• April 2024, Zendesk unveiled a collaboration with Amazon Web Services (AWS) and Anthropic at the Relate global conference to enhance AI capabilities. By leveraging Amazon Bedrock and Anthropic's Claude 3 model family, Zendesk aims to provide faster, more accurate AI features. This partnership enables businesses to deliver personalized customer experiences, empower agents with AI tools, and improve customer satisfaction through intelligent, empathetic support.
• February 2024, ServiceNow and NVIDIA expanded their partnership to introduce telco-specific generative AI solutions, enhancing service experiences. Built on the Now Platform, Now Assist for Telecommunications Service Management leverages NVIDIA AI to boost productivity, speed up resolution times, and improve customer service. This collaboration aims to help telcos reduce costs, uncover new business opportunities, and drive industry-wide transformation.
• February 2024, Amdocs and BMC announced a strategic alliance to enhance digital operations in telecommunications and financial services. This partnership leverages Amdocs' IT and network expertise with BMC's automation solutions to drive growth and efficiency. Together, they will offer integrated services, including generative AI, to accelerate innovation and operational excellence for global customers.
• November 2023, ServiceNow introduced enhancements to its Now Assist generative AI portfolio with new capabilities to improve experiences and increase efficiency. These enhancements include Now Assist in Virtual Agent, flow generation, and Now Assist for Field Service Management (FSM), embedding sophisticated generative AI technologies into the ServiceNow Platform.

In this report, the Cloud Information Technology Service Management (ITSM) Market has been segmented by Offering, Deployment Mode, Enterprise Size, Industry Vertical, and Geography.

Cloud Information Technology Service Management (ITSM) Market, Segmentation by Offering

The Cloud Information Technology Service Management (ITSM) Market has been segmented by Offering into Solutions and Services.

Solutions
The Cloud ITSM Solutions segment is central to enabling automated, efficient IT service management. With nearly 65% of organizations implementing these solutions, they play a key role in enhancing processes like incident resolution, change management, and service requests. As digital infrastructure becomes more complex, these solutions help ensure uninterrupted and standardized service delivery across all departments.

Services
The Cloud ITSM Services segment encompasses vital offerings such as consulting, integration, and support. Around 58% of enterprises depend on these services to effectively deploy and customize their cloud ITSM infrastructure. These services are instrumental in driving performance, achieving regulatory compliance, and optimizing resource allocation in cloud-based IT environments.

Cloud Information Technology Service Management (ITSM) Market, Segmentation by Deployment Mode

The Cloud Information Technology Service Management (ITSM) Market has been segmented by Deployment Mode into Public, Private, and Hybrid Cloud.

Public Cloud
The Public Cloud deployment mode leads the Cloud ITSM market, driven by its cost-effectiveness and on-demand scalability. Around 55% of organizations adopt this model due to its ease of implementation and reduced infrastructure overhead. Small and medium enterprises (SMEs) particularly benefit from the pay-as-you-go pricing model and global accessibility.

Private Cloud
The Private Cloud model caters to organizations that require greater control, data privacy, and regulatory compliance. Nearly 27% of enterprises prefer this deployment to ensure customized, secure ITSM environments. It’s widely used in sectors like finance, healthcare, and government, where data sensitivity is a top priority.

Hybrid Cloud
The Hybrid Cloud approach is gaining popularity for offering the best of both worlds—the scalability of public cloud and the security of private cloud. About 18% of businesses use this model to optimize IT service management while maintaining operational continuity. It supports flexible workload distribution and enhances overall service reliability.

Cloud Information Technology Service Management (ITSM) Market, Segmentation by Enterprise Size

The Cloud Information Technology Service Management (ITSM) Market has been segmented by Enterprise Size into SMEs and Large Enterprises.

SMEs
The SMEs segment is witnessing growing adoption of cloud ITSM platforms, primarily due to their affordability, scalability, and ease of use. Approximately 48% of small and medium businesses now implement these tools to streamline IT operations and enhance service delivery. Cloud ITSM enables SMEs to compete more effectively by automating routine tasks and reducing manual intervention.

Large Enterprises
Large Enterprises lead the Cloud ITSM market in terms of deployment scale and investment. With nearly 52% of adoption coming from this segment, their demand is driven by the need to manage complex IT environments, ensure compliance, and support multi-tiered service frameworks. These enterprises rely heavily on robust ITSM systems for consistent service quality and risk mitigation.

Cloud Information Technology Service Management (ITSM) Market, Segmentation by Industry Vertical

The Cloud Information Technology Service Management (ITSM) Market has been segmented by Industry Vertical into BFSI, Healthcare, Retail & E-Commerce, IT & Telecom, Energy & Utilities, Government, and Others.

BFSI
The BFSI industry remains the largest adopter of cloud ITSM solutions, making up about 22% of the market. Financial organizations depend on these platforms to ensure regulatory compliance, streamline operations, and support secure digital banking services across complex IT environments.

Healthcare
The Healthcare sector accounts for nearly 17% of cloud ITSM adoption. With strict regulatory needs like HIPAA, hospitals and health systems utilize these solutions to maintain data security, enhance service uptime, and ensure compliance across clinical workflows.

Retail & E-Commerce
Retail & E-Commerce players contribute around 15% of the total market. These businesses rely on cloud ITSM to manage omnichannel retail experiences, scale quickly during peak demand, and automate high volumes of customer service requests.

IT & Telecom
The IT & Telecom vertical holds close to 18% market share. Companies in this segment use cloud ITSM for infrastructure management, service automation, and real-time monitoring to support large-scale service delivery and performance SLAs.

Energy & Utilities
The Energy & Utilities sector represents about 10% of the market. These organizations depend on cloud ITSM to oversee remote operations, monitor critical infrastructure, and boost system resilience across widespread energy networks.

Government
Government agencies account for approximately 9% of the adoption. Public sector entities use cloud ITSM to enhance citizen service delivery, manage sensitive data securely, and ensure compliance with policy standards.

Others
The Others category, comprising industries like education, manufacturing, and transportation, holds about 9% of the market. These sectors implement cloud ITSM to improve service agility, track IT assets, and support digital transformation.

Cloud Information Technology Service Management (ITSM) Market, Segmentation by Geography

In this report, the Cloud Information Technology Service Management (ITSM) Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Cloud Information Technology Service Management (ITSM) Market Share (%), by Geographical Region

North America
North America leads the global Cloud ITSM market, accounting for roughly 38% of total adoption. This dominance is driven by a mature IT ecosystem, rapid cloud innovation, and strong investment across industries like finance, healthcare, and telecom.

Europe
Europe holds a significant 27% share of the Cloud ITSM market. The region's focus on data protection (GDPR), automation, and enterprise digitalization fuels adoption, with notable growth in sectors like BFSI, manufacturing, and government.

Asia Pacific
Asia Pacific commands nearly 20% of the market, led by digital acceleration in economies such as India, China, and Japan. Rising demand from SMEs, expanding IT hubs, and cloud infrastructure development are boosting adoption rates.

Middle East and Africa
Middle East and Africa contribute approximately 8% to the market, supported by national digital transformation agendas and the need for resilient ITSM platforms. Key adopters include government entities and large enterprises in the GCC region.

Latin America
Latin America makes up around 7% of the global Cloud ITSM market. Countries like Brazil and Mexico are witnessing growth as businesses seek cost-efficient, scalable ITSM solutions to support modernization and operational agility.