Home Technology Information Technology Service Management Market Size, Share, Growth, Trends 2031

Information Technology Service Management Market

Information Technology Service Management Market Size, Share & Trends Analysis Report 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) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRTE55267DR
Study Period 2019-2031 CAGR 1.82%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 6.03 Billion
Forecast Year 2031 Forecast Year Market Size USD 7.09 Billion
Largest Market North America Fastest Growing Market Europe
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Market Overview

The global information technology service management market size was valued at USD 6.03 billion in 2022. It is estimated to reach USD 7.09 billion by 2031, growing at a CAGR of 1.82% during the forecast period (2023–2031)

The surging adoption of updated IT infrastructure across several end-user industries due to numerous factors, like the adoption of 5G, AI, IoT, etc., is driving the global market growth. The growing adoption of cloud-based technology also boosts global market expansion. Information Technology Service Management (ITSM) is the practice of planning, implementing, managing, and optimizing information technology services to meet the requirements of end users and assist businesses in achieving their business objectives. By systematically accelerating tasks such as service requests, IT support, IT asset management, and change management, ITSM can help businesses enhance the end-user experience and increase IT infrastructure productivity.

By incorporating controls into IT services' design, delivery, and management, IT service management can also help organizations drive business strategies, achieve compliance, and reduce risk. ITSM's primary objective is to ensure the optimal deployment, operation, and management of each IT resource for each enterprise user. Customers, employees, and business partners are examples of potential. IT resources may include any hardware, software, or computing asset, such as a laptop computer, software application, cloud storage solution, or virtual server.

Market Dynamics

Global Information Technology Service Management Market Drivers

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

The adoption of 5G is expected to lead to the demand for efficient and updated infrastructure. With nearly 16% of large enterprises located in early 5G coverage areas, the adoption rates may increase to 66% by the end of 2022. The implementation of the fifth generation (5G) networks is leading to significant transformations in the existing information technology (IT) infrastructure within several sectors, including automotive, augmented reality/virtual reality (AR/VR), mobile connectivity, and telephony, among others.

Furthermore, 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 via digital channels. Likewise, the 2020 State of IT Survey conducted on 700 companies by Spiceworks Inc. indicated that about 64% of the companies reported the need to update their outdated information technology (IT) infrastructure. Moreover, the need to replace outdated hardware is another factor driving the market's growth.

Rising Adoption of Cloud-based Technology

The global adoption of cloud-based technology has increased significantly over the past few years. The current IT service management (ITSM) software models, which rely heavily on cloud services, are susceptible to service deterioration or control loss, data leakage, service loss, service interruption, and financial loss in the worst-case scenario. As the need to manage IT resources and reduce operating and maintenance costs increases, businesses are increasing their cloud technology spending. Thus, this is driving the global IT service management (ITSM) software market.

Global Information Technology Service Management Market Restraint

Issues in ITSM Implementation and Lack of Quality Standards in Service-level Agreement

Despite the many advantages of IT service management (ITSM) solutions, the market is not likely to grow during the forecast time frame due to obstacles such as difficulties in deployment and reliability issues, as well as a lack of quality standards in SLAs. The process of procuring an ITSM tool, primarily for managing critical IT services, involves believing that the provider's business would endure and the relationship with them.

In case of any failure by the provider, the enterprises relying upon them are significantly impacted and are expected to find a replacement tool. This, in turn, is expected to disrupt their process and, ultimately, their efficiency. The lack of quality standards in SLAs can also impact the quality of service delivery, deal pricing, and customer experience.

Global Information Technology Service Management Market Opportunities

Increasing Demand for a Unified Platform 

There is an increase in the demand for a unified platform. This can be majorly attributed to the soaring demand for workforce optimization, IT infrastructure performance monitoring, and the need for improved efficiency across enterprises and the public sector. As companies explore new technologies to impact their services or products substantially, there has been a constant need to maintain a platform to get real-time information, which is expected to help monitor performance. This is expected to drive growth and productivity while managing risk and gaining a competitive advantage.

Furthermore, this accelerated the demand for a unified platform. Market players provide unified platform solutions that can address the complex IT infrastructure while catering to the service demands of an increasingly distributed workforce. This is driving the need for ITSM, thereby creating opportunities for market growth.

Regional Analysis

Based on region, the global information technology service management market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

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. 62% of respondents to an IT Management survey by Site24*7 cited ease of management as the most important factor in cloud migration, followed by business continuity (60%) and scalability (59%). In addition, a March 2022 report titled "A hybrid cloud adoption survey" with more than 900 IT professionals indicated that most businesses (93%) are adopting a hybrid cloud and on-premise solutions or migrating entirely to the cloud within the next five years. The survey was conducted primarily in North America and Europe, with 43.8% of North American respondents. Therefore, the shift toward cloud platforms will increase demand for IT service management solutions over the next few years. The region also has a strong foothold on the ITSM vendors, contributing to the market's growth. Some include IBM Corporation, ServiceNow Inc., BMC Software Inc., and LogMein.

Europe is estimated to exhibit a CAGR of 0.85% over the forecast period. The European region is home to some of the most essential tech hubs globally and a significant driver and adopter of modern technology. Numerous businesses have migrated to the cloud and enabled employee mobility due to cost and compliance concerns in the region. Cloud services were adopted at the highest rate in Europe, at 84%, according to the data published by Bitglass in 2018. Many European countries invest heavily in digital infrastructures, but private and public initiatives have been introduced to fill skill gaps and accelerate cloud adoption. SMEs' soaring adoption of cloud services is expected to impact market growth positively. In addition, companies from numerous industries, including IT, telecom, and BFSI, are rigorously investing in cloud-based infrastructure and 5G technologies for better management and data sharing. The growing adoption of cloud ITSM solutions is expected to offer regional opportunities as enterprises and governments move toward the cloud.

The Asia-Pacific region is expected to grow at the fastest rate over the projected period because of several government digitalization initiatives. This region's dramatic rise in digitization is expected to augment cloud-based ITSM solutions significantly. For instance, Digital India aims to provide government services to citizens electronically by enhancing the IT infrastructure and increasing internet connectivity. The initiative intends to migrate legacy and on-premises systems to a cloud-based model or integrate them with it. It is anticipated that the cloud platform will host the delivery of e-services to citizens. In addition, investor interest in IT service management is growing in economies such as China, India, Japan, and South Korea. China is the global leader in emerging IT technologies, like edge computing, AI, and IoT, and is undergoing rapid development. As a result, increased demand for enhanced IT services is anticipated. This is anticipated to spur the market's growth during the forecast period.

Latin America is one of the potential markets for the digital transformation. Cloud computing is experiencing rapid growth in Latin America, mostly due to the increasing adoption of Software as a Service (SaaS) and Infrastructure as a Service (IaaS) solutions. The region is expected to witness more investments in digital transformation, including Big Data, business intelligence, cloud computing, mobile computing, and analytics. To thrive in such a dynamic IT environment, companies must adopt enterprise-class IT management services and align with proven technology partners, thereby driving regional market growth.

Report Scope

Report Metric Details
Segmentations
By Deployment
  1. Cloud
  2. On-premise
By Applications
  1. Configuration Management
  2. Performance Management
  3. Network Management
  4. Database Management System
  5. Other Applications
By End-User Industry
  1. BFSI
  2. Manufacturing
  3. Government and Education
  4. IT and Telecommunication
  5. Retail
  6. Travel and Hospitality
  7. Healthcare
Company Profiles ASG Technologies Group Inc. Axios Systems Atlassian Corporation PLC BMC Software Inc. Broadcom Inc. Freshworks Inc. IBM Corporation Micro Focus International PLC Ivanti Inc. ServiceNow Inc.
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 information technology service management market is segmented by deployment, application, and end-user industry.

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. Globally, organizations are increasingly deploying cloud services. Businesses that use cloud services only pay for the temporary resources they use instead of buying, programming, and maintaining extra resources and equipment that is inactive for long stretches of time. This helps companies reduce expenses that do not generate revenue. Therefore, cloud deployment of ITSM tools is witnessing prolific growth. In addition, cloud-based ITSM solutions are amongst the best effort-saving inventions of the technology ecosystem. By providing a safe space for colossal data, a cloud ITSM service delivery plan economizes IT infrastructure costs and saves time to focus on core business strategies.

Although cloud-based ITSM solutions are gaining leverage in the studied market, many organizations still require a closed system for IT service management, where on-premise deployment offers the most secure way to store files available. On-premise ITSM solutions help customers by providing software installed on their devices or within the management of the customers. The on-premise solutions are usually built by a company for its usage, specifically developed for an organization, or even offered with customized changes in the product provided by the company.

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. Network management manages a network for fault and performance using various tools and technologies according to the business requirements. Network management helps in achieving an error-free network. Multiple network management tools are also employed for various applications. Network management is a focus area for applications running on the IBM cloud environments, such as dedicated, public, and local. In addition, network management provides an overview of the overall network utilization of an IBM cloud application. It reports in-depth network metrics to determine if an application problem is network-related. Moreover, it allows administrators to address any issues quickly.

Configuration management is one of the components of the Information Technology Infrastructure Library (ITIL), which helps identify, maintain, and verify information on IT assets and configurations in the enterprise. Configuration management facilitates the storage of current configuration item (CI) data in a configuration management database (CMDB). It is implemented accordingly with change management to ensure the service provider can manage its IT assets and configurations effectively. Configuration management also enables enterprises to identify efficiently while controlling, maintaining, and verifying the versions of CIs in their infrastructure.

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. Modernizing IT service management for the IT and telecom sectors is an evolved approach. This bridges the gap between traditional, on-premise, and cloud-based IT systems. It increases operational efficiency and effectiveness. Therefore, consolidating how data is captured, analyzed, and shared across enterprises provides an improved experience for internal IT employees and external constituents. As a result of the rapid advancement of technology, telecom companies are constantly focusing on innovation. Thus, they focus on upgrading their infrastructure and developing cutting-edge customer service solutions, including innovation, customer service, infrastructure setup, and human resources.

The complexity of retail business needs a broad portfolio of ITSM services to cater to the existing retail applications, ranging from e-commerce websites to point-of-sale equipment distributed across a wide area. The rapid growth of the e-commerce industry has resulted in massive amounts of data related to consumers and processes, which, in turn, is triggering the development of the ITSM market in the retail sector.

Market Size By Deployment

Market Size By Deployment
  • Cloud
  • On-premise
  • Recent Developments

    • 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.
    • 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.

    Top Key Players

    Information Technology Service Management Market Share of Key Players

    Information Technology Service Management Market Share of Key Players
    ASG Technologies Group Inc. Axios Systems Atlassian Corporation PLC BMC Software Inc. Broadcom Inc. Freshworks Inc. IBM Corporation Micro Focus International PLC Ivanti Inc. ServiceNow Inc. Others

    Frequently Asked Questions (FAQs)

    How big is the Information Technology Service Management Market?
    The global information technology service management market size was valued at USD 6.03 billion in 2022. It is estimated to reach USD 7.09 billion by 2031, growing at a CAGR of 1.82% during the forecast period (2023–2031). 
    North America region has the highest growth rate in the Information Technology Service Management Market.
    The key players in the global Information Technology Service Management Market include ASG Technologies Group Inc., Axios Systems, Atlassian Corporation PLC, BMC Software Inc., Broadcom Inc., Freshworks Inc., IBM Corporation, Micro Focus International PLC, Ivanti Inc., ServiceNow Inc.
    Increasing Demand for a Unified Platform are one of the key opportunities in Information Technology Service Management Market.
    The global information technology service management market is segmented by deployment, application, and end-user industry.


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