The global economy has witnessed a significant shift in recent decades, with service exports emerging as a major component of international trade. Service exports include activities such as financial services, information technology, consulting, and tourism, which are delivered across borders without the exchange of tangible products. The recent rise in service exports underscores the increasing importance of knowledge-based industries and how they’re shaping international trade dynamics.
Leading Countries in Service Exports1
Several nations have established themselves as leaders in the export of services, leveraging their infrastructure to cater to global demand. According to data from 2023:
- United States: The U.S. leads with service exports totaling approximately $1.02 trillion, flexing its dominance in sectors like finance, technology, and entertainment.
- United Kingdom: With exports amounting to $584.2 billion, the UK benefits from its strong financial services sector and consulting industry.
- Germany: Germany’s service exports stand at $439.9 billion, supported by its engineering consultancy and industrial services.
- Ireland: Ireland has seen substantial growth, with service exports reaching $397.5 billion, driven by its favorable business environment that attracts multinational corporations.
- France: France’s diverse economy contributes to its $369.9 billion in service exports, encompassing tourism, luxury goods, and business services.
Notably, emerging economies like India and China have also made significant strides, highlighting their growing influence in the global services market.
Top Service Exports2
Service exports cover a wide range of industries. Financial services play a crucial role, as banking, insurance, and investment firms facilitate international transactions, manage risks, and support economic growth across borders. Another significant category is information technology (IT) services, which includes software development, IT consulting, and cybersecurity solutions. These services have become essential due to quickly evolving digital business practices, enabling businesses worldwide to operate efficiently and securely. Consulting services—such as management, legal, and engineering expertise—are also in high demand, as companies and governments seek specialized knowledge to optimize operations, navigate regulations, and improve infrastructure.
In addition, travel and tourism remain a major driver of service exports, contributing billions to economies by attracting international visitors who spend on accommodation, entertainment, and local experiences. Meanwhile, telecommunications services facilitate seamless global communication, supporting everything from international phone calls to high-speed internet access and data transmission.
Impact of Service Exports on North Dakota
While North Dakota is traditionally recognized for our robust agricultural sector, service exports have become an increasingly vital component of our state’s economy.
- Economic Contribution: In 2024, North Dakota exported goods totaling $5.5 billion. While goods exports play a significant role, services such as construction, personnel, and recreational services have also contributed greatly.3
- Employment: Service exports support approximately 4,430 jobs in North Dakota, with 1,360 of these positions stemming from digitally tradable services. This employment spans various sectors, including construction services and personnel and recreational services.4
- Trade Partnerships: North Dakota’s primary service export destinations include our neighboring countries, with service exports to Canada amounting to $304 million (supporting 1,250 jobs) and service exports to Mexico totaling $38 million (supporting 240 jobs). These partnerships underscore ND’s integration into the broader North American trade network.4
The rise of service exports in North Dakota complements our traditional industries, providing diversification to our state’s economy. As global demand for services continues to grow, our strategic investments in sectors like information technology and professional services position us well to capitalize on emerging opportunities.
The ascent of service exports displays a transformative shift in global trade, emphasizing the value of intangible assets and knowledge-based industries. For regions like North Dakota, embracing this trend not only enhances economic diversification but also fosters sustainable growth in an increasingly connected world.
1Top Countries by Service Exports in 2023
2What are service exports, and why are they suddenly so important? – Trade Ready