1 Global ITSM Software Market Size (Value) and CAGR (2024-2033)
In 2024, the global ITSM Software market was valued at USD 9775.63 million, with a CAGR of 15.6% from 2024 to 2033.
IT Service Management (ITSM) Tools enable IT operations organizations, specifically infrastructure and operations (I&O) managers, to better support the production environment. ITSM tools facilitate the tasks and workflows associated with the management and delivery of quality IT services. These are most heavily used by IT service desks and IT service delivery functions. Some non-I&O departments (such as HR or facilities) adapt generic ticket handling and workflow capabilities for their own use.
Figure Global ITSM Software Market Size (M USD) and CAGR 2024-2033
2 ITSM Software Market Drivers
Growing Demand from SMEs and Startups
Small and Medium-sized Enterprises (SMEs) and startups are increasingly recognizing the value of ITSM Software. These organizations, which form the backbone of most economies, often operate with limited resources and require efficient IT management to maintain productivity and competitiveness. ITSM Software provides them with scalable solutions that can be easily integrated into their existing infrastructure. The ability to manage IT services through subscription-based models makes ITSM Software particularly attractive to SMEs, as it allows them to control costs while enhancing operational efficiency.
Increasing Adoption Across Industries
The adoption of ITSM Software is not limited to any specific sector; it spans across various industries, including healthcare, finance, manufacturing, and technology. The increasing complexity of IT infrastructure and the need for streamlined IT service management have led organizations to seek solutions that can help them manage their IT operations more effectively. ITSM Software enables organizations to automate routine tasks, improve incident management, and enhance overall IT service delivery, making it an essential tool for modern businesses.
Mobile Workforce and Remote Work
The rise of the mobile workforce and the increasing prevalence of remote work have further driven the demand for ITSM Software. The COVID-19 pandemic accelerated the shift towards remote work, highlighting the need for robust IT service management solutions that can support a distributed workforce. ITSM Software provides the necessary tools to manage IT services remotely, ensuring that employees have access to the resources they need, regardless of their location. This flexibility is crucial for maintaining business continuity and productivity in the modern work environment.
3 ITSM Software Market Restraints
Cybersecurity Concerns
One of the most significant limitations of ITSM Software is the growing concern over cybersecurity. As organizations increasingly rely on ITSM solutions to manage their critical IT operations, they become more vulnerable to cyber threats. Data breaches, ransomware attacks, and other security incidents can have severe consequences, including financial losses, reputational damage, and legal liabilities. Ensuring the security of ITSM systems is a complex task, requiring robust security measures, regular updates, and continuous monitoring.
Complexity and Integration Challenges
Implementing ITSM Software can be a complex process, particularly for organizations with existing IT systems and infrastructure. Integrating ITSM solutions with legacy systems often requires significant time, effort, and resources. Compatibility issues, data migration challenges, and the need for extensive customization can complicate the implementation process.
High Initial Costs and Resource Requirements
The initial costs associated with implementing ITSM Software can be substantial. Organizations need to invest in hardware, software licenses, and professional services to deploy and configure the solution. Additionally, the implementation process often requires specialized skills and expertise, which may necessitate hiring external consultants or training existing staff. These costs can be prohibitive for small and medium-sized enterprises (SMEs), limiting their ability to adopt ITSM Software.
4 Global ITSM Software Market Size and Share by Type in 2024
On-premises ITSM Software refers to solutions that are installed and run on the organization’s own servers and infrastructure. This type of solution provides organizations with full control over their IT environment, ensuring that sensitive data remains within the organization’s premises. In 2024, the On-premises ITSM Software market is projected to reach a value of $2,290.85 million. This segment is particularly popular among large enterprises and organizations with stringent security requirements, such as government agencies and financial institutions.
Cloud-Based ITSM Software, on the other hand, is hosted on remote servers managed by third-party providers. This type of solution offers flexibility, scalability, and ease of access, making it an attractive option for organizations looking to streamline their IT operations without significant upfront investment in infrastructure. In 2024, the Cloud-Based ITSM Software market is expected to reach a value of $7,484.78 million. This segment is particularly popular among SMEs and startups, which can benefit from the cost-effective and scalable nature of cloud-based solutions.
Table Global ITSM Software Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
On-premises | 2290.85 | 23.43% |
Cloud-Based | 7484.78 | 76.57% |
5 Global ITSM Software Market Size and Share by Application in 2024
SMEs represent a significant portion of the global business landscape, often characterized by their agility, innovation, and adaptability. In 2024, the ITSM Software market for SMEs is projected to reach a value of $2,381.37 million. This segment is driven by the increasing need for efficient IT management solutions that can support their growth and operational efficiency.
Large enterprises, characterized by their extensive resources, complex IT infrastructure, and stringent compliance requirements, represent another significant segment of the ITSM Software market. In 2024, the ITSM Software market for Large Enterprises is expected to reach a value of $7,394.26 million.
Table Global ITSM Software Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 |
Small and Medium Enterprises (SMEs) | 2381.37 |
Large Enterprises | 7394.26 |
6 Global ITSM Software Market Size by Region in 2024
North America, comprising the United States and Canada, is a major market for ITSM Software. In 2024, the region is projected to account for $3726.55 million of the global market value, representing 38.12% of the total market. The region’s strong economic foundation, advanced technological infrastructure, and high demand for efficient IT solutions drive its market growth.
Europe is another significant market for ITSM Software, with a projected value of $2812.63 million in 2024, accounting for 28.77% of the global market. The region’s diverse economic landscape, strong regulatory environment, and high demand for secure IT solutions contribute to its market growth.
China is a rapidly growing market for ITSM Software, with a projected value of 697.4 million USD in 2024, representing 7.13% of the global market. The region’s economic growth, increasing digital transformation initiatives, and the adoption of advanced technologies drive its market growth.
Figure Global ITSM Software Market Size by Region in 2024
7 Major Players in Global ITSM Software Market
7.1 ServiceNow
Company Profile
ServiceNow is a leading provider of enterprise IT management software. Established in 2003, the company has grown to become a global leader in cloud-based IT service management solutions. ServiceNow operates worldwide and is known for its innovative and scalable ITSM platforms that help organizations streamline their IT operations.
Business Overview
ServiceNow designs, develops, and produces pre-packaged computer software, cloud services, and IT service management platforms. Their solutions are designed to empower organizations to manage their IT services more efficiently, improve employee productivity, and enhance overall IT service delivery. ServiceNow’s platform leverages artificial intelligence and machine learning to automate workflows and improve decision-making processes.
Service Introduction
ServiceNow’s IT Service Management solution is a modern, cloud-based platform that consolidates on-premises legacy tools into a single cloud platform. It enables users to harness shared data and analytics with automated workflows on the Now Platform®. The platform’s native AI and machine learning capabilities, along with virtual agent chatbots, help reduce the workload on IT staff and boost productivity. ServiceNow’s ITSM solution empowers employees to self-solve issues 24/7, provides role-based workspaces for smarter decision-making, and enables IT agents to resolve incidents more efficiently.
Recent Financial Data
In 2023, ServiceNow’s revenue reached 3,587.97 million USD, with a gross profit of 2,779.14 million USD.
7.2 Atlassian
Company Profile
Atlassian, established in 2002, is a global leader in application software development. The company offers a range of solutions for tracking, communication, management, collaboration, and development. Atlassian’s products are designed to help teams work more efficiently and effectively, making it a popular choice for organizations worldwide.
Business Overview
Atlassian provides comprehensive software solutions that cater to various aspects of IT service management. Their products are designed to streamline workflows, enhance collaboration, and improve overall productivity. Atlassian’s solutions are widely adopted by both SMEs and large enterprises, making it a versatile player in the ITSM Software market.
Service Introduction
Atlassian’s ITSM solution, Jira Service Management, is a high-velocity service management platform that connects DevOps, IT operations, and business teams. It enables organizations to quickly respond to changes, deliver exceptional service experiences, and streamline IT service management processes. Jira Service Management accelerates DevOps collaboration, empowers all service teams, and delivers value quickly through customizable features and templates.
Recent Financial Data
In 2023, Atlassian’s revenue reached 1,590.85 million USD, with a gross profit of 1,306.86 million USD.
7.3 Ivanti
Company Profile
Ivanti, founded in 1985, is a global software vendor specializing in IT and security operations. The company offers a wide range of solutions for IT service management, IT asset management, unified endpoint management, identity management, and supply chain management. Ivanti’s solutions are designed to help organizations manage and protect their digital workspaces effectively.
Business Overview
Ivanti provides comprehensive ITSM solutions that integrate with existing IT infrastructure, enabling organizations to manage their IT services more efficiently. The company’s solutions are based on ITIL standards and offer flexible process engines, real-time dashboards, and user-centered service design. Ivanti’s focus on security and compliance makes it a preferred choice for organizations with stringent IT requirements.
Service Introduction
Ivanti’s IT service management solutions are designed to help enterprises manage IT services based on ITIL standards. The solutions offer flexible process engines, out-of-the-box ITIL service process templates, and stylish enterprise dashboards. Ivanti’s platform also supports modern user online self-service, IT online service desks, and cloud architecture ITSM platforms, enabling organizations to deploy and manage IT services more efficiently.
Recent Financial Data
In 2023, Ivanti’s revenue reached 476.38 million USD, with a gross profit of 336.72 million USD.