Global Information Technology Service Management Market Grows Steadily at a CAGR of 1.82%

Introduction

Information Technology Service Management (ITSM) is the practice of planning, implementing, managing, and optimizing information technology services to meet end users' needs and assist businesses in achieving their objectives. By systematically accelerating tasks such as service requests, IT support, IT asset management, and change management, ITSM can assist organizations in enhancing the end-user experience and boosting IT infrastructure productivity.

ITSM's primary objective is to optimize the deployment, operation, and management of each IT resource for every enterprise user. Potential examples include customers, employees, and business partners. IT resources may include any hardware, software, or computing asset, including a laptop computer, software application, cloud storage solution, or virtual server.

Market Dynamics

Rising Adoption of Updated IT Infrastructure Across the End-User Industries Drives the Global Market

The adoption of 5G is anticipated to increase the demand for efficient and current infrastructure. With nearly 16% of large businesses in early 5G coverage areas, adoption rates reached 66% in 2022. Many industries, including automotive, AR/VR, mobile connectivity, and telecommunications, are undergoing changes in their IT infrastructure due to the fifth-generation network rollout.

Additionally, AI, IoT, and robotic process automation are transforming the customer experience across fintech sectors, enabling the preference for IT infrastructure in the wake of increased P2P transfers and global payments, contactless bank cards, and cryptocurrency management through digital channels. According to the findings of the 2020 State of IT Survey performed by Spiceworks Inc., a notable 64 percent of the surveyed participants, including 700 firms, expressed the necessity to modernize their existing information technology (IT) infrastructure. The need to replace obsolete hardware is another factor driving market expansion.

Increasing Demand for a Unified Platform Creates Tremendous Opportunities

As businesses investigate new technologies with the potential to impact their services or products significantly, there has been a constant need to maintain a platform for obtaining real-time information, which is expected to aid in performance monitoring. This is expected to stimulate growth and productivity while mitigating risk and gaining a competitive edge. Moreover, this increased the need for a unified platform. The market provides unified platform solutions capable of addressing the complex IT infrastructure and meeting the service requirements of a workforce that is becoming increasingly dispersed. This is driving the demand for ITSM, creating opportunities for market expansion.

Regional Analysis

North America is the most significant global information technology service management market shareholder and is anticipated to exhibit a CAGR of 0.96% during the forecast period. North America is a significant market for IT service management (ITSM) due to the widespread adoption of cloud technology and the surging demand for enhanced IT services among end-user industries in the region. In an IT Management survey conducted by Site24*7, 62% of respondents cited ease of management as the most important aspect of cloud migration, followed by business continuity (60%) and scalability (59%). A report titled "A hybrid cloud adoption survey" conducted in March 2022 with more than 900 IT professionals revealed that most businesses (93%) will adopt hybrid cloud and on-premise solutions or migrate entirely to the cloud within the next five years. The survey was conducted primarily in North America and Europe, with 43.8% of respondents coming from North America. Thus, the transition to cloud platforms will increase demand for IT service management solutions in the coming years.

Europe is estimated to exhibit a CAGR of 0.85% over the forecast period. The European region is home to some of the world's most vital tech hubs and is a major driver and adopter of contemporary technology. Due to cost and compliance concerns in the region, numerous organizations have migrated to the cloud and enabled employee mobility. Europe had the highest adoption pace of cloud services, at 84%, according to data published by Bitglass in 2018. Numerous European nations make substantial investments in digital infrastructures, but private and public initiatives have been implemented to address skill gaps and accelerate cloud adoption. Rapid SME adoption of cloud services is anticipated to impact market expansion positively. Multiple industries, including IT, telecom, and BFSI, invest heavily in cloud-based infrastructure and 5G technologies to improve data management and collaboration.

Key Highlights

• The global information technology service management market was valued at USD 6.03 billion in 2022. It is estimated to reach 7.09 billion by 2031, growing at a CAGR of 1.82% during the forecast period (2023–2031).
• Based on deployment, the global information technology service management market is bifurcated into cloud and on-premise.The cloud segment dominates the global market and is projected to exhibit a CAGR of 2.18% over the forecast period. 
• Based on application, the global information technology service management market is divided into configuration management, performance management, network management, database management systems, and other applications. The network management segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 1.88% throughout the forecast period.
• Based on the end-user industry, the global information technology service management market is segmented into BFSI, manufacturing, government and education, IT and telecommunication, retail, travel and hospitality, and healthcare. The IT and Telecommunication segment owns the highest market share and is estimated to exhibit a CAGR of 0.97% during the forecast period.
• North America is the most significant global information technology service management market shareholder and is anticipated to exhibit a CAGR of 0.96% during the forecast period.

Competitive Players

Competitive Players

The key global information technology service management market players are ASG Technologies Group Inc., Axios Systems, Atlassian Corporation PLC, BMC Software Inc., Broadcom Inc., Freshworks Inc., IBM Corporation, Micro Focus International PLC, Ivanti Inc., and ServiceNow Inc.

Recent Developments

Market News

• In April 2023, Rezolve.ai, a prominent AI-powered employee service desk, launched a revolutionary new feature: an ITSM Chatbot resembling ChatGPT. This cutting-edge technology promises to revolutionize how businesses manage their enterprise knowledge base by providing accurate, data-driven responses to employee questions within Microsoft Teams.
• In September 2023, ServiceNow announced a significant expansion of the Now Platform with the Now Assist family of solutions today. Now Assist for IT Service Management (ITSM), Customer Service Management (CSM), HR Service Delivery (HRSD), and Creator integrate the power of generative AI across all workflows on the Now Platform to help accelerate productivity, enhance customer experiences, and increase customer agility.

Segmentation

Global Information Technology Service Management Market: Segmentation

By Deployment

• Cloud
• On-premise

By Applications

• Configuration Management
• Performance Management
• Network Management
• Database Management System
• Other Applications

By End-User Industry

• BFSI
• Manufacturing
• Government and Education
• IT and Telecommunication
• Retail
• Travel and Hospitality
• Healthcare

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa