Global Cloud Based ITSM Market By Component (Solutions [Configuration & change management, Operations & performance management, Service desk software, Service portfolio management,Others], Services), By Organization Size (Large Enterprises, Small and medium organizations), By Industry Vertical (IT & Telecommunication, BFSI, Healthcare, Manufacturing, Retail, Government & Public sector, Others), Region and Key Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Cloud-based ITSM Market size is expected to be worth around USD 12.4 Billion by 2033, from USD 4.8 Billion in 2023, growing at a CAGR of 10.0% during the forecast period from 2024 to 2033.

Cloud-based ITSM (Information Technology Service Management) refers to the deployment of IT service management solutions in the cloud, where the software and infrastructure are hosted and managed by a service provider. It allows organizations to access ITSM tools and capabilities over the internet without the need for on-premises infrastructure. Cloud-based ITSM offers numerous benefits, including scalability, flexibility, cost-effectiveness, and ease of implementation and maintenance.

The cloud-based ITSM market encompasses the industry that caters to the demand for cloud-based IT service management solutions. It includes software vendors, service providers, and consulting firms that offer cloud-based ITSM platforms and services. The market has experienced significant growth as organizations increasingly recognize the advantages of adopting cloud-based ITSM solutions to streamline their IT service management processes and enhance overall efficiency.

Key Takeaways

• Market Growth: The global Cloud Based ITSM market is projected to experience steady growth with a 10.0% Compound Annual Growth Rate (CAGR). By 2033, it is anticipated to reach a substantial valuation of USD 12.4 billion.
• The Solution segment held a dominant market position in the Cloud Based ITSM market in 2023, capturing more than a 73% share.
• Large Enterprises dominate the market, holding more than a 60% share in 2023, reflecting the growing reliance of large organizations on cloud-based solutions. Small and Medium-sized Organizations (SMOs) are rapidly growing and adopting cloud-based ITSM solutions.
• IT & Telecom, BFSI, Healthcare, Manufacturing, Retail, Government & Public sector are major industry verticals adopting cloud-based ITSM solutions.
• Market Drivers: The primary driver of growth in the Cloud Based ITSM market is the increasing shift towards cloud-based technologies. Organizations are transitioning to the cloud for its cost-efficiency, scalability, and accessibility benefits.
• Challenges: Implementing Cloud-Based ITSM can be challenging due to the lack of standard procedures for integrating cloud solutions with existing traditional IT architectures.
• Opportunities: Small and Medium-sized Enterprises (SMEs) are increasingly adopting cloud-based ITSM due to its cost-effectiveness and scalability, presenting significant growth opportunities.
• Regional Analysis: North America holds the largest market share (40%) due to early cloud adoption, robust IT infrastructure, and regulatory requirements.
• Top Key Players: Prominent companies in the Cloud Based ITSM market include Hewlett Packard Enterprise, Axios Systems, ServiceNow, Cherwell Software, IBM Corporation, Microsoft Corporation, Citrix Systems, CA Technologies, BMC Software Inc., and Ivanti.

Component Analysis

In 2023, the Solution segment held a dominant market position in the Cloud Based ITSM market, capturing more than a 73% share. Solutions are a crucial component of Cloud Based ITSM, providing organizations with the necessary software and tools to effectively manage their IT services. Within the Solutions segment, Configuration & Change Management emerged as a significant sub-segment, offering capabilities to streamline and track changes to IT configurations, ensuring system stability and minimizing disruptions.

Operations & Performance Management solutions were also prominent, enabling organizations to monitor and optimize IT infrastructure performance, identify bottlenecks, and ensure efficient service delivery. Service Desk Software solutions played a vital role in managing customer interactions, facilitating incident and problem resolution, and enhancing overall IT service efficiency.

Additionally, Service Portfolio Management solutions provided organizations with a comprehensive view of their IT services, enabling effective planning, resource allocation, and alignment with business objectives. Other solution sub-segments, such as asset management and knowledge management, also contributed to the overall market growth.

In terms of services, the Cloud Based ITSM market witnessed a range of offerings to support organizations in their IT service management journey. Professional services, including consulting, implementation, and training, were in high demand as organizations sought assistance in deploying and optimizing their cloud-based ITSM solutions.

Managed services also gained traction, with organizations outsourcing the management and maintenance of their ITSM systems to specialized service providers. These services offered businesses the advantage of expert support, ongoing system updates, and proactive monitoring, freeing up internal resources and ensuring optimal performance.

The Cloud Based ITSM market is projected to experience continued growth in the coming years, driven by factors such as digital transformation initiatives, the need for remote work enablement, and the increasing complexity of IT environments. Organizations will continue to invest in robust and comprehensive solutions across various segments to effectively manage their IT services and drive operational efficiency.

Additionally, the demand for services, particularly professional and managed services, is expected to rise as organizations seek expertise and support for successful implementation and ongoing management of their cloud-based ITSM solutions.

Organization Size

In 2023, the Large Enterprises segment held a dominant market position in the Cloud Based ITSM (Information Technology Service Management) market, capturing more than a 60% share. This significant portion reflects the growing reliance of large organizations on cloud-based solutions to manage expansive and complex IT infrastructures.

Large enterprises often face intricate operational demands and require robust ITSM solutions that offer scalability, security, and comprehensive service management capabilities. These solutions enable them to streamline processes, reduce downtime, and improve service delivery, which is crucial for maintaining competitiveness and efficiency in a rapidly evolving technological landscape.

On the other hand, the Small and Medium-sized Organizations (SMOs) segment, while smaller in market share, is rapidly growing. SMOs are increasingly adopting cloud-based ITSM solutions due to their cost-effectiveness, flexibility, and scalability. These solutions are particularly attractive to SMOs as they often require less upfront investment and can be scaled according to business needs.

The adaptability of cloud-based ITSM allows these organizations to enjoy many of the same benefits as their larger counterparts, such as improved operational efficiency and better resource management, without the need for extensive in-house IT infrastructures.

Note: Actual Numbers Might Vary In Final Report

Industry Vertical Analysis

In 2023, the IT & Telecom segment held a dominant market position in the Cloud Based ITSM (Information Technology Service Management) market, capturing more than a 24% share. This sector has been at the forefront of adopting cloud-based ITSM solutions due to its inherent need for robust, scalable, and efficient IT service management to handle vast data volumes and maintain uninterrupted services.

The rapid evolution of digital communication necessitates agile and resilient IT support systems, which cloud-based ITSM provides, thereby driving the segment’s substantial market share. The BFSI (Banking, Financial Services, and Insurance) sector also significantly integrates cloud-based ITSM solutions to enhance operational efficiency and ensure compliance with stringent regulatory requirements. These solutions facilitate better risk management, service delivery, and customer data protection, which are pivotal in this sensitive industry.

Healthcare is another notable sector increasingly relying on cloud-based ITSM. With the sector’s growing emphasis on digital health records and telemedicine, there’s a pressing need for reliable IT services to manage patient data securely and ensure high service availability. Cloud-based ITSM solutions offer scalability and flexibility, crucial for adapting to the changing healthcare landscape.

Manufacturing and Retail industries are leveraging cloud-based ITSM to streamline operations and improve supply chain efficiency. In manufacturing, ITSM solutions help in managing complex IT infrastructures, essential for modern manufacturing processes, while in retail, they support the ever-growing online customer service demands and e-commerce platforms.

The Government & Public sector is gradually adopting these solutions to enhance service delivery and operational efficiency. Cloud-based ITSM allows government agencies to modernize their IT infrastructure, making services more accessible to the public and improving internal processes.

Key Market Segments

By Component

• Solutions
  • Configuration & change management
  • Operations & performance management
  • Service desk software
  • Service portfolio management
  • Others
• Services

By Organization Size

• Large Enterprises
• Small and medium organizations

By Industry Vertical

• IT & Telecommunication
• BFSI
• Healthcare
• Manufacturing
• Retail
• Government & Public sector
• Others

Drivers

Increasing Shift to Cloud-Based Technologies

The driving force behind the surge in the Cloud Based ITSM market is the increasing shift towards cloud-based technologies. Businesses across the globe are transitioning to the cloud to capitalize on its numerous benefits such as cost efficiency, scalability, and accessibility. This move is motivated by the need for organizations to remain agile and responsive in a rapidly evolving digital landscape. As more companies adopt cloud solutions, the demand for IT Service Management (ITSM) that is tailored for these cloud environments escalates, significantly propelling the market forward.

Restraints

Security and Privacy Concerns for Confidential Data and Business Processes

However, this growth is not without its restraints. A major concern hampering the adoption of Cloud Based ITSM is the apprehension regarding the security and privacy of confidential data and business processes. As organizations migrate sensitive information to the cloud, the fear of data breaches, unauthorized access, and other cyber threats loom large. This concern is particularly pronounced in industries handling critical data, where the implications of a security lapse are severe. Consequently, these security and privacy concerns are substantial restraints, slowing down the otherwise rapid adoption of cloud-based ITSM solutions.

Challenges

Lack of Standard Procedures and Integration Concerns with Traditional Architectures

Organizations looking to transition to Cloud Based ITSM also face significant challenges. A primary obstacle is the lack of standard procedures, which complicates the integration of cloud solutions with existing traditional IT architectures. Many businesses operate on complex, established systems and the process of integrating these with new cloud services can be fraught with technical difficulties and compatibility issues. The absence of standardized methods for this integration exacerbates the challenge, potentially leading to increased costs and extended deployment times.

Opportunities

Growing Demand Among Small and Medium-Sized Enterprises

Despite these challenges, the Cloud Based ITSM market is ripe with opportunities, particularly among small and medium-sized enterprises (SMEs). SMEs are increasingly recognizing the benefits of cloud-based ITSM solutions in terms of cost-effectiveness, scalability, and operational efficiency. Unlike larger corporations, SMEs often lack the resources to invest in extensive on-premise IT infrastructures.

Cloud-based solutions provide a viable alternative, offering advanced IT management capabilities without the need for substantial upfront investment. As such, the growing demand from the SME sector represents a significant opportunity for the expansion and diversification of the Cloud Based ITSM market.

Regional Analysis

North America is Expected to Hold Major Share

In 2023, North America held a dominant market position in the Cloud Based ITSM market, capturing more than a 40% share. This region’s significant market share is primarily due to the widespread adoption of advanced IT technologies by enterprises large and small.

North American companies have been early adopters of cloud-based solutions, driven by the presence of major cloud service providers and a robust IT infrastructure. Furthermore, the region’s focus on innovation and security in IT services has fostered a favorable environment for cloud-based ITSM growth. The demand in North America is also propelled by stringent regulatory requirements, necessitating efficient IT service management to ensure compliance.

Europe

Europe stands as a vital player in the Cloud Based ITSM market. The region’s commitment to digital transformation, coupled with stringent data protection laws like GDPR, has prompted organizations to adopt secure and efficient cloud-based ITSM solutions. Europe’s diverse industrial base, from manufacturing to finance, all require robust IT service management to navigate the complexities of digitalization and maintain competitiveness. The market’s growth is further supported by the region’s strong emphasis on data privacy and security, driving the need for compliant and reliable ITSM solutions.

Asia-Pacific (APAC)

The Asia-Pacific region is experiencing rapid growth in the Cloud Based ITSM market, fueled by the digitalization of businesses and the increasing adoption of cloud technologies. Countries like China, India, and Japan are leading the way, with their burgeoning IT industries and growing startup ecosystems. The region’s vast small and medium-sized enterprise sector is particularly keen on adopting cloud-based ITSM to enhance operational efficiency and scalability. APAC’s growth is also driven by increasing IT investments and a strong push from governments for digital transformation.

Latin America

Latin America’s Cloud Based ITSM market is on a growth trajectory, driven by the increasing adoption of cloud technologies and digital transformation initiatives across the region. As businesses in countries like Brazil, Mexico, and Argentina seek to enhance competitiveness and efficiency, cloud-based ITSM solutions are becoming increasingly attractive. The region’s focus on improving IT infrastructure and the growing demand for cost-effective IT service management solutions are key factors contributing to the market’s expansion.

Middle East and Africa

The Middle East and Africa are emerging as significant players in the Cloud Based ITSM market. With a growing emphasis on diversifying economies and enhancing technological capabilities, countries in these regions are increasingly investing in IT infrastructure. The demand for cloud-based ITSM in the Middle East is particularly driven by sectors like oil and gas, finance, and tourism, all seeking to modernize their operations.

In Africa, while the market is still nascent, there’s a growing awareness of the benefits of cloud technologies, particularly among its rapidly expanding small and medium-sized business sector. The region’s focus on innovation and economic diversification is set to drive further adoption of cloud-based ITSM solutions.

Note: Actual Numbers Might Vary In Final Report

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The Cloud Based ITSM market is highly competitive and includes several key players who offer a range of solutions and services. These players are at the forefront of providing cloud-based ITSM solutions and have established a strong presence in the market.

Top Key Players

• Hewlett Packard Enterprise Development LP
• AXIOS SYSTEMS
• SERVICENOW
• CHERWELL SOFTWARE
• IBM CORPORATION
• MICROSOFT CORPORATION
• CITRIX SYSTEMS INC.
• CA TECHNOLOGIES
• BMC Software Inc.
• IVANTI

Recent Developments

• In May 2023, Wipro, a prominent technology services and consulting provider, announced a new global collaboration with Google Cloud. This partnership aims to expand Wipro’s generative AI capabilities, making them accessible to customers worldwide.
• In May 2023, MAS (Monetary Authority of Singapore) and Google Cloud signed a Memorandum of Understanding (MoU) focused on Generative Artificial Intelligence (AI) solutions. These solutions are anchored in the principles of Responsible AI Practices, reflecting a commitment to ethical and responsible use of artificial intelligence technologies.
• ServiceNow’s Move in January 2023: In January 2023, ServiceNow bought IT Glue, a company that helps with IT documentation. This acquisition will help ServiceNow provide more services in the cloud for its customers.
• BMC Software’s New Cloud Service in February 2023: In February 2023, BMC Software introduced a new service for managing IT in the cloud. This service is made to help organizations handle their IT stuff effectively.
• IBM’s Cloud Pak for ITSM in March 2023: IBM shared in March 2023 that their Cloud Pak for ITSM is now available. This service is made for organizations wanting to change the way they manage IT services by moving to the cloud.
• Microsoft’s Azure Lighthouse for ITSM in April 2023: In April 2023, Microsoft said that Azure Lighthouse for ITSM is ready to use. This is a tool to help organizations manage their IT services when using Azure.
• Oracle’s Cloud ITSM in May 2023: Oracle announced in May 2023 that their Cloud ITSM service is now available. This is a tool to help organizations handle their IT stuff using the Oracle Cloud.

Report Scope