Information Technology Service Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Information Technology Service Management Market is segmented by Deployment (Cloud, On-premise), Application (Configuration Management, Performance Management, Network Management, Database Management System), End-user Industry (BFSI, Manufacturing, Government and Education, IT and Telecommunication, Retail, Travel and Hospitality, Healthcare), and Geography.

Market Snapshot

 Information Technology Service Management Market Overview
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 7.7 %
 Information Technology Service Management Market Key Players

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Market Overview

The information technology service management market was valued at USD 2627.07 million in 2020 is expected to reach USD 4246.82 million by 2026 at a 7.7% CAGR over the forecast period 2021 - 2026. The Information Technology Service Management (ITSM) is designed to deliver IT services to enterprises. These tools aid an organization's growth by aligning their IT processes and services with the business objectives. There has been a shift in focus toward managing IT services and their applications for both short and long-term strategic decisions. Enterprises invest heavily in the ITSM applications that can replace their existing legacy systems, depending on the features and capabilities offered by them. The competitive upgrades and replacements could profoundly impact change in the wider market share in the future.

  • These tools' successful deployment is expected to help reduce the IT costs by 25-45% and increase operational efficiency by 45-65%. An enterprise's IT operations can be enhanced by adopting the facility of the service desk to achieve 75% more productivity with lesser manual work.
  • With the introduction of new technologies, the enterprises are looking to implement them in the quest to improve their services to benefit their customers. For instance, Artificial Intelligence (AI) has been integrated with ITSM. For instance, in June 2019, Canada's Toronto Pearson International Airport deployed Symphony SummitAI's artificial intelligence (AI)-enabled, cloud-based IT service management (ITSM) suite. The use of Symphony SummitAI's ITSM suite delivered benefits to the airport by enhancing customer service and transforming internal operations.
  • ITSM tools cover a wide range of tasks that include change and release management, incident and problem management, knowledge management, asset management, and mobile self-service. These applications help the IT work smarter by a collaboration of social tools that can provide insights on the context. For instance, CA Technologies, a prominent player in the market, now acquired by Broadcom Inc., helps the business users to adopt a simple way to connect with the IT for providing its customers a way to prioritize work with the context to make decisions.
  • The increasing rate of employing BYOD by the enterprises at the workplace is one of the primary factors for the market's growth. The ITSM tools can help handle the challenges that arise, in terms of asset management, software license compliance, and extending IT support to a broader range of devices. These factors help in avoiding increased IT costs and business disruptions.
  • With the onset of Coronavirus (COVID-19), the vulnerability of supply chains has been exposed. For most IT organizations, a fragile ecosystem included providers of critical IT services. In addition, work-from-home mandates have led the service providers to ensure that mission-critical enterprise customers have the necessary tools and technologies to enable the speed, security, quality, and overall efficacy of services provided.

Scope of the Report

The Information Technology Service Management(ITSM) is a practice that is designed to deliver IT services to enterprises. These tools aid the growth of an organization by aligning their IT processes and services with the business objectives. Enterprises are investing heavily in the ITSM applications that can replace their existing legacy systems, depending on the features and capabilities offered by them. The competitive upgrades and replacements are expected to have a profound impact on changing the widespread market share in the future.

By Deployment
Cloud
On-premise
By Application
Configuration Management
Performance Management
Network Management
Database Management System
Other Applications
By End-user Industry
BFSI
Manufacturing
Government and Education
IT and Telecommunication
Retail
Travel and Hospitality
Healthcare
Other End-user Industries
Geography
North America
Europe
Asia Pacific
Latin America
Middle East and Africa

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Key Market Trends

BFSI Sector is expected to Witness Significant Growth

  • Banks and other financial institutes are primarily focusing on ensuring data security, mainly due to the numerous high-profile data breaches that took place over the past few years. The implementation of reliable IT service management solutions is essential for banks to provide the best possible service levels, primarily to support its internal workflows, as well as to deliver better customer service. Furthermore, they are focusing on maintaining optimal service efficiency in their day-to-day IT operations.
  • The rising implementation of regulatory standards and the increasing adoption of cloud-based IT solutions and increasing modes of online payments are expected to drive the information technology service management market.
  • Moreover, banks are increasingly deploying robust IT applications and services to meet the rising needs of internal users and consumers. There is a constant shift toward online digital platforms and mobile forms of financial services.
  • Furthermore, the integration of ITSM in reporting services across the financial institutions enhanced the capabilities built into the service desk systems. Thus, providing the oversight and critical performance indicators necessary for the higher management to identify operational trends before they adversely impact the existing products and processes.
  • Moreover, the integration of artificial intelligence across the IT services makes it possible for the banks to automate their traditional business process, thereby significantly decreasing the need for manual real-time monitoring. For instance, when implemented, facial-recognition technology is expected to benefit banks and financial institutions while providing a higher degree of security.
 Information Technology Service Management Market Key Trends

North America Holds Major Share

  • North America is a prominent market for ITSM, owing to the high adoption of cloud technology and the growing need for improving IT services by the end-user industries in the region. According to a report published by IBM's Institute for Business Value in 2019, nearly all the companies surveyed said they were using cloud computing, with 85% of them using more than one cloud environment. Moreover, the region has a strong foothold on the ITSM vendors, which contributes to the market's growth. Some of them include IBM Corporation, ServiceNow Inc., BMC Software Inc., and LogMein, among others.
  • Canada's government has a "cloud-first" strategy, whereby cloud services are identified and evaluated as the principal delivery option while initiating information technology investments, initiatives, strategies, and projects. The cloud is also expected to allow Canada's government to harness the innovation of private-sector providers to make its information technology more agile.
  • According to a recent survey, over 90% of the content-management professionals stated that they were planning to adopt chatbot technology by the end of 2019. The reason for this move toward chatbots is the ease of use for the customers, which results in better business outcomes. ITSM is an ideal application for chatbot technology - now available with ITSM professionals.
  • The National Bank of Canada (National Bank), one of the most prominent banks in the country, has turned to BMC to ensure service-management excellence across its integrated, comprehensive financial services group. National Bank has standardized BMC's solutions portfolio, including its Remedy nine digital enterprise management platform, MyIT self-service digital workplace app, and BMC Discovery solution, for automated asset discovery and dependency mapping. More such adoption by the end-user industries will result in positive market growth.
 Information Technology Service Management Market Growth by Region

Competitive Landscape

The information technology service management market is competitive due to the presence of small and large players in the market operating their business in domestic and international markets. The market appears to be moderately concentrated, with the significant players adopting strategies like product and service innovation and mergers and acquisitions. Some of the recent developments in the market are:

  • Jun 2020 - Hitachi Vantara, a wholly-owned subsidiary of Hitachi, Ltd., announced that USU, which is one of Europe's prominent vendors of IT and knowledge management software, selected its data analytics technology to enhance the solution offerings to its customers. Hitachi Vantara's Pentaho, a Lumada portfolio product, will primarily help USU create innovative IT service management solutions for its customers that will majorly offer much more flexible reporting of IT service requests, ad-hoc analysis, and forecasting of the process performance.
  • February 2019 - IBM expanded its partnership with BMC, building upon a cognitive collaboration that was introduced in 2017, where AI technologies from IBM Watson were seamlessly integrated into BMC Helix, BMC's cognitive service management solution. The BMC's Helix solution expanded with an insight engine from IBM and additional clouds of choice, including the IBM Cloud.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Assessment of COVID-19 impact on the Information Technology Service Management Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Rising Adoption of Updated IT Infrastructure Across the End-user Industries

      2. 5.1.2 Increasing Demand for a Unified Platform to Manage and Monitor IT Infrastructure Performance

    2. 5.2 Market Restraints

      1. 5.2.1 Issues in ITSM Implementation and Lack of Quality Standards in Service-level Agreement

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Deployment

      1. 6.1.1 Cloud

      2. 6.1.2 On-premise

    2. 6.2 By Application

      1. 6.2.1 Configuration Management

      2. 6.2.2 Performance Management

      3. 6.2.3 Network Management

      4. 6.2.4 Database Management System

      5. 6.2.5 Other Applications

    3. 6.3 By End-user Industry

      1. 6.3.1 BFSI

      2. 6.3.2 Manufacturing

      3. 6.3.3 Government and Education

      4. 6.3.4 IT and Telecommunication

      5. 6.3.5 Retail

      6. 6.3.6 Travel and Hospitality

      7. 6.3.7 Healthcare

      8. 6.3.8 Other End-user Industries

    4. 6.4 Geography

      1. 6.4.1 North America

      2. 6.4.2 Europe

      3. 6.4.3 Asia Pacific

      4. 6.4.4 Latin America

      5. 6.4.5 Middle East and Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 ASG Technologies Group, Inc.

      2. 7.1.2 Atlassian Corporation Plc

      3. 7.1.3 Axios Systems

      4. 7.1.4 BMC Software, Inc.

      5. 7.1.5 CA Technologies (Broadcom Inc.)

      6. 7.1.6 Cherwell Software, LLC

      7. 7.1.7 Micro Focus International Plc

      8. 7.1.8 IBM Corporation

      9. 7.1.9 Ivanti Inc.

      10. 7.1.10 ServiceNow Inc.

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Information Technology Service Management Market market is studied from 2018 - 2026.

The Information Technology Service Management Market is growing at a CAGR of 7.7% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

IBM Corporation, ASG Technologies Group, Inc., Atlassian Corporation Plc, Micro Focus International PLC, CA Technologies (Broadcom Inc.) are the major companies operating in Information Technology Service Management Market.

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