IT Service Management (ITSM) Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, China, India, UK, Germany - Size and Forecast 2024-2028

Information Technology Service Management Market Size 2024-2028

The Global Information Technology Service Management (ITSM) Market size is projected to increase by USD 11.42 billion at a Compound annual growth rate (CAGR) of 14.34% between 2023 and 2028. Effective organizational change management is paramount in driving market growth. ITSM solutions provide control over IT organizations changes, minimizing costs and risks across heterogeneous IT environments. They enable realistic expectations and timeframes for planned changes, managing sub-processes like request scheduling and risk assessment. DevOps adoption is surging, reshaping ITSM by emphasizing collaboration, continuous delivery, and change management automation. This minimizes bureaucracy, enhances accountability, and enables swift risk correction. Aligning with market trends, this approach fosters collaboration, resulting in improved morale, increased employee engagement, and a more innovative IT environment. Cloud computing, IT resources, infrastructure and operations (I&O) managers, service desks, and IT & telecom sector are crucial in this transformation, affecting sectors like healthcare and telecom businesses, including IT companies.

What will be the size of the Market During the Forecast Period?

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Market Segmentation By Application 

The market share growth by the CM segment will be significant during the forecast period. Configuration Management (CM) tools are essential for source code version control, promoting collaboration among developers and preventing conflicts. They extend to defining and maintaining server configurations, aligning with organizational standards. As a cornerstone of IT Service-Management solutions, CM holds vital data on enterprise IT services. It encompasses virtualized environments and cloud platforms, ensuring correct configurations.

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The CM segment showed a gradual increase in the market share of USD 2.51 billion in 2018. Notably, CM manages versioning and documentation, ensuring accurate records accompany software or system versions. VMware's vRealize Configuration Manager (VCM) exemplifies this, offering compliance and patch-management functionalities while creating a reliable repository for efficient IT-management, constructing intuitive maps of service relationships, and enhancing service availability in complex, heterogeneous IT setups. Thus, these factors will promote the growth of the CM segment and boost the global market during the forecast period.

Market Segmentation By Application

Cloud-based ITSM enables users to access tools and services remotely, fostering collaboration among geographically dispersed IT teams. Offering scalable resources, organizations can adjust ITSM capacity as needed, operating on an operational expenditure (Opex) model. Solutions like Ivanti's cloud-based ITSM reduce ownership costs, simplify IT infrastructure-management, and provide flexibility. Deploying swiftly without extensive hardware setup, cloud-based ITSM ensures access to the latest features and security measures. It includes self-service portals, regulatory compliance tools, and multiple data center locations for enhanced redundancy and disaster recovery capabilities, complemented by automated backup and recovery mechanisms. Thus, these factors will drive the growth of the cloud segment and the market during the forecast period.

Regional Overview

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North America is estimated to contribute 37% to the growth of the global market during the forecast period. 
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. North American organizations are intensifying investments in digital transformation for enhanced agility, efficiency, and customer satisfaction. IT Service Management (ITSM) proves pivotal, offering tools and processes to manage IT services in a digital landscape. The focus is on ITSM solutions supporting remote collaboration, virtual teams, and efficient service delivery in distributed work settings.

Additionally, cybersecurity is a priority, driving demand for ITSM solutions with robust security features. Market dynamics include acquisitions and partnerships; Vista Equity Partners and Evergreen Coast Capital recently acquired Citrix Systems. Increasing demand from industries like finance and IT is prompting strategic alliances for market growth, exemplified by Contegix's Atlassian ITSM specialization and HPE's vertical-optimized GreenLake cloud services. Hence, such factors are expected to drive market growth in this region during the forecast period. 

Market Dynamics and Customer Landscape

The market is being driven by effective organizational change management practices, enabling organizations to adapt to evolving technological landscapes and meet customer demands effectively. A notable trend in this market is the increasing adoption of DevOps methodologies, facilitating collaboration between development and operations teams to streamline software development and deployment processes. Additionally, the Network management segment and Database Management System (DBMS) segment play crucial roles in ensuring smooth operations by optimizing network performance and managing data efficiently. However, a significant challenge facing the industry is the rising concern over security and privacy, particularly with the proliferation of sensitive data and the growing complexity of cyber threats.

Despite this challenge, the integration of emerging technologies such as cloud computing and IoT edge solutions offers opportunities for enhancing IT operations and performance management. Organizations must prioritize cybersecurity practices and compliance requirements while leveraging ITSM tools to optimize IT resources, improve customer satisfaction, and align IT services with short-term and long-term strategic goals. By focusing on cost reduction, automation, and the resilience of IT infrastructure, organizations can navigate challenges and drive innovation in the ITSM market.

Key Market Driver

Effective organizational change management is the key factor driving market growth. IT service management (ITSM) solutions provide effective control over organizational change management and minimize the costs and risks associated with changes across the heterogeneous IT enterprise environment. IT service management (ITSM) solutions allow any enterprise to be prepared with data-driven and realistic expectations and timeframes for any planned changes. The organizational change process, which includes sub-processes such as request scheduling, risk assessment, and conflict detection and resolution, is effectively managed by solutions.

Moreover, IT service management (ITSM) solutions may also maintain a change catalog that features the most common and low-risk changes, which are pre-approved to be deployed rapidly. Several market players offer ITSM for tracking the shifts that are happening in organizational architecture. BMC offers a BMC Change Management system for planning, scheduling, implementing, and tracking changes that need to be completed within an organization, which will drive the growth of the market during the forecast period.

Significant Market Trends

Increasing adoption of DevOps is the primary trend shaping market growth. Enterprise adoption of DevOps is surging, revolutionizing ITSM methodologies by emphasizing collaboration, continuous delivery, and change management automation. DevOps minimizes bureaucracy, enhances accountability, and enables swift correction of potential risks in change management. Aligning with the market trends and analysis, this approach fosters a cultural shift towards collaboration and shared responsibility, resulting in improved morale, increased IT employees engagement, and a more innovative and responsive IT environment compared to traditional ITSM.

Moreover, DevOps encourages the implementation of Continuous Integration and Continuous Deployment (CI/CD) pipelines, enabling continuous integration of code changes and automated deployment to production environments with faster release cycles, reduced time to market, and the ability to deliver updates and features more frequently. DevOps Config lowers the cost of configuration data management while improving the stability and quality of enterprise applications in the continuous delivery pipeline. Hence, the increasing adoption of DevOps will positively affect market growth during the forecast period.

Major Market Challenges

Increasing security and privacy concerns is a challenge that affects market growth. One of the data security issues is that businesses that store sensitive data are prime targets for cybercriminals. In businesses, protecting the privacy and confidentiality of corporate data is essential. Hence, businesses prefer employing on-premises IT service management (ITSM) solutions and are hesitant to shift their data and business processes to the cloud, which restrains the growth of the market. Although solutions have advanced recently, the IT industry faces significant challenges owing to these solution's data security capabilities.

Moreover, the security and privacy of corporate data are major concerns for businesses when it comes to their communication channels. This security-related worry is significant in the market since the customer's businesses are entirely reliant on the confidentiality and privacy of the organizational data gathering and accessible IT services. Sensitive data must be protected by solutions when communicating with other systems and services. Hence, rising security and privacy concerns are expected to impede market growth during the forecast period.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.

Market Customer Landscape

Who are the Major Market Companies?

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.

• Atlassian Corp. Plc: The company offers IT service management solutions such as Incident, service request, change management, self service portal, knowledge base, and automation through Jira Service Management.

The  Market  growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Constellation Software Inc.
• EasyVista SA
• Freshworks Inc.
• Hewlett Packard Enterprise Co.
• Hornbill Corporate Ltd.
• IFS World Operations AB
• Infosys Ltd.
• International Business Machines Corp.
• Ivanti Software Inc.
• Open Text Corp.
• ServiceNow Inc.
• SolarWinds Corp.
• SysAid Technologies Ltd
• TOPdesk
• Vivantio Inc.
• Wipro Ltd.
• Zoho Corp. Pvt. Ltd.

The market analysis and report of 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.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• Application Outlook
  • CM
  • ITAM and ITSD
  • A and PM
  • NM
  • Others

• Deployment Outlook
  • Cloud
  • On-premises

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The market is experiencing robust market growth analysis, fueled by the increasing adoption of cloud solutions and the proliferation of emerging technologies. With the rising complexity of IT systems & infrastructure, organizations are focusing on enhancing IT Operations Management (ITOM), data center management, and application management. To ensure optimal network performance and application performance, businesses are turning to network performance management and application performance management solutions. The implementation of the Neurons hyperautomation platform and IoT edge technologies further enhances operations & performance management.

With regulatory compliance requirements becoming stringent, the demand for robust cybersecurity practices and efficient ITSM tools is on the rise. Both large enterprises and Small and Medium Enterprises (SMEs) across various sectors, including IT & telecom and the healthcare sector, are investing in consulting services, customization services, and training/support services to align their short-term and long-term strategic goals. The hybrid workplace model necessitates operational efficiency and cost reduction, driving the demand for cloud-based models and digital performance management solutions. Moreover, with the surge in smart devices and 5G subscriptions, BFSI (Banking, Financial Services, and Insurance) firms and government agencies are prioritizing network management and Database Management System (DBMS) solutions to streamline their operations and ensure seamless content management across social media platforms.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2023 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, Middle East and Africa, and South America
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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