Cloud-Based IT Service Management Market Size 2024-2028 

The cloud-based IT service management (ITSM) market size is forecast to increase by USD 10.12 billion at a CAGR of 19.58% between 2023 and 2028. The market is experiencing significant growth due to its numerous benefits, including low overhead costs, scalability, and ease of use. The digital transformation of businesses is driving the demand for cloud-based ITSM solutions, as they enable organizations to manage their IT services more efficiently and effectively. However, this trend comes with challenges, such as increasing security and privacy concerns and integration complexity. To address these challenges, advanced technologies like artificial intelligence (AI), machine learning (ML), and ppredictive analytics are being integrated into cloud-based ITSM solutions. Additionally, the adoption of multi-cloud strategies by large enterprises is adding to the complexity of ITSM implementation. Despite these challenges, the benefits of cloud-based ITSM solutions far outweigh the costs, making them a popular choice for businesses looking to streamline their IT operations.

What will be the Size of the Cloud-Based IT Service Management Market During the Forecast Period?

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The cloud IT service management (ITSM) market is experiencing significant growth as businesses increasingly adopt cloud-based solutions to streamline their IT operations. This shift towards cloud computing is driven by various macroeconomic factors, including recessions and high inflation, which necessitate cost-effective and efficient IT initiatives. Recessions and high inflation can significantly impact IT budgets, leading organizations to seek out cost-saving measures. Cloud-based ITSM solutions offer a more affordable alternative to traditional on-premises IT systems, as they eliminate the need for large upfront investments in hardware and infrastructure.

Moreover, workflow automation is a critical component of cloud-based ITSM, enabling organizations to resolve incidents more efficiently and effectively. Automation reduces the workload on IT teams, allowing them to focus on more strategic initiatives. Security concerns are a major consideration for organizations when adopting cloud-based ITSM solutions. Data security is paramount, and cloud providers offer advanced security features, including cybersecurity and data protection. High-profile security breaches can result in significant financial and reputational damage, making it essential for organizations to prioritize security in their IT operations management (ITOM). AI technologies are also playing an increasingly important role in cloud-based ITSM.

Automation, incident management, problem management, change management, and asset management are all areas where AI can be leveraged to improve efficiency and accuracy. For instance, AI can be used to analyze data and identify patterns, enabling proactive problem resolution and reducing service interruptions. Cloud ITSM solutions offer managed services, including Software as a Service (SaaS), which allow organizations to outsource IT management functions to third-party providers. This approach can help organizations reduce costs, improve service quality, and focus on their core business functions. In conclusion, the cloud ITSM market is poised for continued growth as organizations seek cost-effective and efficient IT solutions to navigate macroeconomic challenges.

Cloud-based ITSM offers numerous benefits, including workflow automation, security, and the integration of AI technologies. By prioritizing these factors, organizations can enhance their IT operations management and improve overall business performance.

Cloud-Based IT Service Management Market Segmentation

The cloud-based ITSM market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2017-2022 for the following segments.

• Component
  • Solutions
  • Services
• End-user
  • IT and telecom
  • Retail and consumer goods
  • BFSI
  • Healthcare and life sciences
  • Others
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
  • APAC
    • China
  • South America
  • Middle East and Africa

By Component Insights

The solutions segment is estimated to witness significant growth during the forecast period.The cloud-based ITSM market is expected to maintain a leading position in the component segment, with solutions being a key focus area. The need for organizations to manage and oversee the delivery and operation of cloud and IT services is the primary factor fueling the demand for cloud-based ITSM solutions. Furthermore, the increasing number of developers seeking to manage and optimize IT services post-production to meet service level objectives (SLOs) or agreements (SLAs) is another significant driver. Macroeconomic factors, such as recessions and high inflation, may impact IT initiatives, leading to a greater emphasis on workflow automation and incident resolution to improve operational efficiency and reduce costs.

Security concerns also remain a top priority, making cloud-based ITSM solutions an attractive option due to their ability to provide robust security features and scalability.

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The Solutions segment accounted for USD 2.62 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

North America is estimated to contribute 38% to the growth of the global cloud-based IT service management market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The North American market for cloud-based IT service management (ITSM) is poised for significant expansion during the forecast period, fueled by the presence of a large number of solution providers in the United States and the growing trend of Bring Your Own Device (BYOD) policies in the region. As technology adoption increases in North America, businesses are focusing on delivering exceptional customer experiences to gain a competitive edge. The public sector in North America, particularly, offers lucrative opportunities for growth as various departments within these organizations employ distinct processes, standards, and help desk tools. Cloud ITSM solutions, including IT operations management (ITOM) and Managed services, are gaining popularity among government entities due to their flexibility and scalability.

The SaaS-based delivery model of these solutions enables seamless integration with existing systems and ensures high-profile security. In summary, the North American cloud-based ITSM market is set to thrive due to the increasing adoption of cloud solutions by both private and public sector organizations, and the region's emphasis on delivering superior customer experiences.

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Market Driver

Low overhead costs, scalability, and easy usage of cloud-based ITSM solutions is the key driver of cloud-based IT service management market growth. Cloud-based IT service management (ITSM) solutions offer several benefits to businesses, particularly in the areas of change management and asset management. With cloud-based ITSM, there is no need for upfront capital expenditures on hardware and software since the service is provided by the company. This not only saves money but also reduces the burden on IT personnel. Advanced technologies such as AI and Integration are increasingly being incorporated into cloud-based ITSM systems, providing real-time visibility into IT operations. These capabilities are essential for businesses, especially those with remote workforces, to maintain efficient and effective IT services. ITIL best practices are easily integrated into cloud-based ITSM systems, ensuring adherence to industry standards and streamlining IT processes.

The flexibility and scalability of cloud-based ITSM systems enable them to grow with the business, accommodating increased capacity and more advanced features as needed. In today's fast-paced business environment, keeping up with the latest ITSM system updates can be a challenge for small IT departments. Cloud-based solutions alleviate this issue, allowing IT staff to focus on driving business growth rather than managing IT infrastructure.

Market Trends

Growing digitalization of businesses is the upcoming trend in the cloud-based ITSM market. In today's business landscape, many organizations worldwide are undergoing digital transformations. This process involves streamlining business operations, generating revenue through multiple channels, enhancing customer focus, and modernizing back-office functions. Digital transformation is anticipated to revolutionize the way IT and business services are designed, delivered, and managed using ITSM principles, methods, and technologies. Cloud-based ITSM solutions are gaining popularity as they offer value-added services (VAS) to businesses' customers, promoting a customer-centric approach. These solutions enable enterprises to implement new services and processes swiftly, utilizing the transparency, automation, and collaboration principles of cloud-based ITSM. Private and hybrid cloud deployments are becoming increasingly common in ITSM, providing businesses with flexibility and control over their IT infrastructure.

Cloud-based IT service desk, IT asset management, configuration management, service portfolio management, and service catalog management are some of the key ITSM functions that can be effectively delivered through the cloud. Cloud-based ITSM solutions are essential for businesses seeking to digitalize their operations and remain competitive. By adopting these solutions, organizations can streamline their IT services, reduce costs, and improve overall efficiency. With the growing emphasis on digital transformation, the market for cloud-based ITSM solutions is expected to expand significantly.

Market Challenge

Increasing security and privacy concerns is a key challenge affecting cloud-based IT service management market growth. In the modern business landscape, safeguarding corporate data has become a paramount concern for ensuring business continuity. The risk of unauthorized access to sensitive information poses a significant challenge. Consequently, many organizations have been reluctant to move their data and business processes to cloud-based IT service management (ITSM) solutions due to security concerns. However, the evolution of cloud ITSM solutions has been noteworthy, offering advanced features such as artificial intelligence (AI), machine learning (ML), and predictive analytics. These technologies enhance the security of cloud ITSM solutions, making them more appealing to businesses. Despite these advancements, the cloud ITSM market faces challenges due to integration complexity and the growing trend of Multi-cloud environments in Large Enterprises.

Ensuring security in a multi-cloud environment can be intricate, necessitating robust solutions. Therefore, providers must prioritize security to meet the demands of businesses and overcome the challenges associated with cloud adoption.

Customer Landscape

The cloud-based IT service management market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the cloud-based ITSM market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Alemba Ltd. - The company provides cloud-based IT service management solutions, including Alemba Service Manager. This innovative approach allows businesses to effectively manage and optimize their IT services in a flexible and scalable manner. Cloud-based ITSM enables organizations to streamline processes, improve service delivery, and enhance the overall user experience. With the increasing adoption of cloud technologies, this market is experiencing significant growth. Key features of cloud-based ITSM include automation, self-service portals, and real-time reporting. These solutions help businesses reduce costs, increase efficiency, and ensure compliance with ITIL best practices. By leveraging the power of the cloud, organizations can access advanced IT service management capabilities without the need for extensive infrastructure investments. Cloud-based ITSM is a smart choice for businesses seeking to modernize their IT service delivery and improve customer satisfaction.

The cloud-based IT service management market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Alemba Ltd.
• Atlassian Corp. Plc
• BMC Software Inc.
• Broadcom Inc.
• Citrix Systems Inc.
• EasyVista SA
• Efecte Oyj
• Freshworks Inc.
• Hewlett Packard Enterprise Co.
• Hornbill Corporate Ltd.
• International Business Machines Corp.
• ITarian LLC
• Ivanti Software Inc.
• Open Text Corporation
• Microsoft Corp.
• OPGK RZESZOW S.A.
• ServiceNow Inc.
• SymphonyAI Summit
• SysAid Technologies Ltd
• Zoho Corp. Pvt. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The cloud-based ITSM market is experiencing significant growth due to various macroeconomic factors. Recessions and high inflation have led businesses to prioritize IT initiatives that offer cost savings and efficiency gains. Cloud-based ITSM solutions, enabled by cloud computing, have emerged as a popular choice for IT operations management (ITOM) and IT service desk functions. Workflow automation, incident resolution, and problem management are key areas where cloud-based ITSM solutions provide value. Security concerns, including data security and high-profile cyberattacks, are driving the adoption of advanced technologies like AI and machine learning for predictive analytics and real-time visibility. ITIL-aligned ITSM practices, such as integration, asset management, configuration management, service portfolio management, and service catalog management, are increasingly being adopted in the cloud.

Service interruptions due to network outages and cyberattacks are major pain points for businesses, making security a top priority. Cloud-based ITSM solutions offer managed services, including Software as a Service (SaaS), for incident management, problem management, change management, and asset management. The complexity of integration in a multi-cloud environment is a challenge, but the benefits of cloud adoption, including cost savings, agility, and digital transformation, outweigh the challenges. Large enterprises are adopting public, private, and hybrid cloud solutions for their ITSM needs.

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What are the Key Data Covered in this Cloud-Based IT Service Management Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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