Cloud ITSM Market Report by Component (Solutions, Services), End User (Large Enterprises, Small and Medium Enterprises), Vertical (BFSI, IT and Telecommunication, Healthcare, Manufacturing, Retail, Education, and Others), and Region 2024-2032

Cloud ITSM Market Report by Component (Solutions, Services), End User (Large Enterprises, Small and Medium Enterprises), Vertical (BFSI, IT and Telecommunication, Healthcare, Manufacturing, Retail, Education, and Others), and Region 2024-2032

The global cloud ITSM market size reached US$ 8.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 36.0 Billion by 2032, exhibiting a growth rate (CAGR) of 16.92% during 2024-2032. The increasing complexity of IT environments, growing need for agile IT solutions, integration of advanced technologies like artificial intelligence (AI) and machine learning (ML) and the widespread service adoption in healthcare and manufacturing sectors are some of the major factors propelling the market.

Cloud information technology service management (ITSM) is a strategic approach for managing IT services hosted on cloud infrastructure to ensure an organization's IT aligns with its business objectives. It includes various types, such as service desk software, IT asset management, and change and release management. Cloud ITSM utilizes advanced technologies like artificial intelligence (AI), machine learning (ML), and big data analytics. It is widely utilized in various applications, such as incident reporting, knowledge management, service-level agreement (SLA), and compliance monitoring. Cloud ITSM offers numerous benefits, including cost-effectiveness, scalability, and business continuity.

The increasing complexity of IT environments, necessitating the need for efficient service management solutions to maintain and optimize systems, is one of the major factors stimulating the market growth. Furthermore, the growing focus on business efficiencies and the need for agile IT services, making cloud ITSM solutions indispensable, which is positively influencing the market growth. Along with this, the rising remote working environments, emphasizing the need for scalable, cloud-based solutions that can manage a distributed workforce, are acting as a growth-inducing factor. Additionally, the increasing innovations, such as the integration of artificial intelligence (AI) and machine learning (ML) capabilities into ITSM platforms to enable automation and predictive management, are providing a significant push to the market growth. Moreover, the rising adoption of cloud ITSM in sectors outside traditional IT, such as healthcare and manufacturing, is another factor contributing to the market growth.

Cloud ITSM Market Trends/Drivers:

Increasing complexity of IT environments

The accelerating rate of technological advancements leading to increasingly complex IT infrastructures is propelling the market growth. Moreover, the growing demand for highly efficient service management solutions capable of navigating the organization’s intricate networks that comprise cloud services, mobile devices, virtualization, and the Internet of Things (IoT) components is positively influencing the market growth. Along with this, the widespread adoption of cloud ITSM, as it is highly adaptive and scalable, enabling organizations to respond swiftly to challenges and opportunities, is anticipated to drive the market growth. Moreover, the centralized nature of cloud ITSM that allows for easier and more unified management of resources simplifying administrative tasks and reducing the risks of inefficiencies and errors, is providing remunerative growth opportunities for the market growth.

Increasing focus on business efficiencies and agile IT services

The increasing need for quick adaptability to market changes, coupled with the growing emphasis on resource optimization, is propelling the market growth. Moreover, the widespread demand for cloud ITSM services, as it offers a modular and adaptable framework that organizations can customize based on their unique requirements, is positively impacting the market growth. In line with this, the rising service application, as it facilitates effective resource allocation, automates repetitive tasks, and provides real-time insights into system performance, allowing organizations to make informed decisions, is bolstering the market growth. Furthermore, the growing support by cloud ITSM to DevOps initiatives, which aim to bring development and operations teams closer together, thus streamlining processes and reducing time-to-market for new products or features, is catalyzing the market growth. Along with this, the incorporation of cloud ITSM services enabling organizations to react quickly to market changes and opportunities, further enhancing business efficiencies, is stimulating the market growth.

Growing prevalence of remote work

The rising shift towards remote work, which is posing unique challenges for IT departments, such as ensuring data security and providing access to enterprise applications, are major factors catalyzing the market growth. In line with this, the escalating adoption of cloud ITSM solutions, as they offer the flexibility and scalability needed to manage a distributed workforce effectively, is stimulating the market growth. Moreover, the growing security protocols inherent in many cloud ITSM platforms that help organizations safeguard their sensitive data even when accessed from multiple locations are acting as a growth-inducing factor. Along with this, the increasing adoption of cloud ITSM systems, equipped with features that monitor network performance in real-time, allowing for prompt identification and resolution of issues, is another major factor enhancing the market growth. Furthermore, the rising remote working conditions, emphasizing the importance of cloud ITSM solutions in managing a distributed workforce while maintaining high levels of performance and security, are offering remunerative opportunities for the market growth.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on component, end user, and vertical.

Breakup by Component:

• Solutions
• Operation and Performance Management
• Service Portfolio Management
• Service Desk Software
• Dashboard Reporting and Analytics
• Configuration and Change Management
• Services
• Professional Services
• Managed Services

Solutions dominates the market

The report has provided a detailed breakup and analysis of the market based on the component. This includes solutions (operation and performance management, service portfolio management, service desk software, dashboard reporting and analytics, and configuration and change management) and services (professional services and managed services). According to the report, solutions represented the largest segment.

Solutions dominate the cloud ITSM market owing to the increasing need for software tools that can efficiently manage, monitor, and analyze IT services. In line with this, the increasing complexities of modern IT environments, requiring robust software solutions that can scale, adapt, and manage diverse and intricate IT resources, are propelling the market growth. Moreover, cloud-based solutions can easily scale to accommodate business growth or changes, making them highly appealing to organizations of all sizes. Additionally, these solutions often operate on a subscription-based model, making them more affordable than investing in in-house hardware and software. Besides this, modern cloud ITSM solutions are equipped with capabilities that can be customized to fit an organization's unique needs, offering greater value and utility. Furthermore, cloud ITSM solutions often come with APIs and pre-built connectors that allow easy integration with existing enterprise software, making them attractive.

Breakup by End User:

• Large Enterprises
• Small and Medium Enterprises

Large enterprises dominate the market

The report has provided a detailed breakup and analysis of the market based on the end user. This includes large enterprises and small and medium enterprises. According to the report, large enterprises represented the largest segment.

Large enterprises are dominating the market share as they have complex IT infrastructures with a wide array of hardware, software, and network resources, requiring a robust and comprehensive ITSM solution. Moreover, the increasing need for operational efficiency in large enterprises, given the vast scale at which they operate, where inefficiency can quickly magnify into significant problems affecting productivity and profitability, is favoring the market growth. Along with this, the cloud-based nature of ITSM solutions enables centralized control, making it easier for large enterprises to manage IT services across various regions. Furthermore, the sheer size of the workforce in large enterprises results in a vast amount of service requests, incidents, and problems as compared to smaller organizations. In line with this, cloud ITSM solutions can handle a high volume of service tickets efficiently due to features like automated ticket routing, prioritization, and resolution.

Breakup by Vertical:

• BFSI
• T and Telecommunication
• Healthcare
• Manufacturing
• Retail
• Education
• Others

IT and telecommunication dominate the market

The report has provided a detailed breakup and analysis of the market based on the vertical. This includes BFSI, IT and telecommunication, healthcare, manufacturing, retail, education, and others. According to the report, IT and telecommunication represented the largest segment.

IT and telecommunication sectors depend on robust and scalable IT infrastructure. These industries are built around technology, requiring effective IT resource management, making cloud ITSM solutions an essential tool for effective management. Moreover, the IT and telecommunication sectors handle many data and transactions daily, including customer data, network configurations, and service requests. In line with this, cloud ITSM solutions are well-suited to manage this high throughput efficiently, with features like automated ticketing systems, real-time analytics, and advanced reporting capabilities. Besides this, these sectors are highly competitive as organizations constantly strive for operational efficiencies, cost reduction, and quicker time-to-market for new services. Furthermore, cloud ITSM solutions are often designed to seamlessly integrate with other tools and platforms commonly used in the IT and telecommunication sectors, such as customer relationship management (CRM) and network management systems (NMS).

Breakup by Region:

• North America
• United States
• Canada
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Indonesia
• Others
• Europe
• Germany
• France
• United Kingdom
• Italy
• Spain
• Russia
• Others
• Latin America
• Brazil
• Mexico
• Others
• Middle East and Africa

North America exhibits a clear dominance, accounting for the largest cloud ITSM market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America exhibits a clear dominance in the global cloud ITSM market as the region is a hub for technological innovation and advancement. The presence of tech giants and numerous startups in Silicon Valley and other tech centers drives a culture of innovation, creating a favorable environment for the adoption of advanced cloud ITSM solutions. Moreover, organizations in North America had a head start in integrating cloud ITSM solutions into their operations as the region is an early adopter of technology. Additionally, the region hosts many large enterprises, especially in sectors like technology, finance, and healthcare, with complex IT needs, which can best be managed through robust cloud ITSM platforms. Furthermore, the supportive regulatory framework in North America, which is encouraging the use of advanced IT systems for compliance, is catalyzing the market growth. Along with this, companies in North America are allocating substantial resources to IT, reflecting the region’s recognition of technology as a strategic investment rather than a cost center.

Competitive Landscape:

The leading companies in the cloud ITSM market are continually developing new features and capabilities for their cloud ITSM platforms, including leveraging AI and ML algorithms for automated decision-making, predictive analytics, and enhanced user experience. Moreover, the major firms are forming strategic acquisitions and partnerships to broaden their service offerings and reach new customer bases. Additionally, companies are offering tailored solutions that include specialized ITSM platforms for sectors like healthcare, manufacturing, and education. In addition, they are providing customizable modules that can be adapted according to specific business requirements. Besides this, many companies are expanding their operations globally to tap into emerging markets, setting up local data centers that comply with regional regulations. Furthermore, companies are also offering extensive training and support programs that help with faster adoption rates and ensure that customers can make the most out of their investments.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Axios Systems
• BMC Software Inc.
• CA Technologies (Broadcom Inc.)
• Cherwell Software LLC
• Citrix Systems Inc.
• Hewlett Packard Enterprise
• nternational Business Machines Corporation (IBM)
• Micro Focus International Plc
• Microsoft Corporation
• Oracle Corporation
• ServiceNow
• SysAid Technologies Ltd.

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Recent Developments:

• n March 2021, Axios Systems was acquired by IFS. Axios Systems is a global provider of cloud-based Enterprise Service Management (ESM) software, recognized as a leader in IT Service Management (ITSM) and IT Operations Management (ITOM).
• n June 2023, BMC was recognized as a leader in the GigaOm Radar for IT Service Management (ITSM) report. The report highlights BMC’s artificial intelligence (AI) features and the change management and service delivery risk capabilities as top performing features.
• n July 2023, Citrix Systems Inc. updated new features and products of Citrix ITSM Adapter that includes the improved ServiceNow instance registration process. It provides a comprehensive view of all ServiceNow instances that have access to Citrix Cloud and users can easily select or switch between instances, ensuring a seamless registration experience.

Key Questions Answered in This Report:

• How has the global cloud ITSM market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global cloud ITSM market?
• What is the impact of each driver, restraint, and opportunity on the global cloud ITSM market?
• What are the key regional markets?
• Which countries represent the most attractive cloud ITSM market?
• What is the breakup of the market based on the component?
• Which is the most attractive component in the cloud ITSM market?
• What is the breakup of the market based on the end user?
• Which is the most attractive end user in the cloud ITSM market?
• What is the breakup of the market based on the vertical?
• Which is the most attractive vertical in the cloud ITSM market?
• What is the competitive structure of the global cloud ITSM market?
• Who are the key players/companies in the global cloud ITSM market?