IT Service Management Market Size, Share, Growth, and Industry Analysis, By Type (Configuration Management, IT Asset Management, and DBMS Management), By Application (IT & Telecommunication, Healthcare, Media & Entertainment, Retail, and BFSI), Regional Insights, and Forecast To 2031

Updated On: 15 April 2024

IT Service Management Market Report Overview

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The global IT service management market size was USD 3963.1 million in 2021 and market is projected to touch USD 16367 million by 2031, at a CAGR of 14.9% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with the IT service management market experiencing higher-than-anticipated demand across all regions growth and demand returning to pre-pandemic levels once the pandemic is over.

IT service management (ITSM) refers to a set of practices, policies, and processes used by organizations to design, deliver, manage, and improve the services they provide to their customers using information technology (IT). ITSM focuses on aligning IT services with the needs and objectives of the business.

The market is anticipated to accelerate with an outstanding growth rate during the forecast period due to the increasing adoption of digital technologies, focus on customer-centricity, and rising demand for streamlined IT operations. Furthermore, the market is bifurcated by type, by application, and by regional expansion of the industry. In terms of the type of service, configuration management, IT asset management, and DBMS management services are being offered by key players. On the other hand, IT & telecommunication, healthcare media & entertainment, retail, and BFSI are the most popular application segments to raise the demand for the services.

COVID-19 Impact: Pandemic Increased Demand for ITSM Solutions to Support Remote Work

The COVID-19 pandemic signified the importance of IT management services. The IT sector is the most benefited sector by the health crisis on the whole. It accelerated digital transformation, leading to increased demand for ITSM solutions to support remote work and ensure business continuity. As well as cloud-based ITSM solutions became crucial for scalability and accessibility. Firms focused on service continuity, remote support, and self-service capabilities. In addition, IT budgets were redirected toward ITSM investments. Also, security and compliance requirements gained prominence. Resulted, the world health emergency highlighted the importance of ITSM practices and driving continued adoption and growth in the market.

Latest Trends

"Shift Towards AI-Powered in ITSM Expand Market Scope "

The market for IT service management is constantly evolving with continuing emerging trends and development in technologies. The shift towards AI-powered ITSM is one of the factors aiding the market growth. Artificial Intelligence (AI) and machine learning technologies are being integrated into ITSM solutions. AI-powered chatbots and virtual agents are being used for automated incident resolution, self-service support, and knowledge management. These technologies enhance efficiency, reduce response times, and improve the overall user experience. Along with this, the integration of ITSM and DevOps practices is gaining traction. DevOps principles are being applied to ITSM processes, fostering collaboration between development and operations teams. This integration enables faster deployment of IT services, continuous delivery, and improved agility. Consequently, these trends and innovative technologies are attributed to support the IT service management market growth throughout the projection timeframe.

IT Service Management Market Segmentation

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• By Type Analysis

According to type, the market can be bifurcated into Configuration Management, IT Asset Management, and DBMS Management.

• By Application Analysis

Based on application, the market can be divided into IT & telecommunication, healthcare

media & entertainment, retail, and BFSI.

Driving Factors

"Increasing Digital Transformation Escalate the Demand for ITSM Solutions"

Growing digital transformation is one of the leading factors that fuel the demand for the service. As organizations are embracing digital technologies and strategies to enhance their operational efficiency, customer experience, and competitiveness. Where ITSM solutions play a crucial role in managing and optimizing these digital initiatives and aid the growth of the market. 

"Rising Demand for Efficient IT Service Delivery Augment the Growth of the Market"

The market is also driven by the growing demand for efficient IT service delivery. As businesses become increasingly dependent on IT for their operations, there is a heightened need for reliable and efficient IT service management. Thus, organizations seek ITSM solutions to ensure smooth service delivery, reduce downtime, and enhance overall IT performance.

Restraining Factors

"Security and Privacy Concerns Can Impede the Market Expansion"

Although the market is progressive, however, data breaches and privacy concerns can be a bottleneck to the expansion of the market. Organizations may have concerns about the security and privacy of sensitive data when implementing ITSM solutions, particularly when using cloud-based platforms or outsourcing IT services. Therefore, addressing security and compliance requirements can be a challenge for market growth. 

IT Service Management Market Regional Insights

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"North America Dominates the Market due to Advanced IT Infrastructure"

As per market research, North America has been a leading region in the market. Particularly the U.S. and Canada have a mature ITSM market. The region's strong presence of large enterprises, advanced IT infrastructure, and early adoption of technology contribute to its leadership in the ITSM market. The region is known for its innovation and investment in ITSM solutions and services. Moreover, in terms of market revenue, the region holds the highest IT service management market shares in the international marketplace.

Key Industry Players

"Key Players Strive to Develop Industry-Specific Solutions to Expand Market Reach"

With regard to key players, leading vendors in the market stimulate revenue through strategies such as offering comprehensive ITSM solutions, driving continuous innovation, building strong customer relationships, forming partnerships and alliances, expanding their global presence, and developing industry-specific solutions. These approaches enable them to attract customers, generate recurring revenue through license renewals, upselling, and cross-selling, and tap into new markets which results in overall market growth and increased revenue.

List of Market Players Profiled

• IBM
• Absolute Software
• Microsoft
• Axios Systems
• Cherwell Software
• Citrix Systems
• Compuware
• EMC
• IVANTI
• Service Now
• BMC Software
• HP

Report Coverage

This report defines the IT service management market. It emphasizes the market value, expected CAGR, and USD value over the forecast period, before and after the impact of the COVID-19 pandemic restrictions on the international market, and how the industry is going to turn the corner is also stated in the report. The report provides significant market data with its product type and product applications, end-use details, and an idea of the market growth in the future. This report also provides an understanding of the growing market trends and developments and their effects on the market growth, driving factors along with restraining factors that impact the market dynamics. Along with this, the leading region, key players of the market, and their tactics to beat the market competition, sustainable policies, their collaboration, mergers, companies’ profile, previous years’ revenue, profit & loss, and market position based on their share value in the market, are also explained in the report.