The report below gives a good overview of the Winter 2026 M&A activity in the Business Services Industry Sector. The Global Business Services sector demonstrated robust growth in the fourth quarter of 2025, boosted by artificial intelligence adoption and cloud transformation initiatives. The America's IT and business services market achieved record contract values of $14.4 billion in Q4 2025, marking a 21% year-over-year increase. This trend shows that companies are increasingly confident about investing in digital upgrades and expanding their AI capabilities. The managed services market, valued at $441 billion in 2025, is projected to reach $1,313 billion by 2035 at an 11.5% CAGR. Infrastructure-as-a-Service surged 53% in the US during Q4, driven by cloud infrastructure modernization demands. Business process outsourcing advanced 6% year-over-year to $1.3 billion in quarterly contract value, with finance and accounting services leading growth. Professional services expanded significantly, with the global market valued at $1.20 trillion in 2025, projected to reach $3.04 trillion by 2034 at 10.9% CAGR. Management consulting remained dominant as enterprises prioritized operational efficiency improvements. Data processing and hosting services reached $118.83 billion in 2025, anticipated to hit $195.55 billion by 2030 at 10.5% annually. Administrative support services expanded from $298.09 billion in 2025 to $424.7 billion by 2029 at 9.3% CAGR, driven by hybrid work adoption and intelligent office technologies. Employment services showed moderate Q4 growth with 25% net employment outlook in the Americas, while waste management and remediation services grew at 10% CAGR through 2032, benefiting from stricter environmental regulations and urbanization pressures. North America dominated with 34-37% regional market share, while Asia-Pacific emerged as the fastest-growing region, driven by cost advantages and digital transformation momentum.
Posted by Brad Purifoy.