Information Technology Service Management Market – Growth, Trends, Impact of COVID-19 and Forecast (2022)
The IT Service Management market was valued at $5,916. 25 million in 2021 and is expected to reach 6,674 USD. 43 million by 2027 at a CAGR of 2.02% over the forecast period 2022-2027.
New York, June 07, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Information Technology Service Management Market – Growth, Trends, COVID-19 Impact and Forecast (2022 – 2027) – https://www.reportlinker.com/p06283194/?utm_source=GNW
Information Technology Service Management, hereafter referred to as (ITSM), defines all IT-related activities that include the creation, delivery, support and management of custom solutions that are performed to achieve the business objective of IT organizations.
Moreover, being an end-to-end service, ITSM is not just about designing and delivering appropriate IT systems, applications, or resources; in fact, ITSM primarily focuses on taking a business- or project-specific process approach. The end goal of ITSM is always individually defined based on unique customer needs and values. In addition, ITSM clearly defines the roles and permissions of those involved in the project, partners and third-party providers of services, products and new technologies.
The IT organization tends to focus more on managing IT services and applications for their short and long term strategic goals. ITSM offers many advantages such as cost reduction, automation of repetitive tasks and data collection in one place, among others, which have a strong impact on the overall performance of the organization, helping them to achieve their short and long term strategic goals. Goals. Hence, with the changing dynamics of the IT industry, the ITSM market is expected to witness prolific growth over the forecast period.
Although ITSM tools provide excellent benefits, specific challenges, such as implementation, reliability issues, and lack of quality standards in service level agreements (SLAs), are expected to hamper the market growth studied during the forecast period. The process of purchasing an ITSM tool, primarily for critical IT service management, involves the belief that the vendor’s business will endure and the relationship with it. In the event of supplier failure, the companies that depend on it are strongly impacted and must find a tool to replace the tool. This, in turn, should disrupt their process and ultimately their efficiency.
The COVID-19 pandemic has had a beneficial impact on the market, owing to the rise of remote working and the growing digital transformation of businesses. Companies are looking for business processes that are transparent, efficient and accessible from anywhere. Additionally, many companies have completed their digital transformation, and a number of them have decided to stay entirely remote or operate on a hybrid digital and office model. Thus, IT teams can expect a surge in the need for internal IT support and ITSM software, thereby driving the growth of the market studied.
Main market trends
The IT and telecommunications sector is expected to hold the largest market share
Modernizing IT service management for the IT and telecommunications industry is an advanced approach. This bridges the gap between traditional, on-premises, and cloud-based IT systems. It increases operational efficiency and effectiveness. Thus, consolidating how data is captured, analyzed, and shared across enterprises provides an improved experience for internal IT employees and external components.
With rapid technological advancements, telecommunications companies are continuously focusing on innovation. Thus, they are focused on upgrading their infrastructure while developing state-of-the-art solutions to serve their customers, including innovation, customer service, infrastructure setup, and human resources.
Additionally, implementing ITSM solutions helps telcos gain unified visibility into bills, spend, usage, and assets across their entire portfolio of communications, cloud, and software licenses. . Thus, reducing overall costs and improving productivity, primarily by improving visibility, while providing a finely tuned set of processes to manage the existing IT infrastructure. Additionally, IT companies are focusing on adopting ITSM with the growing demand on cloud-based models. With this growing adoption of cloud-based ecosystems, enterprises have expanded their partnership through new offerings on the cloud platform.
In November 2021, Tata Communications announced the launch of Tata Communications GlobalRapide; end-to-end managed Unified Communications as a Service (UCaaS) to enable enterprises to deliver advanced, sophisticated and intelligent digital collaboration experiences to employees. Tata Communications becomes a one-stop-shop to meet the unified communications requirements of all digital and cloud-focused global enterprises with this new ITSM.
According to 5G Americas, growth in 5G subscriptions is expected to continue for the foreseeable future, reaching 3 billion subscriptions by 2025. This includes 600 million subscriptions from 2023 to 2024 and from 2024 to 2025.
North America will account for the largest share
North America is a leading market for ITSM, owing to the high adoption of cloud technology and the growing need for improved IT services by end-user industries in the region. According to an IT management survey report by Site24*7, 62% of respondents said ease of management was the top driver for moving to the cloud, followed closely by business continuity (60%) and scalability (59%).
Additionally, a March 2022 report with a survey titled “A Hybrid Cloud Adoption Survey” of over 900 IT professionals suggested that most enterprises (93%) are adopting a hybrid of solutions cloud and on-premises or fully migrate to cloud within five years. The survey was primarily conducted in North America and Europe, where 43.8% of respondents were from North America. Thus, the increasing shift to cloud platforms is expected to drive the demand for IT service management solutions in the coming years.
Additionally, the region has a strong presence on ITSM vendors, which is contributing to the growth of the market. Some of them include IBM Corporation, ServiceNow Inc., BMC Software Inc., and LogMein, among others.
Due to post-pandemic remote work practices, most organizations are also taking preventative measures to secure their mobile devices and equipment provided to employees. The Canadian Center for Cyber Security encourages the Canadian cyber security community, especially defenders of critical infrastructure networks, to increase their awareness and protection against Russian state-sponsored cyber threats. The Cyber Center joins partners in the United States and United Kingdom in recommending proactive network monitoring and mitigation measures.
The market is witnessing the growth of cloud-based ITSM, owing to the rapid adoption of BYOD policies to improve productivity, employee satisfaction, and profitability. These policies require remote accessibility of information, which is facilitated by cloud-based ITSM solutions.
The managed services market is dominated by major players, such as IBM Corporation and Atlassian Corporation PLC, which have a strong customer base in the market. These players constantly offer increased and enriched offers. In order to stay in the market and retain their customers, companies deploy powerful competitive strategies. This factor intensifies the competitive rivalry in the market.
Overall, the degree of competition is high and is expected to remain the same throughout the forecast period as the players offer various services based on the needs of the customer.
January 2022 – Atlassian Corporation PLC acquires Percept. AI to improve the AI engine for natural language understanding in managing Jira services. The company aims to create an integrated experience for market customers. With Percept.AI, the company aims to deflect the vast majority of Tier 1 support questions, deliver a great user experience, and free up IT teams to focus on more complex tasks.
October 2021 – BMC announced the acquisition of StramWeaver, a company that helps enterprises achieve their goals of end-to-end observability, artificial intelligence operations (AIOps), cloud migration, and cost reduction. costs through data integration capabilities. The acquisitions are expected to enhance AIOps capabilities with a wide range of out-of-the-box data integrations based on a complementary and modern microservices-based architecture.
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