Cloud IT Service Management (ITSM) Market Size - By Component (Solution, Services), By Organization Size (Large Enterprises, SME), By Deployment Model (Public, Private, Hybrid), By End-User Industry & Forecast, 2024 - 2032

Cloud IT Service Management Market Size

Cloud IT Service Management Market size was valued at USD 8.8 billion in 2023 and is estimated to register a CAGR of over 12.5% between 2024 and 2032. Cloud ITSM solutions offer scalability and flexibility, allowing organizations to easily scale their IT services up or down based on their requirements without significant infrastructure investments. This scalability is particularly valuable for businesses experiencing growth or fluctuations in demand.
 

With the increasing prevalence of remote work, cloud ITSM solutions provide remote access to IT services and support, allowing employees to perform their tasks from anywhere with an internet connection. This capability is crucial for maintaining productivity and ensuring seamless collaboration among distributed teams. For instance, in April 2024, Cloud Software Group and Microsoft signed a long-term partnership of 8 years to bring cloud solutions and generative AI together. The partnership aims at strengthening the go-to-market agreement for Citrix.
 

Cloud ITSM solutions typically operate on a subscription-based model, eliminating the need for upfront hardware and software investments. This cost-effective approach enables organizations to reduce capital expenditure and optimize IT budgets by paying only for the resources and services they consume. Cloud IT service management platforms often integrate advanced automation capabilities, such as workflow automation, AI-driven chatbots, and self-service portals. These automation features streamline IT service delivery processes, reduce manual intervention, and enhance operational efficiency by enabling faster issue resolution and response times.
 

For instance, in June 2024, Freshworks fully acquired Device42. This purchase marks a milestone for Freshworks, stimulating its commitment to fortifying IT teams with IT Asset Management (ITAM) solutions.
 

Despite advancements in cloud security measures, many organizations remain hesitant to migrate sensitive IT operations and data to the cloud due to concerns about data security and privacy. Issues like data breaches, unauthorized access, and compliance with industry regulations can pose significant challenges for organizations considering cloud IT service management adoption.
 

Cloud IT Service Management Market Trends

The demand for Cloud IT service management is increasing due to the rapid adoption of digital transformation initiatives across various industries. Businesses are striving to modernize their IT operations to support new digital services and customer experiences. Additionally, the proliferation of IoT devices and the growing reliance on big data analytics require robust and scalable ITSM solutions to manage the expanded IT landscape effectively.
 

The increased focus on business continuity and disaster recovery catapults the demand, as cloud IT service management provides enhanced resilience and uptime. The trend towards DevOps and agile methodologies necessitates flexible and adaptive ITSM frameworks that cloud-based solutions offer. For instance, in April 2024, BMC acquired Netreo which is an award-winning vendor of smart and secure IT network and app observability solutions. This purchase agreement of Netreo solidifies BMC’s leadership in AIOps and observability.
 

Cloud IT Service Management Market Analysis

Based on organization size, the market is categorized into large enterprises and SME. The large enterprises segment accounted for over 65% of the market share in 2023 and is expected to reach around USD 16 billion by 2032. The scalability and flexibility inherent in cloud ITSM solutions cater to the diverse and evolving needs of large enterprises, accommodating growth without significant infrastructure investments. The cost-effectiveness of subscription-based models aligns with the financial strategies of large organizations, optimizing IT budgets and resource allocation.
 

Also, the remote workforce trend necessitates IT service management solutions that provide seamless access and support from anywhere, ensuring productivity and collaboration. Furthermore, advanced automation capabilities streamline complex processes, enhancing operational efficiency at scale. Robust security measures offered by cloud providers address the stringent data security and compliance requirements of large enterprises, bolstering trust in cloud ITSM solutions.
 

Based on end-user industry, the cloud IT service management market is divided into BFSI, IT & telecom, government, retail, manufacturing, energy & utilities, healthcare, media & entertainment and others. The BFSI segment accounted for a market share of around 22% in 2023. Cloud IT Service Management (ITSM) is gaining popularity in the Banking, Financial Services, and Insurance (BFSI) segment due to its significant advantages. The scalability of cloud ITSM solutions enables BFSI organizations to efficiently manage fluctuating demands and integrate new technologies without heavy upfront costs.
 

Enhanced security measures provided by cloud service providers ensure compliance with stringent regulatory requirements and protect sensitive financial data. Additionally, cloud ITSM supports the growing need for remote access and digital transformation in the BFSI sector, facilitating seamless service delivery and operational efficiency. Advanced automation capabilities streamline processes, reducing costs and improving customer service.
 

North America holds a major share of around 38% in the global cloud IT service management market in 2023. The region's highly dynamic business landscape values the scalability and flexibility offered by cloud ITSM solutions, allowing organizations to adapt to changing market demands swiftly. Cost-effectiveness aligns with the financial strategies of North American businesses, optimizing IT budgets and resource allocation.
 

The widespread adoption of remote work models necessitates ITSM solutions that enable seamless access and support from anywhere, enhancing workforce productivity. Additionally, robust security measures provided by cloud providers address data privacy concerns, fostering trust in cloud ITSM solutions among North American enterprises.
 

The U.S. Cloud ITSM market is characterized by a strong focus on innovation and early adoption of advanced technologies. Organizations are continuously finding ways to use the latest IT solutions to maintain competitive advantage. The rapid integration of AI, machine learning, and automation into cloud ITSM platforms meets the high demand for innovative and efficient IT service management, driving significant growth in this market.
 

The UAE is heavily investing in smart city projects and advanced infrastructure as part of its vision to become a leading digital hub. Initiatives like Smart Dubai aim to transform the city through technological innovations. The need for efficient and scalable IT service management solutions to support these large-scale projects is driving the adoption of cloud ITSM in the UAE.
 

Cloud IT Service Management Market Share

ServiceNow Inc. and IBM Corporation hold a high market share of over 15% in the cloud IT service management industry. ServiceNow focuses on understanding and addressing the specific needs of its customers. By offering tailored solutions and excellent customer service, it maintains high customer satisfaction and loyalty, which drives growth through customer retention.
 

IBM Corporation uses its expertise in hybrid cloud and AI technologies to enhance its ITSM offerings. By integrating its ITSM solutions with IBM Cloud and Watson AI, the company provides advanced, intelligent IT service management capabilities that cater to a broad range of customers.
 

Cloud IT Service Management Market Companies

Major players operating in the cloud IT service management industry are:

• Atlassian Inc.
• BMC Software Inc.
• Broadcom Inc
• Freshworks
• IBM Corporation
• Ivanti Inc.
• Microsoft Corporation
• Open Text Corporation
• ServiceNow
• Solarwinds
   

Cloud IT Service Management Industry News

• In February 2024, Amdocs and BMC, a leader in software solutions for the Autonomous Digital Enterprise, declared a partnership to boost connected digital ops in the telecom and financial services sectors, fostering automation, growth, and efficacies for consumers.
   
• In January 2024, Freshworks announced a partnership agreement with AWS to amplify the reach of its Artificial Intelligence-accelerated SaaS. The agreement collaborates the advantages of Freshworks and AWS, to aid vendors deliver faster, and swifter employee and customer experiences.
   

The cloud IT service management (ITSM) market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

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Market, By Component

• Solution
  • Service portfolio management
  • Configuration & change management
  • Service desk software
  • Operations & performance management
  • Dashboard, reporting & analytics
  • Others
• Services

Market, By Organization Size

• Large enterprises
• SME

Market, By Deployment Model

• Public cloud
• Private cloud
• Hybrid cloud

Market, By End-User Industry

• BFSI
• IT & telecom
• Government
• Retail
• Healthcare
• Manufacturing
• Energy & utilities
• Media and entertainment
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA