Cloud IT Service Management (ITSM) Market Report 2025

This Cloud IT Service Management (ITSM) market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The cloud it service management (ITSM) market size has grown rapidly in recent years. It will grow from $9.21 billion in 2024 to $10.77 billion in 2025 at a compound annual growth rate (CAGR) of 17%. The growth in the historic period can be attributed to increasing demand for scalable and cost-effective IT services management solutions, rise in demand for IT service management (ITSM) solutions in government and education, increasing demand for IT service management (ITSM) solutions in travel and hospitality, increasing demand for IT service management (ITSM) solutions in healthcare, rise in need for it service management (ITSM) solutions in 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 $20.02 billion in 2029 at a compound annual growth rate (CAGR) of 16.8%. The growth in the forecast period can be attributed to an increasing shift towards remote work, rising demand for cloud services in the it industry, rising demand for automation services in business processes, rising concept of bring-your-own-device (BYOD), growing need for efficient execution of IT operations. Major trends in the forecast period include the adoption of cloud technologies across industries, the development of IT infrastructure, investments by various operators, the adoption of artificial intelligence (AI) in ITSM solutions, and demand for cloud IT service management software solutions.

The growing shift towards remote work is expected to drive the expansion of the cloud IT service management (ITSM) market. Remote work refers to an arrangement where employees carry out their tasks away from a traditional office setting, utilizing technologies like laptops, smartphones, and video conferencing tools. The rise in remote work is fueled by technological advancements, changing perspectives on work-life balance, and the global pandemic, which accelerated the adoption of flexible work options. Cloud IT service management provides the tools and technologies that ensure smooth operations, improved security, and a better user experience for remote workers. For example, in February 2023, The Office for National Statistics, a UK-based non-ministerial department, reported that between September 2022 and January 2023, 16% of people in Great Britain worked entirely from home, while 28% worked a mix of home and office-based hours. Therefore, the growing shift towards remote work is contributing to the growth of the cloud IT service management (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 June 2022, Freshworks Inc., a US-based provider of cloud-based software-as-a-service solutions, acquired Device42 Inc. for an undisclosed amount. This acquisition is intended to enhance Freshworks Inc.'s product portfolio and strengthen its position in the IT service management market. Device42 Inc. is a US-based software company specializing in IT asset and network management software.

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 2024. 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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