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Add to CartInformation Technology Service Management (ITSM) Market
By Component;
Solution and ServicesBy Function;
Network Management, Performance Management, Configuration Management, and Database Management SystemBy Deployment Mode;
On-premise and CloudBy Enterprise Size;
Large Enterprise and Small & Medium-sized EnterpriseBy End User;
BFSI, Healthcare, Retail & e-commerce, IT & Telecom, Manufacturing, and OthersBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)ITSM Market Overview
ITSM Market (USD Million)
ITSM Market was valued at USD 3,564.94 million in the year 2024. The size of this market is expected to increase to USD 5,953.04 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 7.6%.
Information Technology Service Management (ITSM) Market
*Market size in USD million
CAGR 7.6 %
| Study Period | 2025 - 2031 |
|---|---|
| Base Year | 2024 |
| CAGR (%) | 7.6 % |
| Market Size (2024) | USD 3,564.94 Million |
| Market Size (2031) | USD 5,953.04 Million |
| Market Concentration | Medium |
| Report Pages | 327 |
Major Players
- BMC Software Inc
- Broadcom Inc
- Fujitsu Ltd
- Hewlett Packard Enterprise Co
- International Business Machines Corp
- Ivanti Inc
- Microsoft Corp
- Oracle Corp
- SAP SE
- ServiceNow Inc
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Information Technology Service Management (ITSM) Market
Fragmented - Highly competitive market without dominant players
The ITSM Market is witnessing significant traction as companies seek to improve service delivery across IT environments. Over 62% of enterprises are turning to ITSM frameworks to boost responsiveness and reduce complexity in managing IT operations. These systems help streamline workflows and enhance performance consistency.
Automation Driving ITSM Transformation
The adoption of automated service management tools is accelerating, with nearly 57% of IT teams leveraging them for faster issue resolution. These tools handle repetitive tasks like ticket assignment and incident escalation, allowing IT staff to focus on strategic support functions and proactive service delivery.
Cloud ITSM Solutions Becoming the Norm
More than 64% of ITSM deployments now operate on cloud platforms, reflecting a shift toward cost-efficiency and flexibility. These cloud-based models enable real-time access, smooth integration with digital ecosystems, and quicker implementation cycles, contributing to agile service operations.
AI-Enhanced ITSM Solutions on the Rise
Advanced capabilities such as AI-based analytics and automation are gaining ground, with nearly 48% of businesses adopting them to transform service management. Predictive tools and AI bots help identify root causes, improve turnaround time, and enable intelligent self-service options for users.
ITSM Market Recent Developments
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In March 2021, a major ITSM software provider launched a cloud-based platform that integrates AI-driven automation and predictive analytics to streamline IT service management processes for enterprises.
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In November 2023, the ITSM market saw an uptick as businesses adopted service management solutions to enable remote IT support and improve operational efficiency amid hybrid work environments.
ITSM Market Segment Analysis
In this report, the ITSM Market has been segmented by Component, Function, Deployment Mode, Enterprise Size, End-User and Geography.
Information Technology Service Management (ITSM) Market, Segmentation by Component
The Information Technology Service Management (ITSM) Market has been segmented by Component into Solution and Services.
Solution
Solutions dominate the ITSM market, offering tools for managing incidents, changes, assets, and knowledge across IT operations. These platforms enhance service delivery and automate repetitive tasks for increased efficiency. The growing need for centralized IT governance and real-time analytics is accelerating adoption. Vendors are increasingly integrating AI and machine learning to improve decision-making capabilities.
Services
Services include consulting, implementation, and support, ensuring optimal deployment and management of ITSM platforms. As enterprises seek personalized configurations, demand for managed services is rapidly rising. These offerings help in reducing downtime, enhancing system reliability, and improving user satisfaction. The service segment is essential for sustaining long-term value from ITSM investments.
Information Technology Service Management (ITSM) Market, Segmentation by Function
The Information Technology Service Management (ITSM) Market has been segmented by Function into Network Management, Performance Management, Configuration Management, and Database Management System.
Network Management
Network management tools ensure continuous monitoring, troubleshooting, and optimization of IT networks. With rising remote work and hybrid infrastructures, organizations prioritize real-time visibility and security. These tools help detect bottlenecks and prevent downtime. Automation and AI are transforming network workflows by reducing manual intervention.
Performance Management
This function focuses on analyzing and enhancing the performance of IT systems and services. Enterprises use it to track service-level agreements (SLAs) and ensure optimal end-user experience. With increasing service complexity, advanced analytics tools are being deployed. Performance management helps in proactive issue resolution and capacity planning.
Configuration Management
Configuration management enables organizations to track IT assets and their relationships systematically. It helps maintain compliance and supports efficient incident and change management. CMDBs are a key component here. This function contributes directly to risk mitigation and faster recovery from failures.
Database Management System
DBMS is critical for organizing, storing, and retrieving enterprise data efficiently. Within ITSM, DBMS supports knowledge base functions and historical tracking of service requests. Scalable and secure database solutions are essential for supporting complex service environments. Integration with cloud and AI systems enhances its operational value.
Information Technology Service Management (ITSM) Market, Segmentation by Deployment Mode
The Information Technology Service Management (ITSM) Market has been segmented by Deployment Mode into On-premise and Cloud.
On-premise
On-premise ITSM deployments are favored by organizations with strict data control, compliance, and legacy infrastructure needs. These solutions offer deeper customization and direct governance over IT resources. However, they require higher upfront investment and dedicated maintenance. Industries like BFSI and government often prefer this mode.
Cloud
Cloud-based ITSM platforms are rapidly gaining popularity due to their scalability, agility, and lower cost of ownership. These solutions support remote accessibility, quick updates, and minimal infrastructure dependency. Organizations across all sectors are transitioning to SaaS-based ITSM tools. The cloud model supports seamless integration with emerging technologies like AI and IoT.
Information Technology Service Management (ITSM) Market, Segmentation by Enterprise Size
The Information Technology Service Management (ITSM) Market has been segmented by Enterprise Size into Large Enterprise and Small & Medium-sized Enterprise.
Large Enterprise
Large enterprises account for the majority share due to their complex IT infrastructures and high service demands. These organizations implement comprehensive ITSM frameworks to manage large-scale operations. They invest heavily in automation, AI-powered analytics, and multi-vendor integrations. Advanced security and compliance features are key purchase criteria.
Small & Medium-sized Enterprise
SMEs are increasingly adopting ITSM tools to enhance IT efficiency and service quality. Cost-effective, cloud-native platforms are driving adoption in this segment. Vendors are focusing on simplified UIs and pre-configured templates for faster deployment. As digital transformation grows, SMEs demand scalable and secure ITSM solutions.
Information Technology Service Management (ITSM) Market, Segmentation by End User
The Information Technology Service Management (ITSM) Market has been segmented by End User into BFSI, Healthcare, Retail & e-commerce, IT & Telecom, Manufacturing, and Others.
BFSI
The BFSI sector requires stringent IT governance, making ITSM critical for maintaining compliance and operational continuity. These institutions rely on automated service workflows and incident response. High-volume transactions and data sensitivity elevate the need for reliable IT infrastructure. ITSM platforms aid in meeting regulatory mandates efficiently.
Healthcare
Healthcare organizations adopt ITSM to ensure the uptime of critical systems and patient service applications. As telemedicine expands, so does the need for robust IT support frameworks. ITSM helps manage assets, incidents, and compliance workflows. Security and data confidentiality are top priorities here.
Retail & e-commerce
This segment uses ITSM to ensure smooth operations across omnichannel platforms and customer service touchpoints. Downtime or service issues directly affect sales and customer trust. ITSM enables proactive issue detection and real-time support. Rapid scaling during seasonal peaks is another area where ITSM proves vital.
IT & Telecom
As core IT service providers, IT & Telecom firms deploy advanced ITSM platforms to manage service delivery and infrastructure. These solutions coordinate network support, service desks, and customer management. Integration with AI-powered virtual agents is gaining momentum. Automation improves resolution times and SLA adherence.
Manufacturing
In manufacturing, ITSM helps manage production IT systems, supply chain networks, and IoT devices. It supports automation, asset tracking, and remote maintenance. Predictive maintenance and incident alerts reduce downtime. Integration with ERP and MES systems ensures operational continuity.
Others
This category includes education, government, and logistics sectors that utilize ITSM for digital service management. Each requires tailored workflows and compliance tracking. Cloud-based and mobile-first platforms are gaining traction. The focus remains on service availability, automation, and cost optimization.
Information Technology Service Management (ITSM) Market, Segmentation by Geography
In this report, the Information Technology Service Management (ITSM) Market has been segmented by Geography into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
Regions and Countries Analyzed in this Report
Information Technology Service Management (ITSM) Market Share (%), by Geographical Region
North America
North America accounts for approximately 35% of the ITSM market, supported by the presence of leading technology vendors and advanced IT infrastructure. The region shows strong uptake of cloud-based ITSM platforms and AI-integrated service tools. Enterprises prioritize compliance, security, and automation to manage vast IT ecosystems. The U.S. remains the largest contributor, driving continuous innovation in ITSM solutions.
Europe
Europe holds a market share of around 28%, driven by growing emphasis on GDPR compliance and data governance. Countries like Germany, France, and the UK lead in ITSM tool adoption for public and private enterprises. Hybrid deployment models are preferred to balance control with flexibility. Cybersecurity and service standardization remain key market drivers across the region.
Asia Pacific
The Asia Pacific region contributes nearly 22% to the ITSM market, with strong growth from developing economies and digital-first enterprises. Nations like India, China, Japan, and South Korea are investing in IT infrastructure modernization. Rapid expansion of cloud services and start-up ecosystems is fueling demand. Local vendors are also innovating cost-effective ITSM offerings tailored to regional needs.
Middle East & Africa
Middle East & Africa represent about 9% of the global ITSM market, with expanding adoption in telecom, government, and banking sectors. Countries like the UAE and Saudi Arabia are actively implementing e-governance initiatives supported by ITSM tools. Organizations prefer cloud-enabled platforms for better scalability and cost management. However, infrastructure gaps continue to pose implementation challenges in parts of the region.
Latin America
Latin America holds approximately 6% of the ITSM market, led by increasing IT investments in Brazil, Mexico, and Argentina. Organizations in banking, telecom, and retail are adopting ITSM to enhance IT visibility, automation, and customer support. Economic recovery efforts are spurring modernization of legacy systems. The need for cost-effective, flexible ITSM platforms is accelerating regional adoption.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global ITSM Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers
- Digital Transformation Initiatives
- Increasing Complexity of IT Infrastructure
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Growing Adoption of Cloud Services - The global IT Service Management (ITSM) market is experiencing significant growth, largely propelled by the increasing adoption of cloud services. Organizations across various sectors are embracing cloud-based ITSM solutions to enhance operational efficiency, streamline processes, and reduce costs. By leveraging cloud services, businesses can access ITSM tools and resources remotely, facilitating seamless collaboration among teams and enabling swift response to IT issues. This shift towards cloud-based ITSM solutions is driven by the scalability, flexibility, and cost-effectiveness offered by cloud technology, allowing organizations to align their IT infrastructure with evolving business needs efficiently.
Cloud-based ITSM solutions offer enhanced agility and accessibility, enabling organizations to adapt to changing market dynamics and support remote work environments effectively. With the proliferation of mobile devices and remote work arrangements, the demand for ITSM solutions that provide anytime, anywhere access to critical IT services is on the rise. Cloud-based ITSM platforms empower organizations to deliver superior user experiences, optimize service delivery processes, and ensure seamless IT service delivery across distributed environments. As a result, businesses are increasingly embracing cloud-based ITSM solutions to drive digital transformation initiatives, enhance service delivery capabilities, and gain a competitive edge in the market.
Restraints
- Security Concerns and Data Privacy
- Integration Challenges with Legacy Systems
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Skills Gap in IT Workforce - The global IT Service Management (ITSM) market is continuously evolving, driven by technological advancements and the increasing complexity of IT infrastructures. However, this rapid evolution often creates a significant skills gap within the IT workforce. Many organizations struggle to find professionals with the necessary expertise to effectively implement and manage ITSM solutions. As the demand for IT services grows, so does the need for skilled professionals who can navigate intricate systems, interpret data, and ensure seamless operations.
In this landscape, the skills gap presents challenges for both employers and employees. Employers face difficulties in recruiting and retaining qualified ITSM specialists, leading to operational inefficiencies and potential risks to business continuity. On the other hand, IT professionals may find themselves lacking the required skills to meet the evolving demands of the ITSM market, hampering their career growth and job prospects. As technology continues to advance, bridging this gap becomes crucial for organizations striving to stay competitive in the digital age.
Opportunities
- AI and Automation in Service Management
- Expansion of ITSM in Emerging Markets
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Demand for Managed IT Services - The global IT Service Management (ITSM) market is witnessing a robust demand for Managed IT Services. This surge can be attributed to the escalating complexities in managing IT infrastructure, coupled with the increasing adoption of cloud-based solutions across various industries. Managed IT Services offer businesses the advantage of outsourcing their IT operations to specialized service providers, enabling them to focus on core business functions while ensuring efficient IT management and support.
The growing emphasis on cost optimization and the need for enhanced operational efficiency are driving organizations to seek Managed IT Services. These services encompass a wide range of offerings, including infrastructure management, network monitoring, security services, and helpdesk support. By leveraging Managed IT Services, companies can access advanced technologies and expert resources without the need for substantial investments in infrastructure and personnel. As a result, the demand for Managed IT Services is expected to continue its upward trajectory, fueling the growth of the global ITSM market in the coming years.
Competitive Landscape Analysis
Key players in Global ITSM Market include:
- BMC Software Inc
- Broadcom Inc
- Fujitsu Ltd
- Hewlett Packard Enterprise Co
- International Business Machines Corp
- Ivanti Inc
- Microsoft Corp
- Oracle Corp
- SAP SE
- ServiceNow Inc
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Component
- Market Snapshot, By Function
- Market Snapshot, By Deployment Mode
- Market Snapshot, By Enterprise Size
- Market Snapshot, By End-User
- Market Snapshot, By Region
- ITSM Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Digital Transformation Initiatives
- Increasing Complexity of IT Infrastructure
- Growing Adoption of Cloud Services
- Restraints
- Security Concerns and Data Privacy
- Integration Challenges with Legacy Systems
- Skills Gap in IT Workforce
- Opportunities
- AI and Automation in Service Management
- Expansion of ITSM in Emerging Markets
- Demand for Managed IT Services
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- ITSM Market, By Component, 2021 - 2031 (USD Million)
- Solution
- Services
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ITSM Market, By Function, 2021 - 2031 (USD Million)
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Network Management
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Performance Management
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Configuration Management
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Database Management System
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ITSM Market, By Deployment Mode, 2021 - 2031 (USD Million)
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On-premise
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Cloud
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ITSM Market, By Enterprise Size, 2021 - 2031 (USD Million)
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Large Enterprise
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Small & Medium-sized Enterprise
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- ITSM Market, By End-User, 2021 - 2031 (USD Million)
- BFSI
- Healthcare
- Retail & e-commerce
- IT & Telecom
- Manufacturing
- Others
- ITSM Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- ITSM Market, By Component, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- BMC Software Inc
- Broadcom Inc
- Fujitsu Ltd
- Hewlett Packard Enterprise Co
- International Business Machines Corp
- Ivanti Inc
- Microsoft Corp
- Oracle Corp
- SAP SE
- ServiceNow Inc
- Company Profiles
- Analyst Views
- Future Outlook of the Market