The Information Technology (IT) services market in the United States is projected to reach $522 billion in revenue in 2024. Since complete data for 2024 is not yet available, an annual revenue forecast is made based on the figures recorded for most of the year.
This market is expected to grow at a compound annual growth rate (CAGR) of 5.28% between 2024 and 2029, reaching a market volume of $675.2 billion by 2029. Technological advancements, increasing demand for cloud computing and cybersecurity services, and the need for digital transformation across industries are the main drivers of this growth. U.S. companies are seeking IT services to optimize processes, reduce costs, and improve efficiency, with a strong focus on emerging technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT).
Market segmentation by products and services shows that customized services, such as application design, development, and integration, are the most relevant. This segmentation spans multiple key industries with diverse needs. The manufacturing and retail sectors, representing 22% of the market, rely on IT services for logistics systems and point-of-sale solutions. The financial sector, which accounts for 20.8%, employs IT services to secure sensitive information and automate transactions. The public sector and non-profit organizations, making up 18.8%, require IT services for defense and social security systems. The communications, media, and technology sector represents 15%, driven by rapid technological evolution. Lastly, the healthcare sector, at 12.9%, demands digital solutions such as telemedicine and electronic records management.
The U.S. IT services market is concentrated in key regions, with California, Texas, and Virginia leading the sector. California, which would rank as the world’s fifth- largest economy if it were a country, hosts the largest tech industry in the United States. It is home to 57,504 tech companies, employs 1.53 million people, and has an economic impact of $542.5 billion. Major tech hubs such as Silicon Valley, Los Angeles, San Francisco, and San Diego are located in California, with leading technology giants like Apple, Alphabet (Google), Meta, and Microsoft headquartered in the region.
Texas ranks second as a major tech hub, with 48,449 tech companies and 936,296 employees. Its economic impact is significant, reaching $160 billion. Some of the largest employers in the Texas IT sector include Amazon, Oracle, Texas Instruments, AT&T, Cisco, and Hewlett Packard.
Virginia, ranking third, has the highest concentration of tech talent in the United States. The state is home to 27,456 tech companies, generating 379,451 jobs. Its economic impact is notable, totaling $63.1 billion. Virginia has emerged as a key center for artificial intelligence and FinTech, attracting leading companies like Amazon. In fact, Amazon established its HQ2 headquarters in Virginia with a $2.5 billion investment.
The influence of the U.S. IT market extends beyond its borders, with leading companies like Microsoft, Google, and Amazon expanding their operations globally. This has positioned regions such as the Community of Madrid as key destinations for these companies in Europe, drawn by its technological potential and strategic location.
The Community of Madrid is home to over 15,500 foreign subsidiaries, including major tech leaders such as Microsoft, Google, and Amazon. These companies have chosen Madrid for its favorable tech ecosystem and strategic position in Europe.
Additionally, the region has seen significant growth in tech investments in recent years, driven by the increasing demand for advanced digital services. Notable developments include:
- Google has multiple facilities in the region, with its headquarters located in the Torre Picasso of Azca. In 2022, Google launched Spain’s first public cloud region, marking a strategic investment in the country’s digital infrastructure. It also operates the Google for Startups Campus Madrid, a space designed to foster entrepreneurship and innovation.
- Amazon employs 5,000 people in the region, with its main headquarters and AWS subsidiary located in Madrid. The company also has key facilities, including logistics centers and stations. The San Fernando de Henares logistics center, Amazon’s first in Spain, remains one of the most important.
Microsoft has a strong presence in Spain, with its headquarters in Madrid and additional key locations throughout the country. Madrid was also chosen as the site for Microsoft’s first cloud region in Spain. Furthermore, the company has invested in data centers in San Sebastián de los Reyes, Algete, and Meco. Last year, Microsoft announced a $2.1 billion (€1.938 billion) investment in Spain through 2025, marking its largest commitment in the country’s 37-year history.
In recent years, the Community of Madrid has strengthened its commitment to developing the digital sector, promoting key initiatives to foster innovation and business competitiveness. Through technology clusters such as Digital Transformation (Torrejón de Ardoz), Artificial Intelligence (Leganés), Internet of Things (Las Rozas), and Blockchain (Tres Cantos), the region has created a favorable ecosystem for collaboration and the growth of tech companies. Additionally, the recent creation of the Quantum Computing Cluster (Boadilla del Monte) further reinforces Madrid’s dedication to emerging technologies. With these initiatives, Madrid is positioning itself as a leader in digitalization and a prime destination for tech investments.