Support Services Market
Expanding Software Upgrade Requirement to Boost Market
To be secure from cyberattacks, company IT software must be updated and repaired on a routine basis due to the evolving technological environment and the regular emergence of new viruses. Cyberattacks seem to be more inclined to happen when software is outdated and susceptible, which can result in the loss of crucial and essential data.
There currently exist cyberattack tools on the market that are intended to exploit recently found software and hardware security holes. For instance, Based on the FBI, CISA, and NSA, the United States is heavily vulnerable to cyberattacks and hacking. In 2021 alone, the FBI, CISA, and NSA recognized attacks comprising ransomware against 14 of the 16 vital infrastructure sectors in the US.
As a consequence of such attacks, companies may suffer significant economic and operational shortfalls, increasing demand for tech support services, as tech support services are typically offered for software platforms. As a result, the increasing need for software updates is expected to fuel market growth.
High investments by governments agencies to propel market growth
Most governments are focusing on digitizing their financial activities, which is expected to establish a robust advancement for business services automation technology. Several governments, including Canada, India, Germany, and Saudi Arabia, are assisting regional market participants in accelerating economic development.
For instance, the Government of Canada established the Canada digital adoption program (CDAP) in March 2022 with a USD 4 billion investment to aid small and medium-sized enterprises (SMEs) in incorporating digital inventions.
The SMEs received a USD 2,400 microgrant under this program to cover the expenses of their marketing, such as social media marketing, development services, technical support strategies, and other automated web activities. As a result, high business expenditure is expected to contribute to the expansion of the tech support services market.
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What are the Challenges Projected to be Faced by the Market?
Fraudulent Activities involved in tech support services to hamper market growth
Customers are suspicious of soaring fraudulent practices in the name of tech support, which hinders and discredits the impression of the tech support sector and makes technical assistance complicated due to a lack of trust and suspicion towards certain facilities. This expenses the company's operations and generates a challenge for them. As a result, these factors are expected to create market barriers in the coming decades.
Region-Wise Insights
What Makes North America the Largest Market for Tech Support Services?
Increased prevalence of cyberattacks and electronics industry growth to drive regional market
The United States is among the world's biggest consumers of electronics. Because of recent advancements in various electronic goods, the North American consumer electronics market is expected to grow in the coming years.
Based on an annual survey conducted by the Consumer Electronics Association, American households invest US$ 1,200 on electronic equipment each year and are broadening their network connections. As a result, wireless headsets and smartwatches, which are prevalent portable electronic devices for retaining clients connected, productive, and captivated, are expected to contribute to the tech support services market in this region.
Furthermore, the high frequency of cyberattacks in North America is anticipated to contribute to market growth in the region over the forecast period. According to the AAG report, reported cybercrime in North America expanded by 153% between 2017 and 2021, from 27,829 reported in 2017 to 70,288 cases in 2021. North America is accounting for a huge market share at 39%. The United States market is anticipated to grow at a CAGR of 5.2%.
Why is Europe Considered a Lucrative Region for the Tech Support Services Market?
Increasing Prevalence of Diabetes is Spurring Demand for Tech Support Services
Europe is accounting for a huge market share at 21%. The European market is anticipated to grow at a CAGR of 5.6% over the forecast period.
With Europe's digitalization, organizations have become reliant on the accomplishment of application scenarios and extensions that IT can offer. It has evolved into a crucial competitive edge for the majority of organizations. Furthermore, with cloud migrations and cloud service offerings, IT outsourcing has evolved beyond a simple cost-cutting strategy.
As per Eurostat, cloud computing adoption increased among EU companies, notably in retail trade, from 36% in 2020 to 41% the preceding year. As a result, this new form is motivated by organizational goals such as business growth, customer experience, and competitor disruption. As a result, the regional market is expected to be driven by the demand for technical support services for cloud platforms.
Category-Wise Insights
Which Service Leads the Market for Tech Support Services?
Call Center Services to generate highest market share
Global digitization has contributed to a significant rise in demand for online facilities from both ISPs and telecommunication companies. This has stimulated many telecommunications companies to establish new call centers and offer services to their consumers whenever they deem fit or require support.
As a result, during the forecast period, the Call Center Services segment is expected to dominate the market. In 2033, the segment is expected to hold 34% of the market.
By End User, Which Segment is Projected to Lead the Market?
BFSI Segment is Estimated to Hold the Largest Share
Rapid expansion in the BFSI industry around the world is one of the major reasons for the market's optimistic outlook. BFSI security is broadly used to facilitate security because of the greater likelihood of cyber threats.
Increasing concerns about data protection, such as private enterprise data and individual and business banking information, are actively supporting market growth. Among all end-user segments, the BFSI segment is expected to account for the highest market share of 23% during the forecast period.
Start-up Scenario
Notable start-ups have strengthened their market footprints by introducing novel and unique product lines, and the aforementioned start-ups have not left any stone unturned.
Below are some concrete examples of significant developments made by start-ups.
- In 2013, Kingswood Capital Management, LLC was established. As per Teleperformance, the world's leading organization in digitally integrated business facilities, Kingswood Capital ManagemL.P., L.U.S. has procured Senture, a significant business service provider for government services across the United States, in December 2021.
- LeanSwift, a world leader in online business and smartphone solutions for Infor consumers in Fashion, Distribution, Food & Beverage, and Manufacturing was founded in 2014. Wipro Limited completed its acquisition of LeanSwift Solutions in January 2022.
Competitive Landscape
The presence of a large number of international corporations distinguishes the global market. The majority of these businesses are heavily reliant on alliances, partnerships, mergers, and acquisitions.
Some of the most significant innovations made by key players are listed below -
- In June 2022: IBM's Marketing Toolkit for AI Fairness 360, an open-source program comprising fairness statistics and computation to assist in tracking and lowering biases in distinct data sets, is now available. This helps clients evaluate how and when they should use data in order to boost consumer experience.
- TCS extended its partnership with Zurich Insurance of Germany in September 2022, making TCS the only strategic IT cooperate for Zurich's life insurance IT prospects. TCS would assist the insurer in modernizing, transforming, and managing all of the software that supports its life insurance operation as part of this collaboration.
Key Segments Covered in the Tech Support Services Market Report
-
By Services :
- Customer Acquisition
- Call Center Services
- Email & Live Chat Support
- Others
-
By End-Use Industry :
- BFSI
- Education
- Healthcare
- Manufacturing
- Retails & Consumer Goods
- Energy & Utility
- IT & Telecommunication
- Hospitality
- Others
-
By Region :
- North America
- Latin America
- Europe
- East Asia
- South Asia & Oceania
- Middle East & Africa
- FAQs -
What will be the growth rate of the global Tech Support Services market during the forecast period?
The global Tech Support Services market is expected to grow with a 5.3% CAGR during 2023-2033.
What is the present market value of Tech Support Services market?
The global Tech Support Services market is currently worth more than US$ 66.3 Billion.
What will be the projected market size of the Tech Support Services market by 2033?
By 2033, the global Tech Support Services market is projected to reach a market size of US$ 111 Bn.
Which segment is expected to dominate the global Tech Support Services market during 2023?
The Call Center Services is expected to have a 34% market share in 2023 and to dominate the global market from 2023 to 2033.
What will be the outlook of the End Use segment during the forecast period?
The BFSI segment is predicted to account for a market share of 23% in 2023.
How is the North American Tech Support Services market projected to grow during 2023-2033?
The North American region is predicted to account for a 39% global market share in 2023.
What is the outlook of the Europe Tech Support Services market during 2023?
Europe is predicted to account for a 21% global market share in 2023.
At what rate did the Tech Support Services market flourish from 2018-2022?
From 2018-2022, the Tech Support Services market grew at a CAGR of 4.1%.