US Tech Support Services Market to Reach $30B by 2015: Report


Technology support services revenues are expected to grow nearly threefold over the next five years, according to an industry report released this week, which claims the market will largely be driven by broadband service providers.

The report, conducted by Dallas-based market research firm Parks Associates, predicts that US households will account for more than 40 percent of the $30 billion consumer and small and medium business technology support services market.

Kurt Scherf, vice president and principal analyst of Parks Associates, said the market opportunity for consumer- and SMB-oriented technical support services is so significant because it is currently underutilized.

“One-third of consumers and 44 percent of SMBs experienced computer-related problems, but only 13 percent of those people and 28 percent of those businesses used professional support services,” Scherf said.

Broadband service providers are driving the market, according to the findings of the report, including providers such as AT&T’s ConnectTech and Tech Support 360, Verizon’s Expert Care and Comcast’s XFINITY Signature Support.

These types of services have increased both awareness and use among both consumers and SMBs in the past year, according to Parks Associates analysts, who said that major retailers such as Best Buy, Office Depot, Office Max, Staples and OEM are also key to promoting technical support services to a wider audience.

But long-term growth will depend on the ability to add support for new platforms and scale services to provide for multiple channels of support, the report said.

As the technology support services market matures, offerings will include additional support of smartphones and tablets, Scherf added. The report tracks support subscriptions, in-store and on-site home computer and home networking support, and remote home network/troubleshooting

“The foundation of technology support services is in time-of-needed repair and troubleshooting elements,” he said. “However, as this market matures, offerings will include support of new devices such as smartphones and tablets. Providers will augment their traditional warranties and service plans with additional services based on a holistic model of support that focuses on time-of-purchase and includes assistance throughout the lifecycle of a technology or service.”

Erin Harrison is Executive Editor, Strategic Initiatives, for TMC, where she oversees the company's strategic editorial initiatives, including the launch of several new print and online initiatives. She plays an active role in the print publications and TechZone360, covering IP communications, information technology and other related topics. To read more of Erin's articles, please visit her columnist page.

Executive Editor, Strategic Initiatives

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