IT Service Management (ITSM) Market

IT Service Management (ITSM) Market Overview

The IT Service Management (ITSM) Market size was valued at USD 9.64 billion in 2023 and is predicted to reach USD 21.51 billion by 2030 with a CAGR of 12.20% from 2024-2030.  IT Service Management (ITSM) is a set of processes, policies, and procedures designed to facilitate the effective delivery, management, and improvement of IT services within an organization.

It covers a wide range of processes designed to optimize IT operations across an organization, including service requests, IT support, IT asset management, and change management. ITSM relies on software tools, automation, and proven best practices. People use frameworks such as ITIL, COBIT, and TOGAF to guide them in implementing ITSM practices. These frameworks offer standardized approaches and methodologies that organizations can modify to their specific needs and requirements, ensuring the successful adoption and implementation of ITSM practices. 

Market Dynamics and Trends

The escalating frequency of cyberattacks globally highlights the essential for robust and structured cybersecurity protocols, consequently driving the demand for IT Service Management (ITSM). As organizations increasingly rely on interconnected digital systems, the complexity and sophistication of cyber threats continue to grow, emphasizing the critical role of ITSM in safeguarding against potential breaches.

In addition to real-time monitoring, industry compliance support, and proactive risk management, ITSM provides a framework for efficient incident response, comprehensive security training, and continual optimization of security measures, ensuring the uninterrupted delivery of IT services amidst evolving security challenges.

Moreover, the rising adoption of digitalization within organizations and businesses is further propelling the growth of the infrastructure management market , to enhance productivity, improve customer experiences, and gain competitive advantages. ITSM enables organizations to streamline their IT operations and deliver efficient services along with the integration of new digital technologies seamlessly. By leveraging ITSM frameworks and tools, businesses effectively manage the complexities of digitalization, optimize resource allocation, and ensure the successful implementation of digital initiatives across their operations.

Furthermore, the IT service management market is experiencing significant growth driven by the expanding presence of IT services and corporate organizations worldwide. ITSM frameworks streamline service delivery processes, enabling efficient resolve of incidents and problems, effective management of changes, and fostering strong client relationships.

With the adoption of ITSM practices, organizations improve the end-user experience, gain more productivity from IT, and drive business strategies, thereby propelling the growth of the market. However, cultural resistance within organizations, which obstructs the adoption of new methodologies or processes, acts as a significant barrier to market growth.

On the other hand, the integration of blockchain technology is poised to create significant growth opportunities for the IT service management market. By leveraging blockchain's decentralized and immutable ledger system, IT service management can enhance security, transparency, and efficiency in various processes such as asset management, incident resolution, and service delivery. Blockchain enables secure and transparent tracking of assets and transactions, reducing the risk of data breaches and fraud. 

Market Segmentations and Scope of the Study

The IT service management (ITSM) market is segmented on the basis of component, deployment mode, organization size, industry vertical, and region. On the basis of component, the market is classified into solution and services. On the basis of deployment mode, the market is divided into on cloud and on premises. Based on organization size, the market is categorized into small and medium-sized enterprises (SMEs) and large enterprises. On the basis of industry vertical the market is divided into IT and telecommunications, banking, financial services, and insurance (BFSI), government and public sector, healthcare, manufacturing, retail and ecommerce, energy and utilities, transportation and logistics, and others. Regional breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America holds the dominant share of the IT service management (ITSM) market at present and is expected to continue its dominance during the forecast period. This is due to the presence of major companies such as Microsoft Corporation and International Business Machines (IBM) Corporation within the region.

For instance, in October 2023, IBM Corporation launched AI-powered Threat Detection and Response Services (TDR), providing continuous monitoring, investigation, and automated security remediation 24/7. These services influence AI to consistently assess and automatically recommend the most effective detection rules, improving alert quality and speeding up response times. Thus, the launch propels the advancements in the market and propel the growth of the market in North America.

Moreover, presence of robust health care infrastructure within the North America region is further fuelling the growth of the market as IT services plays crucial role in maintaining electronic health records (EHR), health information exchange (HIE), and telemedicine, enhancing the operational efficiency and fosters better patient care outcomes.

As per the American Medical Association, as of March 2023, the healthcare sector in North America experiencing consistent growth, reflected by the overall spending on the healthcare sector in the US, which was USD 4.3 trillion in 2021, marking a total growth of 2.7%, thereby propelling the growth of the market. 

On the other hand, Asia Pacific region is showing a steady rise in the IT services management market due to the growing e-commerce sector driven by rapid digitalization within the region. According to a report published by International Trade Administration, in April 2023, China is one of the largest e-commerce markets globally account to a total sale of USD 2.29 trillion in the year 2020, and is expected to reach USD 3.56 trillion by the year 2024. ITSM processes are involved in managing the development, deployment, and maintenance of e-commerce websites and applications, ensuring timely responses to queries, troubleshooting, and issue resolution, thereby propelling the growth of the market. 

The growing startups and IT companies is further driving the significant growth of the IT service management market, as these companies proliferate, the demand for efficient and effective IT services to support their operations and digital initiatives.

According to a report from Invest India, as of May 2023, the startup landscape in India is rapidly expanding, with approximately 99,000 new startups emerging in the country. Among these, 31,000 are categorized as technical startups, indicating a substantial growth in the technology sector. With this growth startup culture, the demand for enhanced IT service management rises, propelling the growth of the market.

Competitive Landscape

The IT services management industry comprises of various market players such as Microsoft Corporation, The International Business Machines (IBM) Corporation, BMC Software, Inc., Cloud Software Group, Inc., Broadcom, Dell Inc., Ivanti, Zoho, Telefonaktiebolaget LM Ericsson, and Altiris among others. These market players are adopting various strategies such as product launch and partnership related to the business across various regions to maintain their dominance in the IT service management market.

For instance, in November 2023, Zoho launched Zoho Practice, a free practice management solution tailored for chartered accountants (CAs). The software is designed to help accountants simplify their firm's processes and work more efficiently by offering a comprehensive platform for internal collaboration and client interaction.

Moreover, in September 2023, Ericsson incorporated the advance artificial intelligence and machine learning driven troubleshooting capability into its Ericsson Expert Analytics product, enhancing its capabilities. The new product analyze real-time data from telecom networks, pinpointing the root causes of any issues for troubleshooting, improving customer satisfaction and reducing operational costs.

Key Benefits

• The report provides quantitative analysis and estimations of IT Service Management (ITSM) market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep dive analysis of the current and future IT Service Management (ITSM) market trends, to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the IT Service Management (ITSM) market is provided in the report. 

• Competitive analysis of the key players, along with their market share is provided in the IT services management market report.

• SWOT analysis and Porters Five Forces model is elaborated on in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

IT Services Management Market Key Segments

By Component

• Solution 

• Services

By Deployment Mode

• On Cloud 

• On Premises

By Organization Size

• Small and Medium-sized Enterprises (SMEs) 

• Large Enterprises

By Industry Vertical

• IT and Telecommunications

• Banking, Financial Services, and Insurance (BFSI)

• Government and Public Sector

• Healthcare

• Manufacturing

• Retail and eCommerce

• Energy and Utilities

• Transportation and Logistics

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 9.64 Billion
Revenue Forecast in 2030	USD 21.51 Billion
Growth Rate	CAGR of 12.20% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	Increasing cyberattacks around the world driving the market. Rise in adoption of digital services in business practices boosts the market growth. Growing expansion of IT companies fuels the growth of the market.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• Microsoft Corporation

• The International Business Machines (IBM) Corporation

• BMC Software, Inc.

• Cloud Software Group, Inc.

• Broadcom

• Dell Inc.

• Ivanti

• Zoho 

• Telefonaktiebolaget LM Ericsson

• Altiris