Information Technology Service Management Market Size - By Technology (Configuration Management, Performance Management, Network Management, Database Management System), By Component (Solution, Services), Enterprise Size, Deployment Model & Forecast 2023 – 2032

Information Technology Service Management Market Size

Information Technology Service Management Market was valued at USD 7.8 billion in 2022 and is projected to showcase over 10% CAGR from 2023 to 2032, due to the integration of various technologies such as performance management, configuration technology, network management, and database management systems are fostering innovation.
 

Artificial Intelligence (AI) is driving the demand for IT service management. AI enhances ITSM by automating routine tasks, providing predictive analytics, and improving issue resolution. It offers intelligent chatbots for customer support, proactive maintenance, and data-driven decision-making. These AI-powered capabilities optimize IT service delivery, enhance user experiences, and reduce operational costs.
 

The high cost of implementation and maintenance poses a significant challenge in the information technology service management market. Implementing ITSM solutions can be costly in terms of software, hardware, and personnel training. Maintenance requires an ongoing expense for updates, security, and support. This cost barrier can deter smaller organizations from adopting ITSM, limiting its accessibility. As a result, ITSM providers are working on cost-effective solutions to make ITSM more accessible to a broader range of businesses and organizations.
 

COVID-19 Impact

The COVID-19 pandemic accelerated the adoption of information technology service management solutions. With remote work becoming the norm, businesses required robust ITSM to support dispersed teams and ensure business continuity. ITSM solutions helped maintain efficient IT operations and provide remote support, addressing the challenges posed by the pandemic. As a result, the ITSM market experienced increased demand, serving as a critical tool in navigating the challenges brought about by the global health crisis and supporting the rapid digital transformation of businesses.
 

Information Technology Service Management Market Trends

The shift toward Software-as-a-Service (SaaS) in the IT service management is revolutionizing the industry. It offers organizations the flexibility to access ITSM solutions as cloud-based services, reducing the need for extensive on-premises infrastructure and making ITSM more scalable & cost-effective. This trend aligns with the broader move toward cloud computing, enabling quicker deployment, updates, and accessibility. SaaS ITSM solutions are particularly attractive to businesses seeking agility, cost savings, and the ability to adapt to evolving technology needs, driving market growth.
 

Integrated service management is an emerging trend in the IT service management market, emphasizing the alignment of ITSM with broader enterprise service functions. This approach breaks down silos within organizations, enhancing cross-functional collaboration and providing a holistic view of services. ISM promotes a unified strategy for managing all service-related activities, streamlining workflows, and improving the end-user experience. By integrating ITSM with areas such as HR, facilities, and customer service, ISM enables organizations to deliver more efficient, cohesive & customer-centric services, making it a key trend in the ITSM landscape.
 

Information Technology Service Management Market Analysis:

Based on enterprise size, the large enterprises segment accounted for around 75% of the market share in 2022. Large organizations have complex IT infrastructures, necessitating comprehensive ITSM solutions for efficient management. Increasing digital transformation initiatives, cybersecurity concerns, and a desire for improved operational efficiency are driving adoption in this segment. Additionally, as large enterprises expand, they require scalable and customizable ITSM solutions to meet their evolving needs.
 

Based on technology, the network management segment captured about 27% of the market share in 2022, due to the increasing complexity of network infrastructure. With the proliferation of remote work, IoT devices, and cloud services, ITSM is increasingly incorporating robust network management capabilities. For instance, in June 2023, Nokia launched a new network management solution, MantaRay, which leverages AI/ML to enhance Radio Access Network (RAN) operations. The MantaRay portfolio encompasses network management, core network management, Self-Organizing Networks (SONs), and RAN Intelligent Controller (RIC), enabling more intelligent, efficient & cognitive network management.
 

North America region acquired more than 38% of the information technology service management market share in 2022. North America is home to numerous technologically advanced enterprises that are increasingly adopting ITSM to streamline operations, enhance customer experiences, and improve efficiency. Additionally, the stringent regulatory environment in North America, especially regarding data security and privacy, is driving the adoption of ITSM solutions. As digital transformation continues to be a top priority, North America remains a significant market for ITSM with continued expansion expected to meet the growing demand.
 

Information Technology Service Management Market Share

Major players operating in the information technology service management industry are:

• Atlassian
• BMC Software, Inc.
• Freshworks Inc.
• EasyVista
• IFS
• Ivanti
• Open Text
• ManageEngine
• ServiceNow.
• SysAid

ServiceNow and BMC Software, Inc. are major players in the Information Technology Service Management (ITSM) market. They offer end-to-end service management platforms that streamline IT operations, enhance user experiences, and improve efficiency. Their customer bases, global presence, and continued investments in AI, automation & cloud-based services make them dominant in ITSM, serving diverse industries and addressing the evolving needs of businesses worldwide.
 

Information Technology Service Management Industry News

• In October 2023, Silver Tree Consulting & Services unveiled VIGILANCE, the first integrated Enterprise Services Management-as-a-Service (ESMaaS) platform for mid-market and nonprofit organizations. It facilitates IT business transformation and is the result of extensive IT transformations & ongoing collaboration with IT leaders.
   

This information technology service management market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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By Technology

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

By Enterprise Size

• SMEs
• Large Enterprises

By Deployment Mode

• On-premises
• Cloud

By Component

• Solution
• Services

By Industry Vertical

• BFSI
• Healthcare
• Retail & E-commerce
• IT & Telecom
• Energy & Utilities
• Government & Public Sector
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Singapore
  • Malaysia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
• MEA
  • Saudi Arabia
  • UAE
  • South Africa