Information Technology Service Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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
Study Period: 2020-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 2.02 %
 it service management market

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Market Overview

The information technology service management market was valued at USD 5,916.25 Million in 2021 and is expected to reach USD 6,674.43 Million by 2027 at a 2.02% CAGR over the forecast period 2022-2027.

  • Information Technology Service Management, henceforth referred to as (ITSM), defines all IT-related activities that include creating, delivering, supporting, and managing the customized solutions which are executed to achieve the business goal of the IT organizations.
  • Further, being an end-to-end service, ITSM is not limited only to designing and delivering appropriate IT Systems, applications, or resources; in fact, ITSM focuses mainly on adopting a specific process approach to a company or a project. The final objective of ITSM is always set up individually regarding the customers' unique needs and values. Additionally, ITSM clearly defines the roles and permissions of people involved in the project, partners, and third-party providers of services, products, and new technologies.
  • The IT organization tends to focus more on the management of IT services and application for their 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 have a strong impact on the overall performance of the organization, helping them to achieve their 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.
  • 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 the belief 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 to replace the tool. This, in turn, is expected to disrupt their process and, ultimately, their efficiency.
  • COVID-19 pandemic had a beneficial impact on 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 businesses completed their digital transformation, and a number of them 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.

Scope of the Report

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 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.

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

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Key Market Trends

IT and Telecommunication Sector is expected to Hold the Largest Market Share

  • Modernizing IT service management for the IT &and telecom sector is an evolved approach. This is bridging the gap between traditional, on-premise, and cloud-based IT systems. It increases operational efficiency and effectiveness. Thus, consolidating how data is captured, analyzed, and shared across the enterprises provides an improved experience for internal IT employees and external constituents.
  • With rapid technological advancements, telecom businesses are continually focusing on innovation. Thus, they are focusing on upgrading their infrastructure while developing state-of-the-art solutions to serve their customers, including innovation, customer service, infrastructure setup, and human resources.
  • Moreover, ITSM solutions' implementation helps telecom enterprises gain unified visibility into invoices, expenses, usage, and assets across their entire communications, cloud, and software license portfolio. Thus, reducing the overall costs and enhancing productivity, mainly by improving visibility, while providing a finely tuned set of processes to manage existing IT infrastructure. Moreover, IT companies are focusing on adopting ITSM with the increasing demand across the cloud-based models. With this growing adoption of cloud-based ecosystems, companies have expanded their partnership through new offerings across the cloud platform.
  • In November 2021, Tata Communications announced the launch of Tata Communications GlobalRapide; an end-to-end managed unified communications as a service (UCaaS) to enable enterprises to deliver digitally advanced, sophisticated, and intelligent collaboration experiences for employees. Tata Communications becomes a one-stop-shop to address all global businesses' digital-first, cloud-first unified communications requirements with this new ITSM.
  • According to 5G Americas, growth in 5G subscriptions is expected to continue into the foreseeable future, reaching 3 billion subscriptions by 2025. That includes 600 million subscriptions from 2023 to 2024 and from 2024 to 2025.
itsm market,

North America to Account for the Most Significant 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 survey report on IT Management by Site24*7, 62% of respondents reported ease of management as the top factor in cloud shift, closely followed by business continuity (60%) and scalability (59%).
  • Further, a report published in March 2022 with a survey named "A hybrid cloud adoption survey" with 900+ IT professionals suggested that most businesses (93%) are adopting a hybrid of cloud and on-premise solutions or migrating fully to the cloud within five years. The survey was majorly done in North America and Europe, where 43.8% of respondents were from North America. Thus, the growing transition toward cloud platforms is expected to drive the demand for IT service management solutions in the coming years. 
  • Additionally, 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.
  • Owing to remote working practices post the pandemic, most organizations are also taking preventive measures to secure their mobile devices and equipment provided to the employees. The Canadian Centre for Cyber Security encourages the Canadian cybersecurity community, especially critical infrastructure network defenders, to bolster their awareness of and protection against Russian state-sponsored cyber threats. The cyber center joins the United States and United Kingdom partners in recommending proactive network monitoring and mitigations. 
  • The market is witnessing the growth of cloud-based ITSM, owing to the rapid adoption of BYOD policies for improved productivity, employee satisfaction, and cost-effectiveness. These policies require remote accessibility of information, which is facilitated by cloud-based ITSM solutions. 
it service management market analysis

Competitive Landscape

The managed services market is dominated by the major players, such as IBM Corporation and Atlassian Corporation PLC, who have a strong client base in the market. These players are constantly providing increased and enhanced offerings. In order to sustain in the market and retain their clients, the companies are employing powerful competitive strategies. This factor intensifies the competitive rivalry in the market.

Overall, the degree of competition is high and expected to remain the same throughout the forecasted period as players are offering various services depending on the customer's needs. 

  • January 2022 - Atlassian Corporation PLC acquired Percept. AI to improve the AI engine for natural language understanding in Jira service Management. The company aims to create an integrated experience for the customers in the market. Through the Percept.AI, the company aims to deflect the vast majority of tier-1 support questions, provide users a great experience and free up IT teams to focus on more complex tasks.
  • October 2021 - BMC announced the acquisition of StramWeaver, a company that helps enterprises achieve their end-to-end observability, AI operations (AIOps), cloud migration, and cost reduction goals with data integration capabilities. The acquisitions are expected to enhance AIOps capabilities with a broad set of out-of-the-box data integrations built on a complementary, modern microservices-based architecture. 

Recent Developments

  • May 2022 - IBM announced a Strategic Collaboration Agreement (SCA) with Amazon Web Services Inc. (AWS) to deliver a wide range of its software catalog as Software-as-a-Service (SaaS) on AWS.
  • January 2022 - The supply chain business unit of Ivanti, Ivanti Wavelink, launched Ivanti Neurons for Industrial Internet of Things (IIoT) to help organizations further automate and optimize their supply chain operations. With Ivanti Neurons for IIoT, organizations can rapidly build scalable applications that integrate into existing processes, driving operational efficiency.
  • December 2021 - AWS and Micro Focus announced a partnership focused on customer-centric innovation. Micro Focus's platform enables businesses to start by making APIs available for their apps and subsequently move to microservices and cloud-native applications.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

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

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers

      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 Market


    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


    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 By 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


    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 Broadcom Inc.

      6. 7.1.6 Freshworks Inc.

      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

    1. 8.1 Vendor Market Revenue, 2021

    2. 8.2 Vendor Comparative Analysis



**Subject to Availability

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Frequently Asked Questions

The ITSM Market market is studied from 2020 - 2027.

The ITSM Market is growing at a CAGR of 2.02% over the next 5 years.

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

North America holds highest share in 2021.

IBM Corporation, ASG Technologies Group, Inc., Atlassian Corporation Plc, Micro Focus International PLC, Broadcom Inc. are the major companies operating in ITSM Market.

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