The information technology service management market was valued at USD 6.41 billion in 2019 and is expected to reach USD 12.19 billion by 2025, at a CAGR of 11.3% over the forecast period 2020 - 2025 With the introduction of new technologies, the enterprises are looking to implement them in the quest to improve their services to benefit their customers. For instance, Artificial Intelligence (AI) has been integrated with ITSM.
- There has been a shift in focus toward the management of IT services and their applications for both short and long-term strategic decisions. Enterprises are investing heavily in the ITSM applications that can replace their existing legacy systems, depending on the features and capabilities offered by them.
- Moreover, the market is also witnessing the major transformation of business segments, such as retail, travel, and hospitality, among various others from the traditional systems to cloud-based systems, owing to the increasing IT penetration.
- In addition to this, businesses are shifting toward cloud-based solutions as it is an affordable operating expense instead of deploying an investment-intensive high Capital expenditure IT infrastructure solutions on-premise. This is expected to drive the cloud-based information technology service management demand.
- Implementing ITSM solutions help business by regularizing processes through structured delivery and documentation. ITSM also helps businesses by bringing actionable IT insights into the business that help in decision making.
Scope of the Report
Information technology service management (ITSM) is a term that describes a strategic approach to design, deliver, manage and improve the way businesses use information technology (IT). ITSM includes all the activities and processes that support service throughout its lifecycle such as problem and incident management, service management to change management, among others.
Key Market Trends
BFSI Sector is expected to Witness Significant Growth
- Banks around the globe are undergoing a major digital transition and have witnessed enormous innovations in the past few years, especially in the information technology segment within the BFSI environment.
- Moreover, FinTech has become common with an ever-evolving corporate and consumer focus. In addition to this, information technology has evolved from just a back-office function to a principal assistant in raising the value of a bank over time.
- IT is now a vital part of every bank and it has achieved this by incorporating pro-active means, such as strengthening and instituting bank infrastructure related to security, communication, and networking, achieving inter-branch connectivity, among various other functions.
- Thus, these factors are fueling IT adoption in the BFSI sector which is evident from the fact that banks across various regions are increasing their expenditure on IT. This is, in turn, driving the demand for ITSM solutions. Along with this, the growth in cloud computing in the banking sector is further expected to augment the demand for cloud-based ITSM solutions.
Asia Pacific is Expected to Witness Highest Growth
- The Asia Pacific region is expected to witness the highest growth during the forecast period as the market is expected to be driven by the digitization initiatives of various governments in this region.
- Apart from this, the rapid growth in cloud computing in this region is expected to act as a major driver for cloud-based ITSM solutions. For instance, the Digital India initiative continues to take shape, its goal is to provide government services to citizens electronically by improving IT infrastructure and by increasing Internet connectivity.
- Moreover, the initiative's aims are to move legacy and on-premise systems to a cloud-based model or integrate with it, and the cloud platform is expected to host the delivery of e-services to citizens.
- Economies like China, India, Japan, and South Korea are witnessing good investor interest in IT service management. Also, owing to the rise in the number of internet users in this region and increasing adoption of technologies like 4G LTE are also boosting the growth of the market.
The information technology service management market is highly competitive owing to the presence of small and large players in the market operating their business in domestic as well as in the international market. The market appears to be moderately concentrated with the major players adopting strategies like product and service innovation and mergers and acquisitions. Some of the major players in the market are CA Technologies, IBM Corporation, ASG Technologies Group, Inc., Atlassian Corporation Plc among others.
- March 2018 - Ivanti announced a cloud-delivered AI application for service management. The new cloud-based Hub and Bot can be fully integrated with the overall service management workflow
- February 2018 - Cherwell Software, LLC announced a solution that blends Cisco’s Application Centric Infrastructure with Cherwell’s ITSM platform. It is designed to provide an accurate and up-to-date view of overall IT ecosystem
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