What Is the Growth of the Cloud-Based ITSM Market in Recent Years?
The cloud-based itsm market size has shown significant expansion in recent years, fueled by transformative industry dynamics and evolving strategies.
• The market size increased from $8.98 billion in 2024 to $10.07 billion in 2025, demonstrating a compound annual growth rate of 12.2%.
This expansion can be attributed to the heightened emphasis on user experience, digital transformation initiatives, cost efficiency, opex models, and the incorporation of remote work environments and multi-cloud strategies.
What is the Expected Size and Growth of the Cloud-Based ITSM Market in the Upcoming Years?
The cloud-based ITSM market is predicted to witness extensive growth in the coming years.
• The market size is anticipated to reach $18.89 billion in 2029, displaying a compound annual growth rate of 17.0%.
The projected upswing can be credited to evolving industry-specific requirements, heightened customer satisfaction and experience, global regulatory and governance considerations, and a strong focus on continuous improvement and analytics. Alongside, key market trends like digital transformation initiatives, remote and hybrid work models, automation and AI integration, and cost efficiency opex models are expected to fuel the growth trajectory of the sector.
What Are the Primary Forces Driving the Growth of the Cloud-Based ITSM Market?
The increase in the adoption of cloud-based applications is a major factor catalyzing the growth of the cloud-based ITSM market. Organizations have been employing cloud computing to manage, store, and process data on hosted Internet servers to bolster scalability and minimize costs and risks. Evidence from a report by Flexera in 2023 suggests that 93% of establishments utilized cloud services, and a massive 87% embraced multi-cloud strategies. This rise can be attributed to the constant need for flexibility and agility to adapt quickly to market demands. Hence, the rising adoption of cloud-based applications is likely to stimulate the cloud-based ITSM market expansion.
How Is the Cloud-Based ITSM Market Segmented?
The cloud-based ITSM market is divided as follows:
1) By Component: Solutions, Services
2) By Size: Small And Medium-Sized Enterprises (SMEs), Large Enterprises
3) By End User: Telecom And IT, BFSI, Manufacturing, Retail, Healthcare, Education
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What Trends Are Impacting the Cloud-Based ITSM Market?
Technological innovation is a key trend gaining traction in the cloud-based ITSM market. Major players are relentlessly providing cutting-edge solutions to solidify their market presence. These organizations are integrating next-generation technologies into their services including virtualization, grid computing, service-oriented architecture, artificial intelligence, mining, cloud computing, automated cloud orchestration, among others. One noteworthy example is Sherweb's launch, a Canadian-based cloud solutions provider, of an all-encompassing ITSM solution, C2 MSP in October 2023. This service delivers a fully integrated ticketing solution and a self-service portal, augmenting partners’ operational efficiency and end-client experience.
Who Are the Key Players in the Cloud-Based ITSM Market?
Key players operating in the cloud-based ITSM market include:
• ServiceNow Inc.
• Hewlett Packard Enterprise Company
• International Business Machines Corporation (IBM)
• BMC Software Inc.
• Broadcom Inc.
• Ivanti Inc.
• Hornbill Systems Limited
• Microsoft Corporation
• EasyVista Inc.
• Micro Focus International plc
• Atlassian Corporation Plc
• Alemba Limited
• SysAid Technologies Ltd.
• Freshworks Inc.
• SolarWinds Corporation
• Zendesk Inc.
• Agiloft Inc.
• TOPdesk International B. V.
• HappyFox Inc.
• Zoho Corporation Pvt. Ltd.
• InvGate Inc.
• Google Cloud IT Service Management (ITSM)
• Salesforce Service Cloud
• SAP IT Service Management (ITSM)
• Atlassian Jira Service Desk
• Ivanti Service Manager
• HCL Remedy OnDemand
In Which Region Is the Cloud-Based ITSM Market Most Prominent?
North America commanded the largest share in the cloud-based ITSM market in 2024. However, Asia-Pacific is poised to outpace other regions in terms of growth during the forecast period. The cloud-based ITSM market report covers all continents from Asia-Pacific, Western Europe, Eastern Europe, North America, South America, to the Middle East, and Africa.
