Market Size of Cloud Information Technology Service Management (ITSM) Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 4.88 Billion |
Market Size (2029) | USD 5.47 Billion |
CAGR (2024 - 2029) | 2.33 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Major Players*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Cloud Information Technology Service Management (ITSM) Market Analysis
The Cloud Information Technology Service Management Market size is estimated at USD 4.88 billion in 2024, and is expected to reach USD 5.47 billion by 2029, growing at a CAGR of 2.33% during the forecast period (2024-2029).
The emergence of cloud computing has significantly impacted the way businesses are being operated. The increasing adoption rate of cloud solutions has brought changes in the operating models by reducing IT infrastructure cost. The deployment of cloud solutions enables enterprises to focus on core business competencies.
- The broad availability of cloud services to support various generalized and specialized business applications is fuelling companies' transformations into digital enterprises. When utilizing cloud services, the service provider's Information Technology Service Management (ITSM) processes become an extension of an organization creating an essential process dependency that must be carefully integrated and managed to avoid introducing time delays, unnecessary complexity, security vulnerabilities, and risk to the company's IT operation.
- The growing usage of cloud-based applications among startups and small and medium-sized businesses drives the cloud IT service management industry. Cloud-based apps help firms reduce IT infrastructure running expenses and increase scalability, collaboration efficiency, work process flexibility, company stability, and other benefits.
- Integration of cloud ITMS solutions and services with advanced artificial intelligence (AI) platforms is one of the developing cloud IT service management (ITSM) industry trends. The AI platform enables enterprises to automate a wide range of IT and enterprise management services while also providing a scalable cloud platform.
- Although the fact that cloud ITMS provides several benefits, the majority of end users are unaware of its availability. Moreover, security concerns for personal data and corporate operations in developing countries where cyber-attacks are on the increase are projected to hinder market expansion.
- The COVID-19 pandemic had a beneficial impact on the market, owing to the rise in remote working and the expanding digital transformation of enterprises. Businesses are looking for business processes that are seamless, efficient, and accessible from any location. Further, many businesses completed their digital transformation, and some have decided to remain fully remote or operate on a digital and in-office hybrid model. Thus, IT teams can expect a sharp rise in the need for internal IT support and cloud ITSM, thereby boosting the studied market growth.
- Overall, the pandemic has fueled the cloud ITSM market, and the market is also expected to witness prolific growth post-pandemic, with most organizations shifting to a hybrid workplace model. The enhancing support and services from deploying the cloud ITSM tool would also remain a significant factor in boosting the studied market post-pandemic.
Cloud Information Technology Service Management (ITSM) Industry Segmentation
The Cloud ITSM (Information Technology Service Management) is a practice that is designed to deliver IT services to enterprises with the support of cloud technology. These tools aid the growth of an organization by aligning their IT processes and services with the business objectives. Enterprises are investing heavily in the cloud ITSM applications that can replace their existing legacy systems, depending on the features and capabilities. The competitive upgrades and replacements are expected to have a profound impact on changing the widespread market share in the future.
The Cloud Information Technology Service Management (ITSM) Market is segmented by Application (Configuration Management, Performance Management, Network Management, Database Management System), by End-User Industry (BFSI, IT and Telecommunication, Retail, Travel and Hospitality, Healthcare), by Geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value in USD for all the above segments.
By Application | |
Configuration Management | |
Performance Management | |
Network Management | |
Database Management System | |
Other Applications |
By End-user Industry | |
BFSI | |
IT and Telecommunication | |
Retail | |
Healthcare | |
Other End-user Industries (Manufacturing, Travel and Hospitality, Government and Education) |
By Geography | |
North America | |
Europe | |
Asia Pacific | |
Latin America | |
Middle East and Africa |
Cloud Information Technology Service Management (ITSM) Market Size Summary
The Cloud-Based IT Service Management (ITSM) market is experiencing significant transformation driven by the widespread adoption of cloud computing solutions. This shift is reshaping business operations by reducing IT infrastructure costs and allowing enterprises to concentrate on core business activities. The availability of cloud services to support various business applications is propelling companies towards becoming digital enterprises. However, the integration of cloud ITSM processes requires careful management to avoid potential challenges such as security vulnerabilities and operational complexities. The market is further bolstered by the increasing use of cloud-based applications among startups and small to medium-sized enterprises, which benefit from reduced IT costs and enhanced scalability and collaboration. The integration of advanced artificial intelligence platforms with cloud ITSM solutions is emerging as a key trend, enabling automation and scalability in IT and enterprise management services.
The COVID-19 pandemic has accelerated the adoption of cloud ITSM solutions as businesses seek seamless and efficient processes to support remote and hybrid work models. This shift has led to a heightened demand for internal IT support and cloud ITSM, driving market growth. The market is characterized by a fragmented landscape with major players like IBM Corporation, BMC Software Inc., and ServiceNow Inc. leading the charge. These companies are focusing on cloud-based innovations and strategic collaborations to enhance their offerings. North America stands out as a prominent market due to its high adoption of cloud technology and the presence of key vendors. The region's transition towards cloud platforms is supported by government initiatives and a strong focus on improving IT service efficiency. As businesses continue to embrace cloud migration and emerging technologies, the cloud ITSM market is poised for substantial growth, with increasing adoption of hybrid cloud solutions and advancements in AI and IoT driving future developments.
Cloud Information Technology Service Management (ITSM) Market Size - Table of Contents
-
1. MARKET INSIGHTS
-
1.1 Market Overview
-
1.2 Industry Attractiveness - Porter's Five Forces Analysis
-
1.2.1 Threat of New Entrants
-
1.2.2 Bargaining Power of Buyers/Consumers
-
1.2.3 Bargaining Power of Suppliers
-
1.2.4 Threat of Substitute Products
-
1.2.5 Intensity of Competitive Rivalry
-
-
1.3 Assessment of COVID-19 Impact on the Market
-
-
2. MARKET SEGMENTATION
-
2.1 By Application
-
2.1.1 Configuration Management
-
2.1.2 Performance Management
-
2.1.3 Network Management
-
2.1.4 Database Management System
-
2.1.5 Other Applications
-
-
2.2 By End-user Industry
-
2.2.1 BFSI
-
2.2.2 IT and Telecommunication
-
2.2.3 Retail
-
2.2.4 Healthcare
-
2.2.5 Other End-user Industries (Manufacturing, Travel and Hospitality, Government and Education)
-
-
2.3 By Geography
-
2.3.1 North America
-
2.3.2 Europe
-
2.3.3 Asia Pacific
-
2.3.4 Latin America
-
2.3.5 Middle East and Africa
-
-
Cloud Information Technology Service Management (ITSM) Market Size FAQs
How big is the Cloud Information Technology Service Management Market?
The Cloud Information Technology Service Management Market size is expected to reach USD 4.88 billion in 2024 and grow at a CAGR of 2.33% to reach USD 5.47 billion by 2029.
What is the current Cloud Information Technology Service Management Market size?
In 2024, the Cloud Information Technology Service Management Market size is expected to reach USD 4.88 billion.