Cloud Based ITSM Market Overview
The Cloud Based ITSM Market Size was estimated at 12.15 (USD Billion) in 2022. The Cloud Based ITSM Market Industry is expected to grow from 14.46(USD Billion) in 2023 to 69.5 (USD Billion) by 2032. The Cloud Based ITSM Market CAGR (growth rate) is expected to be around 19.05% during the forecast period (2024 - 2032).
Key Cloud Based ITSM Market Trends Highlighted
It is apparent that COVID-19 caused digital transformation and remote work to grow even faster, increasing the market for cloud based IT service management systems. Other crucial market dynamics include the integration with other cloud platforms and improvements in artificial intelligence and machine learning.
ITSM market cloud solution is more appealing as Organizations want more and are willing to invest more in Scalability, Flexibility, and Cost Efficiency. The growth of the market is attributed to the growing adoption of cloud business applications, which are also a requirement for central IT administration. There are also new opportunities for self-preservation as users take control of some processes away from IT departments.
It is worth mentioning the potential development of ITSM with the features of security and compliance in the cloud. Besides, there are prospects for the implementation of industry-specific solutions catering to cross-industry demands. As other organizations are adopting these trends as well as cloud based ITSM, it is evident that the improvement of IT service delivery, cost optimization, and overall advancement of IT operations are simplified.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Cloud Based ITSM Market Drivers
Rising adoption of cloud computing
The increasing adoption of cloud computing is one of the major factors driving the growth of the Global Cloud Based ITSM Market Industry. Businesses of all sizes are moving their IT infrastructure to the cloud in order to take advantage of its benefits, such as scalability, cost-effectiveness, and flexibility. This trend is expected to continue in the coming years, as more and more businesses realize the benefits of cloud computing. As a result, the demand for cloud-based ITSM solutions is also expected to grow.
Growing demand for IT service management (ITSM) solutions
The growing demand for ITSM solutions is another major factor driving the growth of the Global Cloud Based ITSM Market Industry. Businesses are increasingly looking for ways to improve the efficiency and effectiveness of their IT operations. ITSM solutions can help businesses to do this by providing them with a centralized platform for managing all of their IT services. This can help businesses to reduce costs, improve service levels, and increase productivity.
Increasing adoption of artificial intelligence (AI) and machine learning (ML)
The increasing adoption of AI and ML is also driving the growth of the Global Cloud Based ITSM Market Industry. AI and ML can be used to automate many of the tasks that are currently performed manually by IT staff. This can free up IT staff to focus on more strategic initiatives. AI and ML can also be used to improve the accuracy and efficiency of ITSM processes.
Cloud Based ITSM Market Segment Insights
Cloud Based ITSM Market Deployment Model Insights
The Global Cloud Based ITSM Market segmentation by deployment model comprises public cloud, private cloud, and hybrid cloud. Among these, the public cloud segment is projected to hold a dominant position in the market and is expected to continue its dominance throughout the forecast period. The growth of the public cloud segment can be attributed to its cost-effectiveness, flexibility, and scalability. Moreover, the increasing adoption of cloud-based services by small and medium-sized enterprises (SMEs) is also driving the growth of the public cloud segment.
The private cloud segment is expected to witness significant growth during the forecast period. The growth of the private cloud segment can be attributed to the increasing concerns about data security and privacy. Moreover, the growing adoption of private cloud solutions by large enterprises is also driving the growth of this segment. The hybrid cloud segment is also expected to grow at a steady pace during the forecast period. The growth of the hybrid cloud segment can be attributed to the increasing demand for solutions that offer the benefits of both public and private cloud environments.
Hybrid cloud solutions allow enterprises to deploy applications and data in a flexible and secure manner. In terms of market size, the public cloud segment is expected to account for the largest share of the Global Cloud Based ITSM Market revenue in 2023. The private cloud segment is expected to follow the public cloud segment in terms of market size. The hybrid cloud segment is expected to account for the smallest share of the market revenue in 2023. However, the hybrid cloud segment is expected to grow at a faster pace than the public cloud and private cloud segments during the forecast period.
Overall, the Global Cloud Based ITSM Market is expected to grow at a significant pace during the forecast period. The growth of the market can be attributed to the increasing adoption of cloud-based solutions by enterprises of all sizes. Moreover, the growing demand for solutions that offer flexibility, scalability, and security is also driving the growth of the market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Cloud Based ITSM Market Organization Size Insights
The Global Cloud Based ITSM Market segmentation by Organization Size divides the market into Small and Medium-sized Enterprises (SMEs) and Large Enterprises. SMEs hold a significant market share due to their growing adoption of cloud-based solutions to improve efficiency and reduce costs. The Global Cloud Based ITSM Market revenue for SMEs is projected to reach 6.7 billion USD by 2024, growing at a CAGR of 18.5%. Large Enterprises, on the other hand, have been early adopters of Cloud Based ITSM solutions and continue to invest heavily in these technologies to enhance their IT operations.Their demand for advanced features and customization drives market growth. The Global Cloud Based ITSM Market revenue for Large Enterprises is expected to reach 11.3 billion USD by 2024, expanding at a CAGR of 17.8%. Overall, the demand for Cloud Based ITSM solutions across both SMEs and Large Enterprises is driven by factors such as increasing cloud adoption, the need for improved IT efficiency, and the growing focus on cost optimization.
Cloud Based ITSM Market Industry Vertical Insights
The Industry Vertical segment of the Global Cloud Based ITSM Market is expected to grow significantly in the coming years, driven by the increasing adoption of cloud-based IT services across various industries. Among the key verticals, IT and Telecom is expected to hold a dominant share of the market, driven by the need for efficient IT service management and support. The Banking and Financial Services sector is also expected to witness substantial growth, as banks and financial institutions seek to improve customer service and compliance. Other notable verticals include Manufacturing, Healthcare, and Retail and Consumer Goods, which are increasingly leveraging cloud-based ITSM solutions to streamline operations and enhance productivity.
Cloud Based ITSM Market Functionality Insights
The Functionality segment in the Global Cloud Based ITSM Market is expected to witness significant growth in the coming years. The increasing adoption of cloud-based IT services is driving the demand for cloud-based ITSM solutions that can provide real-time visibility and control over IT services. The Global Cloud Based ITSM Market is segmented into different functionality segments, including Incident Management, Problem Management, Change Management, Service Level Management, and Configuration Management. Each segment offers specific capabilities and plays a crucial role in the overall ITSM process.Incident Management helps organizations identify, track, and resolve incidents that disrupt IT services, while Problem Management focuses on identifying and resolving the root causes of incidents to prevent their recurrence. Change Management ensures that changes to IT systems and infrastructure are managed effectively to minimize disruptions and risks. Service Level Management defines and monitors service level agreements (SLAs) to ensure that IT services meet agreed-upon performance levels. Configuration Management maintains a comprehensive inventory of IT assets and their configurations to facilitate effective IT service delivery and management.
Cloud Based ITSM Market Vendor Type Insights
The Global Cloud Based ITSM Market is segmented by Vendor Type into Pure-play Cloud ITSM Vendors, Traditional ITSM Vendors with Cloud Offerings, and Managed Service Providers (MSPs). Pure-play Cloud ITSM Vendors hold a dominant position in the market and are expected to maintain their lead in the coming years. These vendors offer comprehensive cloud-based ITSM solutions that are designed to meet the specific needs of businesses. They have a strong focus on innovation and are constantly developing new features and capabilities to enhance the user experience.Traditional ITSM Vendors with Cloud Offerings are also gaining traction in the market. These vendors offer a combination of on-premises and cloud-based ITSM solutions. They are well-established in the market and have a large customer base. However, they are facing challenges from pure-play cloud ITSM vendors who are offering more innovative and cost-effective solutions. Managed Service Providers (MSPs) are playing an increasingly important role in the Cloud Based ITSM Market. These providers offer a range of IT services, including cloud-based ITSM solutions.They are well-positioned to meet the needs of businesses that do not have the resources or expertise to manage their own ITSM systems.
Cloud Based ITSM Market Regional Insights
The Global Cloud Based ITSM Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest share of the market in 2023, owing to the presence of a large number of cloud service providers and early adoption of cloud-based technologies. Europe is expected to be the second-largest market, followed by APAC. The APAC region is expected to witness significant growth in the coming years, due to the increasing adoption of cloud-based services by businesses in the region. South America and MEA are expected to be the smallest markets, but they are also expected to witness significant growth in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Cloud Based ITSM Market Key Players And Competitive Insights
Major players in the Cloud Based ITSM Market industry are constantly innovating and developing new products and services to meet the changing needs of customers. Leading Cloud Based ITSM Market players are also focusing on expanding their global reach through partnerships and acquisitions. The Cloud Based ITSM Market Competitive Landscape is expected to remain highly competitive in the coming years, with new entrants and established players vying for market share.A leading company in the Cloud Based ITSM Market is ServiceNow. The company offers a comprehensive suite of cloud-based IT service management (ITSM) solutions that help organizations improve their service delivery and efficiency. ServiceNow's solutions are used by a wide range of organizations, including Fortune 500 companies and government agencies. The company has a strong track record of innovation and has been recognized as a leader in the ITSM market by leading industry analysts.A competitor company in the
Cloud Based ITSM Market is BMC Software. BMC offers a range of ITSM solutions that help organizations automate and streamline their IT operations. BMC's solutions are used by a wide range of organizations, including large enterprises and small businesses. The company has a strong focus on research and development and has been recognized for its innovative products and services.
Key Companies in the Cloud Based ITSM Market Include
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BMC Software.
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SAP.
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Pegasystems.
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Micro Focus.
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Microsoft.
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Freshworks.
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IBM.
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Atlassian.
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Oracle.
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Salesforce.
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Ivanti.
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ManageEngine.
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ServiceNow.
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Cherwell Software.
Cloud Based ITSM Market Industry Developments
Recent developments in the Global Cloud Based ITSM Market include the growing adoption of cloud-based solutions by enterprises to improve operational efficiency and reduce costs. Artificial Intelligence (AI) and Machine Learning (ML) are being integrated into cloud-based ITSM solutions to automate tasks and provide predictive insights. The increasing demand for remote work and the need for flexible IT support have accelerated the adoption of cloud-based ITSM solutions. Strategic partnerships and acquisitions among key players are shaping the market landscape, with a focus on expanding service offerings and geographic reach. Growing investments in research and development by vendors are driving innovation and the introduction of new features and functionalities.
Cloud Based ITSM Market Segmentation Insights
| Report Attribute/Metric |
Details |
| Market Size 2022 |
12.15(USD Billion) |
| Market Size 2023 |
14.46(USD Billion) |
| Market Size 2032 |
69.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
19.05% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
BMC Software., SAP., Pegasystems., Micro Focus., Microsoft., Freshworks., IBM., Atlassian., Oracle., Salesforce., Ivanti., ManageEngine., ServiceNow., Cherwell Software. |
| Segments Covered |
Deployment Model, Organization Size, Industry Vertical, Functionality, Vendor Type, Regional |
| Key Market Opportunities |
Hybrid cloud adoption AIdriven automation ITSM integration with DevOps cloud security enhancements and expanding SaaS solutions |
| Key Market Dynamics |
Rising adoption of cloud computing, growing need for efficient IT service management, increasing demand for remote and flexible IT support, surge in adoption by small and medium-sized enterprises, advancements in artificial intelligence and automation |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Global Cloud Based ITSM Market was valued at USD 14.46 billion in 2023.
The Global Cloud Based ITSM Market is projected to reach USD 69.5 billion by 2032.
The Global Cloud Based ITSM Market is expected to grow at a CAGR of 19.05% from 2024 to 2032.
North America is expected to hold the largest market share in the Global Cloud Based ITSM Market throughout the forecast period.
The IT and telecommunications industry is expected to drive the growth of the Global Cloud Based ITSM Market.
Key competitors in the Global Cloud Based ITSM Market include ServiceNow, Atlassian, BMC Software, IBM, and SAP.
Key trends in the Global Cloud Based ITSM Market include the adoption of AI and ML, the rise of SaaS-based solutions, and the growing demand for cloud-based security solutions.
Challenges facing the Global Cloud Based ITSM Market include data security and privacy concerns, vendor lock-in, and the need for skilled IT professionals.
Opportunities for growth in the Global Cloud Based ITSM Market include the expansion of cloud-based services into new markets, the development of new applications and services, and the increasing adoption of cloud-based solutions by small and medium-sized businesses.
The Global Cloud Based ITSM Market is expected to have a positive impact on the global economy by creating new jobs, boosting productivity, and reducing costs.
