Information Technology Service Management (ITSM) Market Size, Share & Trends Analysis Report, By Component, By Technology, By Deployment (Cloud, On-premises), By Enterprise Size, By Vertical, And Segment Forecasts, 2023 - 2030

Report Overview

The global information technology service management (ITSM) market size was estimated at USD 8.99 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 9.3% from 2023 to 2030. This growth is driven by the rising adoption of cloud computing and emerging technologies, necessitating ITSM solutions for managing complex IT environments. Organizations are also investing in ITSM solutions to enhance IT service quality and customer satisfaction, while regulatory compliance requirements are prompting further adoption to ensure adherence to these standards. Furthermore, industry regulatory requirements drive organizations to implement ITSM solutions to ensure compliance.

These solutions aid in tracking and documenting IT processes, facilitating audits, and demonstrating adherence to industry-specific standards and data protection regulations. For instance, in August 2023, Virima Inc. and T4S Partners unveiled the integration of ‘Jira Service Management’, offering Virima’s advanced IT tools, including hybrid discovery, comprehensive CMDB, service mapping, and ViVID, to a worldwide user base of Jira Service Management. The demand for ITSM is rising, fueled by several key factors, such as the growing complexity of IT systems & infrastructure, necessitating effective management solutions.

Organizations also seek to enhance their agility to adapt swiftly to the ever-changing tech landscape. Moreover, there’s an increased emphasis on prioritizing customer satisfaction and a heightened awareness of IT security’s crucial role in safeguarding sensitive data. ITSM has become integral for efficiently managing IT resources, delivering top-notch services, and ensuring robust cybersecurity practices in today’s dynamic business environment. ITSM is a vital framework for organizations to manage their IT services efficiently, ensuring high-quality service delivery, cost reduction, risk mitigation, and alignment with business objectives.

As businesses increasingly embrace digitalization and complex technologies, such as cloud computing and AI, ITSM plays a crucial role in enabling organizations to optimize these technologies, enhance user experiences, and drive digital transformation progress. ITSM serves as a multifaceted tool for organizations, aiding in the adoption of new technologies by managing associated risks and dependencies, enhancing the customer experience through streamlined IT support, boosting operational efficiency via process automation and performance insights, reducing costs by eliminating waste, and optimizing resources, and fortifying security by providing a structured approach to IT risk management.

ITSM tools are experiencing increased adoption as they empower IT operations, particularly infrastructure and operations (I&O) managers, to better support the production environment by streamlining the delivery of high-quality IT services. These tools are most commonly utilized within IT service desks and delivery functions but are adaptable for non-I&O departments. These tools offer a range of benefits, including task automation, improved communication, incident, and problem management, IT asset tracking, enforced change procedures, compliance adherence, and user self-service capabilities. Thus, ITSM tools enhance organizational efficiency and service quality across various departments, aligning IT practices with business goals.

Component Insights

The solutions segment led the market in 2022 and accounted for over 76.0% share of the global revenueas organizations from diverse industries increasingly recognize the value of efficient ITSM tools to manage their IT infrastructure and services. As technology reliance grows, there’s a heightened demand for robust ITSM solutions that streamline operations, often incorporating automation for cost savings and quicker service delivery. Automation enhances efficiency and improves the accuracy and consistency of IT service delivery, resulting in reduced downtime and heightened customer satisfaction. Cloud-based ITSM solutions, offered by vendors, such as ServiceNow, BMC, Cherwell Software, Ivanti, Broadcom, and IBM, are gaining traction due to their integrated capabilities and benefits for enterprises of varying sizes.

The service segment is expected to register significant growth over the forecast years, driven by the rising demand for consulting, implementation, customization, training, and support services. These services play a pivotal role in assisting businesses as they transition to and optimize their utilization of new technologies and business models. Consulting services help assess needs and develop transformation plans, while implementation services facilitate the integration of new technologies. Customization services tailor solutions to specific requirements, and training/support services ensure employees are well-equipped to utilize new tools and models effectively. This growth underscores the crucial role of services in enabling organizations to navigate and thrive in an evolving technological landscape.

Deployment Insights

The cloud segment dominated the market in 2022 and accounted for a revenue share of over 61.5%. The growth is attributed to cloud-based ITSM solutions offering compelling advantages, including scalability, flexibility, and cost-effectiveness, making them highly attractive to organizations of all sizes. In addition, the widespread adoption of cloud computing across businesses has fueled the demand for cloud-based ITSM solutions. Furthermore, the growing popularity of DevOps and agile development methodologies have played a significant role in driving the growth of the cloud ITSM market, given their requirement for more adaptable and scalable ITSM solutions.

The on-premises segment is expected to experience an average CAGR from 2023 to 2030 due to various factors. Security concerns remain a significant deterrent to cloud migration for many organizations, driven by apprehensions about data and application security in the cloud. The lower initial cost of implementing and maintaining on-premises ITSM solutions particularly appeals to organizations with limited budgets. Organizations with specific custom IT requirements also favor on-premises solutions for greater control. Moreover, some organizations must adhere to HIPAA or PCI DSS regulations, which are more manageable with on-premises ITSM solutions.

Enterprise Size Insights

The large enterprises segment led the market in 2022 and accounted for a share of over 75.0% due to their intricate IT infrastructures necessitating robust ITSM solutions, alongside their substantial resources for investment. Furthermore, there’s a heightened demand among large enterprises for automating IT services, optimizing efficiency, and reducing costs, tasks that ITSM solutions excel at, including incident and problem management. Compliance with HIPAA and PCI DSS regulations is increasingly critical for these enterprises, with ITSM solutions offering valuable incident tracking and reporting features. Thus, enhancing customer service through self-service options and real-time IT operation visibility is a priority, and ITSM solutions facilitate this with knowledge bases, service catalogs, and dashboards.

The SME segment will witness the fastest CAGR over the forecast period. SMEs increasingly depend on IT to efficiently run their operations, encompassing customer relationship management and production automation tasks. This growing reliance on IT services is fueling a heightened demand for ITSM solutions tailored to the specific needs of SMEs. Moreover, the cost-effectiveness of ITSM solutions suits the budget constraints frequently associated with SMEs. Thus, these solutions are renowned for their ease of use, requiring minimal IT expertise for management for SMEs with restricted IT resources.

Vertical Insights

The IT & telecom segment dominated the market in 2022 and accounted for a revenue share of over 20.5% due to the sector's intricate IT infrastructure demands. IT and telecom companies rely on ITSM tools and services to enhance service delivery, cut costs, and boost customer satisfaction. This dominance can be attributed to factors, such as the rising adoption of cloud technology and digital advancements, a growing inclination towards IT service management outsourcing, heightened emphasis on IT security & compliance, and the continuous pursuit of efficiency and effectiveness in IT service delivery. Thus, the increasing complexity of IT operations and the need for streamlined management solutions to handle diverse IT functions efficiently.

The healthcare sector is poised for substantial growth over the forecast period. This growth is driven by several key factors, including the increasing adoption of digital health technologies, such as electronic health records (EHRs), telemedicine, and wearable devices. Healthcare organizations also prioritize enhancing patient care, compliance with stringent healthcare regulations, such as HIPAA, and cost reduction. ITSM solutions play a pivotal role in assisting healthcare entities by tracking and managing IT assets, auditing IT activities, and safeguarding patient data, thus contributing to the sector's growth and efficiency.

Technology Insights

The network management segment held the largest revenue share of over 27.0% in 2022. The high share can be attributed to the growing complexity of IT networks, which necessitates effective monitoring and management. Network management solutions play a vital role in helping organizations identify and resolve network issues, optimize performance, and bolster security. These solutions provide essential network visibility, allowing for problem diagnosis and mitigation while addressing the increasing need for network security in the face of evolving cyber threats. Network management solutions are instrumental in identifying and mitigating security threats, ensuring organizations can safeguard their digital infrastructure effectively. As IT networks evolve, network management solutions remain essential for optimizing performance, enhancing security, and ensuring seamless operations in an ever-changing technological landscape.

The database management system (DBMS) segment will witness significant growth in the coming years, primarily driven by the surging demand for ITSM solutions that enhance IT infrastructure management. DBMSs play a pivotal role in storing and managing extensive data volumes, a critical requirement for ITSM solutions. The escalating adoption of cloud computing further fuels the segment's growth, offering scalability, flexibility, and cost-effectiveness advantages. In addition, the increasing need for real-time data insights propels the DBMS segment. DBMSs enable organizations to collect, store, and analyze large volumes of data in real-time, enhancing decision-making capabilities. Thus, the growing complexity of IT systems emphasizes the importance of DBMSs, as they provide a centralized data repository to manage IT system intricacies efficiently.

Regional Insights

North America dominated the market in 2022, accounting for a share of over 40.4% of the global revenue. This regional leadership is driven by developed countries like Canada and the U.S., which have pioneered ITSM practices with a continuous investment in ITSM solutions. North American organizations are increasingly compelled to enhance IT service delivery and cost-effectiveness, making ITSM solutions a vital asset. Furthermore, the presence of leading ITSM vendors headquartered in North America further solidifies the region's advantageous position in the market. For instance, in January 2023, Whitlock, a specialized provider in IT operations services, partnered with Freshworks Inc., a software solution provider of Freshservice, to enhance its ITSM operations in North America.

Further, the partnership entails WhitlockIS becoming an official Freshworks solution partner specifically for Freshservice. Asia Pacific is likely to possess lucrative market opportunities in the coming years. Businesses of all sizes heavily invest in IT to support their growth, driving the demand for effective ITSM solutions. Leading players in the APAC ITSM market are expanding their product offerings, increasing investments, and forming strategic partnerships to cater to this growing market. Rapid economic growth, rising IT spending, increasing awareness of ITSM benefits among businesses, and government support for the IT sector contribute to the region's thriving ITSM market.

For instance, in April 2023, Linedata, a software services provider, extended its managed services portfolio in the Asia-Pacific region, specifically targeting buy-side firms. This expansion encompasses new industry segments, such as private equity, private credit, specialized and structured credit, and allocators and aggregators. Linedata's managed services provide various outsourced solutions, including investment analytics, portfolio management, advisory, custom software development, and cybersecurity infrastructure management. This strategic move reflects the increasing demand for outsourced services in the Asia-Pacific region, aligning with Linedata's commitment to meeting the evolving needs of buy-side firms in this market.

Key Companies & Market Share Insights

Major players are proactively expanding their product portfolios and forming strategic alliances to strengthen their market presence. This strategic approach is driven by the rising demand for ITSM solutions from organizations of all sizes, reflecting the widespread appeal of ITSM solutions. Furthermore, the market is characterized by its dynamic nature, with constant innovation driving competition among key players to stay at the forefront. As a result, product development and strategic partnerships have become crucial strategies for these players to remain competitive and offer cutting-edge ITSM solutions to their clientele.

For instance, in April 2023, Biomni, a software and IT company, partnered with Illuminet, a technology consultancy firm, to enhance IT service management solutions. This collaboration integrates Biomni's “Tenjin Expert Digital Assistant” with Illuminet’s automated platform, offering a comprehensive solution tailored for larger enterprises. Biomni and Illuminet aim to elevate ITSM practices within enterprises by pooling their expertise and resources, resulting in improved customer service delivery. Some of the prominent players in the global information technology service management (ITSM) market include:

• Atlassian

• BMC Software, Inc.

• Broadcom

• Cloud Software Group, Inc.

• Freshworks Inc.

• Hewlett Packard Enterprise Development LP

• IBM Corporation

• Ivanti.

• Open Text

• ServiceNow.

Information Technology Service Management (ITSM) Market Report Scope

Global Information Technology Service Management (ITSM) Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the information technology service management (ITSM) market report based on component, technology, deployment, enterprise size, vertical, and region:

• Component Outlook (Revenue, USD Billion, 2017 - 2030)

  • Solution

  • Services

• Technology Outlook (Revenue, USD Billion, 2017 - 2030)

  • Configuration Management

  • Performance Management

  • Network Management

  • Database Management System

  • Other Applications

• Deployment Outlook (Revenue, USD Billion, 2017 - 2030)

  • Cloud

  • On-premises

• Enterprise Size Outlook (Revenue, USD Billion, 2017 - 2030)

  • Large Enterprises

  • SMEs

• Vertical Outlook (Revenue, USD Billion, 2017 - 2030)

  • BFSI

  • Healthcare

  • Retail & E-Commerce

  • IT & Telecom

  • Energy & Utilities

  • Government & Public Sector

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • MEA

    • Kingdom of Saudi Arabia

    • UAE

    • South Africa