Information Technology Service Management Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Deployment (Cloud, On-premise), By Application (Configuration Management, Performance Management, Network Management, and Database Management System), By End-user Industry (BFSI, Manufacturing, Government and Education, IT and Telecommunication, Retail, Travel and Hospitality, Healthcare, Others), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 6.59 Billion
CAGR (2026-2031)	9.27%
Fastest Growing Segment	Cloud
Largest Market	North America
Market Size (2031)	USD 11.22 Billion

Market Overview

The Global Information Technology Service Management Market will grow from USD 6.59 Billion in 2025 to USD 11.22 Billion by 2031 at a 9.27% CAGR. Information Technology Service Management comprises the collective policies, processes, and procedures that organizations employ to design, deliver, and control information technology services throughout their lifecycle. The market is principally driven by the global imperative for digital transformation and the requirement to align IT operations with strategic business objectives to ensure service continuity. According to HDI, in 2024, 59% of respondents identified improving customer experience as the primary driving force behind their service management projects.

Nevertheless, the industry faces a notable challenge concerning the scarcity of skilled professionals required to implement and manage these complex systems. This talent shortage limits the ability of organizations to fully optimize their service frameworks and represents a significant hurdle that could delay broader market expansion.

Key Market Drivers

The integration of Artificial Intelligence and automation has emerged as a primary catalyst for the Global Information Technology Service Management Market, fundamentally reshaping how organizations handle service delivery. Enterprises are increasingly deploying generative AI and machine learning algorithms to automate routine incidents, predictive maintenance, and complex workflows, thereby reducing manual intervention and accelerating response times. This technological evolution allows IT teams to shift focus from reactive firefighting to strategic innovation, directly impacting operational velocity. According to SolarWinds, October 2025, in the '2025 State of ITSM Report', teams utilizing GenAI-enabled features resolved tickets 17.8% faster on average compared to those relying on traditional methods, highlighting the tangible efficiency gains driving this trend.

Simultaneously, the market is witnessing a strategic shift towards improving end-user experience and satisfaction, recognizing that seamless IT support is critical for employee retention and productivity. Organizations are moving beyond basic service level agreements to adopt experience-centric metrics, prioritizing user-friendly self-service portals and personalized support interactions. This focus on "human-centric" IT ensures that technology serves as an enabler rather than a bottleneck, fostering a more engaged workforce. According to HappySignals, August 2025, in the 'Global IT Experience Benchmark Report 2025', organizations implementing human-centric IT strategies achieved 26% higher productivity among employees. Reflecting the broader financial commitment to these modern capabilities, according to ServiceNow, in 2025, the company reported subscription revenues of $3.005 billion for the first quarter, representing a 19% year-over-year growth driven by enterprise demand for digital transformation tools.

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Key Market Challenges

The scarcity of skilled professionals constitutes a critical impediment to the expansion of the Global Information Technology Service Management Market. As organizations adopt complex service frameworks to support digital transformation, the demand for personnel possessing specialized technical expertise has outpaced supply. Modern platforms require specific knowledge for effective configuration and automation. When companies cannot secure this talent, they often postpone deploying advanced solutions or struggle to utilize their existing investments. This operational lag constrains market growth by reducing the return on investment for service management tools and stalling modernization initiatives.

According to ISACA, in 2024, 53% of industry professionals identified the lack of staff skills and training as the primary obstacle preventing organizations from achieving their digital trust and governance goals. This statistic underscores the severity of the workforce capability gap. Without a sufficient workforce to bridge the gap between IT operations and strategic business needs, organizations remain unable to scale their service delivery, thereby slowing the overall momentum of the global market.

Key Market Trends

The expansion of Service Management principles to non-IT enterprise functions, often termed Enterprise Service Management (ESM), represents a structural market shift where departments such as HR, Legal, and Facilities adopt ITSM workflows to manage service delivery. By leveraging established IT frameworks for ticketing, service catalogs, and knowledge management, organizations are breaking down operational silos and unifying the employee service experience across the entire business. This trend is rapidly gaining traction as companies seek to replicate IT's structured efficiency in other business units to improve cross-functional visibility. According to Freshworks, October 2025, in the 'Freshservice Benchmark Report', one out of four eligible ITSM customers were utilizing service management capabilities for business teams, demonstrating the growing reliance on these platforms for broader enterprise governance.

Simultaneously, the integration of ITSM processes into DevOps and Agile delivery pipelines is fundamentally changing how governance is enforced, moving from manual gatekeeping to automated platform engineering. Instead of traditional Change Advisory Boards delaying releases, organizations are building Internal Developer Platforms (IDPs) that embed compliance, security, and configuration standards directly into the deployment infrastructure. This "Platform as a Product" approach ensures that high-velocity release cycles do not compromise control, effectively fusing regulatory oversight with the developer's daily workflow. According to Puppet, March 2024, in the '2024 State of DevOps Report', 43% of respondents indicated that their platform has a dedicated security and compliance team, illustrating the successful embedding of operational governance into modern development practices.

Segmental Insights

The Cloud segment constitutes the fastest growing division within the Global Information Technology Service Management Market due to rising enterprise demand for scalable deployment models. Organizations are increasingly transitioning from traditional internal systems to cloud solutions to eliminate substantial hardware investments and streamline maintenance operations. This expansion is further propelled by the widespread adoption of remote work environments, which necessitates centralized and accessible service platforms to ensure business continuity. Consequently, the cloud offers the necessary agility and accessibility required by modern businesses to manage IT services efficiently across diverse geographical locations.

Regional Insights

North America secures a leading position in the Global Information Technology Service Management Market, driven by the widespread integration of cloud-based digital transformation strategies across established enterprises. This dominance is significantly reinforced by the concentration of major software vendors within the United States, which fosters continuous technological advancement. Furthermore, the necessity to adhere to rigorous cybersecurity and governance standards, such as the frameworks developed by the National Institute of Standards and Technology (NIST), compels organizations to adopt compliant service management systems. Consequently, regional businesses prioritize these solutions to ensure seamless operational continuity and regulatory adherence.

Recent Developments

• In October 2024, Freshworks Inc. unveiled the Freddy AI Agent, a new generation of autonomous service agents designed to enhance both customer and employee experiences within the IT service management landscape. This easy-to-deploy solution was built to resolve a significant percentage of service tickets autonomously without requiring complex code or external consultants. The launch emphasized the company's commitment to accessible AI software, allowing IT and support teams to provide round-the-clock, human-like conversational assistance. The Chief Executive Officer of the company noted that the technology was engineered to be platform-agnostic, leveraging advanced large language models to deliver hyper-personalized service.
• In September 2024, ServiceNow released the Xanadu platform update, delivering comprehensive artificial intelligence innovations specifically for the IT Service Management sector. This major release introduced robust AI agents and expanded the Now Assist portfolio to support critical enterprise functions such as security operations and procurement. A key highlight was the integration with Microsoft Copilot, creating a seamless, connected experience for employees across collaboration platforms. The update focused on boosting customer agility and productivity by enabling autonomous workflows and providing proactive data visualization tools to streamline decision-making processes for IT leaders.
• In May 2024, SolarWinds announced the launch of a new generative AI engine, SolarWinds AI, integrated directly into its IT Service Management solution, SolarWinds Service Desk. Developed using a "Secure by Design" framework, this advanced capability was engineered to streamline IT operations by instantly summarizing complex ticket histories and providing suggested responses for agents. The new feature aimed to reduce ticket resolution times significantly and improve the overall support experience. The company highlighted that this release marked the beginning of broader AI integration across its observability and IT management portfolio to support diverse technical teams.
• In April 2024, BMC Software announced the definitive agreement to acquire Netreo, a provider of smart and secure IT network and application observability solutions. This strategic acquisition was designed to strengthen the company's Helix platform by integrating full-stack, open observability and AIOps capabilities directly into its service management offerings. The move aimed to provide customers with deep visibility into performance across their networks, infrastructure, and applications from a unified platform. By combining these technologies, the company intended to help IT operations and DevOps teams deliver reliable digital services with enhanced root cause analysis and automated remediation.

Key Market Players

• ServiceNow
• Atlassian
• BMC Software
• GoTo
• Ivanti
• Zoho Corporation
• Cherwell Software
• Freshworks
• EasyVista
• ManageEngine

By Deployment	By Application	By End-user Industry	By Region
Cloud On-premise	Configuration Management Performance Management Network Management Database Management System	BFSI Manufacturing Government and Education IT and Telecommunication Retail Travel and Hospitality Healthcare Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Information Technology Service Management Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Information Technology Service Management Market, By Deployment:

• Cloud
• On-premise

• Information Technology Service Management Market, By Application:

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

• Information Technology Service Management Market, By End-user Industry:

• BFSI
• Manufacturing
• Government and Education
• IT and Telecommunication
• Retail
• Travel and Hospitality
• Healthcare
• Others

• Information Technology Service Management Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE