IT Service Management Market Analysis

Global IT Service Management Market Overview

IT Service Management Market Size was valued at USD 12,510.6 million in 2023. The IT Service Management Market industry is projected to grow from USD 13,943.1 Million in 2024 to USD 36,598.7 million by 2032, exhibiting a compound annual growth rate (CAGR) of 12.8% during the forecast period (2024- 2032). The IT Service Management market is driven by the growing shit towards the cloud based technologies, simplification and synchronization of IT resources, automated management of IT processes and policies, and various benefits of agile implementation and easy deployment. In addition, there are some restraints which hamper the market growth during the forecast period including lack of technical knowledge and expertise, and security and privacy concerns for confidential data and business processes. Furthermore, there are various opportunities for the market players to grow during the forecast period such as rising adoption of BYOD and growing mobile workforce, supportive government initiatives for necessary technology uses, continuous development in 5G technology, and emergence of AI to automate processes.

As per Analyst at MRFR, “The global market for IT Service Management is witnessing a significant growth rate driven by various factors, such as automated management of IT processes and policies, and various benefits of agile implementation and easy deployment”.

FIGURE 1: IT SERVICE MANAGEMENT MARKET SIZE 2019-2032 (USD MILLION)

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

IT Service Management Market Driver

• GROWING SHIT TOWARDS THE CLOUD BASED TECHNOLOGIES

The IT service management (ITSM) market is trending. Experience from around the world has shown that as companies adopt digital solutions, there is a trend towards cloud solutions. This trend is a major growth driver due to the flexibility, scalability and cost-efficient nature of the cloud solutions over the premise-based solutions. Mobile and cloud-based ITSM platforms enable the centralized real-time control and visibility of an organization’s IT assets, which is useful as remote work increases in popularity worldwide. To organizations, the implementation of cloud deployment cuts the need to have physical assets and thus directly impacts operations cost greatly that can result to re-investment to other critical sectors.

In addition, there is immediate access to the data stored in the cloud, as well as the possibility of integrating many departments and systems’ works. This enhances issue solving and business decisions as IT personnel can get up to date information from any location. Security is another area where cloud-based ITSM shines: current generation cloud providers maintain certain strict levels of security to meet and govern the protection of data today which plays a more important role in industries handling sensitive data.

Furthermore, the transition to adopting cloud is encouraging innovation within the realm of ITSM, and there has been the emergence of sophistically enhanced attributes of service such as AI-integrated analytics, prognostic maintenance and self-healing. These tools are relatively easy to plug into cloud than the traditional on-premises structures. This drive toward cloud-based ITSM solutions can be a manifestation of established trends toward agility and adaptability that have defined modern business as companies strive to actively respond to changes in the market and tendencies related to the implementation of new technologies. In total, the rising trend of cloud adoption is redefining ITSM because companies are looking for more adaptability, reliability, and advantage in a world that has become intrinsically digital.

IT Service Management Market Segment Insights:

IT Service Management Component Insights

Based on Component, the global IT Service Management market has been segmented into Solutions, and Services. ITSM solutions can be best described as a set of the various technologies, tools, and software systems used to promote standardization, automation, and optimization of various service delivery processes within IT. Other solutions consist of incident management solutions, which allow IT departments to work quickly and deal with interruptions effectively, and service request automation tools, which help the support staff manage end-user needs more effectively. ITSM Services encompass a large range of support and adaptable means of providing IT service management support while aiming towards continual enhancement of a business-strategic nature. These services include ITSM consulting where organizations seek help to create desirable service management frameworks from methodologies such as ITIL. Implementation and integration services guarantee that an ITSM solution is easily introduced and integrated within an organization’s IT environment and that customization services align an ITSM solution to suit an organization’s requirements. Outsourced ITSM services are becoming common, as contract arrangements enable business partners to outsource, hire other experts to handle everyday IT operations, save money and offer superior services.

FIGURE 2: IT SERVICE MANAGEMENT MARKET, BY Component, 2023 VS 2032 (USD MILLION)

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

IT Service Management Deployment Model Insights

Based on deployment model, the global IT service management market has been segmented into on-premises and cloud-based. On-Premises ITSM solutions are installed, and accessed from the organization’s internal network, and data centers. These solutions allow organizations to have complete control over its ITSM system, which is vital for companies that must meet certain security, legal or compliance standards such as finance, healthcare, and government industries. It is common for the companies dealing with strict security standards, when it is crucial to control infrastructure, or when the company already has a strong internal IT environment to have on-premises deployments. Cloud-Based ITSM solutions, on the other hand, has gained substantial popularity due to flexibility, scalability and Flexible pricing and some of the key flexible pricing include. These solutions are installed on servers located outside the operational facilities owned and managed by service providers; users work through an Internet connection. SaaS are most suitable for organizations that want to reduce expenses associated with physical infrastructure, simplify their IT systems, or harness the newest technologies, including artificial intelligence and machine learning and robotic process automation.

IT Service Management Organization Size Insights

Based on Organization Size, the global IT Service Management market has been segmented into small and medium-sized enterprises (SMEs), and large enterprises. SMEs typically have restricted funds particularly for IT services, and most of them lack internal resources to support a robust ITSM. SMEs are more attracted to cloud-based ITSM solutions because these are scalable, flexible, and require little investment at the time of adoption enabling these businesses to leverage sophisticated IT service management without having to invest in expensive hardware and software. Large Enterprises involves large, complicated IT structures that need advanced and flexible ITSM solutions. These organizations handle many assets, a huge inflow of service requests, and have a highly distributed team, which require features like AI based analytics, intelligent incident management, and detailed reporting. Mid and large companies are also more likely to implement the hybrid ITSM solutions in which on-premises and cloud models are used to meet certain business requirements.

IT Service Management Application Area Insights

Based on Application Area, the global IT Service Management market has been segmented into incident and problem management, change and release management, configuration and asset management, service desk management, operations and performance management, network management, governance, risk, and compliance management, and others. Incident and Problem Management is one of the segments of the IT Service Management (ITSM) market that helps to monitor and prevent the decline of service quality. IT Service Management ITSM Change and Release Management is a strategic part of the market that deals with the management and coordination of service change and release. Configuration and Asset Management is one of the most important segments of IT Service Management ITSM. This segment is concerned with keeping a correct record about an organization IT assets and their settings which plays an important role towards delivery of services, management of change and control of risks. Service Desk Management is one of the important subcategories of the IT Service Management (ITSM) market, as it helps to ensure cooperation between IT employees and users. It deals with the management of IT problems, services, and incidents with the goal of providing fast and effective services.

IT Service Management Industry Vertical Insights

Based on Industry Vertical, the global IT Service Management market has been segmented into banking, financial services, and insurance (BFSI), healthcare and life sciences, retail and e-commerce, IT and telecommunications, manufacturing, media and entertainment, government and public sector, energy and utilities, education, and others. The Banking, Financial Services, and Insurance (BFSI) segment is a key market segment of IT Service Management (ITSM) due to great demands from the BFSI industry regarding security, reliability, and efficiency of its IT facilities. Although financial organizations process a tremendous amount of private information and depend on proper functioning of IT systems to provide clients with access to banking applications, perform transactions, and address their concerns. IT & Telecommunications are expected to contribute a significant proportion to the global ITSM market because the above sectors require massive IT support systems to ensure they provide services and support that are uninterrupted and incorporate sophisticated networks. ITSM solutions are vital for the operation of massive data centers, maintaining the efficiency of networks, and delivering high availability of services to millions of clients. Due to the rapid growth in the use of computers, communication technology and business demands for quick, efficient and accurate communication system, the importance of efficient IT functions cannot be overemphasized. This segment continues to grow strongly, as a result of tackling issues in IT and telecom companies which are experiencing complexity in service quality while adopting next generation technology such as 5G, cloud services, and IoT solutions.

IT Service Management Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East and Africa and South America. North America consists of the U.S, Canada, and Mexico. North America is again dominating the IT Service Management (ITSM) market influenced by the developed IT facility and rising technological implementation. These countries have been among the first to adopt ITSM solutions in their businesses across the various sectors with companies appreciating the role of ITSM solutions in improving on the delivery of services, cost efficiency as well as optimization of the IT operations. Rising cloud adoption rates, Artificial Intelligence, and automation are the key drivers for ITSM strategy evolution.

Europe region consists of Germany, UK, France, Italy, Spain, and Rest of Europe for the study. The European market for IT Service Management (ITSM) is set to expand as more and more businesses in sectors ranging from healthcare to manufacturing and finance turn to digital solutions. New IT trends that are being adopted currently include cloud services, AI, and automation; therefore, organizations are turning to enhanced ITSM solutions for efficient management of infrastructure, better service delivery, and support to the business. Due to the transformation of business IT environments to support the needs of digital services, ITSM has become crucial to achieving efficient business processes. Recent changes in the work environment promoted by global events and demanding more remote and hybrid approaches have only highlighted the need for organizations to maintain constant and stable IT support.

The IT Service Management (ITSM) market is expected to grow at the highest CAGR in the Asia Pacific region during the forecast timeframe. This growth is attributed to continued digitisation and the continued investment in it infrastructure in growing economies like India, China and south-east Asia. With the rise in modernization of business environments in these countries the use of cloud computing, AI, automation is being adopted and this makes business try and look for better ITSM solutions to support their service delivery in terms of efficient ways to support the changes. One of the factors driving the need for ITSM solutions in this region is the emerging technology literacy of workers and increasing adoption of remote and blended work.

FIGURE 3: IT SERVICE MANAGEMENT MARKET SIZE BY REGION 2023 VS 2032

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

Further, the major countries studied in the market report are the U.S., Canada, Mexico, Germany, UK, France, Italy, Spain, China, Japan, and India.

IT Service Management Key Market Players & Competitive Insights

The Global IT Service Management Market is characterized by the presence of many global, regional, and local airlines. The regional market is highly competitive, with all the players continually competing to gain a larger market share. Therefore, IT service management vendors must provide cost-effective and efficient services to survive and succeed in a competitive market environment.

The IT Service Management Market is extremely competitive, with players competing, partnering, and investing heavily in research and development to gain a significant market share. The market is moderately fragmented with rising competition, increasing collaborative partnerships, and other strategic decisions to achieve operational efficiency.

The growth of the players is dependent on market conditions, and IT expenditure. Thus, the players should focus on expanding their presence and improving their services. According to MRFR analysis, the growth of the global IT Service Management market is dependent on market conditions. The key players in the market are Microsoft, IBM, Oracle, Freshworks, ServiceNow, Broadcom, and Atlassian. Major companies in the IT Service Management market compete in terms of availability, price, and technology. Regional and local players with small market shares have a significant presence.

Key Companies in the IT Service Management Market include.

• Microsoft


• IBM


• Oracle


• Freshworks


• ServiceNow


• Broadcom


• Ivanti


• Zendesk


• Atlassian


• ManageEngine


• Others

IT Service Management Industry Developments

• In July 2024, Atomicwork, a leading AI-powered ITSM platform, has today announced the launch of its new Modern Service Management solution within Microsoft Teams. Utilizing Microsoft's cutting-edge AI capabilities, Atomicwork aims to serve robust ITSM functions to enterprises so they can deliver instant employee support and handle support issues directly from Microsoft Teams without disrupting employees' flow of work.


• In September 2024, ServiceNow’s latest Now Platform release, dubbed Xanadu, adds a host of new features, including ServiceNow AI Agents, which the company heralds as “a new era of collaboration between people and AI.


• In July 2024, HCLTech and IBM today announced a new collaboration to establish a Generative AI Center of Excellence (GenAI CoE) based on the IBM watsonx AI and data platform.

IT Service Management Market Segmentation

IT Service Management Component Outlook

• Solution


• Services

IT Service Management Deployment Mode Outlook

• On-Premises


• Cloud-Based

IT Service Management Organization Size Outlook

• SMEs


• Large Enterprises

IT Service Management Application Area Outlook

• Incident and Problem Management


• Change and Release Management


• Configuration and Asset Management


• Service Desk Management


• Operations and Performance Management


• Network Management


• Governance, Risk, and Compliance Management


• Others

IT Service Management Industry Vertical Outlook

• Banking, Financial Services, and Insurance (BFSI)


• Healthcare and Life Sciences


• Retail and E-commerce


• IT and Telecommunications


• Manufacturing


• Media and Entertainment


• Government and Public Sector


• Energy and Utilities


• Education


• Others

IT Service Management Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • UK
  
  
  • France
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • South Korea
  
  
  • Malaysia
  
  
  • Thailand
  
  
  • Indonesia
  
  
  • Rest of Asia Pacific
  
  
  
  


• Middle East & Africa
  
  
  
  • GCC Countries
  
  
  • South Africa
  
  
  • Rest of MEA
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of South America