ITSM Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 11 Billion |
| Market Size (2029) | USD 23.84 Billion |
| CAGR (2024 - 2029) | 16.72 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Information Technology Service Management Market Analysis
The ITSM Market size is estimated at USD 11 billion in 2024, and is expected to reach USD 23.84 billion by 2029, growing at a CAGR of 16.72% during the forecast period (2024-2029).
Information technology service management (ITSM) defines all IT-related activities that include creating, delivering, supporting, and managing the customized solutions executed to achieve the business goal of the IT organizations.
- The current state of IT service management (ITSM) is highly significant in the ever-changing field of information technology. It reflects a turning point in how businesses deliver and manage their IT support and services, owing to technological breakthroughs and shifting business dynamics. ITSM is now a strategic requirement that promotes operational excellence, improves employee support and experience, and directly contributes to overall organizational performance rather than just being a support role.
- The year 2023 was crucial for the IT service desk as it highlighted specific needs that were previously unnoticed but now require attention. In 2024, the ITSM (information technology) scene is rapidly changing. Emerging trends in IT service management are gaining prominence and heralding a revolution in employee IT support and technical assistance. Therefore, it is essential for IT service desk managers to stay updated with the latest ITSM trends and their potential impacts.
- The trend of AITSM represents a significant change brought about by Generative AI and modern automation. By utilizing GenAI, this innovative method can proactively and efficiently automate IT requests, actions, and tasks within the IT service desk. Nowadays, leading organizations are adopting GenAI, which has a significant impact on ITSM. When advanced Generative AI is integrated into IT service management operations, businesses can benefit from increased productivity and best practices for resolving various IT-related issues.
- AITSM enhances the efficiency and accuracy of IT support and establishes a foundation for a more responsive and proactive service environment. It incorporates advanced features such as intelligent ticket routing and predictive issue resolution, significantly improving IT service management quality. The success of companies that utilize AITSM will be determined by their ability to leverage the cognitive powers of Generative AI, enabling them to usher in a new era of IT service management characterized by innovation, responsiveness, and efficiency.
- The COVID-19 pandemic significantly impacted the technology industry, caused disruptions in the supply chain value chain, and created threats of commodity inflation. The pandemic also led to a surge in remote work and a heightened focus on evaluating and reducing risks in the end-to-end value chain, which, in turn, fueled the demand for IT service management.
Information Technology Service Management Market Trends
The IT and Telecommunication Segment is Expected to Hold a Significant Market Share
- Modernizing IT service management for IT and telecom sectors is an evolved approach. This bridges the gap between traditional, on-premise, and cloud-based IT systems. It increases operational efficiency and effectiveness. Thus, consolidating how data is captured, analyzed, and shared across enterprises provides an improved experience for internal IT employees and external constituents.
- With rapid technological advancements, telecom businesses are continually focusing on innovation. Thus, they focus on upgrading their infrastructure while developing state-of-the-art solutions to serve their customers, including innovation, customer service, infrastructure setup, and human resources.
- Moreover, the implementation of ITSM solutions helps telecom enterprises gain unified visibility into invoices, expenses, usage, and assets across their entire communications, cloud, and software license portfolio. Thus, it reduces overall costs and enhances productivity, mainly by improving visibility, while providing a finely tuned set of processes to manage existing IT infrastructure. Moreover, IT companies are focusing on adopting ITSM with the increasing demand across the cloud-based models. With the growing adoption of cloud-based ecosystems, companies have expanded their partnership through new offerings across the cloud platform.
- Furthermore, the increase in content across IT enterprises is synced with adding new channels and changing processes. The proliferation of ITSM solutions due to the emergence of social media and smart devices is expected to increase the need to handle transactional and business content and social content to enable content mobilization across different digital channels.
- According to 5G Americas, growth in 5G subscriptions is expected to continue into the foreseeable future, reaching 3 billion subscriptions in two years. That includes 600 million subscriptions over the next two years.
North America is Expected to Hold a Significant Share in the Market
- The region is witnessing an influx in the adoption of IT service solutions to increase efficiency and maintain the productivity of organizations.
- Digital performance management provides performance insights and enables real-time, closed-loop problem-solving. It delivers one universal view of performance, communicated in understandable business metrics: hours. The metrics are easily understandable for frontline workers, managers, and executives and provide a foundation for an enterprise-scale solution.
- Furthermore, the government of Canada has a 'cloud-first' strategy, where cloud services are identified and evaluated as the principal delivery option while initiating information technology investments, initiatives, strategies, and projects. The cloud is also expected to allow the government of Canada to harness the innovation of private-sector providers to make its information technology more agile.
- The recent technological trends, such as enhanced cloud infrastructure, IoT-enabled ecosystem, and the rising application of cognitive computing, provided opportunities to create new business imperatives across the US IT sector.
- The market is witnessing the growth of cloud-based ITSM, owing to the rapid adoption of BYOD policies for improved productivity, employee satisfaction, and cost-effectiveness. These policies require remote accessibility of information, which is facilitated by cloud-based ITSM solutions.
- Owing to remote working practices during the COVID-19 pandemic, most organizations are also taking preventive measures to secure their mobile devices and equipment provided to the employees. The Canadian Centre for Cyber Security encourages the Canadian cybersecurity community, especially critical infrastructure network defenders, to bolster their awareness of and protection against Russian state-sponsored cyber threats. The Cyber Centre joins US and UK partners in recommending proactive network monitoring and mitigations.
Information Technology Service Management Industry Overview
The information technology service management market is highly fragmented, with the presence of major players like IBM Corporation, ASG Technologies Group Inc. (Rocket Software), Atlassian Corporation PLC, Micro Focus International PLC (Open Text Corporation), and Broadcom Inc. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- October 2023: EY and IBM jointly launched EY.ai Workforce, an innovative HR solution enabling organizations to integrate artificial intelligence (AI) into their key HR business processes. This collaboration between the companies is a significant milestone in the role of AI, which is aimed at increasing productivity within the HR function.
- November 2023: Atlassian Corporation, the company behind popular tools like Jira, Confluence, and Bitbucket, acquired AirTrack, a leading IT data quality management technology provider. This acquisition is part of Atlassian's ongoing efforts to help businesses adopt a comprehensive asset and configuration management approach. By combining the capabilities of AirTrack and Jira Service Management, enterprises can keep track of all their critical assets more effectively, thereby reducing operational risks, costs, and attack surfaces.
Information Technology Service Management Market Leaders
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IBM Corporation
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ASG Technologies Group Inc. (Rocket Software)
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Atlassian Corporation PLC
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Micro Focus International PLC (Open Text Corporation)
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Broadcom Inc.
*Disclaimer: Major Players sorted in no particular order
Information Technology Service Management Market News
- April 2024: 4me, which has a software platform that covers everything from agile development to managed service providers (MSPs), consolidated its position in the fiercely competitive IT service management (ITSM) market by acquiring StatusCast, a provider of cloud-based incident management products.
- February 2024: Lyvia Group, a European tech and software solutions group, acquired Gorilla Services BV. This acquisition has strengthened Lyvia Group's position in CRM, project management, and IT service management solutions. The acquisition of Gorilla Services added EUR 1.1 million in EBITDA to the group and marks the second company in the Benelux region to join the Lyvia Group.
IT Service Management (ITSM) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of the Impact of the COVID-19 Pandemic on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Adoption of Updated IT Infrastructure Across End-user Industries
5.1.2 Increasing Demand for a Unified Platform to Manage and Monitor IT Infrastructure Performance
5.2 Market Restraints
5.2.1 Issues in ITSM Implementation and Lack of Quality Standards in Service-level Agreement
6. MARKET SEGMENTATION
6.1 By Deployment
6.1.1 Cloud
6.1.2 On-premise
6.2 By Application
6.2.1 Configuration Management
6.2.2 Performance Management
6.2.3 Network Management
6.2.4 Database Management Systems
6.2.5 Other Applications
6.3 By End-user Industry
6.3.1 BFSI
6.3.2 Manufacturing
6.3.3 Government and Education
6.3.4 IT and Telecommunication
6.3.5 Retail
6.3.6 Travel and Hospitality
6.3.7 Healthcare
6.3.8 Other End-user Industries
6.4 By Geography
6.4.1 North America
6.4.2 Europe
6.4.3 Asia-Pacific
6.4.4 Latin America
6.4.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 IBM Corporation
7.1.2 ASG Technologies Group Inc.
7.1.3 Atlassian Corporation PLC
7.1.4 Micro Focus International PLC
7.1.5 Broadcom Inc.
7.1.6 Axios Systems
7.1.7 BMC Software Inc. (Kohlberg Kravis Roberts & Co. LP )
7.1.8 Freshworks Inc.
7.1.9 Ivanti Inc.
7.1.10 ServiceNow Inc.
- *List Not Exhaustive
8. VENDOR COMPETITIVENESS
8.1 Vendor Market Revenue, 2023
8.2 Vendor Comparative Analysis
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
Information Technology Service Management Industry Segmentation
Information technology service management (ITSM) is a practice that is designed to deliver IT services to enterprises. These tools aid the growth of an organization by aligning its IT processes and services with the business objectives. The scope of the report encompasses market sizing and forecast for segmentation by deployment, application, end-user industry, and geography. The market size is based on the cumulative revenue of vendors through subscription, licensing, and related services. The study tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyzes the overall impact of the COVID-19 pandemic on the ecosystem.
The information technology service management market is segmented by deployment (cloud and on-premise), application (configuration management, performance management, network management, database management system, and other applications), end-user industry (BFSI, manufacturing, government and education, IT and telecommunication, retail, travel and hospitality, healthcare, and other end-user industries), geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Deployment | |
| Cloud | |
| On-premise |
| By Application | |
| Configuration Management | |
| Performance Management | |
| Network Management | |
| Database Management Systems | |
| Other Applications |
| By End-user Industry | |
| BFSI | |
| Manufacturing | |
| Government and Education | |
| IT and Telecommunication | |
| Retail | |
| Travel and Hospitality | |
| Healthcare | |
| Other End-user Industries |
| By Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East and Africa |
IT Service Management (ITSM) Market Research FAQs
How big is the ITSM Market?
The ITSM Market size is expected to reach USD 11 billion in 2024 and grow at a CAGR of 16.72% to reach USD 23.84 billion by 2029.
What is the current ITSM Market size?
In 2024, the ITSM Market size is expected to reach USD 11 billion.
Who are the key players in ITSM Market?
IBM Corporation, ASG Technologies Group Inc. (Rocket Software), Atlassian Corporation PLC, Micro Focus International PLC (Open Text Corporation) and Broadcom Inc. are the major companies operating in the ITSM Market.
Which is the fastest growing region in ITSM Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in ITSM Market?
In 2024, the North America accounts for the largest market share in ITSM Market.
What years does this ITSM Market cover, and what was the market size in 2023?
In 2023, the ITSM Market size was estimated at USD 9.16 billion. The report covers the ITSM Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the ITSM Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key factors driving the IT Service Management (ITSM) industry?
The key factors driving the IT Service Management (ITSM) Industry are a) Increased demand for digital transformation and business agility b) Need for improved IT cost optimization and resource management
What are the key factors driving the IT Service Management (ITSM) industry?
The key factors driving the IT Service Management (ITSM) Industry are a) Increased demand for digital transformation and business agility b) Need for improved IT cost optimization and resource management
IT Service Management Industry Report
The global IT Service Management (ITSM) industry is witnessing remarkable growth, fueled by the surge in cloud computing adoption and the necessity for efficient management of intricate IT frameworks. This expansion is notably driven by cloud solutions, known for their swift deployment and cost-effectiveness, making them accessible to businesses of all sizes. Additionally, there's a growing demand for automated IT process management, underscoring the need for streamlined operations to boost performance and minimize disruptions. The IT and telecommunications sector is set to dominate a significant portion of the ITSM market share, leveraging modern ITSM solutions that integrate traditional and cloud-based systems. North America is at the forefront, due to the swift adoption of digital business strategies and the presence of leading ITSM solution providers. The shift towards managed services and the emphasis on customer experience highlight the evolving dynamics of the ITSM industry, which, coupled with government initiatives on technology use and cybersecurity, presents numerous opportunities for growth and innovation. For detailed insights, Mordor Intelligenceā¢ offers comprehensive analysis and forecasts on ITSM market share, size, and revenue growth, available for download as a free report PDF.
