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ITSM Market

ITSM Market Size, Share, Competitive Landscape and Trend Analysis Report by Component, by Function, by Deployment Mode, by Enterprise Size, by End User : Global Opportunity Analysis and Industry Forecast, 2023-2032

IC : Software and Services

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Author's: Apoorv Priyadarshi | Onkar Sumant
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ITSM Market Statistics: 2032

The global ITSM market was valued at $9.1 billion in 2022, and is projected to reach $28.7 billion by 2032, growing at a CAGR of 12.4% from 2023 to 2032.

The information technology service management market is expected to witness notable growth owing to rising adoption of its infrastructure across the end user industries, surge in digital business transformation, and increasing demand for a unified platform. Moreover, the need for improved it service delivery is expected to provide a lucrative opportunity for the growth of the market during the forecast period. On the contrary, implementation and lack of quality standards in service-level limits the growth of the information technology service management market.

ITSM Market

IT service management (ITSM) is a general term that describes a strategic approach of using IT to design, deliver, manage, and improve businesses. ITSM includes all the discrete activities and processes that support a service throughout its lifecycle, from service and change management, to problem, incident, asset, and knowledge management. ITSM aims to align the delivery of IT services with the needs of the enterprise. The full form of ITSM is IT Service Management. The focus of ITSM tools is to deliver satisfactory service to the end-user. ITSM is a combination of a set of defined policies, processes, and methods for delivering IT products and services. It improves and supports customer-centric IT services.

An IT service enables access to information and processes to accomplish important business goals or otherwise provide value. IT services include the deployment and support of enterprise applications, such as Exchange Server; architecting and optimizing IT infrastructure such as storage, networking, and cloud resources; and the creation and management of processes such as help desk support and troubleshooting procedures.

By adopting ITSM principles, organizations enhance efficiency, reduce costs, and improve customer satisfaction by delivering reliable and responsive IT services. The continual improvement aspect of ITSM emphasizes an iterative process of refining services over time, allowing organizations to adapt to changing business needs and technological advancements.

The ITSM market is segmented on the basis of component, function, deployment mode, enterprise size, end user, and region. On the basis of component, the market is categorized into solution and services. On the basis of function, the market is divided into configuration management, performance management, network management, and database management system. By deployment mode, it is divided into on-premise and cloud. On the basis of enterprise size, the market is classified into large enterprise and small & medium-sized enterprise. On the basis of end user, the market is segregated into BFSI, healthcare, retail & e-commerce, IT & telecom, manufacturing, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The report focuses on growth prospects, restraints, and analysis of the global ITSM market trends. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, the threat of new entrants, threat of substitutes, and bargaining power of buyers on the global ITSM market analysis.

ITSM Market by Component

On the basis of component, the solution segment dominated the ITSM market size in 2022, owing to the organizations leverage the scalability, flexibility, and cost-effectiveness of cloud platforms to host their ITSM tools, enabling easier remote access, streamlined updates, and improved collaboration among distributed teams. However, the services segment is expected to witness the fastest growth, owing to the increasing emphasis on user-centric services, driven by the recognition that positive user experiences are essential for organizational success. This involves not only delivering reliable and efficient IT services but also ensuring they align with the needs and expectations of end-users.

ITSM Market by Region

Region-wise North America dominated the ITSM market share in 2022, owing to the surge in the integration of artificial intelligence (AI) and machine learning (ML) within ITSM frameworks, aimed at automating routine tasks, improving predictive analytics, and enhancing overall service delivery. However, Asia-Pacific is expected to witness the fastest growth in the upcoming year, owing to the organizations leveraging ITSM to navigate through digital transformation by adopting machine learning algorithms and integration of artificial intelligence within digital technologies. Cloud computing is a prevailing trend, offering scalability and flexibility for IT service delivery.

Top Impacting Factors

Rising Adoption of IT Infrastructure Across the End User Industries

The increasing adoption of IT infrastructure across various end-user industries is primarily fueled by the imperative of digital transformation. As organizations strive to remain competitive in today's dynamic business landscape, ITSM emerges as a cornerstone for aligning technological capabilities with strategic objectives. The contemporary business environment is characterized by a heightened complexity of IT ecosystems, marked by the integration of diverse technologies such as cloud computing, the Internet of Things (IoT), and big data. In this context, ITSM provides a structured and comprehensive framework to manage and optimize IT services, ensuring streamlined operations and effective support.

Moreover, the growing emphasis on customer experience as a key differentiator for businesses underscores the importance of ITSM in delivering efficient and responsive IT services. By promptly addressing incidents, problems, and service requests, ITSM contributes to heightened customer satisfaction.

The regulatory landscape has become increasingly stringent, with industries facing rigorous compliance requirements, particularly concerning data privacy and security. ITSM, with its focus on standardized processes and risk mitigation, emerges as a strategic ally in navigating the complexities of regulatory adherence. By providing a structured and transparent approach to IT service delivery, ITSM helps organizations demonstrate and maintain compliance, safeguarding sensitive information and bolstering trust.

Increasing Demand for a Unified Platform

The increasing demand for a unified platform in IT Service Management (ITSM) is underpinned by the pressing need for organizations to overcome the challenges posed by the growing complexity of IT landscapes. With the proliferation of diverse technologies, the traditional, fragmented approach to managing IT services using disparate tools and systems has become cumbersome and inefficient.

A unified platform in ITSM acts as a driving force by providing a centralized hub that integrates various service management functions, such as incident management, change management, and asset management. This integration not only fosters collaboration among different IT teams but also streamlines workflows, reducing redundancy and improving overall operational efficiency.

Moreover, the rising adoption of hybrid and multi-cloud infrastructures further accentuates the demand for a unified platform. Such platforms enable organizations to manage services seamlessly across on-premises and cloud environments, ensuring consistency and coherence in service delivery. This is particularly crucial in the context of digital transformation, where the demand for agility and responsiveness is at its peak. A unified platform also plays a crucial role in enhancing the end-user experience. By providing a single point of access and a consistent interface for various IT services, it simplifies interactions for both IT staff and end-users, reducing the learning curve and enhancing overall user satisfaction.

Competition Analysis

Competitive analysis and profiles of the major players in the ITSM industy include Atlassian, BMC Software, Inc., Broadcom, Cloud Software Group, Inc., Freshworks Inc., Hewlett Packard Enterprise Development LP, IBM Corporation, Ivanti, Inc., Open Text Corporation, and ServiceNow, Inc. Major players have adopted product launch, partnership, collaborations, and acquisition as key developmental strategies to improve the product portfolio and gain strong foothold in the ITSM industy.

Recent Partnership in the Market

On October 2022, Atlassian partnered with Accenture, a global professional services company with leading capabilities in digital, cloud and security, to help organizations drive more value from technology investments, improve customer and employee experiences, embrace change and create new business value with enterprise agility services.

On October 2020, IBM partnered with ServiceNow to help companies reduce operational risk and lower costs by applying AI to automate IT operations by combining IBM's AI-powered hybrid cloud software and professional services to ServiceNow's intelligent workflow capabilities and market-leading IT service and operations management products.

On November 2023, Ivanti, the tech company that elevates and secures everywhere work partnered with Securin Inc. a leading provider of tech-enabled cybersecurity solutions and recipient of the SINET16 Innovators award. The partnership integrates Securin’s Vulnerability Intelligence into Ivanti Neurons for vulnerability knowledge base, enriching the feed through input from numerous trusted sources.

On June 2023, Cloud Software Group partnered with Midis Group through its subsidiary MiCloudSW Ltd. The partnership provides Cloud Software Group with the local resources customers need to support their transformative technology journey and the scale required to expand its reach in these regions.

Recent Product Launch in the Market

On September 2023, ServiceNow, the leading digital workflow company making the world work better for everyone launched Now Assist for IT Service Management (ITSM), Customer Service Management (CSM), HR Service Delivery (HRSD), and Creator embed the power of generative AI across all workflows on the Now Platform to help accelerate productivity, improve experiences, and increase agility for customers.

Recent Acquisition in the Market

On July 2020, Freshworks acquired Flint, an IT orchestration and cloud management platform based in India. The acquisition will help Freshworks strengthen its Freshservice IT support service by bringing a number of new automation tools to it.

On December 2020, Ivanti, Inc., which automates IT and security operations to discover, manage, secure and service from cloud to edge acquired MobileIron, a leading provider of mobile-centric unified endpoint management solutions, to deliver intelligent and secure experiences across all devices in the everywhere enterprise.

Key Benefits for Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the ITSM market analysis from 2022 to 2032 to identify the prevailing ITSM market growth.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the ITSM market forecast assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global ITSM market trends, key players, market segments, application areas, and market growth strategies.

ITSM Market Report Highlights

Aspects Details
Market Size By 2032

USD 28.7 billion

Growth Rate

CAGR of 12.4%

Forecast period

2022 - 2032

Report Pages


By Component
  • Solution
  • Services
By Function
  • Network Management
  • Performance Management
  • Configuration Management
  • Database Management System
By Deployment Mode
  • On-premise
  • Cloud
By Enterprise Size
  • Large Enterprise
  • Small and Medium-sized Enterprise
By End User
  • BFSI
  • Healthcare
  • Retail and E-commerce
  • IT and Telecom
  • Manufacturing
  • Others
By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Italy, Spain, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
Key Market Players

Hewlett Packard Enterprise Development LP, BMC Software, Inc., ServiceNow, Inc., IBM Corporation, Atlassian, Cloud Software Group, Inc., Freshworks Inc., Open Text Corporation., Ivanti, Inc., Broadcom

Analyst Review

Information technology service management (ITSM) typically offers a comprehensive evaluation of the industry, shedding light on key trends, market dynamics, and emerging technologies. Analysts often emphasize the strategic importance of ITSM in aligning technology with business objectives and improving overall operational efficiency. The reviews delve into the integration of advanced technologies such as artificial intelligence, machine learning, and automation within ITSM frameworks, highlighting their impact on service delivery and customer experience. Analysts also assess the competitive landscape, providing insights into major vendors, their market share, and strategies. They explore the implications of global factors, regulatory changes, and industry shifts on ITSM practices. In addition, analyst reviews often address the evolving role of ITSM in supporting digital transformation initiatives, cybersecurity concerns, and the increasing demand for agile and scalable solutions. These insights are crucial for businesses and IT leaders seeking a strategic understanding of ITSM trends and developments to inform their decision-making processes.

Furthermore, the competitive landscape is a focal point, with analysts offering assessments of key vendors, their strengths, weaknesses, and market positioning. They explore vendor strategies, partnerships, and innovations, providing valuable information for businesses looking to make informed decisions about ITSM solutions. From a strategic perspective, analyst reviews often discuss how ITSM aligns with broader business goals, emphasizing its role in fostering innovation, supporting digital initiatives, and ensuring a positive customer experience. They highlight successful case studies, best practices, and industry benchmarks, offering actionable insights for organizations seeking to optimize their ITSM strategies.

Author Name(s) : Apoorv Priyadarshi | Onkar Sumant
Frequently Asked Questions?

The ITSM Market was valued at $9,142.48 million in 2022 and is estimated to reach $28,683.68 million by 2032, exhibiting a CAGR of 12.4% from 2023 to 2032.

North America is the largest regional market for ITSM

The global ITSM market is dominated by key players such as Atlassian, BMC Software, Inc., Broadcom, Cloud Software Group, Inc., Freshworks Inc., Hewlett Packard Enterprise Development LP, IBM Corporation, Ivanti, Inc., Open Text Corporation, and ServiceNow, Inc.

Need for improved it service delivery is the leading application of ITSM Market

Rising adoption of its infrastructure across the end user industries and surge in digital business transformation are the upcoming trends of ITSM Market in the world

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ITSM Market

Global Opportunity Analysis and Industry Forecast, 2023-2032