cloud information technology service management itsm market report size, share, growth drivers, trends, opportunities & forecast 2025–2030
Description
Cloud Information Technology Service Management (ITSM) Market Overview
The Cloud Information Technology Service Management (ITSM) Market is valued at USD 10 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of cloud-based solutions, which enhance operational efficiency and reduce costs for organizations. The demand for ITSM solutions has surged as businesses seek to streamline their IT operations, improve service delivery, and leverage automation and artificial intelligence for better incident management and user experience. Key market drivers include digital transformation initiatives, the need for scalable IT infrastructure, and the widespread adoption of remote work models.
Key players in this market include the United States, Germany, and the United Kingdom, which dominate due to their advanced technological infrastructure and high levels of investment in IT services. North America holds the largest market share, driven by rapid cloud adoption, strong presence of leading ITSM vendors, and a robust focus on digital transformation and automation. The presence of major IT companies and ongoing investments in IT modernization further contribute to their leadership in the ITSM market.
In 2023, the European Union implemented the Digital Services Act (Regulation (EU) 2022/2065), issued by the European Parliament and Council. This regulation mandates stricter compliance for digital service providers, including ITSM solutions, with requirements for risk management, transparency, and user safety. The Act covers obligations such as regular risk assessments, reporting mechanisms, and enhanced data protection, driving demand for compliant ITSM services that can adapt to these new legal requirements.
Cloud Information Technology Service Management (ITSM) Market Segmentation
By Component:
The ITSM market is segmented into two main components: Solutions and Services. Solutions include Incident, Problem, Change, Asset, and Service Request Management, which are essential for effective IT service delivery, automation, and compliance. Services encompass Consulting, Implementation, Training, and Support, which are critical for organizations to successfully adopt, integrate, and optimize ITSM solutions for improved operational efficiency and user experience.
By Organization Size:
The market is divided based on organization size into Large Enterprises and Small & Medium Enterprises (SMEs). Large Enterprises typically have more complex IT environments and require comprehensive ITSM solutions to manage scalability, compliance, and integration with legacy systems. SMEs are increasingly adopting cloud-based ITSM solutions to enhance operational efficiency, reduce costs, and improve service delivery, driven by the need for flexible, scalable, and cost-effective IT management.
Cloud Information Technology Service Management (ITSM) Market Competitive Landscape
The Cloud Information Technology Service Management (ITSM) Market is characterized by a dynamic mix of regional and international players. Leading participants such as ServiceNow, BMC Software, Atlassian (Jira Service Management), Cherwell Software, Freshworks (Freshservice), Ivanti, Micro Focus, ManageEngine (Zoho Corp.), SolarWinds, Zendesk, SysAid Technologies, Axios Systems, TOPdesk, IBM, and Microsoft contribute to innovation, geographic expansion, and service delivery in this space. These vendors are recognized for their advanced ITSM platforms, integration of automation and AI, and focus on scalable cloud solutions for diverse enterprise needs.
ServiceNow
2004
Santa Clara, California, USA
BMC Software
1980
Houston, Texas, USA
Atlassian (Jira Service Management)
2002
Sydney, Australia
Cherwell Software
2004
Colorado Springs, Colorado, USA
Freshworks (Freshservice)
2010
San Mateo, California, USA
Company
Establishment Year
Headquarters
Organization Size (Large, Medium, Small)
Annual Recurring Revenue (ARR)
Customer Acquisition Cost (CAC)
Customer Retention Rate
Average Revenue Per User (ARPU)
Pricing Strategy (Subscription, Tiered, Freemium)
Cloud Information Technology Service Management (ITSM) Market Industry Analysis
Growth Drivers
Increased Demand for Automation:
The global push for automation in IT processes is evident, with the automation market projected to reach $214 billion in future. This demand is driven by the need for efficiency, as organizations seek to reduce operational costs, which can average around $1.5 trillion annually. Automation in ITSM can lead to a 30% reduction in service delivery times, enhancing overall productivity and customer satisfaction.
Rising Adoption of Cloud Solutions:
The cloud computing market is expected to grow to $832 billion in future, reflecting a significant shift towards cloud-based ITSM solutions. This transition is supported by the fact that 94% of enterprises already use cloud services, with 70% planning to increase their cloud investments in future. The flexibility and scalability of cloud solutions are key factors driving this growth, enabling businesses to adapt quickly to changing demands.
Enhanced Focus on IT Efficiency:
Organizations are increasingly prioritizing IT efficiency, with 60% of IT leaders stating that improving operational efficiency is their top priority in future. This focus is supported by the need to manage rising IT costs, which can average $1.2 trillion globally. ITSM solutions that streamline processes and improve service delivery are essential for achieving these efficiency goals, leading to higher adoption rates in the market.
Market Challenges
Data Security Concerns:
Data security remains a significant challenge for ITSM providers, with 43% of organizations reporting data
eaches in future. The average cost of a data
each is estimated at $4.35 million, prompting companies to be cautious about adopting cloud solutions. This concern can hinder the growth of ITSM services, as organizations prioritize security over innovation, impacting overall market expansion.
Integration with Legacy Systems:
Many organizations still rely on legacy systems, with 70% of enterprises indicating that integration with these systems is a major barrier to adopting new ITSM solutions. The cost of maintaining legacy systems can reach $1 trillion annually, making it difficult for companies to transition to modern ITSM platforms. This challenge can slow down the overall growth of the ITSM market as businesses grapple with compatibility issues.
Cloud Information Technology Service Management (ITSM) Market Future Outlook
The future of the Cloud ITSM market appears promising, driven by technological advancements and evolving business needs. As organizations increasingly em
ace digital transformation, the demand for agile and efficient ITSM solutions will continue to rise. The integration of AI and machine learning into ITSM processes is expected to enhance service delivery and customer experience. Additionally, the shift towards subscription-based models will likely reshape pricing strategies, making ITSM solutions more accessible to a
oader range of businesses.
Market Opportunities
Expansion into Emerging Markets:
Emerging markets present significant growth opportunities for ITSM providers, with an expected increase in IT spending projected to reach $1.5 trillion in future. This growth is driven by rising internet penetration and mobile device usage, creating a demand for cloud-based ITSM solutions tailored to local needs.
Development of AI-Driven ITSM Solutions:
The integration of AI into ITSM is a burgeoning opportunity, with the AI market in ITSM expected to reach $10 billion in future. AI-driven solutions can automate routine tasks, enhance decision-making, and improve service quality, positioning providers to capture a larger share of the market as businesses seek innovative solutions.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
The Cloud Information Technology Service Management (ITSM) Market is valued at USD 10 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing adoption of cloud-based solutions, which enhance operational efficiency and reduce costs for organizations. The demand for ITSM solutions has surged as businesses seek to streamline their IT operations, improve service delivery, and leverage automation and artificial intelligence for better incident management and user experience. Key market drivers include digital transformation initiatives, the need for scalable IT infrastructure, and the widespread adoption of remote work models.
Key players in this market include the United States, Germany, and the United Kingdom, which dominate due to their advanced technological infrastructure and high levels of investment in IT services. North America holds the largest market share, driven by rapid cloud adoption, strong presence of leading ITSM vendors, and a robust focus on digital transformation and automation. The presence of major IT companies and ongoing investments in IT modernization further contribute to their leadership in the ITSM market.
In 2023, the European Union implemented the Digital Services Act (Regulation (EU) 2022/2065), issued by the European Parliament and Council. This regulation mandates stricter compliance for digital service providers, including ITSM solutions, with requirements for risk management, transparency, and user safety. The Act covers obligations such as regular risk assessments, reporting mechanisms, and enhanced data protection, driving demand for compliant ITSM services that can adapt to these new legal requirements.
Cloud Information Technology Service Management (ITSM) Market Segmentation
By Component:
The ITSM market is segmented into two main components: Solutions and Services. Solutions include Incident, Problem, Change, Asset, and Service Request Management, which are essential for effective IT service delivery, automation, and compliance. Services encompass Consulting, Implementation, Training, and Support, which are critical for organizations to successfully adopt, integrate, and optimize ITSM solutions for improved operational efficiency and user experience.
By Organization Size:
The market is divided based on organization size into Large Enterprises and Small & Medium Enterprises (SMEs). Large Enterprises typically have more complex IT environments and require comprehensive ITSM solutions to manage scalability, compliance, and integration with legacy systems. SMEs are increasingly adopting cloud-based ITSM solutions to enhance operational efficiency, reduce costs, and improve service delivery, driven by the need for flexible, scalable, and cost-effective IT management.
Cloud Information Technology Service Management (ITSM) Market Competitive Landscape
The Cloud Information Technology Service Management (ITSM) Market is characterized by a dynamic mix of regional and international players. Leading participants such as ServiceNow, BMC Software, Atlassian (Jira Service Management), Cherwell Software, Freshworks (Freshservice), Ivanti, Micro Focus, ManageEngine (Zoho Corp.), SolarWinds, Zendesk, SysAid Technologies, Axios Systems, TOPdesk, IBM, and Microsoft contribute to innovation, geographic expansion, and service delivery in this space. These vendors are recognized for their advanced ITSM platforms, integration of automation and AI, and focus on scalable cloud solutions for diverse enterprise needs.
ServiceNow
2004
Santa Clara, California, USA
BMC Software
1980
Houston, Texas, USA
Atlassian (Jira Service Management)
2002
Sydney, Australia
Cherwell Software
2004
Colorado Springs, Colorado, USA
Freshworks (Freshservice)
2010
San Mateo, California, USA
Company
Establishment Year
Headquarters
Organization Size (Large, Medium, Small)
Annual Recurring Revenue (ARR)
Customer Acquisition Cost (CAC)
Customer Retention Rate
Average Revenue Per User (ARPU)
Pricing Strategy (Subscription, Tiered, Freemium)
Cloud Information Technology Service Management (ITSM) Market Industry Analysis
Growth Drivers
Increased Demand for Automation:
The global push for automation in IT processes is evident, with the automation market projected to reach $214 billion in future. This demand is driven by the need for efficiency, as organizations seek to reduce operational costs, which can average around $1.5 trillion annually. Automation in ITSM can lead to a 30% reduction in service delivery times, enhancing overall productivity and customer satisfaction.
Rising Adoption of Cloud Solutions:
The cloud computing market is expected to grow to $832 billion in future, reflecting a significant shift towards cloud-based ITSM solutions. This transition is supported by the fact that 94% of enterprises already use cloud services, with 70% planning to increase their cloud investments in future. The flexibility and scalability of cloud solutions are key factors driving this growth, enabling businesses to adapt quickly to changing demands.
Enhanced Focus on IT Efficiency:
Organizations are increasingly prioritizing IT efficiency, with 60% of IT leaders stating that improving operational efficiency is their top priority in future. This focus is supported by the need to manage rising IT costs, which can average $1.2 trillion globally. ITSM solutions that streamline processes and improve service delivery are essential for achieving these efficiency goals, leading to higher adoption rates in the market.
Market Challenges
Data Security Concerns:
Data security remains a significant challenge for ITSM providers, with 43% of organizations reporting data
eaches in future. The average cost of a data
each is estimated at $4.35 million, prompting companies to be cautious about adopting cloud solutions. This concern can hinder the growth of ITSM services, as organizations prioritize security over innovation, impacting overall market expansion.
Integration with Legacy Systems:
Many organizations still rely on legacy systems, with 70% of enterprises indicating that integration with these systems is a major barrier to adopting new ITSM solutions. The cost of maintaining legacy systems can reach $1 trillion annually, making it difficult for companies to transition to modern ITSM platforms. This challenge can slow down the overall growth of the ITSM market as businesses grapple with compatibility issues.
Cloud Information Technology Service Management (ITSM) Market Future Outlook
The future of the Cloud ITSM market appears promising, driven by technological advancements and evolving business needs. As organizations increasingly em
ace digital transformation, the demand for agile and efficient ITSM solutions will continue to rise. The integration of AI and machine learning into ITSM processes is expected to enhance service delivery and customer experience. Additionally, the shift towards subscription-based models will likely reshape pricing strategies, making ITSM solutions more accessible to a
oader range of businesses.
Market Opportunities
Expansion into Emerging Markets:
Emerging markets present significant growth opportunities for ITSM providers, with an expected increase in IT spending projected to reach $1.5 trillion in future. This growth is driven by rising internet penetration and mobile device usage, creating a demand for cloud-based ITSM solutions tailored to local needs.
Development of AI-Driven ITSM Solutions:
The integration of AI into ITSM is a burgeoning opportunity, with the AI market in ITSM expected to reach $10 billion in future. AI-driven solutions can automate routine tasks, enhance decision-making, and improve service quality, positioning providers to capture a larger share of the market as businesses seek innovative solutions.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
Table of Contents
84 Pages
- 1. cloud information technology service management itsm size, share, growth drivers, trends, opportunities & – Market Overview
- 1.1. Definition and Scope
- 1.2. Market Taxonomy
- 1.3. Market Growth Rate
- 1.4. Market Segmentation Overview
- 2. cloud information technology service management itsm size, share, growth drivers, trends, opportunities & – Market Size (in USD Bn), 2019–2024
- 2.1. Historical Market Size
- 2.2. Year-on-Year Growth Analysis
- 2.3. Key Market Developments and Milestones
- 3. cloud information technology service management itsm size, share, growth drivers, trends, opportunities & – Market Analysis
- 3.1. Growth Drivers
- 3.1.1. Increased Demand for Automation
- 3.1.2. Rising Adoption of Cloud Solutions
- 3.1.3. Enhanced Focus on IT Efficiency
- 3.1.4. Growing Need for Remote Work Solutions
- 3.2. Restraints
- 3.2.1. Data Security Concerns
- 3.2.2. Integration with Legacy Systems
- 3.2.3. High Initial Investment Costs
- 3.2.4. Rapid Technological Changes
- 3.3. Opportunities
- 3.3.1. Expansion into Emerging Markets
- 3.3.2. Development of AI-Driven ITSM Solutions
- 3.3.3. Strategic Partnerships and Collaborations
- 3.3.4. Customization of Services for Niche Markets
- 3.4. Trends
- 3.4.1. Shift Towards Subscription-Based Models
- 3.4.2. Increased Use of Machine Learning
- 3.4.3. Focus on User Experience and Interface Design
- 3.4.4. Growth of Multi-Cloud Strategies
- 3.5. Government Regulation
- 3.5.1. Data Protection Regulations
- 3.5.2. Compliance Standards for Cloud Services
- 3.5.3. Incentives for Cloud Adoption
- 3.5.4. Environmental Regulations Impacting Data Centers
- 3.6. SWOT Analysis
- 3.7. Stakeholder Ecosystem
- 3.8. Competition Ecosystem
- 4. cloud information technology service management itsm size, share, growth drivers, trends, opportunities & – Market Segmentation, 2024
- 4.1. By Component (in Value %)
- 4.1.1. Solutions (Incident, Problem, Change, Asset, and Service Request Management)
- 4.1.2. Services (Consulting, Implementation, Training & Support)
- 4.1.3. Others
- 4.2. By Organization Size (in Value %)
- 4.2.1. Large Enterprises
- 4.2.2. Small & Medium Enterprises (SMEs)
- 4.3. By End-User Industry (in Value %)
- 4.3.1. IT & Telecommunications
- 4.3.2. Banking, Financial Services & Insurance (BFSI)
- 4.3.3. Healthcare
- 4.3.4. Others
- 4.4. By Deployment Model (in Value %)
- 4.4.1. Public Cloud
- 4.4.2. Private Cloud
- 4.4.3. Hybrid Cloud
- 4.4.4. Multi-Cloud
- 4.5. By Service Model (in Value %)
- 4.5.1. Software as a Service (SaaS)
- 4.5.2. Platform as a Service (PaaS)
- 4.5.3. Infrastructure as a Service (IaaS)
- 4.6. By Region (in Value %)
- 4.6.1. North India
- 4.6.2. South India
- 4.6.3. East India
- 4.6.4. West India
- 4.6.5. Central India
- 4.6.6. Northeast India
- 4.6.7. Union Territories
- 5. cloud information technology service management itsm size, share, growth drivers, trends, opportunities & – Market Cross Comparison
- 5.1. Detailed Profiles of Major Companies
- 5.1.1. ServiceNow
- 5.1.2. BMC Software
- 5.1.3. Atlassian (Jira Service Management)
- 5.1.4. Freshworks (Freshservice)
- 5.1.5. Ivanti
- 5.2. Cross Comparison Parameters
- 5.2.1. Annual Recurring Revenue (ARR)
- 5.2.2. Customer Retention Rate
- 5.2.3. Average Revenue Per User (ARPU)
- 5.2.4. Pricing Strategy (Subscription, Tiered, Freemium)
- 5.2.5. Market Penetration Rate
- 6. cloud information technology service management itsm size, share, growth drivers, trends, opportunities & – Market Regulatory Framework
- 6.1. Compliance Requirements and Audits
- 6.2. Certification Processes
- 7. cloud information technology service management itsm size, share, growth drivers, trends, opportunities & – Market Future Size (in USD Bn), 2025–2030
- 7.1. Future Market Size Projections
- 7.2. Key Factors Driving Future Market Growth
- 8. cloud information technology service management itsm size, share, growth drivers, trends, opportunities & – Market Future Segmentation, 2030
- 8.1. By Component (in Value %)
- 8.2. By Organization Size (in Value %)
- 8.3. By End-User Industry (in Value %)
- 8.4. By Deployment Model (in Value %)
- 8.5. By Service Model (in Value %)
- 8.6. By Region (in Value %)
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