Cloud IT Service Management (ITSM) Market Size, Share & COVID-19 Impact Analysis, By Component (Solution and Services), By Organization Size (Small and Medium Enterprises (SMEs) and Large Enterprises), By Industry (IT & Telecommunication, BFSI, Healthcare, Retail & Consumer Goods, Media & Entertainment, Manufacturing, Government & Public and Others) and Regional Forecast, 2020-2027

The global cloud IT service management (ITSM) market size was valued at USD 4.15 billion in 2019 and is expected to reach USD 15.65 billion by 2027, exhibiting a CAGR of 18.2% during the forecast period (2020-2027). North America accounted for a market value of USD 1.93 billion in 2019. Cloud IT service management (ITSM) is a collection of strategies and practices for deploying and managing IT services to meet the requirements and specific objectives of an organization. Cloud ITSM solutions and services are broadly implemented by organizations to manage their IT infrastructure, along with IT practices, software, hardware, and services. The Cloud ITSM solutions and services are generally provided by an IT service provider.

The market is primarily driven by the rising shift of startups and small and mid-sized enterprises (SMEs) towards the adoption of cloud-based applications and the increasing adoption of managed cloud IT services. Also, the rising investment by key players such as Atlassian Corporation PLC, Hewlett Packard Enterprise Company, ServiceNow, Inc., and others to develop and launch advanced cloud ITSM solutions is expected to drive the growth of the market. For instance,

• January 2020: Atlassian Corporation PLC launched its advanced and updated Jira project management ITSM software. The ITSM software assists users to manage and monitor software development initiatives.


• December 2019: Hewlett Packard Enterprise Company launched GreenLake Central.  GreenLake Central is an advanced IT software platform that offers users a consistent cloud experience for all their data and applications.

Growing Demand for IT Service Such as Remote Setup, and Video/Audio Conference during Pandemic to Aid Growth

The global pandemic has led several businesses to adopt a remote-working environment. This swift relocation is managed by several IT organizations across the world. The demand for cloud-based IT services such as meeting software, video/audio conferences, live streaming, and others are increasing. With the rise in demand for cloud-based IT services, the market size for ITSM is expected to grow. For instance, during April – June 2020, Microsoft Corporation scaled demand for IT services up to 775% worldwide. 

The demand for ITSM solutions and services is increasing among industries such as healthcare and media & entertainment. End-use organizations such as Netflix, DisneyPlus, and YouTube are investing in upgrading their IT infrastructure by adopting cloud ITSM services.

Various players in the market, such as ServiceNow, Inc., BMC Software, and Citrix Systems, among others, have launched mobile-based applications to assist their users in managing and monitoring their overall IT infrastructure. For instance, in July 2020, ServiceNow, Inc. launched an updated version of the Emergency Self Report app to assist its users in managing their entire IT infrastructure, including IT practices, software, hardware, and services.

LATEST TRENDS

Increasing Trends of Integrating ITSM Solutions with AI Platform to Drive Market Growth

One of the emerging cloud IT service management (ITSM) market trends is integrating cloud ITSM solutions and services with advanced artificial intelligence (AI) platforms. The AI platform assists organizations to automate a wide range of IT and enterprise management services and offers a scalable cloud platform.

Major players such as Serviceaide, Inc., BMC Software, IBM Corporation, and others are developing advanced ITSM solutions and services based on the AI platform.

• In September 2020, Serviceaide, Inc. launched LUMA 2.5, a virtual service and support agent for IT and enterprise service management. LUMA 2.5 is enabled with an AI platform, natural language processing, and machine learning platform that helps to create a conversational medium over chat, email, voice, and other channels.


• In February 2019, BMC Software announced its partnership with IBM Corporation to integrate BMC Helix and BMC Software’s Cognitive service management with the AI capabilities of IBM Watson.

DRIVING FACTORS

Increasing Adoption of Cloud-based Applications to Augment Growth

The cloud IT service management market is driven by the rising adoption of cloud-based applications among startups and small and mid-sized enterprises (SMEs). Cloud-based applications assist organizations in reducing IT infrastructure operating costs, increasing scalability, collaboration efficiency, the flexibility of work procedure, business stability, and others.

Additionally, the rising investment by key players such as Atlassian Corporation PLC, BMC Software, IBM Corporation, Hewlett Packard Enterprise Company, ServiceNow, Inc., and others, to develop and launch advanced ITSM solutions would drive the growth of the market.

• In April 2019, Cherwell Software launched its updated information technology service management solution, Cherwell Service Management. The cloud-based software assists in advancing the speed and scalability of the IT infrastructure.

The rising adoption of core technologies such as big data, AI, cloud computing, and the Internet of Things (IoT) is expected to drive the demand for ITSM services. Also, the increasing deployment of the BYOD (bring your device) trend and the growing mobile workforce across the Asia Pacific and Europe, is expected to support the growth of the cloud IT service management market.

RESTRAINING FACTORS

Lack of Awareness and Security Concerns to Restrain Market Growth

Although cloud ITSM offers several features, the majority of the end-users are still unaware of its services in developing countries across the Middle East and Africa, and South America. Also, security concerns for confidential data and business processes across the developing countries where cyber-attacks are increasing are expected to hinder the growth of the market.

SEGMENTATION

By Component Analysis

Solutions Segment to Lead Owing to Increasing Demand for ITSM Monitoring Tools

Based on the component, the market is divided into solutions and services.

Among all, the solution is expected to capture the largest market share. This growth is attributed to the increasing demand for ITSM monitoring tools across IT & telecom, healthcare, and manufacturing industries. The solution segment is further categorized into configuration & change management, operations & performance management, service desk software, service portfolio management, others.

The services segment is expected to grow with the highest CAGR during the forecast period owing to the rising implementation of public cloud platforms among startups and SMEs.

By Organization Size Analysis

Increasing Acceptance of Cloud Technologies among Startups and Small Enterprises to Aid Growth

Based on the organization size, the market is classified into small and medium enterprises (SMEs) and large enterprises.

Among all, SMEs are anticipated to grow with the highest CAGR during the forecast period. This is mainly attributable to the increasing adoption of cloud technologies. The large enterprises segment is projected to increase at a stable growth rate during the forecast period. The growth in the segment is owing to the rising adoption of cloud-managed networking services.

By Industry Analysis

Rising Implementation of Cloud Services across Telecom & IT Industry to Boost Demand for Managed Services

Based on the industry, the market is divided into IT & telecommunication, healthcare, manufacturing, BFSI, media & entertainment, retail & consumer goods, government & public, and others.

IT & telecommunication is likely to dominate the market during the forecast period. The growth is owing to the rising demand for cloud services in the IT industry to execute operations such as IT outsourcing, infrastructure sharing, business process outsourcing, and others.

Other segments such as BFSI, healthcare, retail & consumer goods, media & entertainment, manufacturing, government & public are expected to grow at a considerable pace during the forecast period. Market players are focusing on adopting business strategies such as mergers and acquisitions to furnish the demand across industries.

• January 2020: ServiceNow, Inc. completed the acquisition of Loom Systems. ServiceNow’s IT Service Management (ITSM) and IT Operations Management (ITOM) solutions are combined with Loom Systems Technology. This acquisition is expected to aid the company in strengthening its product portfolio to cater to the growing demand across industries.

REGIONAL INSIGHTS

North America to Dominate the Market Owing to Rising Investment by Key Players and Government

Based on the region, the market has been studied across five foremost regions namely North America, South America, Europe, Middle East and Africa, and Asia Pacific.

North America is anticipated to hold a dominant share in the market. The growth in the region is mainly owing to the rising investment by key players to expand their presence worldwide. For instance:

• In May 2019, ServiceNow, Inc. completed a partnership with Google LLC to integrate its ITSM solutions with Google Cloud Platform. The partnership is likely to assist both the companies to expand their market footprints worldwide.

Countries such as the US and Canada are among the developed economies, which contributes to a larger market share in the region. Moreover, the strong presence of technology providers and the advancement of core technologies are some of the factors expected to drive the growth of the market.

Key players in Asia Pacific countries are focusing on investments to adopt cloud-based applications and expand their presence worldwide. For instance, in August 2019, ServiceNow, Inc. expanded its presence by opening an R&D center in Hyderabad, India. The R&D center was established to advance the AI capabilities of ITSM product offerings.

Europe is projected to exhibit a substantial CAGR during the forecast period. This is attributable to the growing investment for the development of secure IT infrastructure across industries such as manufacturing, retail, and others. Countries such as Spain, Italy, Benelux (Belgium, Netherlands, and Luxembourg), and Germany are heavily financing to implement advanced cloud-based services.

The regions such as South America and the Middle East and Africa, are projected to develop with a significant growth rate. The growth is owing to the rising numbers of providers of cloud IT services across countries such as Israel, South Africa, UAE, Brazil, and others. According to a report by Cisco System, Inc., the overall cloud index (2013-2018) in the Middle East and Africa is predictable to illustrate a determined traffic growth rate of about 54%.

KEY INDUSTRY PLAYERS

Market Players Focus on Completing Mergers, Collaboration, and Acquisition to Amplify Their Market Positions

Market players such as ServiceNow, Inc., Atlassian Corporation PLC, BMC Software, IBM Corporation, and Hewlett Packard Enterprise Company, among others, are among the top players in the market. These companies are focusing on executing several corporate strategies such as mergers, partnerships, and acquisitions. These corporate strategies are likely to help players reinforce their worldwide presence and provide advanced ITSM services across industries. For instance:

• October 2019: ServiceNow, Inc. collaborated with Nutanix, a provider of enterprise cloud computing services. The collaboration is expected to assist ServiceNow to integrate its IT system management solution with the Nutanix hyper-converged infrastructure (HCI) platform. The integration will help the companies to automate the critical cloud workflows.

LIST OF KEY COMPANIES PROFILED: 

• ServiceNow, Inc. (California, United States)


• IBM Corporation (New York, United States)


• Hewlett Packard Enterprise Company (California, United States)


• Citrix Systems, Inc. (Florida, United States)


• CA Technologies (New York, United States)


• BMC Software, Inc. (Texas, United States)


• Atlassian Corporation PLC (Sydney, Australia)


• Axios Systems PLC (Edinburgh, United Kingdom)


• Ivanti (Heat Software USA, Inc.) (Utah, United States)


• Cherwell Software, LLC (Colorado, United States)


• Hornbill Corporate Limited (Ruislip, United Kingdom)


• Freshworks, Inc. (California, United States)


• Serviceaide, Inc. (California, United States)


• Cherwell Software (Colorado, United States)

KEY INDUSTRY DEVELOPMENTS:

• January 2020: Freshworks, Inc. announced its partnership with Splashtop, a provider of collaboration, remote support solutions, and remote access. The partnership is anticipated to provide remote support solutions to the users of Freshworks’ ITSM software.


• July 2019: Microsoft Corporation launched Azure Lighthouse, an advanced control panel that is integrated with IT service management monitoring tools that assist providers in monitoring and managing the Azure deployments across end-user organizations.


• May 2019: ServiceNow, Inc. announced its partnership with Google LLC. The partnership is aimed at integrating ServiceNow, Inc’s ITSM with Google’s Cloud Platform, and further taking advantage of the cloud services for IT operations management.

REPORT COVERAGE

The cloud ITSM market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product and services types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

Report Scope & Segmentation