Home Technology Cloud ITSM Market Size, Share | Growth Analysis [2031]

Cloud ITSM Market

Cloud ITSM Market Size, Share & Trends Analysis Report By Component (Solutions, Services), By Organization Size (Large Enterprises, Small and Medium Enterprises), By Industry Vertical (IT and Telecommunication, BFSI, Healthcare, Manufacturing, Retail, Education, Others ) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRTE55635DR
Study Period 2019-2031 CAGR 17.2%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 8,150.12 Million
Forecast Year 2031 Forecast Year Market Size USD 34030.18 Million
Largest Market North America Fastest Growing Market Europe
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Market Overview

The global Cloud ITSM Market size was valued at USD 8,150.12 million in 2022. It is projected to reach USD 34,030.18 million by 2031, registering a CAGR of 17.2% during the forecast period (2023-2031). The proliferation of cloud-based technologies has witnessed a significant surge in recent years, which is expected to propel market growth over the forecast period.

Cloud ITSM is frequently employed using defined processes and frameworks, mostly the Information Technology Infrastructure Library (ITIL). Moreover, Information Technology Service Management (ITSM) is a set of policies, procedures, and processes that improve, automate, and integrate IT staff support for an organization's employees. Cloud ITSM increases organizations' operational efficiency and enhances employee/worker productivity by improving visibility and introducing automation into financial and service data.

Cloud ITSM mainly emphasizes the management of the IT infrastructure through the cloud that comprises IT processes, software, hardware, and services. These services can be offered independently on the cloud as well as on-premise. Moreover, users can find more value in cloud ITSM solutions, which combine capabilities for crucial business processes, such as the support for cloud services, agile development and DevOps, and delivery of business services.

Market Dynamics

Global Smart Ovens Market Drivers

Increasing Adoption of Cloud-Based Technologies

The cloud enables the flexible deployment of numerous solutions and services, which allows organizations to manage their data efficiently and effectively. Moreover, cloud-based technologies are cost-effective and easy to deploy, which drives the demand for cloud ITSM among large and small and medium organizations.

Cloud solutions require very few IT hardware administrative resources to manage IT infrastructures, eliminating the need for additional hardware costs. Thus, organizations are deploying cloud-based technologies across their business processes. Hence, such factors combined create the demand for cloud ITSM solutions and services.

Integration of AI-Enabled tools with ITSM solutions

The increase in Artificial Intelligence (AI) experiments and pilots among organizations for daily operations drives market growth. In addition, by leveraging the power of data, AI enables process automation and predictions. Moreover, AI technologies, such as voice assistants, Natural Language Processing (NLP), and Machine Learning (ML), are already being used in numerous industries, such as automobile and e-commerce. These emerging technologies help IT teams to meet the increase in consumer expectations to provide improved services. Such factors fuel the demand for cloud ITSM solutions.

Rising Demand among SMEs

Quality and speed of decision-making are the key factors for success in a global economy. Currently, many SME managers and owners are clueless about how important IT is to their company's success. In-house IT administration also results in the loss of time and money, reducing a company's ability to experiment with new production methods. Moreover, an increase in the number of small and medium enterprises is facing the industrial revolution, which can only be managed with dependable IT infrastructure. Such factors are anticipated to be opportunistic for market growth.

Furthermore, provided by the Software as a Service (SaaS) Cloud service provider, SME IT organizations can rely on the ITSM software stack. Such integration becomes crucial for SMEs regarding service management, as IT organizations must effectively manage all the diverse aspects of their IT. These factors will create crucial opportunities for the cloud ITSM market in the forthcoming years.

Global Cloud ITSM Market Restraint

Security and Privacy Concerns for Confidential Data and Business Processes

ITSM mainly aims to improve the product delivery, business approach, and management of IT services. However, the cloud ITSM is anticipated to hamper the market growth due to its vulnerability to cyber threats and risks. There is an increase in privacy and information security concerns owing to the rise in penetration of IoT across various industries. In addition, there is a huge chance that malicious threats can attack the device and the network, which is used for transferring the data, at various levels, which is the major factor that hampers the growth of the market. For instance, a survey conducted by Capgemini stated that 67% of companies face security as an issue. Moreover, with IT services outsourcing, there is always a chance for data theft and privacy concerns, due to which many organizations are still not adopting cloud-based technologies and solutions. Such factors hamper the market growth.

Global Cloud ITSM Market Opportunities

Widespread Adoption of the BYOD Trend

Personal devices are progressively being accepted as technology tools in enterprise IT environments. Moreover, numerous firms have initiated the practice of endorsing remote work by allowing employees to utilize their own gadgets. Therefore, it is expected to pose a significant challenge for information technology (IT) managers and chief information officers (CIOs). These variables are expected to present favorable opportunities for the industry in the foreseeable future.

Operational efficiencies, cost savings, and performance improvement are some of the major factors that drive the adoption of BYOD among numerous organizations, which is anticipated to be opportunistic for the cloud ITSM market growth in the upcoming years. Moreover, BYOD can change how companies organize infrastructure and IT services and, eventually, the operation and management of IT. Such factors are projected to create opportunities for the market in the near future.

Regional Analysis

North America Dominates the Global Market

Region-wise, the global cloud ITSM market is segmented into Europe, North America, Asia-Pacific, and LAMEA.

North America is the most significant global cloud ITSM market shareholder and is estimated to exhibit a CAGR of 14.12% during the projected period. The analysis of the cloud ITSM market in North America encompasses an examination of both the United States and Canada. The significant presence of a majority of market players primarily drives the market expansion in this region. Similarly, the heightened emphasis on automation and end-user services contributes to the increased use of cloud-based IT Service Management (ITSM) systems and services in the North American region. Moreover, the rise in the focus of organizations on business relationship management (BRM) and the need to manage service portfolios are the key factors fueling the market demand for cloud ITSM services in this region.

Europe is projected to register at a CAGR of 16.6% during the forecast period. The global cloud ITSM market in Europe is analyzed across the UK, Germany, France, Spain, and the rest of Europe. The increase in the adoption of cloud services among large and small and medium organizations is expected to fuel the regional market demand. In addition, the rise in demand among enterprises to streamline operations, improve service delivery, reduce high costs, and satisfy consumer demands also fuels the demand for cloud IT service management solutions in this region. For instance, a leading banking group in Europe recently optimized its IT practices with Cognizant's ServiceNow cloud ITSM platform.

In Asia-Pacific, the cloud ITSM market is analyzed across China, Japan, India, Australia, and the rest of Asia-Pacific. The region is anticipated to surge in demand for cloud ITSM solutions due to the rise in the number of startups and the widespread integration of artificial intelligence (AI) technology, encompassing machine learning, image processing, and other related advancements. Moreover, the market is experiencing development due to the rising desire from organizations to outsource their IT administration.

Competitive Analysis of the Global Cloud ITSM Market: 

Report Scope

Report Metric Details
Segmentations
By Component
  1. Solutions
  2. Services
By Organization Size
  1. Large Enterprises
  2. Small and Medium Enterprises
By Industry Vertical
  1. IT and Telecommunication
  2. BFSI
  3. Healthcare
  4. Manufacturing
  5. Retail
  6. Education
  7. Others 
Company Profiles Axios Systems BMC Software CA Technologies Citrix Systems Hewlett Packard Enterprise International Business Machines Corporation (IBM) ManageEngine Micro Focus Microsoft Corporation ServiceNow
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global cloud ITSM market is segmented based on component, organization size, and industry vertical. 

By component, the global cloud ITSM market is bifurcated into solutions and services. 

The solution segment dominates the global market and is expected to exhibit a CAGR of 16.31% during the forecast period. The solutions in the cloud ITSM market include service portfolio management, service desk software, configuration and change management, operations and performance management, and dashboard reporting and analytics. The increase in the need to manage IT operations and management to design, plan, operate, deliver, and control the cloud and IT services is the major factor that fuels the demand for cloud ITSM solutions.

In addition, an increase in demand among developers to manage an organization's size after its production to ensure performance and availability according to service level objectives (SLOs) or service level agreements (SLAs) also boosts the demand for cloud ITSM solutions. Moreover, the increase in the need to manage development agility and velocity, roles and responsibilities, direct feedback from users, and redefine processes and tools fuel the demand for cloud ITSM solutions.

The services in the cloud ITSM market comprise managed and professional services. An IT service is a technological process that comprises a level of support, maintenance, and management. In addition, IT services include patching, installing, and configuring software and servers. Therefore, with cloud ITSM services and solutions, enterprises can react to doubtful situations better, even before their occurrence. In addition, the increase in demand among IT teams to outsource all or some of their IT support to service providers drives the demand for cloud ITSM services. In addition, as services guarantee the efficient operation of platforms and software throughout the process, end users have adopted them at a higher rate over time. Thus, an increase in adopting this software and platforms is expected to fuel the demand for these cloud ITSM services.

By organization size, the global cloud ITSM market is divided into large enterprises and small and medium enterprises. 

The large enterprises segment owns the highest market share and is expected to exhibit a CAGR of 15.4% during the forecast period. Large organizations considered in the cloud ITSM market are those with more than 250 employees. Increased adoption of artificial intelligence (AI) technologies, such as machine learning, image processing, and others, drives the market demand among large organizations. In addition, big companies, such as Procter & Gamble (P&G), Disney, Tesco, and GE, have been moving toward digitization to sustain themselves in the competitive market. Moreover, these firms have initiated the implementation of artificial intelligence technology to enhance the overall efficacy of their organization. These factors contribute to the expansion of the cloud ITSM market.

The small and medium organizations segment is the second largest. Small and medium organizations in the cloud ITSM market are those with less than 250 employees. The need to increase operational efficiency to deliver customers better solutions and services is the major factor driving the market demand among small and medium organizations. Moreover, small and medium organizations usually have budget issues, so they prefer solutions that can give them a higher return on investment (ROI) and cost-effectiveness. Therefore, small and medium organizations adopt cloud-based IT service management solutions and services.

By industry vertical, the global cloud ITSM market is classified into IT and telecommunication, BFSI, healthcare, manufacturing, retail, education, and others. 

The IT and telecommunication segment dominates the global market and is expected to grow at a CAGR of 9.9% during the forecast period. IT and Telecommunication industries are adopting cloud ITSM solutions and services to cater better IT and communication network services to their customers. Increased demand among users for enhanced communication networks and IT services fuels the demand for cloud ITSM in this industry. Moreover, the rise in competition among telecommunications service providers to provide better services and satisfy their customer needs is also a major factor that fosters the demand for cloud ITSM solutions.

Additionally, IT and telecommunication industries need to update their servers and networks continuously, which costs them a huge chunk of money. In order to mitigate expenses related to maintenance, support, and repairs, a significant number of IT and telecommunications organizations have begun implementing outsourcing services. For instance, in 2017, a leading Dutch telecommunications provider company deployed the ITSM platform provided by Cognizant to improve its service delivery and streamline its operations. Such factors boost the growth of the cloud ITSM market.

Market Size By Component

Market Size By Component
  • Solutions
  • Services
  • Recent Developments

    Top Key Players

    Cloud ITSM Market Share of Key Players

    Cloud ITSM Market Share of Key Players
    Axios Systems BMC Software CA Technologies Citrix Systems Hewlett Packard Enterprise International Business Machines Corporation (IBM) ManageEngine Micro Focus Microsoft Corporation ServiceNow Others

    Frequently Asked Questions (FAQs)

    How big is the Cloud ITSM Market?
    The global Cloud ITSM Market size was valued at USD 8,150.12 million in 2022. It is projected to reach USD 34,030.18 million by 2031, registering a CAGR of 17.2% during the forecast period (2023-2031).
    Europe has the highest growth in the global market.
    Key verticals adopting the market include: Axios Systems, BMC Software, CA Technologies, Citrix Systems, Hewlett Packard Enterprise, International Business Machines Corporation (IBM), ManageEngine, Micro Focus, Microsoft Corporation, ServiceNow
    Increasing adoption of cloud-based technologies is the key driver for the growth of the global market.
    Widespread adoption of the BYOD trend is one of the upcoming key trends in the global market.


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