Global IT Service Management Market Assessment, By Solution Type [Change Management, Asset Management, Project Management, Knowledge Management, Incident Management, Problem Management, Configuration Management, Service Request Management], By Deployment Type [On-Premises, Cloud-Based], By Industry [Banking, Financial Services, & Insurance, Logistics, Healthcare, Manufacturing, Education, Retail, Government, Others], By Region, Opportunities and Forecast, 2016-2030F

Global IT service management market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years. With projected revenue of approximately USD 4.01 billion in 2022, the market is forecasted to reach a value of USD 15.28 billion by 2030, displaying a robust CAGR of 18.2% from 2023 to 2030.

IT Service Management (ITSM) provides various advantages, such as simplified operations, improved service quality, increased customer satisfaction, and effective resource usage. It improves issue resolution, reduces downtime, and aligns IT with business goals. ITSM frameworks such as ITIL offer defined procedures for optimizing IT operations and promoting corporate performance.

The IT Service Management Market is expanding rapidly due to digital transformation activities across sectors, which are increasing demand for ITSM solutions to efficiently manage complex IT ecosystems. Adoption is being driven by an increased emphasis on enhancing the end-user experience and guaranteeing smooth service delivery. The development of remote work and the demand for remote IT assistance is moving the IT service management market forward.

By mandating agile, integrated IT processes, digital transformation initiatives fuel the IT service management market. ITSM is becoming increasingly important as businesses update their operations for effective resource allocation, enhanced service delivery, and ensuring IT matches with developing business objectives, promoting its growth across industries.

For example, In June 2022, SysAid's AI Service Desk, which is linked with Microsoft Teams, improved IT issue resolution by allowing employees to manage requests, automate processes, and improve the overall employee experience in the face of remote and hybrid work issues.

Transforming ITSM with AI Innovation is Driving the Market

AI-powered service management is transforming the IT Service Management Market. Integrating artificial intelligence into service management provides intelligence, efficiency, and proactivity. Machine learning, natural language processing, and data analytics improve ITSM operations. Through previous data analysis, AI predicts foreseeable difficulties, allowing for proactive countermeasures against interruptions. AI-powered automation speeds up regular activities, freeing IT professionals for strategic projects. Natural language processing enables real-time, user-friendly communications via chatbots and virtual assistants.

AI-driven analytics extract meaningful insights from large datasets, empowering data-driven decisions. The driver improves customer happiness by customizing help. Furthermore, it improves operational efficiency by automating operations, reducing mistakes, and expediting issue responses.

For example, In April 2023, BMC's announcement unveiled AI-driven solutions using BMC Helix Control-M, AMI offerings, and Helix Operations Management for advanced data insights and streamlined IT operations.

Distributed Enterprises are Supporting the Growth in the Market

The distributed enterprise model describes an organizational structure with spread activities, resources, and staff rather than a single hub. The trend enabled by technical advancements like cloud computing and broadband internet allows remote work, satellite offices, and global talent involvement. However, managing a distributed company offers help in providing consistent IT services across several locations. ITSM enables remote support, consistent service quality, and efficient incident and change management. ITSM adapts to this model by providing seamless support, bridging the gap between the current work paradigm and effective service delivery by leveraging AI-driven automation and self-service technologies.

For example, in July 2023, Ivanti and T-Mobile collaborated to deliver AI-powered security solutions for mobile devices in hybrid work settings. Ivanti Neurons for MDM and UEM provide unified endpoint management, reducing device control and security complexity. The collaboration improves endpoint security and operational efficiency for T-Mobile's enterprise clients.

Leading Role of Incident Management in the Market

Incident management dominates the IT service management market due to its critical role in ensuring operational continuity. It focuses on quickly discovering, assessing, and resolving IT problems, minimizing downtime, and providing a consistent user experience. As organizations become more reliant on technology, efficient incident management becomes increasingly important. Furthermore, regulatory compliance and the requirement to achieve service level agreements (SLAs) encourage the adoption of organized incident management methods, making them a cornerstone of ITSM initiatives.

North America Region Dominates the Market

North America has established itself as the leader in adopting and expanding ITSM principles, positioning itself as a dominant force in the IT service management market. This importance may be due to a few factors, including a sophisticated IT sector, significant technological integration, and a strong emphasis on rapid service delivery. The region's high number of established organizations, ranging from multinational corporations to small and medium-sized businesses, necessitates efficient IT processes, driving the adoption of strong ITSM solutions.

North America's innovative ecosystem promotes incorporating innovative technologies like AI, automation, and analytics into ITSM frameworks, improving operational efficiency and customer satisfaction. The region's tendency for digital transformation and embracing emerging trends cements its leadership in the IT service management market, making it a global benchmark for efficient and effective IT service delivery.

For example, in April 2022, SysAid collaborated with Oomnitza to manage expanding IT asset management demands beyond the fundamentals by combining IT service management and Enterprise Technology Management (ETM) solutions. In today's complicated IT ecosystem, the integration delivers precise asset lifecycle data for IT teams, supporting services, and workers.

Government Initiatives Creating a Positive Impact

Governments across the globe are realizing the critical role that IT service management offers in supporting effective service delivery and promoting technological innovation. Governments are implementing different initiatives and regulations to encourage the growth of the IT service management market, such as developing frameworks that fit with industry best practices, such as the IT infrastructure library, which provides rules for standardized service management operations. Furthermore, investments in digital infrastructure and smart city efforts encourage ITSM adoption as these programs rely on good IT service delivery. Governments are promoting public-private collaborations to create IT service management solutions that address specific needs, such as citizen services and data security. Regulatory compliance requirements fuel more need for strong ITSM solutions, forcing governments to work with industry to develop compliance standards.

For example, in February 2023, Freshworks Inc. provided software to India's public sector, facilitating citizen involvement. Government agencies use Freshdesk and Freshservice to simplify procedures and comply with India's digital transformation. NGOs such as India Vision Foundation benefit as well, improving service delivery. Freshworks' products provide effective citizen support and contribute to India's technological advancement.

Impact of COVID-19

The COVID-19 pandemic greatly influenced the IT service management market, sparking substantial adjustments in adoption, priorities, and techniques. Organizations advance their ITSM initiatives as remote work and digital transformation became needful. Cloud-based ITSM systems became increasingly popular, allowing for seamless remote service delivery and support. Furthermore, the pandemic highlighted the significance of proactive ITSM, encouraging the integration of AI-driven issue resolution and self-service solutions to minimize service desk labor. ITSM frameworks have been modified to address pandemic-related concerns, such as enabling effective distant cooperation and preserving cybersecurity in the face of heightened cyber threats. However, budget restrictions and uncertainty forced organizations are expected to postpone ITSM projects. Due to remote work, service desks saw increased service demands, demanding speedy scalability. Vendor support outages and supply chain issues hampered ITSM tool installations.

Impact of the Russia-Ukraine War

The Russia-Ukraine war had a wide-ranging influence on the IT service management market. Geopolitical tensions and supply chain interruptions, notably in Eastern Europe, posed difficulty in obtaining crucial hardware, software, and services for ITSM installations. Market instability and decreased investor confidence may impact IT investment choices, prompting delays or revisions to ITSM initiatives. Increased cyber threats and state-sponsored hacking operations encouraged enterprises to seek ITSM solutions, including powerful security incident management and risk mitigation capabilities. The requirement for safe remote work solutions and continuity planning may increase demand for ITSM products. Furthermore, geopolitical instability may redefine global trade patterns, affecting both software development outsourcing and technological alliances. It may cause businesses to reconsider vendor relationships and opt for more localized solutions, therefore changing the competitive environment.

Global IT Service Management Market: Report Scope

“IT Service Management Market Assessment, Opportunities and Forecast, 2016-2030F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative & quantitative assessment of the current state of the global IT service management market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, COVID-19 and Russia-Ukraine war impact, opportunities, and forecast between 2023 and 2030. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.

In this report, the global IT service management market has been segmented into the following categories:

1.       By Solution Type

1.1.    Change management

1.2.    Asset management

1.3.    Project management

1.4.    Knowledge management

1.5.    Incident management

1.6.    Problem management

1.7.    Configuration Management

1.8.    Service Request Management

2.       By Deployment Type

2.1.    On-premises

2.2.    Cloud-based

3.       By Industry

3.1.    Banking, Financial Services, & Insurance (BFSI)

3.2.    Logistics

3.3.    Healthcare

3.4.    Manufacturing

3.5.    Education

3.6.    Retail

3.7.    Government

3.8.    Others

4.       By Region 

4.1.    North America

4.2.    Europe

4.3.    South America

4.4.    Asia-Pacific

4.5.    Middle East and Africa

Key Players Landscape and Outlook

The global IT service management market includes prominent companies such as Atlassian Corporation Plc, BMC Software, Inc., IBM Corp., and Ivanti, Inc. These organizations are important innovators in the IT service management market, providing comprehensive solutions for incidents, issues, change management, and other things. Atlassian's Jira Service Management, BMC's Remedy, IBM's Control Desk, and Ivanti's Service Manager are well-established solutions that cater to changing business requirements. As the IT service management market embraces digital transformation, automation, and AI, these companies are set to continue defining the industry by offering innovative and integrated solutions that maximize service delivery, user experiences, and IT operational efficiency.

In August 2023, Freshworks introduced an AI-powered Customer Service Suite that combines self-service bots, agent-led messaging, and automated ticketing. It improves customer assistance with scalable AI solutions for organizations by combining FreshchatTM, FreshdeskTM, and Freddy AI.

In June 2023, Ivanti joined the United States Joint Cyber Defense Collaborative (JCDC) to help the federal government improve its cybersecurity operations. JCDC, coordinated by CISA, brings together the public and commercial sectors to proactively exchange cyber risk information for synchronized cyber protection and response, strengthening national security.

Key Players Operating in Global IT Service Management Market are:

·         Atlassian Corporation Plc

·         BMC Software, Inc.

·         Freshworks group

·         IBM Corp.

·         Ivanti, Inc.

·         ServiceNow, Inc.

·         SolarWinds Worldwide, LLC

·         SysAid Technologies Ltd.

·         TOPdesk

·         Zoho Corporation Pvt. Ltd.

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