Cloud ITSM Market Size, Share, Trends, Industry Analysis Report – By Offering (Solutions and Services), Deployment Mode, Organization Size, Vertical, and Region; Segment Forecast, 2024–2032
- Published Date:Oct-2024
- Pages: 119
- Format: PDF
- Report ID: PM5145
- Base Year: 2023
- Historical Data: 2019-2022
The cloud information technology services management (ITSM) market size was valued at USD 8.38 billion in 2023. The market is anticipated to grow from USD 9.50 billion in 2024 to USD 26.18 billion by 2032, exhibiting a CAGR of 13.5% during 2024–2032.
Cloud ITSM Market Overview
The cloud IT service management (ITSM) market refers to the industry focused on delivering IT service management solutions via cloud platforms. Cloud ITSM enables organizations to efficiently manage and deliver IT services, such as incident management, problem resolution, change management, and service desk operations, using cloud-based tools. These solutions offer flexibility, scalability, and cost-efficiency, as they eliminate the need for on-premise infrastructure. The rising use of artificial intelligence (AI) and other technologies in business operations, from small and medium enterprises to large enterprises, stimulates the demand for cloud solutions, which drives the cloud ITSM market growth. The increasing urbanization and growing utilization of mobile phones are creating huge amounts of data globally, helping companies enhance their strategic planning through data-driven decision-making. Additionally, the growing partnerships to enhance the accessibility of cloud solutions are anticipated to expand the global cloud ITSM market. For instance, in September 2023, Microsoft and Oracle expanded their partnership to deliver Oracle database services on Oracle cloud infrastructure on Microsoft Azure.
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An increasing number of firms focusing on product upgrades to meet changing global needs is driving the demand for cloud IT service management. In April 2023, VMware, Inc. announced the introduction of new features and capabilities to its “VMware Aria” platforms and “VMware Tanzu” to unveil a modern cloud-smart approach to speed up app development activities.
Growth Drivers
Rising Adoption of Cloud Solutions
Most companies adopted a work-from-home model during the COVID-19 pandemic, which propelled the requirement for cloud solutions among businesses, stimulating the cloud ITSM market. According to the stack overflow survey, around 90% of the respondents showed a rise in the use of the cloud in 2021 compared to the previous year. Owing to the higher convenience and reduced traveling time, employees prefer to work from home, and the lower investment cost in daily business operations is accelerating cloud integration. Additionally, the ease of storage, management, and extraction of insights for future decision-making promotes the importance of cloud solutions.
The rising adoption of cloud solutions due to their ease of installation and maintenance and lower cost is expected to create new opportunities for the cloud ITSM market during the forecast period. Furthermore, the increasing acquisitions are projected to enhance the availability of cloud solutions, which would significantly facilitate the need for information technology management services. For instance, in January 2023, Dell Technologies completed the acquisition of Cloudify, an Israel-based cloud service, with an investment of USD 100 million.
Evolution of Generative Artificial Intelligence
The growing technological innovations across the world, particularly generative AI, are creating demand for cloud ITSM services and solutions. For instance, in October 2023, SAP SE announced new generative AI features across the SAP Customer Experience product line, including its natural language generative AI copilot “Joule.” Additionally, in May 2024, Bharti Airtel entered into a long-term collaboration agreement with Google Cloud to accelerate the cloud adoption process and introduce generative AI.
Market Restraint
Data Privacy Concerns
Data privacy concerns pose a significant challenge to the growth of the Cloud ITSM market, as organizations become increasingly cautious about storing sensitive information on cloud platforms. The potential for data breaches, regulatory non-compliance, and loss of control over proprietary information makes businesses hesitant to fully adopt cloud-based IT service management solutions. These concerns are particularly heightened in sectors such as healthcare, finance, and government, where stringent data protection laws and the need for confidentiality are paramount. Consequently, security and privacy issues slow the adoption of cloud ITSM, despite the operational benefits it offers. Addressing data privacy and enhancing security measures will be crucial for fostering greater trust and encouraging wider acceptance of cloud ITSM solutions as organizations navigate these challenges.
Report Segmentation
The cloud ITSM market is primarily segmented on the basis of offering, deployment mode, organization size, vertical, and region.
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By Offering |
By Deployment Mode |
By Organization Size |
By Vertical |
By Region |
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By Offering Analysis
Solutions Segment to Witness Higher Growth During Forecast Period
The solutions segment is projected to register a higher CAGR in the cloud ITSM market during the forecast period, owing to its cost-effectiveness, data privacy, and the growing establishment of innovative cloud solutions. The real-time analytics, flexibility, and scalability of the cloud solutions are driving their adoption. Moreover, its affordability and growing advanced data analytics and prediction features, including machine learning, are expected to propel its integration across the world in the coming years.
By Deployment Mode Analysis
Public Cloud Segment Accounted for Largest Market Share in 2023
The public cloud segment holds the largest share of the cloud ITSM market, driven by a range of compelling benefits that enhance its appeal to organizations. Key advantages of public cloud computing include unlimited scalability, which allows businesses to easily adjust resources to meet fluctuating demands without the need for significant upfront investments. This flexibility is particularly beneficial for companies experiencing rapid growth or seasonal fluctuations in service requirements. In 2024, the International Data Corporation stated that global public cloud service revenue increased by 19.9% annually in 2023. This showcases the rising demand for public clouds.
Additionally, the reliability of public cloud services contributes to their widespread adoption. Providers often offer robust infrastructure and redundancy measures that ensure high availability and minimal downtime, allowing organizations to maintain consistent service levels. Lower costs associated with public cloud solutions also make them an attractive option, as businesses can reduce expenses related to hardware, maintenance, and IT staffing by leveraging the resources and expertise of cloud providers.
By Organization Size Analysis
Small and Medium Enterprises Segment Held Significant Revenue Share
The small and medium enterprises segment accounted for a significant share of the cloud ITSM market due to the higher service management and lower cost of investment in cloud storage compared to traditional onsite data storage. The increasing government policies to promote data security companies stimulate their integration among small and medium enterprises. Additionally, the increasing need for digital transformation and automation within SMEs further drives the demand for cloud ITSM solutions, contributing to their substantial market expansion.
Cloud ITSM Market Regional Insights
North America Accounted for Largest Share in 2023
North America held the dominant share of the global cloud ITSM market owing to the presence of digitalized and highly developed nations, including the US and Canada. Companies in the region are increasingly integrating cloud solutions into their business models to scale up their performance and utilize data-driven insights for strategic planning. According to Public First, around 81% of the companies in the US that use machine learning and artificial intelligence are estimated to adopt the cloud.
Asia Pacific is expected to be the fastest-growing region in the cloud ITSM market at a significant CAGR during the forecast period. Countries in the region, including China, India, and Japan, are witnessing the high adoption of cloud solutions, boosting the demand for cloud ITMS services and solutions. Additionally, the growing demand for efficient IT service management solutions across industries and the rise of small and medium enterprises further fuel the region's market expansion.
Key Market Players and Competitive Insights
The cloud ITSM market is highly fragmented. Major companies across the world are significantly moving forward with strategic expansion activities, including collaborations, partnerships, and acquisitions coupled with investments to accelerate their global presence. In May 2023, AWS, the Amazon cloud unit, announced an investment of USD 13 billion in India by 2030 due to the rising demand for cloud solutions in the region.
List of Key Players in Cloud ITSM Market
- 4ME
- Aisera
- Alemba
- Atlassian
- BMC Software
- Broadcom
- EasyVista
- Efecte
- Freshworks
- GOTO
- HaloITSM
- Hornbill
- IBM
- IFS
- InvGate
Recent Developments in Industry
- March 2024: Amazon’s cloud division, Amazon Web Services, launched its new data centers in Saudi Arabia, with an investment of around USD 5.3 billion in the country.
- March 2023: OVHcloud established its first data center in India to increase its presence in Asia Pacific.
Report Coverage
The cloud ITSM market report emphasizes key regions across the globe to provide a better understanding of the product to the users. Also, the report provides market insights into recent developments and trends and analyzes the technologies that are gaining traction around the world. Furthermore, the report covers an in-depth qualitative analysis pertaining to various paradigm shifts associated with the transformation of these solutions.
The report provides a detailed analysis of the market while focusing on various key aspects such as competitive analysis, offering, deployment mode, organization size, and vertical and futuristic growth opportunities.
Cloud ITSM Market Report Scope
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Report Attributes |
Details |
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Market Size Value in 2024 |
USD 9.50 billion |
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Revenue Forecast in 2032 |
USD 26.18 billion |
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CAGR |
13.5% from 2024 to 2032 |
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Base Year |
2023 |
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Historical Data |
2019–2022 |
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Forecast Period |
2024–2032 |
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Quantitative Units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments Covered |
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Regional Scope |
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Competitive Landscape |
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Report Format |
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Customization |
Report customization as per your requirements with respect to countries, regions, and segmentation. |
FAQ's
The global cloud ITSM market size was valued at USD 8.38 billion in 2023 and is projected to grow to USD 26.18 billion by 2032.
The global market is projected to grow at a CAGR of 13.5% during the forecast period
North America held the dominant share of the global cloud ITSM market owing to the presence of digitalized and highly developed nations, including the US and Canada.
The key players in the market are 4ME, Aisera, Alemba, Atlassian, BMC Software, Broadcom, EasyVista, Efecte, Freshworks, GOTO, HaloITSM, Hornbill, IBM, IFS, and InvGate.
The public cloud segment holds the largest share of the cloud ITSM market, driven by a range of compelling benefits that enhance its appeal to organizations.
The solutions segment is projected to register a higher CAGR in the cloud ITSM market during the forecast period, owing to its cost-effectiveness, data privacy, and the growing establishment of innovative cloud solutions.
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