Cloud ITSM Market Research Report Information By Offering (Solutions and Services), By Deployment Mode (Public Cloud, Private Cloud, and Hybrid Cloud), By Organization Size (Large Enterprises and SMEs), and By Vertical (BFSI, Telecommunications, IT & ITeS, Government & Public Sector, Retail & Consumer Goods, Manufacturing, Energy & Utilities, Media & Entertainment, Healthcare & Life Sciences, Education, and Other Verticals), And By Region (North America, Europe, Asia-Pacific, And Rest of The World) –Market Forecast Till 2032

Cloud ITSM Market Overview

The Cloud ITSM Market size is projected to grow from USD 11.4 billion in 2024 to USD 40.8 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 17.20% during the forecast period (2024 - 2032). Additionally, the market size for Cloud ITSM was valued at USD 9.8 billion in 2023.

The rising complexity of IT environments, escalating demand for agile IT solutions, integration of advanced technologies such as artificial intelligence (AI) and machine learning (ML), and widespread adoption of services in sectors like healthcare and manufacturing are expected to be significant market drivers for the Cloud ITSM Market.

Figure1: Cloud ITSM Market, 2018 - 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cloud ITSM Market Trends

Market CAGR for Cloud ITSM is driven by the growing prevalence of remote work and the increasing complexity of IT environments. The trend towards remote work is significantly driving market growth, presenting unique challenges for IT departments, such as ensuring data security and facilitating access to enterprise applications. According to an Accenture study in 2021, 83% of global workers considered the hybrid work model (combining remote and on-site work) ideal. Preferences shifted in subsequent years, with remote work dropping from 34% in 2021 to 29% in 2022, while hybrid work increased from 31% to 36%, and in-office work decreased from 29% to 22%. Atlassian’s State of Work study also noted changes in worker preferences between 2021 and 2022: remote work decreased from 34% to 22%, office-only work decreased from 39% to 35%, and hybrid work increased from 27% to 43% in 2022. This shift towards hybrid and remote work models is fueling the adoption of cloud ITSM solutions, which offer the flexibility and scalability necessary to effectively manage distributed workforces. Additionally, the robust security protocols embedded in many cloud ITSM platforms are enhancing data protection, which is particularly important as organizations manage sensitive data accessed from multiple locations. Real-time network performance monitoring capabilities integrated into cloud ITSM systems further contribute to market growth by enabling prompt issue detection and resolution. The increasing emphasis on remote work conditions underscores the strategic importance of cloud ITSM solutions in maintaining high levels of performance and security while managing distributed workforces. These trends collectively present lucrative growth opportunities for the market.

The rapid pace of technological advancements, which is resulting in more intricate IT infrastructures, is driving market expansion. Additionally, there is a rising need for highly effective service management solutions that can effectively navigate complex organizational networks encompassing cloud services, mobile devices, virtualization, and Internet of Things (IoT) components. These factors are contributing positively to market growth. As a result, it is anticipated that throughout the projection period, demand for the Cloud ITSM Market will increase due to the growing prevalence of remote work and the Increasing complexity of IT environments. Thus, driving the Cloud ITSM Market revenue.

Cloud ITSM Market Segment Insights

Cloud ITSM Market Offering Insights

The Cloud ITSM Market segmentation, based on Offering, includes Solutions and Services. The Solutions segment dominated the market, accounting for 58% of market revenue. Cloud ITSM solutions include various software tools and platforms that enable organizations to efficiently manage their IT services, incidents, problems, change requests, and more in a cloud-based environment. The dominance of the Solutions segment is attributed to the increasing adoption of cloud-based ITSM platforms by enterprises aiming to streamline their IT operations and improve service delivery.

Figure 2: Cloud ITSM Market, by Offering, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Cloud ITSM Market Deployment Mode Insights

The Cloud ITSM Market segmentation, based on Deployment Mode, includes Public Cloud, Private Cloud, and Hybrid Cloud. The Hybrid Cloud segment dominated the market, accounting for 58% of market revenue. Managing data integration, security, and workload orchestration across multiple platforms can be challenging for organizations. Effective governance, automation, and monitoring tools are crucial to ensure seamless operation and performance across hybrid environments. Despite these challenges, hybrid cloud deployment provides a pragmatic solution for organizations aiming to balance flexibility, security, and cost-effectiveness in their ITSM strategies.

Cloud ITSM Market Organization Size Insights

The Cloud ITSM Market segmentation, based on Organization Size, includes Large Enterprises and SMEs. The Large Enterprises segment dominated the market, accounting for 60% of market revenue. The cloud-based nature of ITSM solutions facilitates centralized control, making it easier for large enterprises to manage IT services across various regions. Furthermore, the substantial workforce in large enterprises generates a vast number of service requests, incidents, and problems compared to smaller organizations. Cloud ITSM solutions are well-equipped to handle this high volume of service tickets efficiently, thanks to features such as automated ticket routing, prioritization, and resolution.

Cloud ITSM Market Vertical Insights

The Cloud ITSM Market segmentation, based on Vertical, includes BFSI, Telecommunications, IT & ITeS, Government & Public Sector, Retail & Consumer Goods, Manufacturing, Energy & Utilities, Media & Entertainment, Healthcare & Life Sciences, Education, and Other Verticals. The BFSI segment dominated the market, accounting for 60% of market revenue. Cloud ITSM also supports predictive maintenance, enabling the BFSI industry to identify and address issues before they lead to costly downtime. Additionally, it allows the industry to leverage advanced analytics and machine learning algorithms, providing valuable insights from their data for better decision-making and innovation. Consequently, the BFSI industry is experiencing accelerated growth and digital transformation, boosting productivity and competitiveness in the market.

Cloud ITSM Market Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The anticipated expansion of the Cloud ITSM market in North America can be attributed to several key factors. North America is a key market for cloud ITSM, driven by high cloud technology adoption and the increasing need for improved IT services across various industries. According to a Site24*7 survey report on IT Management, 62% of respondents cited ease of management as the top reason for shifting to the cloud, followed closely by business continuity (60%) and scalability (59%). Additionally, a March 2022 report titled "A Hybrid Cloud Adoption Survey," which included over 900 IT professionals, indicated that most businesses (93%) are adopting hybrid cloud and on-premise solutions or fully migrating to the cloud within five years. The survey, primarily conducted in North America and Europe, found that 43.8% of respondents were from North America. Consequently, the growing transition toward cloud platforms is expected to drive the demand for IT service management solutions in the coming years.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: CLOUD ITSM MARKET SHARE BY REGION 2023 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Cloud ITSM Market accounts for the second-largest market share as European enterprises are actively pursuing digital transformation as a core strategy to enhance competitiveness and operational efficiency. By 2022, 70% of all EU businesses achieved a basic level of digital intensity. SMEs reached this level at 69%, approximately 20 percentage points below the EU's 2030 target, whereas large businesses reached 98%. Large businesses also had significantly higher levels of very high (30%) and high (54%) digital intensity compared to SMEs, of which only 4% achieved a very high level and 27% achieved a high level. The majority of SMEs reported low (38%) or very low (31%) digital intensity levels. Cloud ITSM solutions are pivotal in this transformation, enabling organizations to streamline IT service management, automate processes, and enhance service delivery. This strategic emphasis on digitalization is driving the widespread adoption of cloud ITSM solutions across diverse industries in Europe. Further, the German Cloud ITSM Market held the largest market share, and the UK Cloud ITSM Market was the fastest-growing market in the European region.

The Asia-Pacific Cloud ITSM Market is expected to grow at the fastest CAGR from 2023 to 2032. APAC has experienced rapid adoption of cloud technologies across enterprises of varying sizes. This trend is driven by the demand for scalability, flexibility, and cost-efficiency in IT operations. According to a report from Oliver Wyman and NASSCOM, India's expenditure on public cloud services is projected to grow at a compound annual growth rate (CAGR) of 27% from 2022 onward, fueled by increased investments in Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) offerings aligned with global markets. Additionally, an IDC study indicates that approximately 40% of Indian organizations are expected to adopt cloud services in some capacity by 2024. Colliers International forecasts that India's data center capacity will nearly double from 770 MW in 2022 to around 1,500 MW by 2025. Cloud ITSM solutions empower businesses to dynamically scale IT resources, support remote workforces, and efficiently manage IT services, offering significant advantages over traditional on-premises solutions. Moreover, China’s Cloud ITSM Market held the largest market share, and the Indian Cloud ITSM Market was the fastest-growing market in the Asia-Pacific region.

Cloud ITSM Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Cloud ITSM market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Cloud ITSM industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Cloud ITSM industry to benefit clients and increase the market sector. In recent years, the Cloud ITSM industry has offered some of the most significant advantages to the modern enterprise landscape. Major players in the Cloud ITSM Market, including ServiceNow (US), BMC Software (US), Broadcom (US), ManageEngine (US), Ivanti (US), Zendesk (US), Freshworks (US), SolarWinds (US), Atlassian (Australia), OpenText (US) are attempting to increase market demand by investing in research and development operations.

BMC Software Inc (BMC) is a leading provider of comprehensive IT management solutions and services. The company offers a wide range of products, including TrueSight IT operations and automation, Helix service and operations management, Control-M workflow orchestration, and Mainframe solutions. BMC's portfolio also encompasses multi-cloud management, AI and machine learning, security and compliance, automation and DevOps, IT optimization, and service management solutions. Serving a diverse clientele across industries such as healthcare, transportation, telecommunications, media, manufacturing, education, finance, retail, insurance, utilities, government, military, and defense, BMC operates globally with a presence in the Americas, Europe, the Middle East, Africa, and Asia-Pacific. Headquartered in Houston, Texas, USA, BMC continues to innovate, recently introducing generative AI capabilities within its Helix Service Management solution in November 2023. This enhancement aims to bolster security measures and deliver AI-driven insights. Recognized as a leader in enterprise service management and AIOps (Artificial Intelligence for IT Operations), BMC Helix offers features like resolution insights, unified workflows for security and operations teams, industry-specific templates, and a robust low code/no code platform. These advancements underscore BMC's dedication to fostering innovation and empowering organizations to thrive in the digital era.

ServiceNow Inc (ServiceNow) specializes in intelligent workflow automation tailored for digital enterprises. The company develops and provides the Now Platform, a cloud-based solution infused with artificial intelligence and machine learning capabilities. This platform helps global enterprises, universities, and governments streamline and digitize their workflows effectively. ServiceNow offers a diverse array of products and services, including IT service management, customer service management, integrated risk management, HR service delivery, and more. Its solutions cater to industries such as healthcare, finance, logistics, retail, telecommunications, media and technology, manufacturing, energy and utilities, and life sciences. With operations spanning the Americas, Asia Pacific, Europe, Middle East, and Africa, ServiceNow is headquartered in Santa Clara, California, USA. In February 2024, ServiceNow and NVIDIA expanded their partnership to introduce telco-specific generative AI solutions aimed at enhancing service experiences. Powered by the Now Platform, Now Assist for Telecommunications Service Management harnesses NVIDIA AI capabilities to improve productivity, accelerate issue resolution, and enhance customer service. This collaboration is designed to help telecom operators reduce costs, identify new business opportunities, and drive transformative changes across the industry.

Key companies in the Cloud ITSM Market include

• ServiceNow (US)


• BMC Software (US)


• Broadcom (US)


• ManageEngine (US)


• Ivanti (US)


• Zendesk (US)


• Freshworks (US)


• SolarWinds (US)


• Atlassian (Australia)


• OpenText (US)

Cloud ITSM Industry Developments

March 2021: IFS acquired Axios Systems, a renowned global provider of cloud-based Enterprise Service Management (ESM) software known for its leadership in IT Service Management (ITSM) and IT Operations Management (ITOM)

July 2023: BMC was acknowledged as a leader in the GigaOm Radar for IT Service Management (ITSM) report. The report emphasized BMC's advanced artificial intelligence (AI) capabilities and highlighted its strong performance in change management and service delivery risk management features.

Cloud ITSM Market Segmentation

Cloud ITSM Market Offering Outlook

• Solutions


• Services

Cloud ITSM Market Deployment Mode Outlook

• Public Cloud


• Private Cloud


• Hybrid Cloud

Cloud ITSM Market Organization Size Outlook

• Large Enterprises


• SMES

Cloud ITSM Market Vertical Outlook

• BFSI


• Telecommunications


• IT & ITeS


• Government & Public Sector


• Retail & Consumer Goods


• Manufacturing


• Energy & Utilities


• Media & Entertainment


• Healthcare & Life Sciences


• Education


• Other Verticals

Cloud ITSM Market Regional Outlook