Cloud IT Service Management (ITSM) Global Market Report 2024

The cloud IT service management (ITSM) market size has grown rapidly in recent years. It will grow from $7.89 billion in 2023 to $9.21 billion in 2024 at a compound annual growth rate (CAGR) of 16.7%. The growth observed in the historic period can be credited to several factors, including an increased demand for scalable and cost-effective IT service management solutions. Additionally, there was a rise in demand for ITSM solutions within government and education sectors, as well as in industries such as travel, hospitality, healthcare, and IT and telecommunication.

The cloud IT service management (ITSM) market size is expected to see rapid growth in the next few years. It will grow to $17.16 billion in 2028 at a compound annual growth rate (CAGR) of 16.9%. The growth in the forecast period can be attributed to the increasing adoption of remote work practices, a heightened demand for cloud services within the IT industry, and a growing need for automation services in business processes. Furthermore, the concept of bring-your-own-device (BYOD) is gaining traction, contributing to the demand for efficient IT operations execution. Major trends expected in the forecast period encompass the widespread adoption of cloud technologies across industries, the continued development of IT infrastructure, increased investments by various operators, the integration of artificial intelligence (AI) into ITSM solutions, and rising demand for cloud-based IT service management software solutions.

The trend toward remote work is anticipated to drive growth in the cloud IT service management (ITSM) market. Remote work involves employees performing tasks away from the traditional office setting, utilizing technologies such as laptops, smartphones, and video conferencing tools. This shift is spurred by technological advancements, evolving attitudes toward work-life balance, and the pandemic expediting flexible work arrangements. Cloud ITSM solutions offer tools and technologies ensuring smooth operations, heightened security, and an enhanced user experience for remote workers. For instance, a Census Bureau article noted a significant increase in remote workers in 2021, with approximately 27.6 million people primarily working from home, constituting 17.9% of the workforce. This surge in remote work is a key driver behind the growth of the cloud ITSM market.

Leading companies in the cloud ITSM sector are actively developing AI-driven data platforms to optimize resource allocation and enhance customer experiences. These platforms integrate artificial intelligence and machine learning technologies to improve the efficiency, accuracy, and efficacy of IT service management processes. For example, in May 2023, IBM unveiled Watsonx, a cloud-based platform designed to empower enterprises with end-to-end AI capabilities, including AI development, data management, and governance. Such initiatives reflect a broader industry focus on leveraging AI to drive innovation and efficiency in IT service management.

In January 2021, Ivanti, a US-based IT software company, completed the acquisition of Cherwell Software. This strategic move is expected to bring significant scale, cross-selling opportunities, and expanded capabilities to Ivanti's customer base across unified endpoint management, zero-trust security, and enterprise service management. Cherwell Software, another US-based company, specializes in cloud IT management services, making it a valuable addition to Ivanti's portfolio.

Major companies operating in the cloud IT service management (ITSM) market are Amazon.com Inc., International Business Machines Corporation, Broadcom Inc., Hewlett Packard Enterprise Company, Salesforce Inc., ServiceNow Inc., OpenText Corp., Splunk Inc., Citrix Systems Inc., Atlassian, Micro Focus International PLC, BMC Software Inc., Zendesk Inc., Ivanti Inc., ManageEngine, Zoho Corpoation Pvt. Ltd., Cherwell Software LLC, Freshworks Inc., Icertis Inc., EasyVista Inc., Axios Systems PLC, SysAid Technologies Ltd., InvGate Inc., CA Technologies Inc., Sunrise Software Ltd.

North America was the largest region in the cloud IT service management market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cloud IT service management (ITSM) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the cloud IT service management (ITSM) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Cloud IT service management (ITSM) involves utilizing cloud-based solutions and tools to implement and oversee IT service delivery. It encompasses all aspects of designing, creating, delivering, supporting, and managing the lifecycle of IT services. These solutions offer on-demand self-service, resource pooling, and measured service.

The primary components of cloud ITSM consist of solutions and services. Cloud ITSM solutions are software platforms delivered via the cloud, facilitating comprehensive IT service management for organizations. These solutions are deployed through public, private, and hybrid clouds, catering to businesses of various sizes, including small and medium enterprises (SMEs) and large enterprises. They find application in configuration management, performance management, network management, database management systems, and other areas, serving diverse end-users such as banking, financial services, and insurance, information technology and telecommunication, retail, healthcare, and others.

The cloud IT service management (ITSM) market research report is one of a series of new reports that provides cloud IT service management (ITSM) statistics, including cloud IT service management (ITSM) global market size, regional shares, competitors with a cloud IT service management (ITSM) share, detailed cloud IT service management (ITSM) market segments, market trends and opportunities, and any further data you may need to thrive in the cloud IT service management (ITSM) industry. This cloud IT service management (ITSM) research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The cloud IT service management (ITSM) market consists of revenues earned by entities by providing services such as consulting and implementation services, training and certification programs, managed services, and outsourcing offerings. The market value includes the value of related goods sold by the service provider or included within the service offering. The cloud IT service management (ITSM) market also includes sales of problem management tools, configuration management tools, and orchestration tools. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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