IT Service Management (ITSM) Software Market Size, Share, Growth, and Global Industry Analysis by Type (Cloud-Based and On-Premises) By Application (SMEs and Large Enterprises), Covid-19 Impact, Latest Trends, Segmentation, Driving Factors, Restraining Factors, Key Industry Players, Regional Insights, and Forecast to 2031

Updated On: 08 April 2024

IT SERVICE MANAGEMENT (ITSM) SOFTWARE MARKET REPORT OVERVIEW

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The global IT service management (ITSM) software market size was USD 2975.6 million in 2021 and is expected to reach USD 6856.71 million in 2031, exhibiting a CAGR of 8.7% during the forecast period.

IT service management (ITSM) software is a process-based strategy that primarily provides the end-user client with satisfactory service. With a focus on customer advantages, it aims to match company needs with how information technology (IT) services are delivered. IT service management (ITSM) software is a technological idea that enables businesses and business processes to utilize information technology services and maximize their economic value. To meet consumer demand, the cloud-based software services offer effective planning, designing, operating, delivering, and managing of many IT aspects.

The market is being driven by emerging ITSM nations and rising ITSM demand. Additionally, the rise of the mobile workforce, concerns about security and privacy, and the growing trend toward cloud-based ITSM have all contributed to the market's expansion. The market's expansion is being hampered by reasons like growing business scrutiny and complexity, widespread acceptance of the internet of things over various cloud-based apps, and excessive use of remote applications.

COVID-19 Impact: Lockdown Restrictions to Impede Market Progress

The global COVID-19 pandemic has been unprecedented and staggering, with IT service management (ITSM) software experiencing lower-than-anticipated/higher-than-anticipated demand across all regions compared to pre-pandemic levels. The rise in CAGR is attributable to the IT service management (ITSM) software market growth and demand returning to pre-pandemic levels once the pandemic is over.

The dynamics of corporate operations have changed globally due to COVID-19. Although the COVID-19 outbreak has exposed flaws in a variety of business models, it has also given cloud IT service management (ITSM) software market vendors multiple chances to grow their clientele among businesses due to the lockdown. There is a ton of room for the creation of sophisticated cloud-based ITSM software solutions because numerous modifications and changes are necessary to maintain a smooth flow of work processes. In the coming years, this is anticipated to favor the growth of the IT service management (ITSM) market.

LATEST TRENDS

"Increasing Adoption of Cloud-Based Technology to Foster Market Growth"

The adoption of cloud-based technology has significantly increased around the world in the current situation. The present IT service management (ITSM) software models, which mainly rely on cloud services, are prone to service deterioration or control loss, data leakage, service loss, including service interruption, and, in the worst circumstances, monetary loss.  As the need to manage IT resources and save operating and maintenance expenses grow, businesses are expanding their expenditures on cloud technology. The global IT service management (ITSM) software market is thus being driven by this. In some locations, unpredictable network transmissions may also have an impact on the user experience. This could reduce the availability of cloud-based services, including hybrid cloud-based services, in the impacted areas.

IT SERVICE MANAGEMENT (ITSM) SOFTWARE MARKET SEGMENTATION

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• By Type Analysis

By type, the market is segmented into Cloud-Based and On-Premises.

• By Application Analysis

Based on applications, the market is classified into SMEs and Large Enterprises.

DRIVING FACTORS

"Increasing Adoption in Various Applications to Foster Market Growth"

IT service management (ITSM) software technologies and services are expected to be quickly adopted by various businesses to reap a number of benefits, including improved ROI, increased efficiency, and cost-effectiveness. IT & telecommunications is anticipated to have the greatest market share among the industries throughout the forecast period. Businesses in the IT and ITES industries have implemented a number of strategies to reduce operational expenses and increase income, including network sharing, IT outsourcing, and revenue assurance. The broad range of IT and enterprise management services that enterprises may provide with the aid of the AI platform are expected to have a favorable impact on the market throughout the forecast period. The market is anticipated to benefit from a variety of lucrative prospects due to the rising integration of cloud ITSM solutions with contemporary AI.

"Long-Term Benefits of ITSM to Promote Growth"

The IT service management (ITSM) software’s ultimate goal is always customized to the particular demands and values of the customer. Furthermore, it outlines the responsibilities and privileges of project participants, partners, and outside suppliers of services, goods, and cutting-edge technologies. The administration of IT services and applications for their medium- and long-term strategic goals is typically where the IT organization places more of its attention. The benefits of ITSM, including cost savings, task automation, and data aggregation in one location, among others, have a significant impact on the organization's overall performance and aid in the accomplishment of both short- and long-term strategic goals. The IT service management (ITSM) software market is therefore anticipated to have rapid expansion throughout the anticipated period due to the changing dynamics of the IT sector.

RESTRAINING FACTORS

"Data Breach to Impede Market Progress"

When it comes to the operation of any business, security and privacy are crucial. Services that safeguard data that is vulnerable to misuse and leakage are necessary in today's society. Businesses tend to be sensitive when discussing communication routes because it might directly affect the confidentiality of the company's data.

IT SERVICE MANAGEMENT (ITSM) SOFTWARE MARKET REGIONAL INSIGHTS

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"Adoption of Digital Business Strategies to Foster Market Growth in North America"

North America is projected to dominate the IT service management (ITSM) software market share due to high organizational awareness of the advantages and the availability of talent to create creative solutions across all technology segments. Businesses have stayed ahead of the curve in another technological area, cloud ITSM, to meet their needs for business continuity. The adoption of digital business strategies by enterprises and the transition from on-premises to cloud-based solutions and services are both responsible for this increase. Due to the large number of players providing cloud ITSM solutions, North America is a developed market. Additionally, businesses are expanding their expenditures to support cloud ITSM solutions.

Asia Pacific is anticipated to have a sizable market share. A rise in technology adoption from consumer products, the manufacturing sector, and transportation and logistics to provide a better customer experience is anticipated to fuel the IT service management (ITSM) software market growth. Moreover, due to the existence of several chances, established players from around the world are working to increase their presence. For instance, ServiceNow Inc. expanded its presence by opening an R&D Center in Hyderabad, India, in August 2019. A center was announced to expand the ITSM product offerings' AI capabilities.

KEY INDUSTRY PLAYERS

"Incorporation of Strategies for Increasing Product Adoption to Help Companies Grow"

A few prominent competitors, like BMC Software Inc. and ServiceNow Inc., have a sizable portion of the IT service management (ITSM) software market, which is moderately concentrated. Only the cloud version of their ITSM software is getting additional features from the market players. The businesses are also using strong competitive methods, such as collaborations and product improvements, to maintain the market and keep their customers.

List of Market Players Profiled

• ServiceNow (U.S.)
• Atlassian (U.S.)
• Ivanti (HEAT Software) (U.S.)
• IBM (U.S.)
• CA Technologies (U.S.)
• BMC Software (U.S.)
• ASG Software (U.S.)
• Axios Systems (U.K.)
• SAP (Germany)
• Cherwell Software (U.S.)
• Micro Focus (Formerly HPE) (U.K.)
• Freshworks (U.S.)
• Ultimo Software (Netherlands)
• Epicor (U.S.)
• TOPdesk (Netherlands)

Industry Development

• Jan-2020: Splashtop, a pioneer in remote access, collaboration, and remote support solutions, and Freshworks formed a partnership. The alliance seeks to provide users of Freshservice, Freshworks' ITSM software, and Freshdesk, Freshworks' customer support software, with a quick, dependable, and secure remote assistance solution.

REPORT COVERAGE

The research examines the most recent developments and the most profitable categories. It goes through the influence of COVID-19, the driving and restraining elements in detail. It keeps track of the important players' strategies and regional trends. It allows readers to learn about the critical methods that promote market growth.