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    US IT Service Management Market

    ID: MRFR/ICT/14934-HCR
    100 Pages
    Garvit Vyas
    October 2025

    US IT Service Management Market Research Report: By Service Type (Incident Management, Problem Management, Change Management, Service Request Management, Configuration Management), By Deployment Type (On-Premises, Cloud-Based, Hybrid), By Industry (IT and Telecommunications, BFSI, Healthcare, Retail, Manufacturing) and By Organization Size (Small Enterprises, Medium Enterprises, Large Enterprises) - Forecast to 2035

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    US IT Service Management Market Infographic
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    US IT Service Management Market Summary

    As per MRFR analysis, the US it service-management market Size was estimated at 3346.34 USD Billion in 2024. The US it service-management market is projected to grow from 3775.35 USD Billion in 2025 to 12613.27 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 12.82% during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The US IT service-management market is experiencing a transformative shift driven by technological advancements and evolving customer needs.

    • The integration of AI and automation is reshaping service delivery and operational efficiency.
    • Data security and compliance are becoming paramount as organizations navigate regulatory landscapes.
    • Cloud-based solutions are gaining traction, reflecting a broader shift towards flexible IT infrastructures.
    • The growing demand for IT efficiency and increased focus on customer experience are key drivers of market growth.

    Market Size & Forecast

    2024 Market Size 3346.34 (USD Billion)
    2035 Market Size 12613.27 (USD Billion)

    Major Players

    ServiceNow (US), BMC Software (US), Atlassian (AU), IBM (US), Micro Focus (GB), Cherwell Software (US), Freshworks (IN), ManageEngine (IN), Zendesk (US)

    US IT Service Management Market Trends

    the IT Service-Management Market is currently experiencing a transformative phase, driven by the increasing reliance on technology across various sectors. Organizations are prioritizing the optimization of their IT services to enhance operational efficiency and improve customer satisfaction. This shift is largely influenced by the growing complexity of IT environments, which necessitates more sophisticated management solutions. As businesses strive to remain competitive, they are investing in advanced tools and platforms that facilitate better service delivery and incident management. Furthermore, the integration of artificial intelligence and automation into service management processes is becoming more prevalent, suggesting a trend towards more streamlined operations. In addition, the emphasis on data security and compliance is shaping the landscape of the IT Service-Management Market. Companies are increasingly aware of the risks associated with data breaches and are seeking solutions that not only manage services but also ensure robust security measures. This focus on security is likely to drive demand for comprehensive service management frameworks that incorporate risk management and compliance features. As the market evolves, it appears that organizations will continue to seek innovative solutions that address both operational needs and security concerns, ultimately leading to a more resilient IT infrastructure.

    Integration of AI and Automation

    The incorporation of artificial intelligence and automation technologies is reshaping the it service-management market. Organizations are leveraging these advancements to enhance efficiency, reduce response times, and improve service quality. Automated processes are likely to minimize human error and streamline workflows, allowing IT teams to focus on more strategic initiatives.

    Focus on Data Security and Compliance

    As data breaches become increasingly common, the emphasis on security within the it service-management market is intensifying. Companies are prioritizing solutions that not only manage IT services but also ensure compliance with regulatory standards. This trend indicates a growing need for integrated frameworks that address both operational and security challenges.

    Shift Towards Cloud-Based Solutions

    The migration to cloud-based service management solutions is gaining momentum. Organizations are recognizing the benefits of scalability, flexibility, and cost-effectiveness that cloud platforms offer. This shift suggests a potential transformation in how IT services are delivered and managed, with an increasing reliance on cloud technologies.

    US IT Service Management Market Drivers

    Adoption of Agile Methodologies

    The it service-management market is being driven by the widespread adoption of agile methodologies across various sectors. Organizations are increasingly recognizing the benefits of agile practices in enhancing flexibility and responsiveness to changing business needs. This shift towards agility necessitates the implementation of service management solutions that support iterative processes and continuous improvement. Recent surveys indicate that over 60% of IT departments are transitioning to agile frameworks, which is likely to create a robust demand for tailored service management tools. As businesses embrace agility, the IT Service-Management Market is poised for significant growth.

    Growing Demand for IT Efficiency

    The it service-management market is experiencing a notable surge in demand for enhanced operational efficiency. Organizations are increasingly recognizing the necessity of streamlining IT processes to reduce costs and improve service delivery. According to recent data, companies that implement effective IT service management strategies can achieve up to 30% reductions in operational costs. This trend is driven by the need for businesses to remain competitive in a rapidly evolving technological landscape. As organizations strive to optimize their IT resources, the IT Service-Management Market is likely to see a corresponding increase in the adoption of innovative solutions that facilitate efficiency and productivity.

    Rising Complexity of IT Environments

    The it service-management market is significantly influenced by the growing complexity of IT environments. As organizations adopt diverse technologies, including cloud services, mobile applications, and IoT devices, managing these multifaceted systems becomes increasingly challenging. This complexity necessitates robust service management solutions to ensure seamless integration and operation. Recent studies indicate that over 70% of IT leaders cite managing hybrid environments as a top priority. Consequently, the demand for sophisticated service management tools that can address these complexities is expected to rise, driving growth in the IT Service-Management Market.

    Increased Focus on Customer Experience

    In the current landscape, the IT Service-Management Market is witnessing a heightened emphasis on customer experience. Organizations are increasingly aware that superior IT services directly correlate with customer satisfaction and retention. As a result, many are investing in service management solutions that enhance user experience and streamline support processes. Data suggests that companies prioritizing customer experience can see improvements in customer loyalty by as much as 25%. This focus on delivering exceptional service is likely to propel the growth of the it service-management market as businesses seek to differentiate themselves through superior service offerings.

    Regulatory Compliance and Risk Management

    the IT Service-Management Market is also shaped by the increasing need for regulatory compliance and risk management. With the rise of data protection regulations, such as GDPR and CCPA, organizations are compelled to adopt comprehensive service management frameworks that ensure compliance. This trend is particularly pronounced in industries such as finance and healthcare, where non-compliance can result in substantial penalties. As organizations navigate these regulatory landscapes, the demand for IT service management solutions that facilitate compliance and mitigate risks is expected to grow, thereby influencing the market positively.

    Market Segment Insights

    By Service Type: Incident Management (Largest) vs. Problem Management (Fastest-Growing)

    In the US it service-management market, the service type segment reveals a compelling distribution with Incident Management holding the lion's share. This sector, seen as vital for organizations seeking to minimize downtime and improve user experience, significantly outpaces other service types in market penetration and customer adoption. Problem Management, while smaller in share, is rapidly gaining traction as businesses aim to tackle root causes and enhance operational efficiency, thus driving this segment’s growth. The growth trends in the US it service-management market indicate that Problem Management is becoming an increasingly vital area for investment as enterprises realize the importance of addressing underlying issues rather than merely responding to incidents. Enhanced technological capabilities, coupled with the rise of automation and AI, are propelling the adoption of these services. Organizations are looking to integrate proactive management strategies into their operations to achieve a more resilient IT framework, further bolstering the need for these services.

    Incident Management (Dominant) vs. Configuration Management (Emerging)

    Incident Management is firmly positioned as the dominant service type within the US it service-management market, primarily due to its critical role in ensuring operational continuity and superior user satisfaction. As organizations continue to navigate increasing IT complexities, Incident Management solutions are being prioritized to swiftly address and resolve disruptions. In contrast, Configuration Management is emerging as a key player, highlighting the growing need for organizations to maintain accurate IT asset configurations. While traditionally seen as secondary, Configuration Management is gaining importance in streamlining processes, supporting compliance efforts, and optimizing resource allocation. The synergy of these two service types is shaping how companies manage their IT environments, ensuring stability while adapting to evolving technological landscapes.

    By Deployment Type: Cloud-Based (Largest) vs. On-Premises (Fastest-Growing)

    In the US it service-management market, the deployment type segment exhibits a diverse landscape with varying levels of market share. Currently, Cloud-Based solutions dominate this space, capturing a significant portion of user preferences due to their flexibility and scalability. In contrast, On-Premises systems, while historically favored, are now seeing a resurgence driven by organizations seeking greater control over their IT environments. As businesses transition to more modern IT frameworks, the distribution between these types is shifting, with a noticeable tilt towards cloud solutions. Growth trends indicate a robust movement towards Cloud-Based deployments as businesses increasingly prioritize remote access and operational efficiency. Additionally, the rising demand for Hybrid models signals an emerging trend where organizations leverage both On-Premises and Cloud-Based solutions. This hybrid approach is fueled by the need for customizable solutions that blend the security of On-Premises systems with the accessibility of cloud technology, catering to diverse enterprise needs.

    Cloud-Based (Dominant) vs. On-Premises (Emerging)

    Cloud-Based deployment in the US it service-management market stands as a dominant force, appealing to enterprises for its cost-effectiveness and ease of integration with existing systems. Organizations benefit from reduced IT overhead while accessing advanced features and regular updates without the need for extensive infrastructure changes. In contrast, the On-Premises segment is emerging as more firms recognize the importance of customized environments that fulfill specific regulatory and security requirements. As companies evaluate their operational strategies, the On-Premises solutions are making a comeback by offering the assurance of control over data sensitive to their industries, appealing to firms that prioritize compliance and internal governance.

    By Industry: IT and Telecommunications (Largest) vs. Healthcare (Fastest-Growing)

    The US it service-management market shows significant variation in market share across different industries. The IT and Telecommunications segment holds the largest share due to its critical need for robust service management solutions to support daily operations. Following closely are the BFSI and Healthcare sectors, which also invest heavily in IT services to enhance operational efficiency and security. Retail and Manufacturing represent smaller yet vital segments that contribute collectively to the market dynamics. Growth trends in the US it service-management market indicate that the Healthcare sector is emerging as the fastest-growing segment. The increasing reliance on technology to improve patient care and streamline operations drives this growth. Moreover, the demand for secure and compliant IT solutions is on the rise. The IT and Telecommunications sector, while still large, is evolving, focusing on innovation and integration as digital transformation accelerates across industries.

    IT and Telecommunications: Dominant vs. Healthcare: Emerging

    The IT and Telecommunications sector remains a dominant force in the US it service-management market, characterized by its extensive adoption of advanced technologies such as cloud computing and AI. This segment invests significantly in service management solutions that enhance operational efficiency, reliability, and customer satisfaction. On the other hand, Healthcare is recognized as an emerging segment that is rapidly adopting it service-management strategies to leverage technology for improved patient outcomes and streamlined processes. The focus on regulatory compliance and the integration of electronic health records (EHR) systems further fuels investment in IT services within this sector, highlighting its growth potential and strategic importance in the overall market.

    By Organization Size: Large Enterprises (Largest) vs. Small Enterprises (Fastest-Growing)

    In the US it service-management market, Large Enterprises command a significant share, driven by their extensive resources and need for scalability. They invest heavily in advanced service management solutions to streamline operations and improve efficiency, contributing to their market leadership. In contrast, Small Enterprises, while holding a smaller market share, demonstrate a growing inclination towards adopting IT service management solutions, seeking enhanced operational capabilities to compete effectively. The growth trends indicate that Small Enterprises are emerging as the fastest-growing segment in the market. This growth is fueled by the increasing digitalization and the need for SMEs to improve their IT operations. Many small businesses are realizing the importance of robust IT service management to foster growth and enhance customer satisfaction, which further drives their adoption of these services.

    Large Enterprises: Dominant vs. Small Enterprises: Emerging

    Large Enterprises in the US it service-management market are characterized by their robust infrastructure and significant budgets for technology investments. They utilize sophisticated service management tools that facilitate complex IT operations and support large-scale projects across multiple locations. On the other hand, Small Enterprises, despite having fewer resources, are rapidly adopting these solutions due to their necessity for cost-effective IT management. The agile nature of small businesses enables them to implement changes quickly, making them open to innovative service management solutions that enhance their overall efficiency and competitiveness in the marketplace, positioning them as an emerging segment.

    Get more detailed insights about US IT Service Management Market

    Key Players and Competitive Insights

    The it service-management market is currently characterized by a dynamic competitive landscape, driven by rapid technological advancements and an increasing demand for efficient IT operations. Key players such as ServiceNow (US), BMC Software (US), and IBM (US) are at the forefront, each adopting distinct strategies to enhance their market positioning. ServiceNow (US) focuses on innovation through its cloud-based solutions, aiming to streamline IT workflows and improve user experiences. BMC Software (US) emphasizes digital transformation, leveraging AI and automation to optimize service delivery. Meanwhile, IBM (US) is concentrating on strategic partnerships and acquisitions to bolster its service portfolio, particularly in cloud computing and AI integration, thereby shaping a competitive environment that prioritizes technological advancement and customer-centric solutions.

    The business tactics employed by these companies reflect a moderately fragmented market structure, where localized strategies and supply chain optimization play crucial roles. Companies are increasingly localizing their offerings to cater to specific regional needs, which enhances their competitive edge. The collective influence of these key players fosters a competitive atmosphere that encourages innovation and responsiveness to market demands, ultimately benefiting end-users through improved service management solutions.

    In October 2025, ServiceNow (US) announced a strategic partnership with a leading AI firm to enhance its machine learning capabilities within its service management platform. This move is significant as it positions ServiceNow (US) to leverage advanced AI technologies, potentially improving service automation and predictive analytics, which are critical for modern IT operations. Such advancements may lead to increased customer satisfaction and operational efficiency, reinforcing ServiceNow's (US) market leadership.

    In September 2025, BMC Software (US) launched a new version of its IT service management suite, incorporating enhanced automation features aimed at reducing manual processes. This strategic action is likely to attract organizations seeking to streamline their IT operations, thereby solidifying BMC's (US) reputation as a leader in automation within the service management space. The introduction of these features may also reflect a broader industry trend towards automation and efficiency.

    In August 2025, IBM (US) completed the acquisition of a prominent cloud service provider, which is expected to expand its service management capabilities significantly. This acquisition is strategically important as it allows IBM (US) to integrate cloud solutions with its existing service management offerings, potentially creating a more comprehensive and competitive product suite. Such strategic moves indicate a trend towards consolidation in the market, where companies seek to enhance their capabilities through mergers and acquisitions.

    As of November 2025, the competitive trends in the it service-management market are increasingly defined by digitalization, sustainability, and AI integration. Strategic alliances are becoming more prevalent, as companies recognize the need to collaborate to stay competitive in a rapidly evolving landscape. Looking ahead, it appears that competitive differentiation will increasingly hinge on innovation and technological advancements rather than solely on price. The focus on supply chain reliability and the integration of cutting-edge technologies will likely shape the future of competition in this market.

    Key Companies in the US IT Service Management Market market include

    Industry Developments

    Recent developments in the US IT Service Management Market have showcased significant advancements and competitive activities among key players. BMC Software has been focused on enhancing its automation and analytics capabilities, while ServiceNow continues to expand its offerings with new features aimed at improving customer experience. Salesforce is emphasizing its integration with ITSM tools to support digital transformation initiatives across sectors. In terms of mergers and acquisitions, Atera announced its acquisition of a complementary software solution to bolster its service offerings in June 2023, and IBM has pursued strategic partnerships to enhance its IT service delivery model. 

    Freshworks and Zendesk have also been competing aggressively, with Freshworks recently unveiling a comprehensive ITSM platform in August 2023. Industry analysts noted that the US market for IT service management is expected to reach USD 10 billion by 2024, driven by increased cloud adoption and the need for efficient IT operations. Companies like Atlassian and ManageEngine continue to innovate, focusing on ease of use and integration with other platforms. Major trends include a shift towards artificial intelligence and automation, which are expected to transform traditional IT service management practices in the near future.

    Future Outlook

    US IT Service Management Market Future Outlook

    The IT service-management market is projected to grow at a 12.82% CAGR from 2024 to 2035, driven by digital transformation, automation, and enhanced customer experience.

    New opportunities lie in:

    • Integration of AI-driven analytics for proactive service management
    • Development of subscription-based service models for recurring revenue
    • Expansion into niche markets with tailored IT service solutions

    By 2035, the market is expected to achieve substantial growth, reflecting evolving business needs and technological advancements.

    Market Segmentation

    US IT Service Management Market Industry Outlook

    • IT and Telecommunications
    • BFSI
    • Healthcare
    • Retail
    • Manufacturing

    US IT Service Management Market Service Type Outlook

    • Incident Management
    • Problem Management
    • Change Management
    • Service Request Management
    • Configuration Management

    US IT Service Management Market Deployment Type Outlook

    • On-Premises
    • Cloud-Based
    • Hybrid

    US IT Service Management Market Organization Size Outlook

    • Small Enterprises
    • Medium Enterprises
    • Large Enterprises

    Report Scope

    MARKET SIZE 2024 3346.34(USD Billion)
    MARKET SIZE 2025 3775.35(USD Billion)
    MARKET SIZE 2035 12613.27(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 12.82% (2024 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2024
    Market Forecast Units USD Billion
    Key Companies Profiled ServiceNow (US), BMC Software (US), Atlassian (AU), IBM (US), Micro Focus (GB), Cherwell Software (US), Freshworks (IN), ManageEngine (IN), Zendesk (US)
    Segments Covered Service Type, Deployment Type, Industry, Organization Size
    Key Market Opportunities Integration of artificial intelligence to enhance automation and efficiency in the it service-management market.
    Key Market Dynamics Growing demand for automation in IT service management drives competitive innovation and efficiency improvements.
    Countries Covered US

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    FAQs

    What is the projected market size of the US IT Service Management Market in 2024?

    The US IT Service Management Market is expected to be valued at 10.0 USD Billion in 2024.

    What is the expected CAGR for the US IT Service Management Market from 2025 to 2035?

    The market is anticipated to grow at a CAGR of 6.009 percent from 2025 to 2035.

    How much is the US IT Service Management Market expected to be valued by 2035?

    By 2035, the overall market is projected to reach 19.0 USD Billion.

    Which service type accounts for the largest segment within the US IT Service Management Market in 2024?

    Incident Management is the largest segment, valued at 3.0 USD Billion in 2024.

    What is the market value for Change Management in the US IT Service Management Market in 2035?

    Change Management is expected to reach a market value of 3.6 USD Billion by 2035.

    Who are the key players in the US IT Service Management Market?

    Major players include BMC Software, ServiceNow, Salesforce, IBM, and Zendesk among others.

    What is the expected market size for Problem Management in 2024?

    The Problem Management segment is projected to be valued at 1.5 USD Billion in 2024.

    What growth opportunities exist in the US IT Service Management Market?

    The increasing demand for automation and efficiency presents significant growth opportunities.

    How is the Configuration Management service valued in 2035?

    Configuration Management is forecasted to reach a value of 2.6 USD Billion by 2035.

    What factors are expected to drive growth in the US IT Service Management Market?

    The need for improved IT processes and the adoption of cloud services are key growth drivers.

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