Information Technology Service Management Market Size, Share and Trends 2025 to 2034

Information Technology Service Management Market Size and Forecast 2025 to 2034

The global information technology service management market size was estimated at USD 13.49 billion in 2024 and is predicted to increase from USD 15.44 billion in 2025 to approximately USD 51.93 billion by 2034, expanding at a CAGR of 14.43% from 2025 to 2034. The growth of the information technology service management market is driven by the increasing need to improve IT infrastructure. Furthermore, the increasing need for better efficiency, flexibility, and transparency in IT operations is boosting the growth of the market.

Information Technology Service Management Market Key Takeaways

• North America dominated the global market with the largest market share of 41% in 2024.
• The Asia Pacific is expected to witness the fastest growth in the coming years.
• By component, the solution segment held the largest market share of 77%in 2024.
• By component, the services segment is projected to grow at a significant rate during the forecast period.
• By technology, the network management segment contributed the highest market share in 2024.
• By technology, the database management system segment is anticipated to grow rapidly in the upcoming period.
• By deployment mode, the cloud segment captured the biggest market share in 2024.
• By deployment mode, the on-premises segment is projected to expand at a notable CAGR during the projection period.
• By enterprise size, the large enterprises segment contributed the biggest market share in 2024.
• By enterprise size, the SMEs segment is expected to expand to the highest CAGR in the coming years.
• By industry vertical, the IT & telecom segment generated the major market share in 2024.
• By industry vertical, the healthcare segment is expected to grow at a solid CAGR during the forecast period.

Role of AI in Information Technology Service Management Market

Artificial intelligence (AI) plays a significant role in information technology service management (ITSM). AI provides several benefits for IT organizations by enabling efficient delivery of services, faster problem-solving, and increased user experience. AI automates repetitive tasks, like raising tickets and resolving IT support issues. Automation of mundane tasks reduces the burden of IT staff, enabling them to focus on other complex tasks. Moreover, AI-driven automation lowers manual efforts, scales up the processing period, and provides support teams with more time to spend on core tasks. This allows staff to work faster and more efficiently. AI also reduces human errors and variations in processing support requests, improving service quality.

U.S. Information Technology Service Management Market Size and Growth 2025 to 2034

The U.S. information technology service management market size was exhibited at USD 3.87 billion in 2024 and is projected to be worth around USD 15.19 billion by 2034, growing at a CAGR of 14.65% from 2025 to 2034.

North America’s Stronghold on the Market

North America registered dominance in the information technology service management market by capturing the largest share in 2024. This is mainly due to the strong presence of leading IT companies. The North American government has implemented various initiatives, including the National Strategy for Trusted Identities in Cyberspace and the NIST Cybersecurity Framework, to encourage businesses to improve their ability to detect and prevent cyber threats. Moreover, a strong focus on digital transformation and innovation among various industries further bolstered the regional market growth.

• The U.S. is a major contributor to the market. The rise in the adoption of cloud and automation technologies in the IT sector supports market growth. With the increasing cases of cyber threats, various organizations are focusing on improving their risk management capabilities, boosting the demand for ITSM solutions.

Asia Pacific: The Fastest-Growing Region

The information technology service management market in Asia Pacific is anticipated to expand at the highest CAGR over the forecast period due to the rising digitalization across various industries like healthcare, finance, and manufacturing, increasing adoption of cloud computing, and the rising demand for managed and professional services. The rapid expansion of the IT & telecom sector and the increasing acceptance of hybrid work models are likely to contribute to market growth.

China and India play a major role in the market. China promotes a stronger digital economy, builds a digital culture with prosperity and confidence, creates a digital society featuring comprehensiveness and convenience, and shapes an intelligent and digital ecological civilization. Moreover, the rising government initiatives to promote digitization further support market growth. For instance, the Indian government launched the 'Digital India' initiative to improve digital infrastructure and raise internet accessibility. This, in turn, boosts the demand for ITSM solutions.

Europe to Witness Notable Growth

Europe is observed to grow at a significant rate in the upcoming period. The rapid expansion of the IT infrastructure boosts market growth. European businesses are investing heavily in IT services to streamline their operations and enhance efficiency. Moreover, stringent regulations regarding data security significantly boost the adoption of ITSM solutions among businesses.

Market Overview

The information technology service management market is expected to expand rapidly during the forecast period due to the rapid expansion of the IT sector across the world. IT service management (ITSM) is a set of processes used to plan, design, and manage service delivery. ITSM encompasses a comprehensive range of services that help to improve IT infrastructure. ITSM supports IT businesses in boosting productivity and enhancing user experience. It also helps organizations boost market strategies, maintain compliance with regulatory and organizational requirements, and lower risk by embedding controls into IT service design, delivery, and management.

Information Technology Service Management Market Growth Factors

• With the rapid shift toward cloud computing, the demand for ITSM solutions is increasing to improve IT infrastructure for managing complex tasks, boosting the growth of the information technology service management market.
• The rising security concerns among IT organizations are boosting the demand for ITSM solutions for risk management. ITSM helps in problem-solving and incident management, reducing the risk of cyberattacks.
• The increasing integration of enterprise service management (ESM) solutions in IT businesses is fueling market growth. ESM solution improves operational efficiency and lowers workload and operational costs by improving service delivery and transparency in operations.
• The increasing focus on hyperautomation further contributes to market growth. This approach involves the use of multiple tools, technologies, and platforms to automate business processes.

Market Scope

Market Dynamics

Drivers

Shift Toward Hybrid Work Models

IT businesses are rapidly embracing hybrid work models, boosting the demand for ITSM solutions for seamless operations. Hybrid work models require ITSM solutions to manage a distributed workforce and provide timely assistance. With employees working from various locations, the need for IT support increases. Hybrid work models often increase security concerns. This, in turn, boosts the need for ITSM solutions to efficiently manage risks. In addition, the rising concerns about cybersecurity boost the demand for ITSM solutions that incorporate security management features.

Restraint

A Lack of Understanding About ITSM Processes

A significant challenge in the information technology service management market is the lack of understanding in IT teams, which leads to inefficient problem resolution and poor service delivery. Technicians often prioritize rapid closure over accurate problem-solving, misinterpreting user requirements in an attempt to lessen workload. This approach not only fails to address the root cause of IT challenges but also negatively impacts user satisfaction and service quality. A lack of process understanding leads to inefficient service delivery and longer resolution time.

Opportunity

Integration of DevOps into ITSM

The integration of DevOps into ITSM creates immense opportunities for IT organizations seeking greater speed, agility, and efficiency in IT service delivery. Conventionally operating as separate frameworks, ITSM and DevOps are integrating to increase collaboration, continuous delivery, and iterative development. This technology allows faster deployment, enhanced service quality, and better alignment with business objectives. As enterprises increasingly adopt DevOps-driven ITSM solutions, they streamline workflows, automate processes, and accelerate innovation, enabling them to gain a competitive edge in the evolving digital landscape.

Component Insights

The solution segment dominated the information technology service management market with the largest share in 2024. This is mainly due to the rise in the need among businesses to streamline operations. ITSM solutions offer many benefits, including increased operational efficiency, reduced operational costs, enhanced productivity, increased consumer experience, and improved transparency. ITSM solutions automate operations and enhance IT service delivery. They help IT businesses manage various mundane tasks without additional staff because ITSM solutions automate tasks, which may have required new team members to be hired before.

The service segment is projected to expand at a significant growth rate during the forecast period. The rapid shift toward hybrid work models is boosting the demand for support services. These services provide timely assistance, help in risk management, and enable organizations to resolve queries rapidly. These services play a key role in enhancing client satisfaction and customer loyalty.

Technology Insights

The network management segment captured the largest share of the information technology service management market in 2024. This is mainly due to the rise in the need for network security. Network management solutions allow network operators to monitor, operate, and control enterprise computer networks. The key role of network management solutions is to ensure network resources are made available to users. These solutions identify anomalies in the network, mitigating the risks of cyber threats.

The database management system segment is expected to grow at a rapid pace in the coming years. Database management system (DBMS) improves data security, enables efficient data access and sharing, reduces redundancy, and improves data integrity, leading to improved decision-making and productivity of the organization. With the rising volume of data, the need for real-time data monitoring solutions is increasing, significantly contributing to segmental growth.

Deployment Mode Insights

The cloud segment held the largest share of the information technology service management market in 2024 due to the heightened adoption of cloud computing. Cloud-based ITSM provides organizations with many benefits, from flexibility and scalability to cost-saving and improved security. Cloud-based ITSM solutions emerged as a strategic move that considerably increases business performance and flexibility. Cloud-based ITSM solutions are hosted on cloud servers, enabling users to access them from anywhere, improving flexibility in operations.

The on-premises segment is anticipated to witness significant growth in the coming years. The segment growth is attributed to the growing concerns about cybersecurity. The on-premise deployment offers businesses greater control over the infrastructure, enabling them to customize and configure it to consumers' exact requirements. Since on-premises ITSM solutions deploy in organization's infrastructure, they reduce concerns regarding data privacy and security.

Enterprise Size Insights

The large enterprises accounted for the largest market share in 2024. Large enterprises often have more complex IT infrastructure, requiring continuous assistance to streamline operations and address complexities. ITSM solutions enable large enterprises to increase efficiency and productivity by streamlining IT operations. Moreover, large enterprises often have wide networks and vast data volumes, increasing security concerns. This, in turn, boosts the adoption of ITSM solutions among large enterprises to address data and network security concerns.

The SMEs segment is anticipated to grow at the fastest rate over the studied period as SMEs often rely on IT services to boost their efficiency and productivity. ITSM solutions enable them to streamline IT operations and improve business productivity. In addition, the rising adoption of cloud solutions among SMEs due to their cost-effectiveness boosts the demand for ITSM solutions.

Industry Vertical Insights

The IT & telecom segment led the information technology service management market with the largest share in 2024. This is mainly due to the proliferation of IT services. IT businesses rely on ITSM solutions to manage the end-to-end delivery of IT services to consumers. The segmental growth is further driven by the increasing adoption of cloud computing and the growing concerns about network security among IT and telecom businesses.

The healthcare segment is anticipated to expand at the highest CAGR over the projection period. ITSM solutions enable healthcare organizations to monitor and identify anomalies in the network, improving risk assessments and data security, which are important for complying with strict healthcare regulations. This ensures that healthcare organizations meet all necessary legal requirements and maintain high standards of data protection. The expansion of IT infrastructure in healthcare further boosts the demand for ITSM solutions.

Information Technology Service Management Market Companies

• Atlassian
• BMC Software, Inc.
• Broadcom
• Cloud Software Group, Inc
• Freshworks Inc.
• Hewlett Packard Enterprise Development LP
• IBM Corporation
• Ivanti.
• Open Text
• ServiceNow.

Segments Covered in the Report

By Component

• Solution
• Services

By Technology

• Performance Management
• Configuration Management
• Network Management
• Database Management System
• Others

By Deployment Mode

• Cloud
• On-Premises

By Enterprise Size

• SMEs
• Large Enterprises

By Industry Vertical

• IT & Telecom
• BFSI
• Retail & E-commerce
• Healthcare
• Energy & Utilities
• Government
• Others

By Region

• North America
• Asia Pacific
• Europe
• Middle East & Africa (MEA)
• Latin America