Market Size of ITSM Industry
|2019 - 2029
|Base Year For Estimation
|Fastest Growing Market
*Disclaimer: Major Players sorted in no particular order
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IT Service Management (ITSM) Market Analysis
The Information Technology Service Management was valued at USD 5983.29 million the previous year and is expected to register a CAGR of 2.02%, reaching USD 6811.92 million in five years. Information Technology Service Management (ITSM) defines all IT-related activities that include creating, delivering, supporting, and managing the customized solutions executed to achieve the business goal of the IT organizations.
- The IT organization tends to focus more on managing IT services and applications for its short-term and long-term strategic goals. ITSM offers many advantages, such as cost reduction, automation of repetitive tasks, and data gathering in one place, among others, that substantially impact the organization's overall performance, helping it achieve its short-term and long-term strategic objectives. Therefore, with the evolving IT industry dynamics, the ITSM market is expected to witness prolific growth in the forecasted period.
- The landscape of IT infrastructure is changing rapidly. Enterprises across various end-user verticals struggle to balance their IT infrastructure functioning and cost management. The future technology adoption plans hover around adopting emerging technologies expected to grow exponentially as businesses look to replace outdated infrastructure. Public cloud giants like Google and AWS require on-demand, dynamic, enormous scalability needs.
- A unified platform provides an enterprise with various benefits, including user experience to engage users across multiple channels, integrating these channels into existing systems, and end-to-end automation that combines business process management, case management, and performance management.
- Though ITSM tools provide excellent benefits, specific challenges, like implementation, reliability concerns, and lack of quality standards in service-level agreements (SLA), are expected to obstruct the market growth studied during the forecast period. The process of procuring an ITSM tool, primarily for managing critical IT services, involves believing that the provider's business would endure and the relationship with them. In case of any failure by the provider, the enterprises relying upon them are significantly impacted and are expected to find a replacement tool. This, in turn, is expected to disrupt their process and, ultimately, their efficiency.
- The COVID-19 pandemic positively impacted the market, owing to the rise in remote working and the expanding digital transformation of enterprises. Businesses are looking for business processes that are seamless, efficient, and accessible from any location. Further, many companies have completed their digital transformation, and some have decided to remain fully remote or operate on a digital and in-office hybrid model. Thus, IT teams can expect a sharp rise in the need for internal IT support and ITSM software, thereby boosting the studied market growth.
- The pandemic has fueled the ITSM market, and the market is also expected to witness prolific growth post-pandemic, with most organizations shifting to a hybrid workplace model. The enhancing support and services from deploying the ITSM tool will also remain one of the significant factors to boost the studied market post-pandemic.