Development of Service Enterprises and Trends In The Transformation of The Service Market

Abstract

The service sector plays an increasingly vital role in national economies, contributing significantly to GDP growth, employment, and socio-economic stability. In the context of Uzbekistan’s economic transformation, the service sector has become one of the most dynamic and rapidly developing areas. Despite its strategic importance, disparities in service sector development persist across regions, and the mechanisms driving this growth, particularly at the local level, remain underexplored. While national-level statistics reflect overall progress, comprehensive regional analyses that examine sectoral dynamics, growth distribution, and per capita service output are limited, especially in regions like Bukhara. This study aims to analyze the trends in the development of service enterprises and the transformation of the service market in Uzbekistan from 2020 to 2024, with a focus on regional disparities, activity types, and economic contribution. The findings reveal that the volume of services in Uzbekistan grew by 10.4 times during the study period, with the service sector's share in GDP rising from 35.5% to 56.3%. In the Bukhara region alone, the volume of services increased by over 3.5 times, demonstrating regional progress, yet unevenly distributed. Sectors such as financial services, healthcare, education, and digital communications exhibited particularly high growth. This study provides a unique regional and sector-specific perspective on service sector evolution, incorporating per capita analysis and strategic implications. The results underscore the need for targeted policy interventions, investment in digital infrastructure, and capacity-building to ensure inclusive and balanced service sector development across all regions.