IT Service Management Market by Component, Deployment, Organization Size, Vertical

Description

List of Tables

[189 Pages Report] The IT Service Management Market size was estimated at USD 9.48 billion in 2023 and expected to reach USD 11.51 billion in 2024, at a CAGR 22.44% to reach USD 39.14 billion by 2030.

Information technology (IT) service management refers to the strategic approach, processes, policies, and practices employed by an organization to plan, design, deliver, operate, and control IT services offered to its customers. It primarily focuses on aligning IT resources with business needs and objectives while maintaining a high level of service quality. IT service management encompasses end-to-end management of the entire IT infrastructure of the organization, including hardware, software, networks, and applications. The shift to remote working and the use of cloud-based services enable organizations to streamline operations and facilitate the transition to digital workplaces, accelerating the need for efficient IT service management. Government initiatives promoting digitalization across industries have encouraged businesses to optimize their IT infrastructure and embrace innovative solutions. Adopting DevOps and Agile practices has allowed organizations to effectively manage their IT resources while fostering collaboration among development and operations teams, ultimately improving service delivery and customer satisfaction. However, certain challenges exist in implementing ITSM solutions, such as incompatibility with existing services or concerns associated with security or privacy breaches, which hinder the seamless deployment of these new technologies within an organization. Market players are introducing innovative AI-based tools with their ITSM solutions to offer customers a more effective IT management experience. Moreover, the accelerating use of ITSM for proactive and predictive maintenance presents another vital opportunity for end-users.

KEY MARKET STATISTICS
Base Year [2023]	USD 9.48 billion
Estimated Year [2024]	USD 11.51 billion
Forecast Year [2030]	USD 39.14 billion
CAGR (%)	22.44%

Component: Adaptability towards managed services by organizations

IT services, such as managed services and professional services, are two key components of IT service management that aim to optimize business processes and ensure the effective use of technology. Managed services involve outsourcing specific IT functions, such as network management, cybersecurity, or cloud computing, to a third-party provider responsible for monitoring, managing, and resolving issues related to these functions. Professional services in IT service management focus on providing expert advice, guidance, and implementation support for various technology initiatives. These services may include project management, system integration, business analysis, and software development. IT service management solutions enable IT companies to make informed decisions on allocating resources, prioritizing initiatives, and managing risks. These comprehensive software solutions empower businesses to effectively manage and optimize their IT assets throughout their life cycle, from procurement to retirement. Configuration & change management solutions are crucial in maintaining control and minimizing disruptions, while dashboard reporting & analytics tools provide valuable insights to IT service management professionals by consolidating diverse data sources into visualizations that enable informed decision-making. Service Desk Solutions are designed to manage customer support requests effectively by providing a centralized platform for handling incidents. Service Desk Software manages IT service delivery by offering a single point of contact between end-users and service providers in an organization. Service Portfolio Management (SPM) is a strategic process within IT service management (ITSM) that focuses on managing the entire lifecycle of IT services - from ideation through implementation, maintenance, and eventual retirement. These state-of-the-art software solutions foster a culture of continuous improvement and digital transformation across the enterprise by supporting informed decision-making and enabling data-driven strategies for future growth.

Deployment: Preferences for on-cloud deployments due to operational efficiency & cost effectiveness

In IT service management, selecting an appropriate deployment model for infrastructure and applications is crucial for businesses, and on-premises and on-cloud are the primary options, each catering to different organizational needs. On-premises deployment involves setting up IT infrastructure within an organization's facility using in-house resources such as servers and networking equipment. This option is preferred by businesses prioritizing control over data, security, and system configurations. It is particularly suitable for highly regulated industries requiring strict compliance or companies with existing hardware or legacy systems investments. Advantages include greater control over security measures and customization capabilities; however, it requires a higher initial investment and ongoing expenses with limited scalability. On-cloud deployment relies on third-party cloud service providers to host infrastructure, applications, and data. This approach offers operational efficiency, cost savings, and simplified management. It is ideal for companies seeking rapid scalability without significant upfront investments or those with limited in-house IT resources. Benefits encompass lower initial costs, increased flexibility, and built-in disaster recovery capabilities. Nevertheless, concerns about data security and limited customization options may arise. On-premises deployment provides more control over security at a higher cost, while on-cloud deployment offers flexibility and cost-effectiveness with potential security concerns. Businesses should assess their specific requirements before incorporating between the two models.

Organization Size: Inclined small & medium-sized enterprises towards cloud-based adoption

Large enterprises generally have complex IT environments with multiple layers of technology systems and processes to support business activities. Adopting ITSM practices enables these organizations to control their IT infrastructure while ensuring operational efficiency. These large-scale organizations often implement comprehensive frameworks, including Control Objectives for Information and Related Technologies (COBIT) or Information Technology Infrastructure Library (ITIL), to manage their technology resources effectively. In contrast, small & medium-sized enterprises (SMEs) tend to have less complex but more flexible IT structures than larger firms. SMEs are increasingly adopting cloud-based or SaaS (Software as a Service)-based ITSM solutions that cater precisely to their requirements at an affordable cost with limited budgets and fewer available resources. The growing adoption of IT service management by large and small enterprises highlights its significance in achieving enhanced operational performance and greater value creation.

Vertical: Increasing adoption from banking, financial services, and insurance sector for advanced security usability

The IT service management (ITSM) has a vital role in the Banking, Financial Services, and Insurance (BFSI) sector. These industries demand stringent security measures, regulatory compliance, and efficient data management, making ITSM solutions highly suitable. Government agencies worldwide require robust ITSM tools for effective management of public services infrastructure and data security. Solutions such as asset management, incident response systems, and DevOps are popular for streamlining processes within government institutions. Healthcare organizations rely on ITSM solutions to securely store sensitive patient information while adhering to regulatory requirements, including the Health Insurance Portability and Accountability Act (HIPAA). In the information technology (IT) industry, efficient service delivery is essential for business growth, catering to the needs of different company sizes across various domains, such as software development or data processing companies; these can aid businesses in achieving improved productivity through automation-driven support processes. With the increasing adoption of Industry 4.0, manufacturers are leveraging ITSM solutions to optimize their supply chain management, inventory tracking, and equipment maintenance. The media industry depends on reliable IT infrastructure for content creation, storage, and distribution. ITSM tools help organizations manage large-scale projects effectively while maintaining high-quality standards for end users worldwide. Retailers increasingly utilize ITSM tools to manage their eCommerce platforms, customer relationship management systems, and supply chains. Solutions cater specifically to these requirements by offering scalable options suitable for both small businesses and large enterprises alike; they enable smoother digital transformation processes within retail environments across the world. Telecom companies need advanced ITSM solutions to monitor network performance, manage assets, and ensure regulatory compliance in a highly competitive market environment. The travel and hospitality industries require robust ITSM solutions to enhance customer experiences through real-time data analytics processing capabilities that can provide personalized offers based on individual preferences during booking processes. Companies offer tailored services in this vertical, allowing hoteliers or airlines to streamline operations effectively by connecting various business functions through integrated software systems.

Regional Insights

The IT service management market in the Americas is mature, driven by the presence of well-established technology sectors and increasing investments in modernizing their technological infrastructures. Companies in the region are prioritizing multi-cloud management capabilities as businesses continue migrating more applications into cloud-based environments. These companies emphasize integrating artificial intelligence (AI) into their ITSM strategies for predictive analytics-driven decision-making and enhanced customer support through chatbots. The Americas is home to major global corporations prioritizing a robust IT infrastructure to support their operations, resulting in high demand for advanced IT service management solutions. The Asia-Pacific region encompasses a diverse mix of developing and developed economies with varying levels of IT maturity. Enterprises in Japan, South Korea, Singapore, and Australia have heavily invested in technology adoption and innovation.

Consequently, there is an increased demand for advanced IT service management solutions that cater to these rapidly evolving digital ecosystems. Small-to-medium enterprises (SMEs) make up a larger share of businesses within Asia-Pacific markets, and they contribute significantly to adopting ITSM solutions as they often lack in-house resources for managing IT services. In the European region, many large-scale organizations with extensive resources are dedicated to maintaining complex IT systems, driving significant demand for high-end IT service management offerings. European companies prioritize ITSM solutions that focus on complying with specific stringent data privacy laws and General Data Protection Regulation (GDPR). European ITSM providers offer customizable solutions to ensure adherence to these regulations while maintaining operational efficiency.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the IT Service Management Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the IT Service Management Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the IT Service Management Market, highlighting leading vendors and their innovative profiles. These include 4me, Inc., Atlassian Corporation PLC, AutomationEdge Pvt. Ltd., BMC Software, Inc., Broadcom Inc., Cisco Systems, Inc., Citrix by Cloud Software Group, Inc., ClickUp Service, Freshworks Inc., Halo Service Desk, Hewlett Packard Enterprise Company, Hornbill Corporate Limited, International Business Machines Corporation, ITarian LLC, Ivanti, Inc., Kaseya Inc., Microsoft Corporation, NinjaOne, LLC, Open Text Corporation, Oracle Corporation, Rworks, Inc., Serviceaide, Inc., ServiceNow, Inc., SolarWinds Corporation, Splunk Inc., SymphonyAI Summit, SysAid Technologies Ltd., Tata Consultancy Services Limited, TeamDynamix, TOPdesk Nederland BV, Vivantio Holdings Inc., Wipro Limited, and Zendesk, Inc..

Market Segmentation & Coverage

This research report categorizes the IT Service Management Market to forecast the revenues and analyze trends in each of the following sub-markets:

Component
- Services
  - Managed Services
  - Professional Services

Solutions
- Configuration & Change Management
- Dashboard Reporting & Analytics
- Operations & Performance Management
- Service Desk Software
- Service Portfolio Management

Deployment
- On Premises
- On-Cloud

Organization Size
- Large Enterprises
- Small & Medium-Sized Enterprises

Vertical
- Banking, Financial Services, & Insurance
- Government & Public Sector
- Healthcare & Life Sciences
- IT & ITES
- Manufacturing
- Media & Entertainment
- Retail & Consumer Goods
- Telecommunications
- Travel & Hospitality

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the IT Service Management Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the IT Service Management Market?

3. What are the technology trends and regulatory frameworks in the IT Service Management Market?

4. What is the market share of the leading vendors in the IT Service Management Market?

5. Which modes and strategic moves are suitable for entering the IT Service Management Market?

Product Code: MRR-710B1F0ABF86

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Shift to remote working and adoption of cloud-based services
  - 5.1.1.2. Government initiatives promoting digitalization across industries
  - 5.1.1.3. Rising focus on IT asset management and DevOps & agile practices
- 5.1.2. Restraints
  - 5.1.2.1. Incompatibility of ITSM services and integration issues with traditional IT architecture
- 5.1.3. Opportunities
  - 5.1.3.1. Integration of AI-enabled tools with IT service management solution
  - 5.1.3.2. Accelerating use of ITSM for proactive and predictive maintenance
- 5.1.4. Challenges
  - 5.1.4.1. Concerns associated with data privacy and security
5.2. Market Segmentation Analysis
- 5.2.1. Component: Adaptability towards managed services by organizations
- 5.2.2. Deployment: Preferences for on-cloud deployments due to operational efficiency & cost effectiveness
- 5.2.3. Organization Size: Inclined small & medium-sized enterprises towards cloud-based adoption
- 5.2.4. Vertical: Increasing adoption from banking, financial services, and insurance sector for advanced security usability
5.3. Market Trend Analysis
- 5.3.1. Continuous introduction of novel IT management services with the presence of native market players in Americas
- 5.3.2. Continuous digitalization across industries and increasing availability of ISTM solutions in the Asia-Pacific region
- 5.3.3. Growing digital transformation initiatives and government investment across diverse infrastructure of Europe
5.4. Cumulative Impact of Russia-Ukraine Conflict
5.5. Cumulative Impact of High Inflation
5.6. Porter's Five Forces Analysis
- 5.6.1. Threat of New Entrants
- 5.6.2. Threat of Substitutes
- 5.6.3. Bargaining Power of Customers
- 5.6.4. Bargaining Power of Suppliers
- 5.6.5. Industry Rivalry
5.7. Value Chain & Critical Path Analysis
5.8. Regulatory Framework Analysis

6. IT Service Management Market, by Component

6.1. Introduction
6.2. Services
6.3. Solutions

7. IT Service Management Market, by Deployment

7.1. Introduction
7.2. On Premises
7.3. On-Cloud

8. IT Service Management Market, by Organization Size

8.1. Introduction
8.2. Large Enterprises
8.3. Small & Medium-Sized Enterprises

9. IT Service Management Market, by Vertical

9.1. Introduction
9.2. Banking, Financial Services, & Insurance
9.3. Government & Public Sector
9.4. Healthcare & Life Sciences
9.5. IT & ITES
9.6. Manufacturing
9.7. Media & Entertainment
9.8. Retail & Consumer Goods
9.9. Telecommunications
9.10. Travel & Hospitality

10. Americas IT Service Management Market

10.1. Introduction
10.2. Argentina
10.3. Brazil
10.4. Canada
10.5. Mexico
10.6. United States

11. Asia-Pacific IT Service Management Market

11.1. Introduction
11.2. Australia
11.3. China
11.4. India
11.5. Indonesia
11.6. Japan
11.7. Malaysia
11.8. Philippines
11.9. Singapore
11.10. South Korea
11.11. Taiwan
11.12. Thailand
11.13. Vietnam

12. Europe, Middle East & Africa IT Service Management Market

12.1. Introduction
12.2. Denmark
12.3. Egypt
12.4. Finland
12.5. France
12.6. Germany
12.7. Israel
12.8. Italy
12.9. Netherlands
12.10. Nigeria
12.11. Norway
12.12. Poland
12.13. Qatar
12.14. Russia
12.15. Saudi Arabia
12.16. South Africa
12.17. Spain
12.18. Sweden
12.19. Switzerland
12.20. Turkey
12.21. United Arab Emirates
12.22. United Kingdom

13. Competitive Landscape

13.1. Market Share Analysis, 2023
13.2. FPNV Positioning Matrix, 2023
13.3. Competitive Scenario Analysis
- 13.3.1. Amdocs Completes Acquisition of TEOCO's Service Assurance Business to Help Accelerate End-to-End Network Automation
- 13.3.2. IBM to Acquire Apptio Inc., Providing Actionable Financial and Operational Insights Across Enterprise IT
- 13.3.3. PSG Makes Strategic Growth Investment in SaaS-based ITSM Vendor 4me
- 13.3.4. Cisco Announces its Intent to Acquire Cloud Security Software Company Lightspin
- 13.3.5. Hornbill partners with i3Works to spread the benefits of Enterprise Service Management in the UK
- 13.3.6. ServiceNow Launches Major Platform Expansion with the Utah Releas
- 13.3.7. SolarWinds Expands Customer Availability With New ITSM Data Center in Australia
- 13.3.8. GoTo is Transforming IT Management with New Remote Monitoring & Management Features, Lays Foundation for Full ITSM Functionality
- 13.3.9. Cisco Connects and Protects with New Cloud Tools Across Networking, Security and Operations to Provide Greater Visibility and Control Over Networks
- 13.3.10. WhitlockIS and Freshworks Inc. partner to bring delightful IT Service Management experience to businesses in North America
- 13.3.11. Vivantio announces Lansweeper Partnership - A Best-in-Class Solution for Asset Discovery & Inventory
- 13.3.12. Atlassian targets ITSM with new additions to Jira Service Management

14. Competitive Portfolio

14.1. Key Company Profiles
14.2. Key Product Portfolio