ITSM Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 12.84 Billion |
| Market Size (2030) | USD 27.81 Billion |
| Growth Rate (2025 - 2030) | 16.72% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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ITSM Market Analysis by Mordor Intelligence
The IT service management market was valued at USD 12.84 billion in 2025 and is forecast to grow to USD 27.81 billion by 2030, reflecting a 16.72% CAGR. The acceleration stems from three forces: rapid enterprise adoption of AI-driven automation, the migration to cloud-native architectures, and the need for unified management across hybrid and multicloud estates. Enterprises are also embracing low-code orchestration to offset skills shortages, while FinOps and GreenOps reporting embed sustainability and cost-control metrics directly into IT workflows. Edge-computing and 5G onboarding further expands the scope of the IT service management market as distributed devices require real-time support.
Key Report Takeaways
- By deployment, cloud models led with 64.8% of the IT service management market share in 2024, whereas on-premise solutions record steady demand in highly regulated sectors.
- By application, Service Desk and Incident Management held 35.3% revenue share in 2024; Configuration and Asset Management is projected to advance at a 17.9% CAGR to 2030.
- By end-user industry, BFSI captured 27.2% share of the IT service management market size in 2024, while IT and Telecommunications is expanding at 18.5% CAGR through 2030.
- By service type, solutions platforms commanded 63.1% share in 2024; the services segment is forecast to grow at 17.5% CAGR as companies outsource implementation and managed support.
- By geography, North America accounted for 37.2% of the market in 2024; Asia-Pacific is the fastest-growing region, set to rise at a 16.9% CAGR to 2030.
Global ITSM Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Shift to cloud-native ITSM platforms | +4.2% | Global, with strongest adoption in North America and Asia-Pacific | Medium term (2-4 years) |
| AI-driven service automation and AIOps integration | +3.8% | Global, led by North America and Europe | Short term (≤ 2 years) |
| Unified management for hybrid/multicloud estates | +2.9% | Global, particularly North America and Europe | Medium term (2-4 years) |
| Low-code/no-code orchestration enabling citizen ITSM | +2.1% | Global, with early adoption in developed markets | Long term (≥ 4 years) |
| FinOps and GreenOps reporting embedded in ITSM | 1.8% | Europe and North America leading, expanding to Asia-Pacific | Long term (≥ 4 years) |
| Edge-computing and 5G operations onboarding to ITSM | 1.5% | Asia-Pacific core, spill-over to North America and Europe | Long term (≥ 4 years) |
Source: Mordor Intelligence
Shift to Cloud-Native ITSM Platforms
Cloud-native adoption removes the USD 40,000 annual maintenance burden linked to legacy systems, freeing budgets for innovation.[1]ServiceNow, “Strategic Collaboration Agreement with AWS,” servicenow.com Strategic alliances with hyperscalers enable elastic compute for AI features, driving 19% year-over-year subscription growth in Q1 2025. Migrating manufacturers cut support times from 30 minutes to 6 minutes, highlighting productivity gains. Early adopters gain cost and speed advantages, making cloud-native capability a baseline requirement across the IT service management market.
AI-Driven Service Automation and AIOps Integration
ServiceNow recorded 150% quarter-over-quarter growth in AI deals and surpassed 1,000 AI customers in 2025 ServiceNow. AIOps shortens mean time to resolution by up to 60%, reducing ticket backlogs. IBM’s generative AI revenue reached USD 6 billion in 2025, underscoring enterprise appetite for autonomous operations.[2]IBM Newsroom, “IBM Reports First-Quarter 2025 Results,” ibm.com Vendors embedding conversational interfaces further democratize access, altering buyer expectations and sharpening competitive differentiation.
Unified Management for Hybrid/Multicloud Estates
Eighty-five percent of enterprises pursue multicloud strategies yet fewer than 60% coordinate management efforts. Partnerships between ServiceNow and Oracle or AWS provide real-time data fabrics that rationalize costs and governance, which underpins steady demand for consolidated platforms. IBM’s hybrid-cloud software revenue rose 12% in Q1 2025, confirming commercial traction.
Low-Code/No-Code Orchestration Enabling Citizen ITSM
ServiceNow’s Creator Now crossed USD 1 billion revenue by 2025, illustrating the appeal of tools that empower non-developers to build workflows. Low-code capability speeds rollout while alleviating developer shortages, though enterprises must enforce governance to contain security risks.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Legacy migration complexity and high switching cost | -2.8% | Global, particularly acute in established enterprises | Medium term (2-4 years) |
| Shortage of skilled ITSM and ITOM professionals | -2.1% | Global, most severe in North America and Europe | Short term (≤ 2 years) |
| Emerging AI-governance and data-residency regulations | -1.6% | Europe leading, expanding globally | Long term (≥ 4 years) |
| Rising observability-data costs causing tool sprawl | -1.4% | Global, concentrated in data-intensive industries | Medium term (2-4 years) |
Source: Mordor Intelligence
Legacy Migration Complexity and High Switching Cost
Enterprises devote USD 40,000 annually per legacy system and lose 17 hours a week to maintenance tasks.[3]ServiceNow, “The Cost of Legacy IT,” servicenow.comSecurity vulnerabilities heighten risk, yet phased migrations that safeguard data deliver up to 277% ROI post-transition. The expense forms a barrier, preserving incumbent vendor positions, but organizations that modernize enjoy significant efficiency gains.
Shortage of Skilled ITSM and ITOM Professionals
Talent gaps delay projects up to 10 months and could forfeit USD 5.5 trillion in economic output by 2026. AIOps mitigates staffing deficits by automating routine steps, while experiential learning programs expand internal capabilities. Vendors combining intuitive UIs with embedded AI appeal to customers confronting workforce constraints.
Segment Analysis
By Deployment: Cloud Dominance Accelerates
Cloud deployments accounted for 64.8% of the IT service management market in 2024 and are projected to grow at 18.3% CAGR to 2030. Organizations select cloud to access AI functions and manage global operations without capital outlays. On-premise remains essential for data-sovereign environments such as defense. Real-world cases such as Microsoft migrating internal ServiceNow instances to Azure show cloud’s role in scaling innovation.
Cloud also aligns with multicloud realities because it offers pre-built integrations. ServiceNow’s strategic collaboration with AWS covers AI-powered applications across diverse industries and illustrates the momentum. Consequently, cloud is becoming the default path to modern IT service management market capabilities.
By Application: Service Desk Evolution Drives Growth
Service Desk and Incident Management retained 35.3% share in 2024 as the foundational gateway to IT support. Configuration and Asset Management, fueled by asset discovery needs, will expand at 17.9% CAGR. A combined platform approach that unifies discovery, dependency mapping, and incident workflows changes budget priorities. The IT service management market size for Configuration and Asset Management is forecast to double between 2025 and 2030.
AI further elevates every application. ServiceNow’s AI Agent Orchestrator demonstrates multiple autonomous agents collaborating on ticket resolution to cut manual toil. Change, Release, Network, and Database Management segments climb steadily because DevOps and hybrid architectures demand integrated visibility.
By End-User Industry: Financial Services Lead Digital Transformation
BFSI sector held 27.2% revenue in 2024. All top 24 global banks rely on ServiceNow for compliance and risk-monitoring workflows. IT and Telecommunications will rise at 18.5% CAGR as 5G rollouts and edge-site maintenance require predictive service management. This crossover of network operations with ITSM widens demand envelopes. Manufacturing adoption gains momentum via Industry 4.0, where ticket routing speeds improved 80% for German factories after ITSM modernization.
Healthcare, Government, Retail, Travel, and Utilities exhibit growing interest as they blend customer experience and operational resilience demands. Each seeks unified governance and AI-driven insights, reinforcing expansion in the broader IT service management market.
By Enterprise Size: Large Enterprises Drive Innovation
Large Enterprises dominate spending, illustrated by ServiceNow’s 2,109 customers with annual contract value above USD 1 million. These firms need global standardization and complex multi-domain workflows. Small and Mid-size Enterprises, however, represent the fastest-growing cohort because subscription pricing and low-code tools lower entry barriers. AI democratizes diagnostics and self-service, letting lean teams manage sophisticated environments. Vendors differentiate through modular packaging that scales alongside business maturity.
By Service Type: Solutions Platforms Maintain Dominance
Solutions platforms captured 63.1% revenue in 2024. Their unified architecture reduces integration complexity and unlocks cross-department workflows. Services revenue, growing 17.5% CAGR to 2030, reflects rising demand for consulting, migration, and managed operations. Partners such as SoftwareOne layer licensing and cost-optimization expertise on top of platform deployments, underlining how ecosystem collaboration accelerates value realization.
Geography Analysis
North America retains leadership with 37.2% of 2024 revenue and an entrenched install base among enterprises and the public sector. Recent federal contracts surpass USD 1 million each, underscoring continued platform upgrades. Regional focus is shifting from first-time deployments toward advanced AI and cross-domain observability.
Asia-Pacific is the fastest-growing region. Managed services demand surged 32% in 2025 as companies outsource ITSM to stay agile. Chinese manufacturers and banks digitize operations at scale, while Japan’s Mitsubishi UFJ Bank recorded 2,200 hours saved annually through its 2025 ServiceNow rollout. India’s domestic demand strengthens alongside its global outsourcing leadership.
Europe, South America, Middle East, and Africa illustrate diverse opportunities. European enterprises need ITSM solutions that respect stringent data-protection laws and upcoming AI governance frameworks. Sustainability reporting brightens prospects for FinOps and GreenOps modules. Latin American adoption accelerates through cloud uptake, whereas GCC states invest in ITSM for smart-city initiatives. African telco and government segments form an early-stage but promising arena for affordable, cloud-based platforms.
Competitive Landscape
The IT service management market features concentrated leadership balanced by nimble challengers. ServiceNow, IBM, and BMC Software anchor the field by integrating AI across platform modules. ServiceNow’s USD 2.85 billion acquisition of Moveworks adds agentic AI to its portfolio and 500 specialists to its talent pool. IBM’s USD 6.4 billion purchase of HashiCorp bolsters hybrid-cloud orchestration and complements Red Hat. BMC’s split into BMC and BMC Helix positions each entity for sharper focus and product velocity.
Mid-market disruptors such as Atlassian and Freshworks compete on usability and price. Freshworks’ USD 230 million buyout of Device42 combines asset discovery with ITSM to address SME pain points. Partnerships are equally strategic: ServiceNow aligned with Microsoft to integrate Now Assist into Microsoft 365 Copilot, and with SoftwareOne to merge workflow automation with spend-optimization consultancy.
AI capability is the dominant differentiator. Vendors invest heavily in large language models that reduce manual triage, drive predictive insights, and power natural-language self-service. Low-code ecosystems further lock in customers by allowing rapid customization. As customer expectations evolve, platform robustness, security certifications, and ecosystem depth are overtaking pure feature checklists in vendor evaluations.
ITSM Industry Leaders
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IBM Corporation
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ASG Technologies Group Inc. (Rocket Software)
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Atlassian Corporation PLC
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Micro Focus International PLC (Open Text Corporation)
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Broadcom Inc.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- March 2025: ServiceNow agreed to acquire Moveworks for USD 2.85 billion to enhance agentic AI and enterprise search capabilities.
- February 2025: ServiceNow broadened its partnership with Google Cloud, bringing the Now Platform to Google Cloud Marketplace and launching BigQuery integrations.
- February 2025: BMC Software created two separate firms—BMC and BMC Helix—to sharpen focus on mainframe optimization and digital service management.
- January 2025: ServiceNow and Microsoft deepened their alliance by integrating Now Assist with Microsoft 365 Copilot for streamlined front-office workflows.
Global ITSM Market Report Scope
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 its IT processes and services with the business objectives. The scope of the report encompasses market sizing and forecast for segmentation by deployment, application, end-user industry, and geography. The market size is based on the cumulative revenue of vendors through subscription, licensing, and related services. The study tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyzes the overall impact of the COVID-19 pandemic on the ecosystem.
The information technology service management market is segmented by deployment (cloud and on-premise), application (configuration management, performance management, network management, database management system, and other applications), end-user industry (BFSI, manufacturing, government and education, IT and telecommunication, retail, travel and hospitality, healthcare, and other end-user industries), geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Deployment | Cloud | |||
| On-premise | ||||
| By Application | Service Desk and Incident Management | |||
| Configuration and Asset Management | ||||
| Change and Release Management | ||||
| Network and Database Management | ||||
| Others | ||||
| By End-user Industry | BFSI | |||
| Manufacturing | ||||
| Government and Education | ||||
| IT and Telecommunications | ||||
| Retail and E-commerce | ||||
| Healthcare | ||||
| Travel and Hospitality | ||||
| Other Industries | ||||
| By Enterprise Size | Large Enterprises | |||
| Small and Mid-size Enterprises (SME) | ||||
| By Service Type | Solutions (Platform/Software) | |||
| Services (Implementation, Managed, Training) | ||||
| By Geography | North America | United States | ||
| Canada | ||||
| South America | Brazil | |||
| Argentina | ||||
| Europe | Germany | |||
| United Kingdom | ||||
| France | ||||
| Russia | ||||
| Asia-Pacific | China | |||
| Japan | ||||
| India | ||||
| South Korea | ||||
| Southeast Asia | ||||
| Rest of Asia-Pacific | ||||
| Middle East and Africa | Middle East | Saudi Arabia | ||
| United Arab Emirates | ||||
| Turkey | ||||
| Rest of Middle East | ||||
| Africa | South Africa | |||
| Nigeria | ||||
| Egypt | ||||
| Rest of Africa | ||||
| Egypt | ||||
| Rest of Africa | ||||
| Cloud |
| On-premise |
| Service Desk and Incident Management |
| Configuration and Asset Management |
| Change and Release Management |
| Network and Database Management |
| Others |
| BFSI |
| Manufacturing |
| Government and Education |
| IT and Telecommunications |
| Retail and E-commerce |
| Healthcare |
| Travel and Hospitality |
| Other Industries |
| Large Enterprises |
| Small and Mid-size Enterprises (SME) |
| Solutions (Platform/Software) |
| Services (Implementation, Managed, Training) |
| North America | United States | ||
| Canada | |||
| South America | Brazil | ||
| Argentina | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Russia | |||
| Asia-Pacific | China | ||
| Japan | |||
| India | |||
| South Korea | |||
| Southeast Asia | |||
| Rest of Asia-Pacific | |||
| Middle East and Africa | Middle East | Saudi Arabia | |
| United Arab Emirates | |||
| Turkey | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Egypt | |||
| Rest of Africa | |||
| Egypt | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is the current size of the IT service management market and how fast is it growing?
The market reached USD 12.84 billion in 2025 and is forecast to expand to USD 27.81 billion by 2030, reflecting a 16.72% CAGR.
Which deployment model is preferred by most enterprises?
Cloud deployment leads with 64.8% share in 2024, driven by scalability, cost efficiency, and seamless AI integration.
What application segment is expanding the fastest?
Configuration and Asset Management is the fastest-growing application, projected to advance at a 17.9% CAGR through 2030.
Which industry sector spends the most on IT service management solutions?
Banking, Financial Services, and Insurance holds the largest share at 27.2%, primarily for compliance and customer-experience initiatives.
How are vendors differentiating themselves in this competitive landscape?
Leading providers integrate advanced AI for autonomous incident resolution, form hyperscaler partnerships, and offer low-code tools to reduce implementation time and address skills shortages.
Page last updated on: July 6, 2025
